Annual Financial Report

2 N ovem ber2018
T hisannouncem entcontainsregulated inform ation.
L EI:2138008DIQ R EO D38O 596
HEN DER S O N FA R EA S T IN CO M E L IM IT ED
A nnualFinancialR esults
S T R A T EGIC R EP O R T
Investm entobjective
T he Com pany seeksto provide shareholdersw ith agrow ing totalannualdividend pershare,asw ell
ascapitalappreciation,from adiversified portfolio ofinvestm entsfrom the A siaP acificregion.
P erform ance highlights
• Increased proposed annualdividend:Fourth interim finaldividend 5.50p,(2017:5.30p)producing
atotaldividend forthe yearof21.60p (2017:20.80p).
•T he share price to N A V (including current year incom e) m oved to a discount of 0.6% (2017:
prem ium of1.3% ).
S ources:M orningstarforthe A IC ,JanusHenderson and Datastream
T otalreturnperform ance (includingdividendsreinvested)
1 year
%
3 years
%
5 years
%
N A V perordinary share
1
1.557.655.5
A IC A siaP acific(excludingJapan)S ector(P eerGroup)A verage1.060.265.9
FT S E A ll-W orld A siaP acificex Japan Index (sterlingadjusted)2.470.170.1
FT S E A ll-W orld A siaP acific including Japan Index (sterling
adjusted)
4.862.774.2
1 S ource:M orningstarforthe A IC includingincom e fairvalue N A V
C hairm an’sS tatem ent
Introduction
W hilst the year under review hasbeen characterised by globaluncertaintiessuch asBrexit and
P resident T rum p’sso called trade w arw ith C hina,dividend grow th in A siahasrem ained strong and
Iam pleased to report that the totalannualdividend hasonce again been increased ahead ofU K
inflation.A tthe yearend,the ordinary sharesyielded avery attractive 6.1% .
P erform ance
In the yearunderreview the net asset value totalreturn w as1.5% ,w hich ism ade up ofastrong
incom e return offset by a disappointing capitalreturn. T he share price totalreturn w as-0.6%
reflectingthe sm alldiscountto netassetvalue atw hich the sharesw ere tradingatthe yearend.T his
w assom ethingofan anom aly asthe shareshad traded ataprem ium to netassetvalue overm ostof
the yearand returned to aprem ium in the period since the yearend.By w ay ofacom parative,over
the sam e period the M S C IA C A siaP acificex Japan High Dividend Yield Index returned 0% and FT S E
A ll-W orld A siaP acificex Japan Index (sterlingadjusted)returned 2.4% .
W hilst Iam pleased w ith the continuing trend ofstrong incom e returns,the capitalperform ance fell
shortofthe previousyearasA sian com pany share pricesw ere affected by concernsaround U S trade
policiesand the strengthening U S dollar. T hese are w orrying trendsfor investorsin em erging

m arketsw ho w ellrem em berthe pain inflicted on the region last tim e the U S dollarrose. T hese
concernsm ay be overstated asthe long-term risk profile ofthe A siaP acificregion hascontinued to
im prove and ism uch m ore robustand lesssensitive to externalshocksthan before.
Dividends
A fourth interim dividend of5.50p hasbeen declared m aking atotalof21.60p for the year,an
increase of3.8% .O nce again,thistotalw asfully covered by revenue forthe yearand also allow ed
for asm alladdition to our revenue reserve,w hich w illunderpin dividendsin future years. Your
Board isconfident that it w illbe able to at least m aintain thisleveloftotaldividend in the current
year.
C apital
During the yearthe Com pany issued atotalof4,818,000 new ordinary sharesat aprem ium to net
asset value fortotalproceeds(net ofcom m ission)of£17,914,000;thereby enhancing the net asset
value pershare forexisting shareholders,enabling the fixed costsofthe Com pany to be spread over
aw idershareholderbase,and im proving the liquidity ofthe sharesin the m arket.A sat 2 N ovem ber
2018,afurther300,000 shareshave been issued since 31 A ugust 2018 fortotalproceeds(net of
com m issions)of£1,052,000.
R e-residenceto the U nited Kingdom
During the financialyearthe Com pany w astax resident in Jersey.A sset out in the C ircularissued to
shareholders dated 6 A ugust 2018,the Com pany currently earns investm ent incom e from a
diversified portfolio ofinvestm entsw ith exposure to the A siaP acificregion,m uch ofw hich issubject
to overseasw ithholding taxes.T he Board isseeking to m itigate the levelofthese w ithholding taxes
forthe benefit ofthe shareholders.T he Directorsw ere advised that aU K tax resident com pany is
able to accesslow erratesofw ithholding tax in som e jurisdictionsthan aJersey resident com pany,
due to a greater num ber of double tax treaty agreem ents betw een the U K and overseas
jurisdictions.
W hilst being aU K resident com pany m ight result in som e additionaltaxation and expensessuch as
VA T ,the am ount involved issignificantly lessthan the w ithholding tax benefits.T he Board therefore
agreed,subjectto shareholderapproval,to m ove the C om pany’stax residency to the U K from Jersey
and to elect to join the U K’sinvestm enttrust regim e,in orderto availitselfofthese treatiesand the
tax benefitsrelated thereto.
Follow ing the passing ofthe shareholderresolution at the Extraordinary GeneralM eeting ofthe
C om pany held on 31 A ugust 2018,the C om pany m oved itstax residence from Jersey to the U K and
obtained approvalfrom HM R C of itsstatusasan investm ent trust under S ection 1158 of the
C orporation T ax A ct2010 w ith effectfrom 1 S eptem ber2018.
It isonly the tax residency ofthe C om pany thatm oved to the U K.T he Com pany rem ainssubject to
Jersey law and regulation and the oversightofthe Jersey FinancialS ervicesCom m ission.
B oard com position
David S taplesw illbe retiring asadirectorand the C hairm an ofthe A udit C om m ittee follow ing the
A GM .YourBoard hasbenefited from David’sfinancial,regulatory and businessexpertise and w e
ow e him an im m ense debt.W e shallm isshisw ise counseland insightfulcontributions.He w illbe
replaced asC hairm an ofthe A uditCom m ittee by N icholasGeorge.
Iam pleased thatT im C lissold hasagreed to join ourboard.He isfluentin M andarin C hinese and has
spent 20 yearsorm ore living and w orking in C hinaincluding arranging joint venture investm entsin

C hinese com paniesin alm ost every province in the country.Hisknow ledge ofcom m ercialreality in
C hina,the w orkingsoflocaland centralgovernm ent,and hislist ofcontactsthere w illbe m ost
valuable and give the Board an enhanced understandingofopportunitiesand risks.
Gearing
T he C om pany hascontinued to utilise itsborrow ing facility throughout the year to capitalise on
specificstockopportunities.
During the yearthe facility w ith C om m onw ealth BankofA ustraliaw asreplaced w ith atw o-year£45
m illion facility w ith S um itom o M itsuiBanking C orporation (S M BC ).A t31 A ugust 2018 the am ount
draw n dow n stood at £30.8 m illion and net gearing w as4.8% .T he m axim um am ount draw n dow n
underthe facility during the yearw as£32.7 m illion (including exchange rate m ovem entssince draw
dow n).
A nnualGeneralM eeting
T he C om pany’sA GM w illbe held at 11.00am on T hursday 13 Decem ber2018 at the officesofJanus
Henderson at 201 Bishopsgate,L ondon EC 2M3A E.Fulldetailsofthe proposed resolutionsare set
out in the separate N otice ofM eeting w hich hasbeen issued w ith thisreport.M ichaelKerley w ill
m ake an investm ent presentation and he,Iand other Board m em bersw illbe happy to answ er
questions.
O utlook
T he outlook for the w orld w e know best,the post W W 2 liberaldem ocracy,w hich created the
elevated standard ofliving w e enjoy,isunderthreat.It isnot possible to conjecture how thism ight
unfold and w hatthe consequencesm ightbe.
By contrast,the A sian w orld w e invest in seem sto be on track to continue to deliver strong
econom icoutcom esand rising standardsofliving.C hinahasaplan and isvery unlikely to be blow n
offcourse by eventsin the w est. It appearsthat Chinaconcluded in the sum m erthat P resident
T rum p’stariffplay ism ostly abouthaltingoratleastslow ing the rise ofC hinaasaglobalpow er.T his
isunfortunate asC hinaw illdo w hateverit takesto stay on trackand it doesraise the prospect ofa
m uch m ore aggressive response to U S im posed tariffs. T here are tw o m ilestonesthe C hinese
leadership are determ ined to m eet.T he first isto build a“ m oderately prosperoussociety” by 2020,
the 100th anniversary ofthe creation ofthe com m unist party in C hinaand the second isto becom e
“ agreat m odern socialist country” w ith living standardssim ilarto European standardsby 2049,the
100th anniversary ofthe creation ofthe P eople’sR epublic ofC hina. It isvery difficult to foresee
w hateventsw ould force Chinato deviate from theirplan.
O fcourse com ing m onthsw illbe very testing forC hinaifthe U S continuesw ith currentpolicies.W ill
the leadership be up to the task? T he successofthe past 30 yearssuggeststhey w illat least be able
to lim itthe dam age and continue to follow theirobjectives.
C hina’sresponse to the tariff increasesthusfar hasbeen restrained and proportionate. P olicy
m akersare signalling cleareasing in m onetary and fiscalconditionsto com pensate forthe im pacton
grow th the tariffsare likely to m ake. C urrent estim atessuggest nom inalGDP grow th could be
dragged dow n by 0.3% to 0.5% over2018/19 to anum bercloserto 6.0% .
A furtherconcern isw hethertariffchangesw illencourage businessesto m ove production out of
C hinato otherA sian countriesnotably,Indonesia,Vietnam orC am bodia.T hisisarisk but m odern
businessrequireshigh quality transport and com m unication infrastructure and accessto ahighly
trained w orkforce.T hisisavailable in C hinabutm uchlessso elsew here.

O n top of these developm entsfor investorsto absorb cam e the highly negative w estern press
response to the rem ovalofthe P residentialterm lim itsalm ost universally dubbed as“ president
forlife” and a“ personalpow ergrab” by P residentX i.
W hile concernsare understandable the reality issom ew hat different.T he realpow erin C hinalies
w ith the GeneralS ecretary ofthe C hinese C om m unist P arty,arole already held by X i,and thispost
hasneverhad term lim its.T he role ofP resident w asrestored in the 1982 C hinese constitution and
itsm ain function ispurely to enact the decisionsofthe N ationalP eople’sCongress.Deng X iaoping
pushed apolicy ofadm inistrative separation betw een Governm ent and P arty,anecessary reform at
the tim e.S ince that tim e the P arty hasdeveloped into ahighly effective governing institution asthe
developm entsofthe last30 yearsdem onstrate and allthe leading functionsofGovernm entare now
centred w ithin the C CP .Fusing togetherthe head ofstate and the P arty ism aking the system of
Governm ent m ore transparent and reflective ofpoliticalreality.O n the available evidence concerns
seem som ew hatm isplaced.
A sU S globalengagem entdeclines,C hinaw illbecom e m ore dom inant in the region w ith otherA sian
countriesbecom ing m ore closely aligned to the C hinese econom icdevelopm ent m odel.T he im pact
on the region and the crossbordertrade it w illencourage w illfurthercushion C hinafrom adverse
policiesem anatingfrom the w est.
A llthisaddsup to astrong investm ent case forthe region and ourshareholdersshould continue to
benefit.Valuationsin the region are quite low by com parison w ith the w est and dividend grow th is
strong. A sanalysisshow sdividend flow splay a very im portant part in long term investm ent
perform ance. A sa recent JanusHenderson report dem onstrated,dividendsfrom A sia P acific
com paniesrose by 12.7% in the yearto M ay 2018 and have tripled since 2009 substantially ahead of
the restofthe w orld and streetsahead ofreturnsfrom m oney m arketfundsoverthe period.Figures
from M oneyfacts,the financialresearch group,show that asaverinvesting £10,000 into an easy
accessaccountearningan average rate ofinterestten yearsago w illthisyearreceive annualinterest
of£50.62.By contrastthe sam e investm entin the C om pany 10 yearsago w ould thisyearproduce an
incom e of£887.
In atroubled w orld,portfolio diversification iseven m ore im portant than norm al.Despite the risks,
the A siaP acific region rem ainsan attractive investm ent destination particularly forsaverstaking a
m edium to longterm view and seekinggrow inglevelsofincom e.
John R ussell
C hairm an
2 N ovem ber2018
M anagem ent
T he C om pany hasan independent Board ofDirectorsw hich hasappointed Henderson Investm ent
FundsL im ited (“ HIFL ” )to actasitsA lternative Investm entFund M anager.HIFL delegatesinvestm ent
m anagem ent servicesto Henderson GlobalInvestorsL im ited in accordance w ith an agreem ent
w hich w aseffective from 22 July 2014 and can be term inated on six m onths’ notice.Both entities
are authorised and regulated by the FinancialC onductA uthority (“ FC A ” ).R eferencesto the M anager
w ithin thisreport referto the servicesprovided by both entities.Both entitiesare w holly ow ned
subsidiariesofJanusHenderson Group plc,referred to asJanusHenderson,follow ing the m ergerof
Henderson Group plcand JanusC apitalGroup,Inc.on 30 M ay 2017.
P rincipalrisksand uncertainties

T he Board,w ith the assistance ofthe M anager,hascarried out arobust assessm ent ofthe principal
risks facing the C om pany, including those that w ould threaten its business m odel, future
perform ance,solvency and liquidity.In carrying outthisassessm ent,the Board also considered both
regional and global geopolitical risks,asw ell asthe political instability arising from the U K’s
negotiationsto leave the European U nion,w hich the Board doesnot considerto be m aterialexcept
forthe im pacton currency m ovem ents.
W ith the assistance ofthe M anager,the Board hasdraw n up am atrix ofrisksfacing the C om pany
and hasput in place aschedule ofinvestm ent lim itsand restrictions,appropriate to the Com pany’s
investm ent objective and policy,in orderto m itigate risksasfaraspracticable.T he principalrisks
w hich have been identified and the stepstaken by the Board to m itigate these are asfollow s:
Investm entand strategy
A n inappropriate investm ent strategy,forexam ple,in term sofasset allocation orlevelofgearing,
m ay resultin underperform ance againstthe com paniesin the peergroup,and also in the C om pany’s
sharestrading on aw iderdiscount.T he Board m anagesthese risksby ensuring adiversification of
investm entsand aregularreview ofthe extent ofborrow ings.T he M anageroperatesin accordance
w ith an investm ent lim itsand restrictionspolicy determ ined by the Board,w hich includeslim itson
the extentto w hich borrow ingsm ay be em ployed.T he Board review sthe lim itsand restrictionson a
regular basisand JanusHenderson confirm sadherence to them every m onth. JanusHenderson
providesthe Board w ith m anagem ent inform ation,including perform ance dataand reportsand
shareholder analyses. T he Directorsm onitor the im plem entation and resultsof the investm ent
processw ith the M anagerateach Board m eeting and m onitorriskfactorsin respectofthe portfolio.
Investm entstrategy isreview ed ateach m eeting.
A ccounting,legaland regulatory
T he C om pany isregulated by the Jersey FinancialS ervicesCom m ission and com pliesw ith the
regulatory requirem entsin Jersey.T he C om pany m ust com ply w ith the provisionsofthe Com panies
(Jersey) L aw 1991 and since itssharesare listed on the L ondon S tock Exchange,the FC A ’sL isting
R ules.T he C om pany m ust also ensure com pliance w ith the listing rulesofthe N ew Zealand S tock
Exchange.A breach ofcom pany law could result in the C om pany and/orthe Directorsbeing fined or
subject to crim inalproceedingsand financialand reputationaldam age.A breach ofthe L isting R ules
could result in the suspension ofthe Com pany’sshares.T he Board relieson itsC om pany S ecretary
and advisersto ensure adherence to com pany law and FC A and N ew Zealand S tockExchange R ules.
O perational
Disruption to,orthe failure of,JanusHenderson’sor the A dm inistrator’saccounting,dealing,or
paym ent system sorthe Custodian’srecordscould prevent the accurate reporting orm onitoring of
the C om pany’sfinancialposition.T he A dm inistrator,BN P P aribasS ecuritiesS ervicesS .C .A .(Jersey
Branch),sub-contractssom e ofthe operationalfunctions(principally relating to trade processing,
investm ent adm inistration and accounting) to BN P P aribasS ecuritiesS ervices. Detailsofhow the
Board m onitorsthe servicesprovided by JanusHenderson and othersuppliers,and the key elem ents
designed to provide effective internalcontrol,are explained furtherin the internalcontrolsection of
the Corporate GovernanceS tatem ent.
Financial
T he financialrisksfaced by the C om pany include m arketrisk(m arketprice risk,interestrate riskand
currency risk),liquidity risk and credit risk. T he Com pany doesnot em ploy derivative financial
instrum entsto m itigate risk.A dditionaldisclosuresare provided in accordance w ith IFR S 7:Financial
Instrum ents:Disclosures.

Viability statem ent
T he Com pany isa m edium to longer term investor and,assuch,the Directorsbelieve it is
appropriate to assessthe Com pany’sviability overafive yearperiod in recognition ofthe C om pany’s
investm enthorizon and w hatthe Directorsbelieve to be investors’ horizons.
T he assessm ent hasconsidered the im pact ofthe likelihood ofthe principalrisksand uncertainties
facing the Com pany,in particular investm ent strategy and perform ance absolutely and against
certain indicesand otherfundsw ith asim ilarm andate,w hetherfrom asset allocation,the levelof
gearing,and m arket risk in severe but plausible scenarios,and the effectivenessofany m itigating
controlsin place.
T he Directors took into account the liquidity of the portfolio. N early all of the Com pany’s
investm entsare in listed com paniesw hich are frequently traded on recognised m arkets. T he
portfolio com prisesinvestm entsin approxim ately 50 com paniesspread overaw ide range ofsectors
and geographicalareasand hence there islittle concentration. T he Directorsalso considered the
borrow ing facility the Com pany hasin term sof itsduration,the headroom available under any
covenantsand how abreach ofany ofthose covenantscould im pact on the Com pany’snet asset
value and share price.
Based on their assessm ent and the fact that the Com pany’sfinancialcom m itm entsare sm allin
relation to the current value ofthe portfolio,w hich ishighly liquid,the Directorshave areasonable
expectation thatthe Com pany w illbe able to continue in operation and m eetitsliabilitiesasthey fall
due overthe nextfive years.
T he Directors’ view isthatonly acataclysm icfinancialcrisisaffecting the globaleconom y could have
an im pacton thisassessm ent.
R elated party transactions
T he C om pany’scurrent related partiesare itsDirectorsand JanusHenderson.T here have been no
m aterialtransactionsbetw een the Com pany and itsDirectorsduring the yearand the only am ounts
paid to them w ere in respect ofexpensesand rem uneration forw hich there w ere no outstanding
am ountspayable atthe yearend.
In relation to the provision ofservicesby JanusHenderson,otherthan feespayable by the Com pany
in the ordinary course ofbusinessand the provision ofsalesand m arketingservices,there have been
no m aterialtransactionsw ith JanusHenderson affecting the financialposition of the Com pany
duringthe yearunderreview .
Fund M anager’sR eport
O verview
A siaP acific m arkets,asm easured by the FT S E A ll-W orld A siaP acific ex Japan Index,returned a
m odest 2.4% in sterling term soverthe tw elve m onthsto the end ofA ugust 2018.T he yearstarted
strongly but volatility rose and perform ance faded asrising U S interest ratesand astrong U S dollar
highlighted frailtiesin em erging m arketsw hich put currenciesin the w hole areaunderpressure.
M ore recently an increase in protectionist policiesfrom the U S around trade hasadded to investors’
uncertainty.
A lthough the index returnsforthe fullyearare positive,the trend forthe last six m onthshasbeen
m ore negative w ith only the w eaknessofsterling since February offsetting the decline.T he m ain
cause hasbeen the escalation of trade tensionsbetw een the U S and C hinafollow ing P resident
T rum p’s w ell docum ented attem pts to address the grow ing trade deficit that has developed

betw een the tw o sides.Egged on by rightw ing supporters,protectionistsand “ China-phobes” w ithin
hisclose advisorsthe P resident im plem ented tariffson $50bn w orth ofC hinese im portsin June
2018. W hen C hinam atched thisw ith tariffsofitsow n afurther $200bn w orth ofim portsw ere
targeted from S eptem berw ith the w arning ofafurther$267bn should C hinaretaliate further.S adly
thisescalation w illharm both econom iesalthough it isim portant to note that the C hinese have
released aseriesofm easuresto boost the econom y w hich isexpected to m itigate dom estically the
im pactofaslow dow n in trade.
U nlike previousyearsw here the w eaknessin sterling,follow ing the Brexit vote,hassupported
returnsfor the Com pany,thisyear the w eaknessin A sian currencieshasproved detrim ental.
U nsurprisingly the biggest casualties w ere India and Indonesia,w here the rupee and rupiah
respectively declined by m ore than 10% .Both these countriesshare the “ tw in curses” ofcurrent
account and fiscaldeficits,w here com parisonsw ith the struggling em erging econom iesofT urkey,
S outh A fricaand A rgentina,are easily draw n.T he m ore developed A sian countriesw ere notim m une
asboth A ustraliaand N ew Zealand experienced notable currency declinesasw eakening econom ies
and declining interest rate differentialsw ith the U S triggered outflow s. Despite m uch publicised
“ stress” the C hinese renm inbihasproved m ore resilient,although m ore recently there hasbeen
som e w eaknessfollow ing the increased trade tensionsw ith the U S .O n average A sian currenciesfell
just under4% against sterling overthe period w hich hasresulted in anegative im pact to both the
C om pany’scapitaland incom e perform ance.
In the M anager’sreport at the interim stage Icom m ented on the strength ofA sian earningsgrow th
and how positive the trend w as. Itw ould be fair to say that the m om entum hasw eakened
som ew hat although it isim portant to note how the driversofgrow th have changed.T he technology
sector,w hich had driven earningsm om entum overthe lasteighteen m onths,haslostadegree ofits
lustre w hile old econom y cyclicals are seeing m uch m ore encouraging trends. In particular,
m aterials,energy and industrialsare stillreceiving analysts’ upgradesw hile the likesofT encent,
A libabaand Baidu are struggling to m eet analysts’ overly exuberant expectations. T histrend is
positive forthe portfolio.
T he best perform ing m arket overthe period w asT hailand,w here the strength ofthe energy sector
in particulardrove returns.M alaysiaalso perform ed w elldespite the unexpected election of93 year
old form erP rim e M inisterM ahathirM oham ed,w hich w asw elcom ed by M alaysiansbuttreated w ith
adegree ofscepticism by foreignersw ho recalled the controversy w hich accom panied hisprevious
term in office.Despite the w eaknessofthe rupee the Indian m arket finished the period at an all-
tim e high aslocalm utualfundsrem ained strong buyersofequitiesirrespective offoreign selling.A t
the sectorlevelhealthcare,oiland gasand technology led the w ay despite the latter’sw eaknessin
the second halfofthe reportingperiod.
P erform ance
T he N A V totalreturn w as1.5% in sterling term soverthe financialyear,slightly behind the FT S E A ll-
W orld A siaP acificex Japan Index.T hisreflectsarelative im provem ent in the second halfofthe year
asthe Com pany’sincom e focused portfolio outperform ed in am ore volatile environm ent.
A t the stock levelthere w ere som e notable successes. Despite having a negative view on the
com m ercialbanksin A ustraliaw e are very positive on investm ent bankM acquarie Group w hich isa
beneficiary ofthe securitisation ofinfrastructure assetsglobally asw ellasaw eak A ustralian dollar.
O verthe period the stock rose 35% and w asthe biggest individualcontributorto portfolio return.
T he energy and m aterialssectorhasproved ahappy hunting ground forboth capitaland incom e.
A lthough dem and grow th for these products ism odest the lack of supply has kept oil and
com m odity priceshigh.W e are heavily w eighted in these areasw ith cem entcom paniesA nhuiC onch

and T aiw an C em ent,oiland gascom paniesP T T and C hinaP etroleum and C hem ical,petrochem ical
com pany FarEastern N ew C entury and diversified m inerBHP Billiton L td w ere allin the top ten
contributorsto portfolio return. A lthough w e have avoided the technology com ponent sectoron
expectation ofaslow dow n in dem and forsm artphonesand P C sw e retained aposition in industry
leader Hon Hai w hich,unfortunately,didn’t avoid the sector’sde-rating and w asthe biggest
detractorfrom returns.
T he Com pany’srevenue position rem ainsresilient. O ver the period dividendsreceived from the
com paniesw e invest in rose by 8% . T hisisacom m endable result especially considering the 4%
increase in the value ofsterling overthe period and isreflective ofthe strong underlying dividend
trend.Incom e from derivativesw asup 4% resulting in totalincom e up 7.6% overthe sam e period
lastyear.
O verthe period there w ere som e notable changesto the portfolio.Follow ing astrong run at the
beginning of2018 w e reduced ourexposure to C hinese banksby selling BankofC hinaand focusing
on IC BC and C hinaC onstruction Bank.W e also reduced ourexposure to S am sung Electronicsw here
w e felt that m arginsin the m em ory businesshad probably peaked.W e stillretain aposition on the
expectation of higher dividendsgoing forw ard ascash flow rem ainsrobust. O ther salesw ere
C hinasoft and Huayu A utom otive ow ing to their exposure to overseasm arketsand U S tariffs.
O utside ofC hinaw e sold ourposition in A M P due to the R oyalCom m ission clam pdow n on financial
servicesin A ustraliaand A S E in T aiw an afteradisappointing dividend announcem ent follow ing the
m ergerw ith S P IL .
N ew positions w ere initiated in C hina M obile, follow ing som e good results and a greater
com m itm ent to dividends,Baoshan Iron and S teelw hich isbenefiting from consolidation ofthe
C hinese steelindustry and C hinaVanke w hich isC hina’slargest property developer.Elsew here w e
added positionsin S ingapore,nam ely banksDBS and U O B on im proved grow th prospectsfor
S ingapore and the rest ofA S EA N and Venture M anufacturing afterasignificant share price decline
w hich,in our view ,w asdisproportionate to the quality ofthe business. Finally,in the m aterials
space w e added BHP Billiton L td and T aiw an’sFarEastern N ew C entury.BHP Billiton L td isbenefiting
from strongdem and and alackofnew supply in itskey com m oditiesand isgeneratingalotofexcess
cash w hich w e feelw illultim ately be returned to shareholdersthrough higherdividends.FarEastern
N ew C entury is a plastics based petrochem ical com pany w hich is benefiting from changing
legislation and strongdem and despite ahigheroilprice.
O utlook
W e rem ain cautiously optim isticon the outlookforA siaP acificin the m edium to long term .Forecast
earningsgrow th isoffitshighsbut stillexpected to be double digit w hile valuationshave corrected
asm arketvolatility hasincreased.T here are obviousrisksfrom risingU S interestrates,astrongerU S
dollar,w hich w ould tighten liquidity,increased trade and geo-politicaltensionsand contagion from
em ergingm arketsbutw e feel,atcurrentlevels,these are reflected in prices.
O ur focusrem ainson dom estic orientated areasw hich are exposed to the im proving spending
pow erofthe consum eracrossthe region and aw ay from the export orientated sectorsw hich are
exposed to aslow dow n in globalgrow th and an increase in protectionism . In ouropinion C hina
offersthe best com bination ofvalue,grow th and dividendsin the region and rem ainsthe largest
part ofthe portfolio. A tthe sector levelw e are positive on financials,energy and m aterialsand
cautiouson high priced technology.

T he outlookfordividendsin A siaP acificisstillthe m ost com pelling story.A sian com panieshave low
levelsof debt,apragm atic view on capitalexpenditure and strong cash flow generation w hich
should allow dividend pay-outratiosto rise in the yearsahead.
M ichaelKerley
Fund M anager
2 N ovem ber2018
R ank
2018
R ank
2017
C om panyC ountry of
incorporation
S ectorValuation
2018
£’000
% of
portfolio
1-Industrial & C om m ercial
BankofC hina
C hinaFinancials14,7933.20
218C hinaC onstruction BankC hinaFinancials13,6432.95
35T aiw an
S em iconductor
M anufacturing
1
T aiw anT echnology12,5822.72
48M acquarieKorea
Infrastructure Fund
S outh KoreaFinancials12,1272.63
5-BHP BillitonA ustraliaBasicM aterials12,0632.61
6-FarEastern N ew C enturyT aiw anBasicM aterials11,8802.57
7-C hinaP etroleum&
C hem ical
C hinaO il& Gas11,8092.56
8-S uncorpA ustraliaFinancials11,8002.55
9-E.S un FinancialT aiw anFinancials11,6992.53
1011HKT T rust& HKTHong KongT elecom m unications11,5212.49
11-DBS GroupS ingaporeFinancials11,3952.46
129C hinaYangtze P ow erC hinaU tilities11,3232.45
131S am sung Electronics
2
S outh KoreaT echnology11,0402.39
14-U nited O verseasBankS ingaporeFinancials10,8822.35
1538Digital
T elecom m unications
T hailandT elecom m unications10,8422.35
1635C hinaM obileC hinaT elecom m unications10,5622.28
1729S centre GroupA ustraliaP roperty10,5212.28
1819L end L easeA ustraliaP roperty10,4772.27
19-C hinaVankeC hinaFinancials10,1102.19
20-Baoshan Iron & S teelC hinaBasicM aterials9,9912.16
T op T w enty Investm ents231,06049.99
1
A m erican Depositary R eceipts
2
P referred S hares
S ectorexposure
A sapercentage ofthe investm entportfolio excludingcash
31 A ugust
2018
31 A ugust
2017
Financials28.421.6
T elecom m unications14.713.1
T echnology10.719.0
BasicM aterials10.55.1
P roperty10.411.9
C onsum erGoods7.46.4
Industrials7.09.5

O iland Gas6.54.9
U tilities4.44.4
C onsum erS ervices0.04.1
Geographicfocus
A sapercentage ofthe investm entportfolio excludingcash
31 A ugust
2018
31 A ugust
2017
A ustralia17.119.0
C hina25.928.1
HongKong6.16.8
Indonesia1.52.6
M alaysia2.10.0
N ew Zealand2.12.3
S ingapore9.83.8
S outh Korea12.113.6
T aiw an15.217.1
T hailand8.16.7
C O R P O R A T E R EP O R T
S tatem entofDirectors’ R esponsibilities
In accordance w ith Disclosure Guidance and T ransparency R ule 4.1.12,each of the Directors
confirm sthat,to the bestofhisorherknow ledge:
• the Com pany’sfinancialstatem ents,w hich have been prepared in accordance w ith IFR S sas
adopted by the European U nion on agoing concern basis,give atrue and fairview ofthe assets,
liabilities,financialposition and profitofthe Com pany;and
• the S trategic R eport,R eport ofthe Directors,C orporate Governance S tatem ent,R em uneration
R eport and financialstatem entsinclude afairreview ofthe developm ent and perform ance ofthe
businessand the position ofthe C om pany,togetherw ith adescription ofthe principalrisksand
uncertaintiesthatitfaces.
Forand on behalfofthe Board
John R ussell
C hairm an
2 N ovem ber2018
A udited S tatem entofC om prehensiveIncom e
Yearended 31 A ugust2018Yearended 31 A ugust2017
R evenue
return
C apital
returnT otal
R evenue
return
C apital
returnT otal
£’000£’000£’000£'000£'000£'000
Investm entincom e (note 3)29,914-29,91427,702-27,702
O therincom e (note 4)2,665-2,6652,563-2,563
(L osses)/Gains on investm ents held at fair
value through profitorloss-(17,574) (17,574) -45,75445,754
N etforeign exchange lossexcluding foreign
exchange gains/(losses)on investm ents-(63)(63)-(1,498)(1,498)

------------------------------------------------------
T otalincom e32,579(17,637) 14,49230,26544,25674,521
------------------------------------------------------
Expenses
M anagem entfees(1,935)(1,935)(3,870)(1,865)(1,865)(3,730)
O therexpenses(498)(497)(995)(421)(421)(842)
------------------------------------------------------
P rofit/(L oss)beforefinancecosts and
taxation30,146(20,069) 10,07727,97941,97069,949
Finance costs(236)(236)(472)(169)(169)(338)
------------------------------------------------------
P rofit/(L oss)before taxation29,910(20,305) 9,60527,81041,80169,611
T axation(3,010)-(3,010)(2,400)-(2,400)
------------------------------------------------------
P rofit/(L oss) for theyear andtotal
com prehensive incom e26,900(20,305) 6,59525,41041,80167,211
==============================
Earningsperordinary share
-basicand diluted (note 5)22.21p(16.77p) 5.44p21.94p36.09p58.03p
==============================
T he totalcolum n ofthisstatem entrepresentsthe S tatem entofC om prehensive Incom e,prepared in
accordance w ith IFR S asadopted by the European U nion. T he revenue return and capitalreturn
colum nsare supplem entary to thisand are prepared underguidance published by the A ssociation of
Investm entC om panies.
A udited S tatem entofC hangesin Equity
Yearended 31 A ugust2018
S tated
share
capital
£’000
Distributable
reserve
£’000
C apital
reserves
£’000
R evenue
reserve
£’000
T otal
£’000
T otalequity at31 A ugust2017121,784180,471117,56022,667442,482
T otalcom prehensive incom e:
P rofit/(loss)forthe year--(20,305)26,9006,595
T ransactionsw ith ow ners,recorded directly
to equity:
Dividendspaid---(25,987)(25,987)
S haresissued17,983---17,983
S hare issue costs(69)---(69)
--------------------------------------------------
T otalequity at31 A ugust2018139,698180,47197,25523,580441,004
==============================
Yearended 31 A ugust2017
S tated
share
capital
£’000
Distributable
reserve
£’000
C apital
reserves
£’000
R evenue
reserve
£’000
T otal
£’000
T otalequity at31 A ugust2016109,471180,47175,75921,158386,859
T otalcom prehensive incom e:
P rofitforthe year--41,80125,41067,211
T ransactionsw ith ow ners,recorded directly
to equity:
Dividendspaid---(23,901)(23,901)
S haresissued12,362---12,362

S hare issue costs(49)---(49)
---------------------------------------------------
T otalequity at31 A ugust2017121,784180,471117,56022,667442,482
==============================
A udited B alance S heet
31 A ugust
2018
£’000
31 A ugust
2017
£’000
N on currentassets
Investm entsheld at fairvalue through profit or
loss
462,638465,266
----------
C urrentassets
O therreceivables3,2533,420
C ash and cash equivalents7,11710,241
--------------------
10,37013,661
--------------------
T otalassets473,008478,927
--------------------
C urrentliabilities
Investm entsheld at fairvalue through profit or
loss-w ritten options
(461)(3,671)
O therpayables(768)(941)
Bankloans(30,775)(31,833)
--------------------
(32,004)(36,445)
--------------------
N etassets441,004442,482
============
Equity attributable to equity shareholders
S tatedshare capital139,698121,784
Distributable reserve180,471180,471
R etained earnings:
Capitalreserves97,255117,560
R evenue reserves23,58022,667
--------------------
T otalequity441,004442,482
============
N etassetvalue perordinary share359.26p375.19p
============
T he financialstatem entsw ere approved by the Board ofDirectorson 2 N ovem ber2018 and w ere
signed on itsbehalfby:

John R ussell
C hairm an
A udited S tatem entofC ash Flow s
31 A ugust
2018
£’000
31 A ugust
2017
£’000
O peratingactivities
P rofitbefore taxation9,60569,611
A dd backinterestpayable472338
L osses/(gains)on investm entsheld atfairvalue through profitorloss17,574(45,754)
N et foreign exchange loss excluding foreignexchange gains on
investm ents
631,498
S alesofinvestm ents407,666331,080
P urchasesofinvestm ents(425,248)(342,222)
Decrease/(increase)in prepaym entsand accrued incom e105(208)
Decrease in am ountsdue from brokers62109
(Decrease)/ increasein otherpayables(145)(677)
S tockdividendsincluded in investm entincom e(574)(203)
--------------------
N etcash inflow from operatingactivitiesbefore interestand taxation9,58013,572
Interestpaid(500)(301)
W ithholdingtax oninvestm entincom e(3,010)(2,400)
--------------------
N etcash inflow from operatingactivitiesafterinterestand taxation6,07010,871
--------------------
Financingactivities
R epaym entofloan w ith C BA(31,833)-
Initialdraw dow n ofloanw ith S M BC32,282-
N etloan draw dow n/(repaym ent)(985)5,232
Equity dividendspaid(25,987)(23,901)
S hare issue proceeds17,98312,362
S hare issue costs(69)(49)
--------------------
N etcash outflow from financing(8,609)(6,356)
--------------------
(Decrease)/increasein cash and cash equivalents(2,539)4,515
C ash and cash equivalentsatthe startofthe year10,2415,944
Exchange m ovem ents(585)(218)
--------------------
C ash and cash equivalentsatthe end ofthe year7,11710,241
============
N otesto the FinancialS tatem ents

1.Generalinform ation
T he entity isaclosed-end com pany,registered asano parvalue com pany underthe Com panies
(Jersey)L aw 1991,w ith itsshareslisted on the L ondon and N ew Zealand S tockExchanges.
T he com pany w asincorporated on 6 N ovem ber2006.
2.A ccountingpolicies
B asisofpreparation
T he Com pany’sfinancialstatem entsfor the year ended 31 A ugust 2018 have been prepared in
accordance w ith InternationalFinancialR eporting S tandardsasadopted by the European U nion
(‘IFR S ’). T hese com prise standardsand interpretationsapproved by the InternationalA ccounting
S tandardsBoard (‘IA S B’),togetherw ith interpretationsofthe InternationalA ccounting S tandards
and S tanding Interpretations C om m ittee approved by the International A ccounting S tandards
C om m ittee (‘IA S C ’)thatrem ain in effect,to the extentthatIFR S have been adopted by the European
U nion.
T he financialstatem entshave been prepared on agoing concern basisand on the historicalcost
basis,except forthe revaluation offinancialassetsand liabilitiesdesignated asheld at fairvalue
through profitand loss.
T he financial statem entsare presented in sterling and allvaluesare rounded to the nearest
thousand pounds(£’000)exceptw here otherw ise indicated.
3.Investm entincom e
20182017
£’000£’000
O verseasinvestm entincom e29,20725,997
P articipation N ote incom e1331,502
S tockdividends574203
------------------
29,91427,702
============
A nalysisofinvestm entincom e by geography:
A ustralia5,5955,199
C hina7,3397,301
HongKong2,4612,462
India-309
Indonesia401349
M alaysia515-
N ew Zealand852824
S ingapore1,9981,005
S outh Korea3,3762,887
T aiw an5,3245,552
T hailand2,0531,814
------------------
29,91427,702
============
A llofthe above incom e isderived from equity related investm ents.
4.O therincom e
20182017

£’000£’000
Bankand otherinterest7431
O ption prem ium incom e2,5912,532
--------------
2,6652,563
========
5.Earningsperordinary share
T he earningsperordinary share figure isbased on the net profit forthe yearof£6,595,000 (2017:
£67,211,000)and on the w eighted average num berofordinary sharesin issue during the yearof
121,130,068 (2017:115,829,263).
T he earningsperordinary share figure can be furtheranalysed betw een revenue and capital,as
below :
20182017
£’000£’000
N etrevenue profit26,90025,410
N etcapitalprofit(20,305)41,801
--------------------
N ettotalprofit6,59567,211
============
W eighted average num ber of ordinary sharesin issue during
the year
121,130,068115,829,263
2018
P ence
2017
P ence
R evenue earningsperordinary share22.2121.94
C apitalearningsperordinary share(16.77)36.09
-------------------
T otalearningsperordinary share5.4458.03
============
T he C om pany hasno securitiesin issue thatcould dilute the return perordinary share.T herefore the
basicand diluted earningsperordinary share are the sam e.
6.Dividends
20182017
R ecord dateP ay date£’000£’000
Fourth interim dividend 5.10p
forthe yearended 2016
4 N ovem ber201630 N ovem ber2016-5,859
First interim dividend 5.10p for
the yearended 2017
3 February 201728 February 2017-5,894
S econd interim dividend 5.10p
forthe yearended 2017
5 M ay 201731 M ay 2017-5,924
T hird interim dividend 5.30p for
the yearended 2017
4 A ugust201731 A ugust2017-6,224
Fourth interim dividend 5.30p
forthe yearended 2017
3 N ovem ber201730 N ovem ber20176,334-
First interim dividend 5.30p for2 February 201828 February 20186,403-

the yearended 2018
S econd interim dividend 5.30p
forthe yearended 2018
4 M ay 201831 M ay 20186,499-
T hird interim dividend 5.50p for
the yearended 2018
3 A ugust201831 A ugust20186,751-
--------------
25,98723,901
T he fourth interim dividend forthe yearended 31 A ugust2018 hasnotbeen included asaliability in
these financialstatem entsasit w asannounced and paid afterthe yearend.T he table w hich follow s
setsoutthe totaldividendspaid and to be paid in respectofthe financialyearand the previousyear.
T he revenue available for distribution by w ay of dividend for the year is£26,900,000 (2017:
£25,410,000).
20182017
£’000£’000
Firstinterim dividend for2018–5.30p (2017:5.10p)6,4035,894
S econd interim dividend for2018–5.30p (2017:5.10p)6,4995,924
T hird interim dividend for2018–5.50p (2017:5.30p)6,7516,224
Fourth interim dividend for 2018–5.50p (2017: 5.30p) (payable 30
N ovem ber2018 based on 123,053,564 sharesin issue at 2 N ovem ber
2018)
6,7686,334
----------------
26,42124,376
==========
7.N etassetvalue pershare
T he basic net asset value per ordinary share and the net asset value attributable to ordinary
shareholdersat the year end calculated in accordance w ith the A rticlesof A ssociation w ere as
follow s:
20182017
N etasset
valueper
share
pence
N etasset
value
attributable
£’000
N etasset
valueper
share
pence
N etasset
value
attributable
£’000
O rdinary shares359.26p441,004375.19p442,482
========================
T he basic net asset value perordinary share isbased on 122,753,564 (2017: 117,935,564)ordinary
shares,beingthe num berofordinary sharesin issue.
8.S tated share capital
A uthorised
Issuedand
fully paid
2018
£’000
Issued and fully
paid
2017
£’000
O peningbalanceat1
S eptem ber
O rdinary sharesofno parvalue
U nlim ited117,935,564121,784114,535,564109,471
Issued duringthe year4,818,00017,9833,400,00012,362
S hare issue costs-(69)-(49)

--------------------------------------------------
C losingbalanceat31 A ugust122,753,564139,698117,935,564121,784
==============================
T he holdersofO rdinary sharesare entitled to allthe capitalgrow th in the C om pany and allthe
incom e from the C om pany that isresolved by the Directorsto be distributed. Each shareholder
present at ageneralm eeting hasone vote on ashow ofhandsand on apollevery m em berpresent
in person orby proxy hasone vote foreach share held.
During the year,the Com pany issued 4,818,000 (2017: 3,400,000) sharesfor the proceedsof
£17,914,000 (2017:£12,313,000)netofcosts.
9.Goingconcern statem ent
T he assetsofthe Com pany consist alm ost entirely ofsecuritiesthat are listed and regularly traded
and,accordingly,the Directorsbelieve that the Com pany hasadequate financialresourcesto
continue in operationalexistence for at least tw elve m onthsfrom the date of approvalof the
financialstatem ents.Having assessed these factors,the principalrisksand otherm attersdiscussed
in connection w ith the Viability S tatem ent,the Board hasdecided that it isappropriate for the
financialstatem entsto be prepared on agoingconcern basis.
10.2018 Financialinform ation
T he figuresand financialinform ation for the year ended 31 A ugust 2018 are com piled from an
extract ofthe latest financialstatem entsand do not constitute statutory accounts.T hese financial
statem entsincluded the reportofthe auditorsw hichw asunqualified.
11.2017 Financialinform ation
T he figuresand financialinform ation for the year ended 31 A ugust 2017 are com piled from an
extractofthe published accountsand do notconstitute the statutory accountsforthatyear.
12.C om pany S tatus
T he Com pany isaJersey dom iciled closed-end investm ent com pany,num ber 95064,w hich w as
incorporated in 2006 and w hich islisted on the L ondon and N ew Zealand S tock Exchanges. T he
C om pany isaJersey fund w ith itsregistered office at IFC 1,the Esplanade,S t Helier,Jersey JE1 4BP
and isregulated by the Jersey FinancialS ervicesCom m ission.W ith effect from 1 S eptem ber2018,
the Com pany’sprincipalplace ofbusinessis201 Bishopsgate,L ondon EC 2M 3A E.
13.A nnualR eportand A nnualS trategicR eport
T he A nnualR eport and financialstatem entsw illbe available forposting to those shareholdersw ho
have requested acopy in late N ovem ber2018 and copiesw illbe available on the C om pany’sw ebsite
(w w w .hendersonfareastincom e.com )orin hard copy form at from the Com pany’sregistered office,
IFC 1,the Esplanade,S tHelier,Jersey JE1 4BP .S hareholdersw ho did notindicate thatthey w ished to
receive the fullA nnualR eport in future yearsw illreceive an abbreviated report on the Com pany’s
resultsforthe year,the A nnualS trategicR eport.
T he A nnualGeneralM eeting w illbe held at the officesofJanusHenderson at 201 Bishopsgate,
L ondon EC2M3A E at 11.00 am on T hursday 13 Decem ber2018.T he N otice ofthe A nnualGeneral
M eetingw illbe sentto shareholdersw ith the A nnualR eport.
Forfurtherinform ation please contact:
M ike Kerley

Fund M anager,Henderson FarEastIncom e L im ited
T elephone:020 7818 5053
Jam esde S ausm arez
Directorand Head ofInvestm entT rusts,Henderson Investm entFundsL im ited
T elephone:020 7818 3349
S im on L ongfellow
JanusHenderson Investors
T elephone :020 7818 1818
S iobhan L avery
BN P P aribasS ecuritiesS ervices.S .C .A .,Jersey Branch,C om pany S ecretary
T elephone:01534 709181
N eitherthe contentsofthe C om pany’sw ebsite northe contentsofany w ebsite accessible from
hyperlinkson the C om pany’sw ebsite (orany otherw ebsite)isincorporated into,orform spart of,
thisannouncem ent.