22/08/2023 - Janus Henderson Group plc: Henderson Far East Income Limited - Monthly Factsheet as at 31 July 2023

Share price performance (total return)

Price (rebased)		NAV (cum income)

115
110
105
100
95
90
85
80
Jul 18	Jul 19	Jul 20	Jul 21	Jul 22	Jul 23

Dividend history (pence/share)

25.0

Income

20.0

15.0

10.0

5.0

0.0

07 09 11 13 15 17 19 21

Performance		6m		1y		3y		5y		10y
over (%)
	Share price	-12.0	-3.6	-2.0	-3.8	43.8
	(Total return)
	NAV		-10.8		-4.2		-1.3		-4.0		42.8
	(Total return)

Discrete year	Share price	NAV
performance (%) (total return)	(total return)
	30/6/2022 to	-5.7		-6.5
30/6/2023
	30/6/2021 to		-6.9		-6.7
	30/6/2022
	30/6/2020 to	9.2		10.4
30/6/2021
	30/6/2019 to		-8.2		-8.5
	30/6/2020
	30/6/2018 to	11.2		9.7
30/6/2019

All performance, cumulative growth and annual growth data is sourced from Morningstar.

Source: at 31/07/23. © 2023 Morningstar, Inc. All rights reserved. The information

contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.

Commentary at a glance

Contributors/detractors (for the quarter)

On a relative basis, Company performance was

more impacted by what we did not own as two Artificial Intelligence ('AI') stocks in Taiwan, and POSCO in South Korea, added almost 2% to the high yield index return on their own. However, the Company benefited from the strong performance of CITIC Securities and Lenovo in China, NTPC in India and the VinaCapital Vietnam Opportunities Fund. The biggest detractors were TSMC, Digital Telecommunications in Thailand and PT Telkom in Indonesia.

Outlook

The likelihood of an economic slowdown in developed markets has been well flagged and the severity of this, along with the prospects of a sustained recovery in China, will be key for the outlook in the region. Asian equities continue to look attractive to us relative to global equities, while inflationary pressures in the region are less pronounced. We are confident about the outlook for dividends considering the excess cash being generated and the low level of dividends paid out compared to earnings. We remain focused on domestic-orientated companies with strong cash flows and sustainable and growing dividends.

See full commentary on page 3.

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Company overview

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

A portfolio of value orientated Asia Pacific equities with a focus on cash flow generation from companies with the ability to sustain and grow dividends.

Company information

NAV (cum income)	234.4p
NAV (ex income)	233.8p
Share price	240.5p
Discount(-)/premium(+)	2.6%
Yield	10.0%
Net gearing	7%
Net cash	-
Total assets	£421m
Net assets	£382m
Market capitalisation	£392m
Total voting rights	162,988,564
Total number of holdings 54
Ongoing charges	1.01%
(year end 31 Aug 2022)
Benchmark	-

Please note that this chart could include dividends that have been declared but not yet paid.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to glossary for definition of share price total return.

How to invest		Find out more
Go to www.janushenderson.com/howtoinvest		Go to www.hendersonfareastincome.com

Source: BNP Paribas for holdings information and Morningstar for all other data. Differences in calculation may occur due to the methodology used.

Please note that the total voting rights in the Company do not include shares held in Treasury.

Top 10 holdings	(%)
Taiwan Semiconductor Manufacturing	3.7
Samsung Electronics	3.6
Hon Hai Precision Industry	3.6
Macquarie Korea Infrastructure Fund	3.2
Ping An Insurance Group Co of China	3.2
Vinacapital Vietnam Opportunity Fund Ltd	3.2
Midea Group	2.9
Rio Tinto	2.8
BHP Group Limited	2.7
CITIC Securities	2.6

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Geographical focus (%)

China	22.4%
Australia	16.7%
Taiwan	11.6%
South Korea	10.1%
Hong Kong	9.7%
Singapore	9.1%
India	6.2%
Indonesia	5.9%
Vietnam	3.2%
New Zealand	1.9%

The above geographical breakdown may not add up to 100% as this only shows the top 10.

Sector breakdown (%)

 Financials	27.3%
 Real Estate	12.3%
 Telecomms	11.9%
 Technology	11.9%
 Consumer	11.9%
Discretionary
 Basic Materials 9.1%
 Energy	6.6%
 Industrials	4.9%
 Utilities	4.0%

The above sector breakdown may not add up to 100% due to rounding.

Key information

Stock code	HFEL
AIC sector	AIC Asia Pacific Equity
Income
Benchmark	-
Company type	Conventional (Ords)
Launch date	2006
Financial year	31-Aug
Dividend payment	May, August, November,
February
Risk rating	Slightly above average
(Source: Numis)
Management fee	0.75% of net assets pa
Performance fee	No

(See Annual Report & Key Information Document for more information)

Premium/(discount) of share price to NAV at fair value (%)

6
4
2
0
-2
-4
-6
Jul 20	Jul 21	Jul 22	Jul 23

10 year total return of £1,000

2,000		Share price total return
1,500
1,000
500
0
Jul 13	Jul 15	Jul 17	Jul 19	Jul 21	Jul 23

All performance, cumulative growth and annual growth data is sourced from Morningstar. Share price total return is calculated using mid-market share price with dividends reinvested.

Regional focus	Asia Pacific ex Japan
Fund manager	Mike Kerley 2006
appointment	Sat Duhra 2019

Mike Kerley

Fund Manager

Sat Duhra

Fund Manager

Factsheet - at 31 July 2023

Marketing Communication

Fund Manager commentary

Investment environment

July was a positive month for Asian equities as inflation pressures eased in western economies and China announced more extensive easing measures following an earlier-than-expected meeting of the Politburo. China was the best performing market as investors viewed the government's focus on economic growth as more important than the disappointing economic numbers which saw retail sales disappoint and housing activity weaken further. With oil prices rising by 16% over the month, Malaysia (the only net exporter in the region) performed strongly while India (the largest importer) underperformed.

The worst-performing market was Taiwan, where the broad index return did not reflect some of the remarkable moves in AI related sectors. In Taiwan, and to a lesser extent South Korea, retail investors dominated volumes with a focus on the technology sector - and especially companies with exposure to the AI theme. As a result, moves of over 50% during the month were not uncommon, but not sufficient enough to move the index higher as the larger index constituents did not participate. Consumer discretionary and energy were the other sectors that performed well, while staples and health care struggled.

Portfolio review

The NAV total return performance was 2.5% for the month, underperforming the broad FTSE AW Asia Pacific ex Japan Index and the MSCI AC Asia Pacific ex Japan High Dividend Yield Index which both rose 4.5% in sterling terms.

Following some strong results, we added a position in HSBC at the expense of KB Financial Group in South Korea, where we feel that credit quality is likely to deteriorate. We also added a position in HDFC Bank in India following the merger of the bank and the finance company. We sold the position in miner IGO following some disappointing results.

Manager outlook

The likelihood of an economic slowdown in developed markets has been well flagged and the severity of this, along with the prospects of a sustained recovery in China, will be key for the outlook in the region. Asian equities continue to look attractive to us relative to global equities, while inflationary pressures in the region are less pronounced. We are confident about the outlook for dividends considering the excess cash being generated and the low level of dividends paid out compared to earnings. We remain focused on domestic-orientated companies with strong cash flows and sustainable and growing dividends.

Glossary

Discount/Premium

The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

Gearing

The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.

Leverage

The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.

Market capitalisation

Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.

Net Asset Value (NAV)

The total value of a Company's assets less its liabilities.

NAV (Cum Income)

The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV (Ex Income)

The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV total return

The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Net assets

Total assets minus any liabilities such as bank loans or creditors.

Net cash

A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.

Net gearing

A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.

Ongoing charges

The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

Risk rating

The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the Company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.

Share price

Closing mid-market share price at month end.

Share price total return

The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.

Total assets

Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.

Yield

Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.

For a full list of terms please visit: https://www.janushenderson.com/en-gb/investor/ glossary/