Interim Management Statement

RNS Number : 5995U

Henderson Far East Income Limited

26 June 2009

 



HENDERSON FAR EAST INCOME LIMITED

26 June 2009 

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement 

Review of the period from 1 March 2009 to 31 May 2009 

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 increased from 42 to 44. The stocks that were sold were; Qantas Airways, Zhejiang Expressway and Pacific Basin Shipping.

There are 5 new stocks in the portfolio; Incitec Pivot, China Oilfield Services, Industrial & Commercial Bank of China, Jiangsu Express and Shenzhen International.

The portfolio is focused on stocks and sectors that have exposure to domestic Asian growth and away from areas that are reliant on the global cycle. Over 75% of the portfolio is exposed to three key themes - Financials/Property (undervalued owing to negative sentiment towards the sector), Industrials (beneficiaries of increased government expending) and telecommunications (offer high and sustainable cash flow and dividend).

Over the period 2 put and 3 call options were opened against stock held in the portfolio and three expired at the end of April 2009.

Shares Issues: On 10 March 2009 the Company applied for the block listing of 7,762,261 shares. During the period 2,715,000 shares were issued in eight tranches. The proceeds of these issues, net of commission, was £6,490,148.68.

Dividends: A second interim dividend of 3.00p per ordinary Share, in respect of the year ending 31 August 2009, was paid on 29 May 2009 to holders registered on 8 May 2008.

Discount/Premium:  the share price premium to net asset value widened over the period to 5.1%.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 May 2009

	3 months	1 year	3 years*	5 years*
Net Asset Value Total Return per ordinary share (%)	27.93	-5.59	35.36	88.39

Source: Datastream

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

Financial Position 

	at 28 February 2009	at 31 May 2009
Net assets	£152m	£201m
Net asset value	195.9p	250.5p
Ordinary share price	194.5p	263.3p
Discount/premium	-0.7%	5.1%
Gearing	0.0%	0.0%
Yield	6.17%	4.56%
Total Expense Ratio	1.19%	1.19%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 28 February 2009	at 31 May 2009
Bank of China	China	4.0%	4.3%
China Mobile	China	4.3%	3.7%
DBS	Singapore	3.3%	3.5%
Sino Land	Hong Kong	2.9%	3.3%
Industrial & Commercial Bank of China	China	-	2.9%
Hung Poo Real Estate Development	Taiwan	1.6%	2.9%
Shenzhen Investment	China	1.9%	2.8%
Santos	Australia	2.9%	2.8%
Keppel Corp	Singapore	2.5%	2.7%
Henderson Land Development	Hong Kong	2.5%	2.6%

Geographic Breakdown	% at 28 February 2009	% at 31 May 2009
Australia	16.2%	14.0%
China	19.2%	25.7%
Hong Kong	18.9%	18.3%
Indonesia	-	-
Malaysia	5.0%	4.1%
Philippines	3.1%	1.5%
Singapore	13.5%	13.7%
South Korea	5.9%	4.7%
Taiwan	9.6%	9.4%
Thailand	7.2%	6.0%
Cash	1.4%	2.6%

Sector Breakdown	% at 28 February 2009	% at 31 May 2009
Utilities	4.6%	3.6%
Telecommunications	21.5%	16.2%
Technology	3.1%	2.3%
Oil & Gas	5.7%	7.2%
Industrials	18.2%	18.2%
Financials	22.4%	25.2%
Consumer Goods & Services	9.3%	5.9%
Property	13.9%	17.4%
Basic Materials	-	1.5%
Options	-	-
Cash	1.3%	2.5%

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.hendersonfareast.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]

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