Annual Financial Report

RNS Number : 8705T

Henderson Far East Income Limited

19 November 2019

 

Legal Entity Identifier:  2138008DIQRE00380596

HENDERSON FAR EAST INCOME LIMITED

Financial results for the year ended 31 August 2019

This announcement contains regulated information

Investment Objective

The Company seeks to provide shareholders with a growing total annual dividend per share, as well as capital appreciation, from a diversified portfolio of investments from the Asia Pacific region.

Highlights

·      Net Asset Value total return¹ of 6.5% compared to a total return for the FTSE All-World Asia Pacific ex Japan Index of 1.7% and the AIC Asia Pacific Income sector average of 4.5%

·      Share price total return² of 7.6%

·      Total dividend of 22.40p for the year, up 3.7% on the prior year

Total return performance to 31 August 2019 (including dividends reinvested and excluding transaction costs)
	1 year %	3 years %	5 years %	10 years %
NAV1	6.5	27.3	48.8	143.7
Share price2	7.6	25.5	47.3	132.8
AIC sector3 average	4.5	29.7	56.1	169.4
FTSE All-World Asia Pacific ex Japan Index4	1.7	28.8	52.7	151.4
MSCI AC Asia Pacific ex Japan High Dividend Yield4	2.3	24.2	37.1	151.2

Financial highlights

	At 31 August 2019	At 31 August 2018
Shareholders' funds
Net assets (£'000)	469,121	441,004
NAV per ordinary share	358.99p	359.26p
Share price	361.00p	357.00p
Year ended 31 August 2019			Year ended 31 August 2018
Profit for year
Net revenue profit (£'000) Net capital profit (£'000)	29,502	26,900
	(1,196)	(20,305)
	------------	----------
Net total profit	28,306	6,595
	=======	======
Total earnings per ordinary share
Revenue	23.38p	22.21p
Capital	(0.95p)	(16.77p)
	-------------	-----------
Total earnings per ordinary share	22.43p	5.44p
	=======	======
Ongoing charge5	1.11%	1.09%

1.     Net Asset Value total return including dividends reinvested

2.     Share price total return including dividends reinvested

3.     AIC sector is the Asia Pacific Income Sector

4.     Total return performance is Sterling adjusted

5.     Calculated using the methodology prescribed by the Association of Investment Companies and excluding the performance fee

Sources: Morningstar for the AIC, Janus Henderson and Datastream

Chairman's Statement

Performance

Considering the uncertainties impacting global markets, our flat net asset value at the year end was satisfactory. However, adding back revenue earned but paid out as dividends during the year, the total return performance was raised to a very creditable 6.5% notably ahead of the total return for the FTSE All-World Asia Pacific ex Japan index of 1.7%. The relatively good performance was driven by stock selection and we benefited from the weakness in Sterling, which declined 4.2% against currencies represented in the index. Currency movements are notoriously difficult to forecast and Sterling may strengthen against Asian currencies in the period ahead influenced specifically by a resolution of the Brexit negotiations. Should this have a material impact on revenues, the Company stands ready to utilise the revenue reserve to bridge the gap. Each year part of the revenue has been held back and not paid out to shareholders as dividends for the purpose of smoothing dividends when conditions turn less favourable. At present we have around nine months of dividends in reserve.

In measuring performance, and in particular the level of income returned to shareholders, your Board also considers the total return of the MSCI All-Country Asia Pacific ex Japan High Yield Dividend Index. Total return from this index was 2.3% (Sterling adjusted) for the year, 4.2% behind the Company's total return for the period, strengthening the Company's proposition as an offering for those investors with a focus on income.

The share price total return at the end of the year was 7.6%. This performance has been achieved despite the headwinds generated by the escalating US-China trade war, which put pressure on regional growth, and the slow-down in export and manufacturing activity in some jurisdictions, most notably in Taiwan and South Korea.  Performance from Hong Kong was also impacted by the recent and ongoing political unrest.  We have, however, seen some welcome measures by central banks to stimulate the region, but the results have, as yet, been underwhelming.

Dividends

Your Board continues with its approach of paying four quarterly interim dividends.  The third and fourth interim dividends paid for the year ended 31 August 2019 were declared in the amount of 5.70p per ordinary share respectively.  This brings the total dividend for the year to 22.40p (2018: 21.60p) per ordinary share, representing a 3.7% increase over last year, and well ahead of the 12-months to August 2019 figure for UK inflation of 1.7%.

This is the eleventh successive year that the Company has increased its dividend. 

Share issuance

Demand for the Company's shares remained strong throughout the year and the shares have continued to trade at a premium to net asset value. A total of 7.9 million shares were issued in the reporting period, raising a total of £27.9 million.  A further 3,330,000 shares were issued in the period up to the date of this report, raising an additional £12.1m.  Demand for the Company's shares has been so strong that additional shareholder authority is being sought at an Extraordinary General Meeting which will be held on 3 December 2019 to disapply pre-emption rights in respect of a further 5% of the issued share capital as at the date of the resolution. The usual authority to disapply pre-emption rights in respect of up to 10% of the issued share capital will be put to shareholders at the annual general meeting in January 2020. This second resolution will supersede all existing authorities.

All of the shares were issued at a premium thereby enhancing the net asset value for existing shareholders and enabling the fixed costs of the Company to be spread over a wider asset base.

Board trip to Asia

In April 2019 the Board undertook a week-long trip to Asia visiting Singapore, Ho Chi Minh City and Bangkok.

Singapore is the Asian hub for Janus Henderson and it was an opportunity for us to review the operations, meet with key individuals and witness the continuing and rising investment in human resources there. We met, too, with a number of Asian commentators and analysts to hear their views on the outlook for the region.

Our visit to Vietnam was the highlight of the trip as we could witness for ourselves the growth and potential of this remarkable country. The political system is stable, gross domestic product ('GDP') growth is strong at around 7% per annum, demographics are favourable and its many deep water ports support a strong export led economy.

Some investors question the accuracy of the GDP growth rate, but many companies are growing at around 30-40% per annum which supports the official figures.

The Vietnamese have achieved the transition from one of the poorest countries in the world in the 1980s to one achieving a very fast growth rate per capita similar to China and India.  This remarkable turn round has been achieved by adopting the China model of opening up the economy to foreign direct investment, internal market reforms, infrastructure development, strong export growth and adopting an education system geared to maths and science producing a work force suitable for the modern technological world.

Vietnam is still classed as a frontier market and has limits on foreign ownership so buying into the market often requires foreign investors to buy from fellow foreigners at a large premium to the underlying stock price. For this reason, we have invested in Vietnam via a listed closed-end fund, VinaCapital Vietnam Opportunity Fund, which sells at a substantial discount to the underlying stock prices. The fund invests in hospitals, schools, banks, food companies and an airline, Vietjet, the leading airline in Vietnam. The growth in this company is staggering. It is a low-cost airline and meets the needs of an increasingly mobile community. Previously it took two days and cost US$150 to travel from Hanoi to Ho Chi Minh City. With Vietjet it still costs US$150 but takes just two hours. We also visited property developments and companies in the consumer space. The rise in middle class consumption is easy to see.

We then moved on to Bangkok where the outlook was more obscure. An election was looming and the new King was about to take power. A number of interesting developments there seem to have been put on hold pending the election outcome and the installation of a new government. In June, following our visit, it was announced that the leader of the military coup, retired General Prayuth Chan-ocha, had been appointed Prime Minister despite not having a majority in the lower house. It will take some time to gauge how functional the new government is and its capacity to implement major reform.

Thailand finds itself in what economists call the 'middle income trap'. Wages are too high to appeal to low cost manufacturers while infrastructure and the labour force are insufficient to attract high tech manufacturing. The Thai government is aware of the problem and this led to the creation of the Eastern Economic Corridor ('EEC') project, creating a hub on the coast of the gulf of Thailand for technological manufacturing and services and strong connectivity to its ASEAN¹ neighbours as well as new markets. It is a massive project involving the construction of high-speed railways, motorways, a deep sea port, an airport, industrial estates and parks. The Government has targeted a number of industries including auto parts, electronics, robotics, aircraft parts and the bioeconomy comprising functional food, bioplastics and cosmetics. This is a massive project requiring high levels of foreign direct investment. It could serve to put Thailand on a new growth path and it was therefore disappointing to learn that a number of very promising foreign investors had put their plans on hold pending the election. It will take time for potential investors in the EEC project to gain confidence in the ability of the new government to progress these essential developments.

Succession

The Board reviews its structure annually. David Mashiter who has served on the board since it was incorporated in Jersey in 2007 will step down in 2020. As the Company is domiciled in Jersey, we are required by the Jersey Financial Services Commission to appoint a Jersey resident to replace him. A specialist consulting firm has been appointed to search for a suitable candidate and this is expected to be concluded next year.

David's diligence, attention to detail and experience in the investment world have been of enormous benefit to the Company and he will be missed by us all.

I have been Chairman since 2007 and, while continuity remains an important consideration for us, I expect to step down in 2021 giving sufficient time for the Board to select my successor.

Annual General Meeting

The annual general meeting will be held at 11.00 am on Thursday 23 January 2020 at the offices of Janus Henderson, 201 Bishopsgate, London, EC2M 3AE.  Details of the matters to be considered by shareholders at the meeting are set out in the Notice, which is enclosed with this document. 

We encourage all shareholders to attend the annual general meeting or, if they are unable to do so, to vote their shares. For shareholders with holdings registered in their own names, a proxy form is enclosed with this report.  Shareholders holding their shares on trading platforms should contact the platform directly to ensure that their shares are voted.

Your Fund Manager, Mike Kerley, will present an update on the Company's performance and he, and the directors, will be available for questions.

Outlook

While your Company enjoyed a good year, investors look forward not backwards. Investors seem to have rerated Asia as an investment destination and we had a substantial rise in new issuance during the year. Can we expect this trend to continue?

The renewed investor interest in the region reflects concerns about weak growth in the west, falling interest rates and heightened political uncertainty. Global growth is slowing, the US/China trade war drags on and a possible military conflict with Iran and the resulting disruption to shipping through the Straits of Hormuz is a worry for investors everywhere. In this environment investors will look for a relatively safe haven and Asia offers an opportunity.

The impact of these negative developments on Asia is mixed. There are no recession risks to the largest Asian economies but Hong Kong and Singapore are certainly at risk. The trade war has slowed growth in China but has offered significant benefits to Vietnam, Indonesia and the Philippines. The biggest losers from the trade war have been South Korea and Japan - two of the staunchest US allies.

Investors are attracted to the relative political stability in the region with elections in India, Thailand, Indonesia and Australia passing quietly and achieving outcomes comforting to investors. Global investment flows are looking for growth and yield and finding both in Asia. The Company released its Asia Pacific (ex Japan) Dividend Index during the year showing growth of dividends from the region rising by 8.3% during the period. This is a continuation of a longer term trend as Asian dividends have risen by 221% over the last decade compared with the global average of 120% and 89% in the United Kingdom. This trend is the result of pay-out ratios rising from a low base and many companies in the region becoming large, more mature and generating high levels of cash. Japan has been a difficult market for those seeking income, but recently we have noted that some quite attractive dividend yields are appearing. This is the result of Abe inspired structural and corporate governance reforms and pay-out ratios in the Tokyo Price Index ('TOPIX') rising from 17% in 2004 to around 30% today. Investors searching for income have every reason to remain optimistic that Asia will continue to generate faster dividend growth than the rest of the world over the longer term.

In terms of regional economic growth the picture remains mixed but overall quite positive. Demographics are attractive in many Asian countries while almost everywhere middle class wealth is rising resulting in strong growth in domestic consumption. While slowing global growth will remain a negative factor for the region there is significant internal and intra-regional economic growth which is robust and likely to remain so. Many Asian countries have a lot of room to engage in fiscal and monetary easing and China, India, South Korea and Indonesia have all done so recently. The Chinese banking system is still under some strain, but is now on a stable footing as a result of a combination of steady recapitalisation, sharply increased bad debt disposals and growing loan loss provisions. Despite concerns in the European Union about China's intentions, there are signs that European companies are moving increasingly towards Asia attracted by enhanced growth opportunities there.

China, over the past 30 years, has faced numerous challenges but recently the US trade war and what appears to be a popular uprising in Hong Kong have taken centre stage. One country, two systems, was bound to run into difficulty at some point. Hong Kong is Chinese sovereign territory and therefore the public demonstrations and the ensuing violence are an internal issue and Beijing will need to find a solution. The Chinese government has been restrained in its response realising that a heavy handed approach would be counterproductive and most likely damaging to international relations. The pressure on President Xi however must be intense as Hong Kong is a very visible symbol of the century of humiliation when parts of China were acquired or controlled by western interests. Part of the solution may well lie with the people of Hong Kong themselves. Hong Kong is, as an international financial centre not as important to China as it was following the development of Shanghai as a direct competitor. The longer the disruption continues the greater the adverse impact on the local economy. Business resistance will grow and there is likely to be a broadly based demand for resolution. Time will tell.

The trade war is an issue of a different dimension. If it worsens it will have very serious consequences for China, the US and indeed the global economy. President Trump has remarked that the trade war is highly damaging to China's manufacturing sector and has resulted in jobs being repatriated to the US. The evidence for this assertion, however, is not strong. If the US stays the course and ends up with levies on US$550 billion of Chinese goods by year end, according to HSBC, about 5% of China's manufacturing capacity will be affected. However, the impact will be quite uneven across the sector. The more labour intensive and lower end segment will take the brunt as factories move to lower wage countries like Vietnam. This process is not new however, as rising wages in China encouraged this transition well before the onset of the trade war. In the more advanced end of industry, electronics and high end tech, there has been an adverse impact but not as deep as the US expected. China is the world's biggest market for consumer electronics and being close to that market is compelling for business. China too has infrastructure and a quality work force other countries in the region cannot compete with.

In terms of intraregional trade the Regional Comprehensive Economic Partnership ('RECEP') which comprises the 10 ASEAN member countries plus China, Japan, South Korea, India, Australia and New Zealand will hopefully be ready to sign at the ASEAN conference in November. Now key regional elections are out of the way, real progress is possible. There are 3.6 billion people within the region and it will be by far the largest trade deal ever concluded. In a world where the benefit of free trade is increasingly being questioned and rolled back, the conclusion of RECEP would be a remarkable achievement with consequences well beyond the region.

This development has the potential to mitigate the adverse effects of the US/China trade war. It is therefore disappointing and difficult to understand why South Korea and Japan, both impacted by the trade war, have embarked on a trade spat of their own making. Japan's reaction to a decision of the Supreme Court in Seoul to award reparations to a number of war time forced labourers, was to strip South Korea of its 'white list' status thus requiring Japanese companies to seek Government approval before exporting sensitive materials to South Korea. Japan supplies three chemicals critical to the manufacture of semiconductors and flat panel screens. Interruption to supply has serious consequences for South Korea and is potentially disruptive to the global supply chain.

In assessing the outlook, investor aspirations and expectations with respect to environmental, social and governance issues ('ESG') need to be considered. ESG has now become mainstream within the investment world and the response of companies and governments have a role to play in investor preferences. Asia consists of a diverse range of markets from frontier to emerging in various stages of development. I don't think investors will expect the lesser developed countries to have reached the same standards as the more developed ones. ESG itself continues to develop and seems to have moved on from outright bans on some categories of industry and companies to one of process. Companies operating in contentious areas are being given support provided they demonstrate willingness to undertake reform. ESG issues have been well flagged in Asia and companies appear to recognize and accept that engaging with ESG is positive for their market rating and access to capital.

From a pure environmental standpoint China leads the world in clean energy production, especially in wind and solar power, and the rest of Asia is taking note. China has prioritised investment in renewables as it needs to tackle unacceptable levels of air pollution, wants energy security and believes in the urgency of addressing climate change. The International Renewable Energy Agency ('IRENA') recently noted that from 2010 to 2018 wind power capacity in China increased 22 times and solar by almost 700 times. In a global context China accounts for about 30% of the world's renewables compared to 10% in the US. China recognises it is the world's largest polluter and is making massive investments in alternative energy in its own self-interest, always the strongest motivator for change.

Asia, then, looks to be in a fairly good place, cleaning up the environment, increasing intraregional trade, spending on infrastructure, creating jobs and growth and undertaking reforms to further open up the region to trade and investment. Asia provides a diverse and extensive range of industries and companies to choose from and investors in the region have sound reasons to expect positive returns.

John Russell

Chairman

18 November 2019

¹ ASEAN member countries: Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Fund Manager's report   

Overview

Asia Pacific markets recorded a modest gain of 1.7% in Sterling terms over the twelve months to the end of August

2019 as measured by the FTSE All-World Asia Pacific ex Japan Index. This return was boosted by the strength of Asian currencies compared to Sterling as markets actually fell by 2.5% in local currency returns over the period. Considering the uncertainty both within the region and globally surrounding politics, trade wars, social unrest, slowing global growth and declining corporate earnings momentum equity markets have proved to be quite resilient. Supportive policies from central banks have helped underpin sentiment but only time will tell as to whether these measures will have the desired effect of reviving economic growth.

In the Fund Manager's report last year, I wrote about the trade dispute between China and the US and summarised the escalation as bad for both economies and hoped that pragmatism would reign and a sensible agreement would be reached. Sadly, a year on, the relationship hasn't improved and, despite a series of delays to tariffs being implemented and the odd conciliatory word, the antagonism between the two sides continues to ratchet up. With economic performance in both economies showing signs of trade related deterioration the need for a deal is intensifying, but with both Xi and Trump requiring a 'win' to appease domestic audiences the path to progress is unclear.

It is fair to say that politics has dominated world news in the last twelve months. While the continuing debacle surrounding Brexit has kept UK based investors' attention there have been developments in Asia both positive and negative. On the positive side the re-election of Narendra Modi in India with an increased majority was taken well by the market and reinforces the path of reform that was embarked upon under his first term. In Indonesia the re-election of Joko Widodo, also under a reform agenda, was well received despite some protests from supporters of chief rival and former general Prabowo who disputed the result. The surprise re-election of the ruling liberal party in Australia also had a positive impact on markets as the expected success of the populist labour party was thwarted at the polls. On the negative side the situation in Hong Kong is cause for concern. The protests, following the attempt by the Hong Kong government to pass an extradition bill to allow suspected criminals to be tried on the mainland, started in June 2019 and are showing no signs of abating. Although the bill has now been officially withdrawn the protests continue with increased vigour as the focus turns toward protecting Hong Kong's freedoms and the fear of greater influence from Beijing. The impact on the Hong Kong economy has been marked with retail sales falling by 23% year-on-year in August which was the worst monthly decline since records began in 1981.

With global and regional growth slowing the outlook for corporate earnings has deteriorated. Earnings growth in Asia Pacific ex Japan is now expected to be low to mid-single digit for 2019, down from solid double digits at the start of the calendar year. The expectations for 2020 have also been revised lower but analysts are still expecting greater than 10% growth - this is likely to come under pressure if economic momentum doesn't improve. The companies most exposed to global trade have been the hardest hit with South Korea and Taiwan showing the greatest earnings deterioration. Ironically China, which is at the centre of the trade dispute, has been more resilient as government measures to increase liquidity and promote consumption have partially offset declines elsewhere.

The best performing market was Indonesia which benefited from the positive election result but also from a 10.0% increase in the currency against Sterling as high real interest rates attracted positive foreign flows. Other ASEAN markets benefited from this trend with Thailand and the Philippines also seeing double digit currency appreciation. The Australian dollar was the only currency which weakened against Sterling over the period as the Reserve Bank of Australia embarked on a series of interest rate cuts to revive the slowing economy, but the unexpected election result plus positive revisions for the mining sector, ensured a better than average return. The worst performing market was South Korea which took the brunt of the slowdown in global trade but also suffered as a spat with Japan, over compensation derived from the Japanese occupation, resulted in further trade restrictions.

The returns at the sector level were more predictable with a clear divide between the best and worst performers. Export sectors and those exposed to global manufacturing were weak while domestic sectors were more resilient. Oil and gas, materials, industrials and technology all posted negative returns while telecommunications, utilities and consumer staples ended in positive territory.

Performance

The net asset value ('NAV') total return of the portfolio was 6.5% in Sterling terms, 4.8% ahead of the FTSE All-World Asia Pacific ex Japan Index. These good results were mainly achieved at the stock level although it would be fair to say that market conditions suited your Company's investment style. On one hand the change in bias from tightening to loosening by the US Federal Reserve in January 2019 was supportive for stocks with higher dividend yields while on the other hand political uncertainty prompted investors to focus on quality. Both these characteristics are fully reflected in the portfolio.

At the stock level there were notable contributions from Chinese consumer stocks as well as real estate and infrastructure trusts and telecommunications. Kweichow Moutai, the Chinese high-end alcohol producer, and Anta Sports, China's third largest sports apparel company rose 76% and 90% respectively and epitomised our strategy of focusing on domestic sectors and favouring local brands over foreign. Although not quite as dramatic, the list of next positive contributors featured some high yielding stocks such as infrastructure trusts Macquarie Korea Infrastructure, Digital Telecommunications Trust in Thailand and telecommunications stocks HKT Trust & HKT in Hong Kong, Telekomunikasi Indonesia and Intouch in Thailand. All of these had total returns greater than 20% over the period reflecting the demand for yield in a falling interest rate environment.

The stocks that disappointed were more industrial in nature. Our exposure to the energy and materials sector through refiners SK Innovation, China Petroleum and Chemical ('Sinopec') and Star Petroleum were disappointing as was contractor Lend Lease in Australia, which disappointed with an unexpected provision on its engineering division.

While the earnings trend in Asia has shown weakness, the dividend stream has proved much more resilient. The Company's revenue from dividends rose 11% compared to last year reflecting the strong trend of dividend growth in the Asia Pacific region. This figure was boosted by a number of special dividends which were deemed revenue in nature together with weaker Sterling and a lower withholding tax burden following the Company's relocation to the UK for tax purposes. Although special dividends are by definition one-off and not to be relied on going forward, the amount of excess cash that sits on Asian balance sheets, together with the ongoing cash flow generation from operations, would suggest that some degree of repetition is to be expected.

Despite unpredictability and increased volatility, we were less active with options than in previous years. As a result, premiums taken to revenue from option trading was down 14.4% from a year earlier which resulted in an increase in total revenue of 8.5% for the year ended 31 August 2019.

Over the period there were some notable changes to the portfolio. Following the clarification that the world was heading for a period of lower interest rates we made a conscious effort to reduce our exposure to banks whose profitability would be impacted by this directional change. We sold positions in Australia and New Zealand Bank, DBS in Singapore, Maybank in Malaysia, KB Financial in South Korea and ICBC in China. We also sold insurance company Orange Life in South Korea under the same premise. Conversely, we added to property names Stockland and Dexus in Australia and China Resources Land who are beneficiaries of falling interest rates.

The other key changes to the portfolio reflect our focus on consumer related companies who are beneficiaries of Asian consumers' aspirational purchases as disposable incomes rise. Notable additions on this theme include Kweichow Moutai, China's largest producer of baiju which is a grain-based alcoholic drink, Sands China, the Macau casino operator which benefits from increased tourism spend and Treasury Wine Estates which is seeing spectacular growth in its China sales as the Chinese people begin to appreciate the attributes of grape as well as grain-based alcoholic beverages.

Following a number of trips to Vietnam we initiated a position in a country that represents one of the most exciting opportunities in the Asia Pacific region. Comparisons with China fifteen years ago are not unfounded as the country

benefits from a stable macro backdrop, a young population and improving governance. As a preference we would always look to buy positions in individual companies but due to liquidity and foreign investor restrictions we chose to initiate exposure through the London listed Vietnam Opportunities Fund managed by Ho Chi Minh City based VinaCapital and which gives broad exposure to the country including an unlisted portion which we would struggle to replicate.

Outlook

We remain cautiously optimistic on the outlook for Asia Pacific markets. Valuations remain attractive, especially compared to other world markets, and underlying economic growth should prove more resilient than other regions. The weakness in earnings is a concern and a degree of stabilisation is required before becoming more positive on the region as a whole.

The economic performance of China is key to the region's prospects. The world's second largest economy has responded to the challenges of the trade dispute with a pragmatic and proportionate response focused on alleviating the impact of slowing trade without losing sight of the long-term goal to transition from a manufacturing to service based economy. We feel China offers the best combination of growth, value and dividend yield in the region and remains the largest part of the portfolio.

Elsewhere our focus remains on domestic orientated areas which are exposed to the improving spending power of the consumer across the region and away from the export orientated and manufacturing based sectors which are exposed to a slowdown in global growth and an increase in protectionism. Our preference at the sector level is for consumer related areas, property and telecommunications while avoiding commercial banks and high-priced technology.

Despite slowing earnings, the outlook for dividends in Asia Pacific is still the most compelling story. Asian companies have low levels of debt, a pragmatic view on capital expenditure and strong cash flow generation which should allow dividend pay-out ratios to rise in the years ahead.

Michael Kerley

Fund Manager

18 November 2019

Investment portfolio as at 31 August 2019

Rank 2019	Rank 2018	Company	Country of incorporation	Sector	Valuation 2019 £'000	% of portfolio
1	3	Taiwan Semiconductor Manufacturing1	Taiwan	Technology	16,062	3.37
2	10	HKT Trust & HKT	Hong Kong	Telecommunications	14,898	3.12
3	-	Treasury Wine Estates	Australia	Consumer Goods	14,152	2.97
4	4	Macquarie Korea Infrastructure Fund	South Korea	Financials	14,146	2.97
5	15	Digital Telecommunications Infrastructure Fund	Thailand	Telecommunications	13,956	2.93
6	31	Taiwan Cement	Taiwan	Industrials	13,621	2.86
7	12	China Yangtze Power	China	Utilities	13,571	2.85
8	33	Kweichow Moutai	China	Consumer Goods	13,299	2.79
9	44	Telekomunikasi Indonesia	Indonesia	Telecommunications	13,294	2.79
10	34	Mapletree Commercial Trust	Singapore	Property	12,993	2.73
		Top ten investments			139,992	29.38
11	14	United Overseas Bank	Singapore	Financials	12,442	2.61
12	9	E.Sun Financial	Taiwan	Financials	12,364	2.60
13	36	Intouch Holdings	Thailand	Telecommunications	11,920	2.50
14	2	China Construction Bank	China	Financials	11,729	2.46
15	-	Anta Sports Products	China	Consumer Goods	11,689	2.45
16	16	China Mobile	China	Telecommunications	11,368	2.39
17	7	China Petroleum & Chemical	China	Oil & Gas	11,242	2.36
18	28	Ascendas REIT	Singapore	Property	11,045	2.32
19	22	Spark New Zealand	New Zealand	Telecommunications	11,012	2.31
20	-	Singapore Telecommunciations	Singapore	Telecommunications	10,854	2.28
		Top twenty investments			255,657	53.66
21	17	Scentre Group	Australia	Property	10,847	2.28
22	32	Mapletree North Asia	Hong Kong	Property	10,680	2.24
23	26	Macquarie Group	Australia	Financials	10,627	2.23
24	-	Stockland	Australia	Property	10,562	2.22
25	-	Dexus	Australia	Property	10,543	2.21
26	37	PTT	Thailand	Oil & Gas	10,508	2.20
27	25	Anhui Conch Cement	China	Industrials	10,382	2.18
28	6	Far Eastern New Century	Taiwan	Basic Materials	10,310	2.16
29	30	Spark Infrastructure	Australia	Utilities	10,272	2.16
30	40	Rio Tinto Limited	Australia	Basic Materials	10,198	2.14
		Top thirty investments			360,586	75.68
31	19	China Vanke	China	Property	9,795	2.06
32	-	China Resources Land	China	Property	9,673	2.03
33	-	Sands China	China	Consumer Services	9,654	2.03
34	-	VinaCapital Vietnam Opportunity Fund	Vietnam	Financials	9,626	2.02
35	-	Jiangsu Expressway	China	Industrials	9,541	2.00
36	-	Bank Negara Indonesia	Indonesia	Financials	9,062	1.90
37	23	SK Telekom1	South Korea	Telecommunications	8,729	1.83
38	5	BHP Group	Australia	Basic Materials	8,640	1.81
39	13	Samsung Electronics2	South Korea	Technology	8,456	1.77
40	42	SK Innovation	South Korea	Basic Materials	7,504	1.58
		Top forty investments			451,266	94.71
41	29	Powertech Technology	Taiwan	Technology	7,352	1.54
42	38	Chow Tai Fook Jewellery	Hong Kong	Consumer Goods	7,270	1.53
43	-	Indorama Ventures	Thailand	Basic Materials	6,071	1.27
44	-	Yageo	Taiwan	Technology	6,005	1.26
45	50	China Forestry Holdings	China	Basic Materials	-	-
46	-	Anhui Conch Cement Call (Expiry 05/09/19)	China	Industrials	(21)	(0.00)
47	-	Anta Sports Products Call (Expiry 26/09/19)	China	Consumer Goods	(1,469)	(0.31)
		Total investments			476,474	100.00

1 American Depositary Receipts

2 Preferred Shares

Sector exposure at 31 August 2019 (% of portfolio excluding cash)				Sector distribution of income
	2019 %	2018 %			2019 %	2018 %
Telecommunications	20.2	14.7		Financials	30.2	39.6
Property	18.1	10.4		Telecommunications	13.0	13.2
Financials	16.8	28.4		Basic Materials	12.4	7.9
Consumer Goods	9.4	7.4		Technology	10.3	5.5
Basic Materials	9.0	10.5		Property	9.7	10.4
Technology	7.9	10.7		Industrials	8.1	5.9
Industrials	7.0	7.0		Consumer Goods	5.6	6.5
Utilities	5.0	4.4		Oil & Gas	3.9	7.9
Oil & Gas	4.6	6.5		Utilities	3.5	2.6
Consumer Services	2.0	-		Consumer Services	3.3	0.5

Geographic exposure at 31 August 2019 (% of portfolio excluding cash)				Geographic distribution of income
	2019 %	2018 %			2019 %	2018 %
Australia	18.0	17.1		China	26.0	24.5
China	25.3	25.9		Australia	22.6	18.7
Hong Kong	6.9	6.1		Taiwan	16.4	17.8
Indonesia	4.7	1.5		South Korea	9.2	11.3
Malaysia	-	2.1		Singapore	8.1	6.7
New Zealand	2.3	2.1		Hong Kong	6.9	8.2
Singapore	9.9	9.8		Thailand	5.6	6.9
South Korea	8.2	12.1		New Zealand	2.1	2.9
Taiwan	13.8	15.2		Indonesia	2.1	1.3
Thailand	8.9	8.1		Malaysia	0.7	1.7
Vietnam	2.0	-		Vietnam	0.3	-

PRINCIPAL RISKS

The Board, with the assistance of the Manager, has carried out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency and liquidity. In carrying out this assessment, we have considered both regional and global geopolitical risks, as well as the political instability arising from the UK's negotiations to leave the European Union. We do not consider this risk to be material except for the impact on currency movements.

We have, with the assistance of the Manager, drawn up a matrix of risks facing the Company and have put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, in order to mitigate risks as far as practicable. The principal risks which have been identified and the steps we have taken to mitigate these are set out in the table below.  We do not consider these risks to have changed during the period.

·      Investment and strategy

An inappropriate investment strategy, for example, in terms of asset allocation or level of gearing, may result in underperformance against the companies in the peer group, and in the Company's shares trading on a wider discount.

The Board manages these risks by ensuring a diversification of investments and a regular review of the extent of borrowings. The Manager operates in accordance with investment limits and restrictions determined by the Board, which include limits on the extent to which borrowings may be employed. The Board reviews compliance with limits and monitors performance at each Board meeting.

·      Accounting, legal and regulatory

The Company is regulated by the Jersey Financial Services Commission and is required to comply with the Companies (Jersey) Law 1991, the Financial Conduct Authority's Listing Rules, Transparency Guidance and Disclosure Rules and Prospectus Rules and the Listing Rules of the New Zealand Stock Exchange. To retain investment trust status, the Company must comply with the provisions of s.1158 of the Corporation Tax Act 2010. A breach of company law could result in the Company being subject to criminal proceedings or financial and reputational damage. A breach of the listing rules could result in the suspension of the Company's shares. A breach of s.1158 could result in capital gains realised within the portfolio being subject to corporation tax.

The Manager provides investment, administration and accounting services through qualified professionals. The Board receives quarterly internal control reports from the Manager which demonstrate compliance with legal and regulatory requirements and assesses the effectiveness of the internal control environment in operation at the Manager at least annually.

·      Operational

Disruption to, or the failure of, the Manager or the administrator's accounting, dealing, or payment systems or the custodian's records could prevent the accurate reporting or monitoring of the Company's financial position. The administrator, BNP Paribas Securities Services S.C.A., Jersey Branch, sub-contracts some of the operational functions (principally relating to trade processing, investment administration and accounting) to BNP Paribas Securities Services.

The Board receives presentations and updates from the Manager's Global Head of Business Continuity in respect

of contingency planning in the event of disruptions or system failures. The Audit Committee reviews the independently audited reports on the effectiveness of internal controls at key third-party service providers throughout the year. These reports set out the effectiveness of the respective service providers' contingency planning arrangements. Additional ad hoc reporting may be requested on specific areas of concern.

·      Financial

The financial risks faced by the Company include market (market price and currency risks), interest rate, liquidity and credit risks.

The Company does not employ derivative financial instruments and minimises the risk of counterparties failing to deliver securities or cash by dealing through organisations that have undergone due diligence by the Manager. Details on the risk management systems utilised by the Manager are set out in note 13 in the Annual Report.

VIABILITY STATEMENT

The Company is a medium to longer term investor and, as such, the directors believe it is appropriate to assess the Company's viability over a five year period in recognition of the Company's investment horizon, but acknowledges the inherent shorter-term uncertainties in equity markets.

The assessment considers the likely impact of the principal risks facing the Company materialising in severe, but plausible scenarios. In particular, the Board considers the investment strategy and the absolute return performance, as well as performance against indices and other funds with a similar mandate, while taking account of asset allocation and gearing. The measures in place to mitigate the impact of the principal risks are also considered as part of the assessment.

The directors take into account the liquidity of the portfolio. Nearly all of the Company's investments are in listed companies which are frequently traded on recognised markets. The portfolio comprises investments in approximately 50 companies spread over a wide range of sectors and geographical areas; hence there is little concentration. The directors considered the Company's borrowing facility in terms of its duration, the headroom available under any covenants and how a breach of any of those covenants could impact the Company's net asset value and share price.

Based on their assessment, which included consideration of the Company's ability to refinance the loan facility, and the fact that the Company's financial commitments are small in relation to the current value of the portfolio, the directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next five years.

The directors' view is that only a cataclysmic financial crisis affecting the global economy could have an impact on this assessment.

RELATED PARTY TRANSACTIONS

The Company's current related parties are its directors and the Manager. There have been no material transactions between the Company and the directors during the year, with the only amounts paid to them being in respect of expenses and remuneration for which there were no outstanding amounts payable at the year end. In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with the Manager affecting the financial position of the Company during the year under review. More details on transactions with the Manager, including amounts outstanding at the year end, are given in note 19 in the Annual Report 2019.

Directors' responsibility STATEMENTS

Each of the directors confirms that, to the best of his or her knowledge:

•     the Company's financial statements, which have been prepared in accordance with IFRSs as adopted by the European Union on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

•     the Strategic Report, Directors Report, Corporate Governance Statement, Directors' Remuneration Report and financial statements include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

For and on behalf of the Board

John Russell

Chairman

18 November 2019

Statement of Comprehensive Income

	Year ended 31 August 2019			Year ended 31 August 2018
	Revenue return £'000	Capital return  £'000	Total return £'000	Revenue return £'000	Capital return  £'000	Total return £'000
Investment income (note 3)	33,075	-	33,075	29,914	-	29,914
Other income (note 4)	2,281	-	2,281	2,665	-	2,665
Gains/(losses) on investments held at fair value through profit or loss	-	2,122	2,122	-	(17,574)	(17,574)
Net foreign exchange loss excluding foreign exchange losses on investments	-	(1,127)	(1,127)	-	(63)	(63)
	---------	----------	-----------	---------	----------	-----------
Total income	35,356	995	36,351	32,579	(17,637)	14,942
Expenses
Management fees	(1,973)	(1,973)	(3,946)	(1,935)	(1,935)	(3,870)
Other expenses	(479)	(478)	(957)	(498)	(497)	(995)
	---------	----------	----------	---------	----------	----------
Profit/(loss) before finance costs and taxation	32,904	(1,456)	31,448	30,146	(20,069)	10,077
Finance costs	(254)	(254)	(508)	(236)	(236)	(472)
	---------	--------	---------	---------	--------	---------
Profit/(loss) before taxation	32,650	(1,710)	30,940	29,910	(20,305)	9,605
Taxation	(3,148)	514	(2,634)	(3,010)	-	(3,010)
	---------	---------	----------	---------	---------	----------
Profit/(loss) for the year and total comprehensive income	29,502	(1,196)	28,306	26,900	(20,305)	6,595
	======	======	======	======	=======	=======
Earnings per ordinary share - basic and diluted (note5)	23.38p	(0.95p)	22.43p	22.21p	(16.77p)	5.44p
	======	======	======	======	======	======
The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the European Union. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

Statement of CHANGES IN EQUITY

	Year ended 31 August 2019
	Stated share capital £'000	Distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
Total equity at 31 August 2018	139,698	180,471	97,255	23,580	441,004
Total comprehensive income:
(Loss)/profit for the year	-	-	(1,196)	29,502	28,306
Transactions with owners, recorded directly to equity:
Dividends paid	-	-	-	(28,090)	(28,090)
Shares issued	27,985	-	-	-	27,985
Share issue costs	(84)	-	-	-	(84)
	----------	----------	----------	----------	----------
Total equity at 31 August 2019	167,599	180,471	96,059	24,992	469,121
	======	======	======	======	======
	Year ended 31 August 2018
	Stated share capital £'000	Distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
Total equity at 31 August 2017	121,784	180,471	117,560	22,667	442,482
Total comprehensive income:
(Loss)/profit for the year	-	-	(20,305)	26,900	6,595
Transactions with owners, recorded directly to equity:
Dividends paid	-	-	-	(25,987)	(25,987)
Shares issued	17,983	-	-	-	17,983
Share issue costs	(69)	-	-	-	(69)
	----------	----------	----------	----------	----------
Total equity at 31 August 2018	139,698	180,471	97,255	23,580	441,004
	======	======	======	======	======

BALANCE SHEET

	31 August 2019 £'000	31 August 2018 £'000
Non current assets
Investments held at fair value through profit or loss	477,963	462,638
Current assets
Other receivables	4,842	3,253
Cash and cash equivalents	6,360	7,117
	----------	----------
	11,202	10,370
	----------	----------
Total assets	489,165	473,008
	----------	----------
Current liabilities
Investments held at fair value through profit or loss - written options	(1,489)	(461)
Deferred taxation	(66)	-
Other payables	(1,969)	(768)
Bank loans	(16,520)	(30,775)
	----------	----------
	(20,044)	(32,004)
	----------	----------
Net assets	469,121	441,004
	======	======
Equity attributable to equity shareholders
Stated share capital	167,599	139,698
Distributable reserve	180,471	180,471
Retained earnings:
Capital reserves	96,059	97,255
Revenue reserves	24,992	23,580
	----------	----------
Total equity	469,121	441,004
	======	======
Net asset value per ordinary share	358.99p	359.26p
	======	======

STATEMENT OF CASH FLOWS

	31 August 2019 £'000	31 August 2018 £'000
Operating activities
Profit before taxation	30,940	9,605
Add back finance costs payable	508	472
(Gains)/losses on investments held at fair value through profit or loss	(2,122)	17,574
Net foreign exchange loss excluding foreign exchange gains/(losses) on investments	1,127	63
Sales of investments	297,306	407,666
Purchases of investments	(308,924)	(425,248)
(Increase)/decrease in prepayments and accrued income	(1,022)	105
(Increase)/decrease in amounts due from brokers	(479)	62
Increase/(decrease) in other payables	1,227	(145)
Stock dividends included in investment income	(557)	(574)
	----------	----------
Net cash inflow from operating activities before interest and taxation	18,004	9,580
Interest paid	(535)	(500)
Withholding tax on investment income	(2,655)	(3,010)
	----------	----------
Net cash inflow from operating activities after interest and taxation	14,814	6,070
	----------	----------
Financing activities
Repayment of loan with CBA	-	(31,833)
Initial drawdown of loan with SMBC	-	32,282
Net loan repayment	(15,937)	(985)
Equity dividends paid	(28,090)	(25,987)
Share issue proceeds	27,985	17,983
Share issue costs	(84)	(69)
	----------	----------
Net cash outflow from financing	(16,126)	(8,609)
	----------	----------
Decrease in cash and cash equivalents	(1,312)	(2,539)
Cash and cash equivalents at the start of the year	7,117	10,241
Exchange movements	555	(585)
	----------	----------
Cash and cash equivalents at the end of the year	(6,360)	7,117
	======	======

NOTES TO THE FINANCIAL STATEMENTS

1.  General information

The entity is a closed-end company, registered as a no par value company under the Companies (Jersey) Law 1991, with its shares listed on the London and New Zealand stock exchanges.

The company was incorporated on 6 November 2006.

2.  Accounting policies

The Company's financial statements for the year ended 31 August 2019 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS'). These comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee ('IASC') that remain in effect, to the extent that IFRS have been adopted by the European Union.

The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the revaluation of financial assets and liabilities designated as held at fair value through profit and loss.

The financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except where otherwise indicated.

3. Investment income

	2019	2018
	£'000	£'000
Overseas investment income	32,518	29,207
Participation Note income	-	133
Stock dividends	557	574
	----------	---------
	33,075 ======	29,914 ======
Analysis of investment income by geography:
Australia	7,487	5,595
China	8,594	7,339
Hong Kong	2,264	2,461
Indonesia	701	401
Malaysia	235	515
New Zealand	701	852
Singapore	2,678	1,998
South Korea	3,032	3,376
Taiwan	5,437	5,324
Thailand	1,854	2,053
Vietnam	92	-
	----------	----------
	33,075	29,914
	======	======

All of the above income is derived from equity related investments.

4. Other income

	2019	2018
	£'000	£'000
Bank and other interest	81	74
Option premium income	2,200	2,591
	--------	--------
	2,281 =====	2,665 =====

5. Earnings per ordinary share

The earnings per ordinary share figure is based on the net profit for the year of £28,306,000 (2018: £6,595,000) and on the weighted average number of ordinary shares in issue during the year of 126,210,619 (2018: 121,130,068).

The earnings per ordinary share figure can be further analysed between revenue and capital, as below:

	2019	2018
	£'000	£'000
Net revenue profit	29,502	26,900
Net capital loss	(1,196) ----------	(20,305) ----------
Net total profit	28,306 ======	6,595 ======
Weighted average number of ordinary shares in issue during the year	126,210,619	121,130,068
	2019 Pence	2018 Pence
Revenue earnings per ordinary share	23.38	22.21
Capital earnings per ordinary share	(0.95) ---------	(16.77) ---------
Total earnings per ordinary share	22.43 =====	5.44 =====

The Company has no securities in issue that could dilute the return per ordinary share. Therefore the basic and diluted earnings per ordinary share are the same.

6. Dividends

			2019	2018
Dividend	Record date	Pay date	£'000	£'000
Fourth interim dividend 5.30p for the year ended 2017	3 November 2017	30 November 2017	-	6,334
First interim dividend 5.30p for the year ended 2018	2 February 2018	28 February 2018	-	6,403
Second interim dividend 5.30p for the year ended 2018	4 May 2018	31 May 2018	-	6,499
Third interim dividend 5.50p for the year ended 2018	3 August 2018	31 August 2018	-	6,751
Fourth interim dividend 5.50p for the year ended 2018	2 November 2018	30 November 2018	6,768	-
First interim dividend 5.50p for the year ended 2019	1 February 2019	28 February 2019	6,874	-
Second interim dividend 5.50p for the year ended 2019	3 May 2019	31 May 2019	7,017	-
Third interim dividend 5.70p for the year ended 2019	2 August 2019	30 August 2019	7,431 ---------	- ----------
			28,090 ======	25,987 ======

The fourth interim dividend for the year ended 31 August 2019 has not been included as a liability in these financial statements as it was announced and paid after the year end. The table which follows sets out the total dividends paid and to be paid in respect of the financial year and the previous year. The revenue available for distribution by way of dividend for the year is £29,502,000 (2018: £26,900,000).

Following the change of tax residence, the Company needs to comply with the UK investment trust retention test to satisfy s.1158 of the Corporation Tax Act 2010. The total dividends payable in respect of the financial year which form the basis of s.1158 of the Corporation Tax Act 2010 are set out below. The comparative data is also presented even though there was no requirement to satisfy this test in the previous year when the Company was Jersey tax resident.

	2019 £'000	2018 £'000
Revenue available for distribution by way of dividend for the year	29,502	26,900
First interim dividend 5.50p (2018: 5.30p) paid 28 February 2019 (28 February 2018)	(6,874)	6,403
Second interim dividend 5.50p (2018: 5.30p) paid 31 May 2019 (31 May 2018)	(7,017)	6,499
Third interim dividend 5.70p (2018: 5.50p) paid 30 August 2019 (31 August 2018)	(7,431)	6,751
Fourth interim dividend 5.70p (2018: 5.50p) (payable 1 November 2019 based 134,008,564 shares in issue at 18 November 2019)	(7,627) --------	6,768 --------
Undistributed revenue for s.1158 purposes	553 =====	479 =====

7. Net asset value per share

The basic net asset value per ordinary share and the net asset value attributable to ordinary shareholders at the year end calculated in accordance with the Articles of Association were as follows:

	2019		2018
	Net asset value per share pence	Net asset value attributable £'000	Net asset value per share pence	Net asset value attributable £'000
Ordinary shares	358.99	469,121	359.26	441,004
	======	======	======	======

The basic net asset value per ordinary share is based on 130,678,564 (2018: 122,753,564) ordinary shares, being the number of ordinary shares in issue.

The movements during the year in net assets attributable to the ordinary shares were as follows:

	2019 £'000	2018 £'000
Net assets attributable to ordinary shares at beginning of year	441,004	442,482
Total net profit after taxation	28,306	6,595
Dividend paid	(28,090)	(25,987)
Issue of ordinary shares net of issue costs	27,901 -----------	17,914 -----------
Net assets attributable to ordinary shares at 31 August	469,121 =======	441,004 ======

8. Stated share capital

		2019		2018
	Authorised	Issued and fully paid	£'000	Issued and fully paid	£'000
Opening balance at beginning of year
Ordinary shares of no par value	Unlimited	122,753,564	139,698	117,935,564	121,784
Issued during the year		7,925,000	27,985	4,818,000	17,983
Share issue costs		-	(84)	-	(69)
Closing balance at 31 August		----------------- 130,678,564 =========	----------- 167,599 ======	----------------- 122,753,564 ==========	----------- 139,698 ======

The holders of ordinary shares are entitled to all the capital growth in the Company and all the income from the Company that is resolved by the directors to be distributed. Each shareholder present at a general meeting has one vote on a show of hands and on a poll every member present in person or by proxy has one vote for each share held.

During the year, the Company issued 7,925,000 (2018: 4,818,000) shares for the proceeds of £27,901,000 (2018: £17,914,000) net of costs.

9. Subsequent events

Since the year end the Company has issued 3,330,000 shares for net proceeds of £12,118,000.

On 22 October 2019, the Company announced a dividend of 5.70p per ordinary share in respect of the year ended 31 August 2019 to shareholders on the register (the record date) at 1 November 2019.  The shares were quoted ex-dividend on 31 October 2019.

10.  Going concern statement

The assets of the Company consist almost entirely of securities that are listed and regularly traded and, accordingly, the directors believe that the Company has adequate financial resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors, the principal risks and other matters discussed in connection with the viability statement, the Board has decided that it is appropriate for the financial statements to be prepared on a going concern basis.

11. Financial information for 2019

The figures and financial information for the year ended 31 August 2019 are compiled from an extract of the latest financial statements and do not constitute statutory accounts. These financial statements included the report of the auditors which was unqualified.

12. Financial information for 2018

The figures and financial information for the year ended 31 August 2018 are compiled from an extract of the published accounts and do not constitute the statutory accounts for that year.

13. Annual Report 2019

The annual report and financial statements will be posted to shareholders in late November 2019 and copies will be available on the Company's website (www.hendersonfareastincome.com).

14. Annual General Meeting

The 2020 Annual General Meeting will be held at the offices of Janus Henderson Investors at 201 Bishopsgate, London EC2M 3AE at 11.00am on Thursday 23 January 2020. The Notice of the Meeting will be sent to shareholders with the Annual Report 2019.

15. General Information

Company Status

The Company is a Jersey domiciled closed-end investment company, number 95064, which was incorporated in 2006 and is listed on the London and New Zealand stock exchanges. The Company regulated by the Jersey Financial Services Commission with its registered office at IFC 1, the Esplanade, St Helier, Jersey JE1 4BP.  The Company's principal place of business is 201 Bishopsgate, London EC2M 3AE.

SEDOL/ISIN:  Ordinary Shares: B1GXH751/JE00B1GXH751

London Stock Exchange (TIDM) code:  HFEL

New Zealand Stock Exchange code:  HFL

Global Intermediary Identification Number (GIIN):  NTTIYP.99999.SL.832

Legal Entity Identifier (LEI):  213800801QRE00380596

Directors and Secretary

The directors of the Company are John Russell (Chairman), Nicholas George (Chairman of the Audit Committee), Julia Chapman, Timothy Clissold and David Mashiter.

Website

Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonfareastincome.com 

For further information please contact: 

Mike Kerley Fund Manager Henderson Far East Income Limited Telephone: [phone]	Sat Duhra Fund Manager Henderson Far East Income Limited Telephone: [phone]
James de Sausmarez Director and Head of Investment Trusts Janus Henderson Investors Telephone: [phone]	Laura Thomas Investment Trust PR Manager Janus Henderson Investors Telephone: [phone]

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.

 

END

 

 

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