Interim Management Statement

RNS Number : 0867J

Henderson Far East Income Limited

24 June 2011

 



HENDERSON FAR EAST INCOME LIMITED

24 June 2011

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 March 2011 to 31 May 2011

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net investment of £4.2m, and the number of holdings in the portfolio remained at 48. The stocks that were sold were: China Railways Construction, Midland Holdings, Sino Land, Telekomunikasi Indonesia and Compal Electronics.

There are six new stocks in the portfolio: Guangzhou R & F Properties, Petrochina, ASM Pacific Technology, Petronas Chemicals, Capitamall and Krung Thai Bank.

The portfolio remains overweight in China with a focus on domestic cyclicals such as banks, construction, toll roads and consumer discretionary. Elsewhere we favour Thailand and Singapore which continue to show strong economic growth. The portfolio remains overweight in domestic orientated companies with little exposure to global cyclicals such as commodities and technology.

Over the period one call and two put options were sold and four put options expired in March and April 2011.

Share Issues: During the period 325,000 shares were issued in three tranches. The proceeds of these issues, net of commission, was £1,034,302.50.

Dividends: A second interim dividend of 3.60p per Ordinary Share, in respect of the year ending 31 August 2011, was paid on 31 May 2011 to holders registered on 6 May 2011. The ex-dividend date was 4 May 2011.

Discount/Premium:  the share price premium to net asset value increased over the period to 2.34%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 May 2011

	3 months	1 year	3 years	5 years*
Net Asset Value Total Return per ordinary share (%)	3.61	12.47	28.57	84.23

Source:   Datastream

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

Financial Position

	at 31 May 2011	at 28 February 2011
Net assets	£306.4m	£297.1m
Net asset value cum income	308.1p	299.7p
Net asset value ex income	306.4p	299.2p
Ordinary share price	315.3p	305.5p
Premium	2.3%	1.9%
Gearing	0.0%	0.0%
Yield	4.44%	4.71%
Total Expense Ratio	1.23%	1.23%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 May 2011	at 28 February 2011
Advanced Information Services	Thailand	3.1	2.7
Taiwan Semiconductor Manufacturing	Taiwan	3.1	2.9
Bank of China	China	3.0	2.7
QBE Insurance Group	Australia	2.8	2.7
Korean Reinsurance	South Korea	2.8	2.6
Telstra Corporation	Australia	2.7	2.7
Industrial & Commercial Bank of China	China	2.7	2.3
Link Reit	Hong Kong	2.7	2.6
Santos	Australia	2.7	3.3
Chunghwa Telecom	Taiwan	2.6	2.5

Geographic Breakdown	% at 31 May 2011	% at 28 February 2011
China	20.7	17.9
Australia	13.4	14.8
Thailand	11.8	9.4
Hong Kong	11.1	13.5
Singapore	11.0	10.9
Taiwan	10.7	12.1
South Korea	9.9	10.6
Malaysia	4.0	1.8
Philippines	2.6	2.1
Indonesia	2.6	4.4
Japan	2.2	2.2
USA	-	0.3

Sector Breakdown	% at 31 May 2011	% at 28 February 2011
Financials	28.3	23.6
Industrials	15.5	17.1
Telecommunications	15.0	17.0
Technology	9.0	9.3
Property	8.3	10.0
Oil & Gas	6.9	5.6
Basic Materials	5.7	4.4
Consumer Services	5.0	6.8
Consumer Goods	3.8	3.8
Utilities	2.6	2.3
Options	-0.1	0.1

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]

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.

- ENDS -

 

END

 

 

IMSPGURAQUPGGGC