Interim Management Statement

RNS Number : 3552U

Henderson Far East Income Limited

20 December 2011

 



HENDERSON FAR EAST INCOME LIMITED

20 December 2011

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 September 2011 to 30 November 2011

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net disinvestment of £3.5m, and the number of holdings in the portfolio decreased to 49. The stocks that were sold were: QBE Insurance, Petrochina, Dongyue Group, HSBC Holdings, Coretronics Participation Notes, Yuanta Financial Participation Notes and Krung Thai Bank.

There are four new stocks in the portfolio: Australia and New Zealand Banking Group, Crown, Wharf Holdings and Yuanta Financial.

Asian stock markets benefited towards the end of the quarter from 'selective easing' announcements from China, which were designed to aid liquidity for the much beleaguered small and medium-sized enterprise sector. As a result, the Chinese market outperformed, alongside Australia and Korea, which were both bolstered by appreciating currencies. The uncertainty surrounding the Eurozone ensured most markets had negative returns over the period with India being the worst performer. Asian markets are attractively valued over the medium to long term and we have therefore maintained a fully invested position and are actively considering taking out a loan facility to flexibly gear the portfolio with the objective of enhancing both income and capital returns. In the short term, however, we expect markets to remain volatile while investors digest news flow over the problems in Europe and on global growth. 

During the period three put options were sold in October and November, two put options expired in October and November and three put options were exercised in September and November, one where stock was taken up and two took cash.

Shares Issues: During the period 375,000 shares were issued in 3 tranches. The proceeds of these issues, net of commission, was £1,029,078.

Dividends: A fourth interim dividend of 3.90p per ordinary Share, in respect of the year ending 31 August 2011, was paid on 30 November 2011 to holders registered on 4 November 2011.

Discount/Premium:  the share price premium to net asset value decreased over the period to end at a discount of 0.9%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 30 November 2011

	3 months	1 year	3 years	5 years*
Net Asset Value Total Return per ordinary share (%)	-4.79	-11.11	61.87	48.64

Source:   FundData

* Data prior to December 2006 relates to the previous company, Henderson Far East Income Trust plc.

Financial Position

	at 30 November 2011	at 31 August 2011
Net assets	£270.8m	£287.4m
Net asset value cum income	269.5p	287.1p
Net asset value ex income	267.3p	281.8p
Ordinary share price	267.0p	294.5p
(Discount)/Premium	(0.9)%	2.6%
Gearing	0.0%	0.0%
Yield	5.5%	5.1%
Total Expense Ratio	1.24%	1.24%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 30 November 2011	at 31 August 2011
Telstra Corporation	Australia	3.4	3.0
Korean Reinsurance	South Korea	3.2	3.1
Amcor	Australia	3.2	2.7
Link REIT	Hong Kong	3.0	2.7
Santos	Australia	2.9	2.3
Jiangsu Expressway	China	2.9	2.5
Taiwan Semiconductor Manufacturing	Taiwan	2.8	2.3
Kangwon Land	South Korea	2.8	2.6
Shangai Industrial	China	2.7	2.0
Digital China Holdings	China	2.7	2.3

Geographic Breakdown	% at 30 November 2011	% at 31 August 2011
Australia	18.7	15.6
China	17.2	20.5
Singapore	12.9	12.7
Taiwan	12.1	12.8
Thailand	9.8	10.0
Hong Kong	9.6	8.6
South Korea	9.3	8.6
Malaysia	4.1	4.2
The Philippines	2.2	3.0
Indonesia	2.2	2.0
Japan	1.9	2.0

Sector Breakdown	% at 30 November 2011	% at 31 August 2011
Financials	21.1	23.5
Industrials	17.2	15.6
Telecommunications	15.0	15.0
Property	11.0	10.3
Consumer Services	9.8	7.3
Technology	8.3	8.9
Consumer Goods	5.9	4.3
Basic Materials	5.0	6.9
Oil & Gas	4.5	6.2
Utilities	2.2	2.0

The objective of Henderson Far East Income Limited is to seek a high level of dividends as well as capital appreciation over the long term, from a diversified portfolio of securities traded on the Pacific, Australasian, Japanese and Indian stock markets (the "Asia Pacific Region").

Further information on the Company, including an up to date NAV and share price information, can be found at www.hendersonfareastincome.com 

For further information, please contact:

Jeremy Hamon Company Secretary Telephone: [phone]	James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

Henderson Far East Income Limited has its registered office at Liberté House, 19-23 La Motte Street, St Helier, Jersey JE3 4SY and it is regulated by the Jersey Financial Services Commission

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

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