REG - HendersonFarE IncLtd - Half-year Financial Report
Today 07:05
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260415:nRSO4643Aa&default-theme=true
RNS Number : 4643A Henderson Far East Income Limited 15 April 2026
LEGAL ENTITY IDENTIFIER:
2138008DIQREOD38O596
This announcement contains regulated information
HENDERSON FAR EAST INCOME LIMITED
Unaudited financial results for the half year ended 28 February 2026
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.
PERFORMANCE HIGHLIGHTS
· Net asset value total return of 23.3%
· Share price total return of 22.9%
· Dividend yield of 9.3%
· c.16m new shares issued in the period raising £39.1m for
investment
· Second interim dividend for the year ending 31 August 2026 of
6.25p per share declared
PERFORMANCE
Total return performance to 28 February 2026 (including dividends reinvested
and excluding transaction costs)
6 months 1 year 3 years 5 years 10 years
% % % % %
NAV(1,7) 23.3 34.8 40.8 37.4 110.3
Share price(2,7) 22.9 35.3 40.0 36.7 118.3
AIC sector(3) average NAV 28.8 41.8 56.6 55.6 215.8
MSCI AC Asia Pacific ex Japan Index* 26.2 37.5 58.0 42.0 202.6
*The Company does not have a formal benchmark and uses this index on a
sterling adjusted basis for comparison purposes only.
Financial highlights
at 28 February 2026 at 31 August 2025
NAV per ordinary share 261.38p 223.32p
Share price 270.00p 231.00p
Net assets £518.9m £407.7m
Premium(4) 3.3% 3.4%
Dividend yield 9.3%(5,7) 10.8%(6,7)
1. Net asset value ('NAV') total return per ordinary share. Total
return takes into account the rise and fall of the NAV and assumes dividends
are reinvested.
2. Share price total return using closing price. Total return takes
into account the rise and fall of the share price and assumes dividends are
reinvested.
3. Asia Pacific Equity Income sector
4. The premium expresses, as a percentage, the difference between the
closing share price and NAV, including current year revenue, as at 28 February
2026
5. Dividend yield based on a share price of 270.00p and dividends for
the twelve months to 28 February 2026 totalling 25.00p per ordinary share
6. Dividend yield based on a share price of 231.00p and dividends for
the twelve months to 31 August 2025 totalling 24.90p per ordinary share
7. The NAV total return, share price total return, NAV per share,
premium and dividend yield are alternative performance measures. See the
annual report for a full description of these measures
Sources: Morningstar Direct, Janus Henderson Investors
INTERIM MANAGEMENT REPORT
Chairman's statement
Dear Shareholder,
As you will see in our fund manager's report, there is much about the last six
months for which we should be pleased and there may be good reasons to
anticipate that positive momentum will extend through the balance of our
financial year. This is good news and reflects the significant efforts we
have undertaken to move our portfolio and its key components into a better,
more sustainable position for the future. The broader world environment,
however, is making our work more complicated and I wanted to touch briefly on
this before addressing a few key investment trends.
The world was plunged into a chaotic war in the Middle East only at the very
end of our first half and hostile activities continue as I write this
letter. While we look for signs of an end to this conflict, changing
objectives and definitions of success cloud the ability of any observer to
make predictions about how long this will continue or what the end result
might be. What is clear, is the impact of the war on energy prices and
availability as bombing campaigns close key facilities in the Gulf, and the
passage of ships through the Strait of Hormuz remains highly restricted.
Growth forecasts for many Western economies have already been cut in half for
this year and the period immediately ahead is very opaque as long as fighting
continues.
The Asian markets in which we invest may well be insulated from the Iranian
conflict, but they are not immune. Dramatically higher energy prices will
exact a toll of some sort and we have been preparing for surprises. While I
am confident about our investment strategy and approach, it would be foolish
to not at least acknowledge we are in unpredictable territory regarding future
market developments, and we will remain cautious about the time immediately
ahead.
With war in the Middle East as a backdrop, key investment themes have
continued to dominate markets. Foremost among these has been investor
infatuation with artificial intelligence ('AI') both globally and in the APAC
region. Market focus on AI investments as well as the broader technology
sector contributed significantly to Asian equities outperforming global peers
in 2025, with strong demand for sophisticated chips, servers and data centre
equipment. This year began with much the same enthusiasm, but February
saw a sharp sell-off in Asian software stocks as investors reassessed business
models threatened by AI automation and low-cost AI tools. We anticipate that
there is more to come as investors reassess the impact of cost saving pilot
programmes on growth-orientated strategies, particularly with many
organisations in the region expecting AI to disrupt their business models
within 18 months. The fund manager's report delves into our exposures in
Taiwan and South Korea, which led the way in sophisticated chip technology,
and which have been notable beneficiaries of this particular investment theme.
Another interesting development for our region was the 2026 US Supreme Court
decision which struck down President Trump's major tariff programmes. While
the judgment opens the door for importers to seek refunds for tariffs already
paid (estimated at over £200b for 2025) it has also caused massive confusion
over alternative tariffs and the impact on previously negotiated bilateral
agreements with the US. The changing shape of protectionist restrictions
remains difficult to predict as they will impact various Asian economies and
is a challenge for Asian corporates across a range of industries.
Performance
NAV total return for the first half of the year was 23.3%, compared to the
MSCI AC Asia Pacific ex Japan Index of 26.2%. You may recall that in my
letter to you at the full year, we outlined our intention to report against
this single index which the Board believes is more representative of the
balanced composition of our portfolio.
The share price total return over the six-month period to 28 February 2026 was
22.9%. The fund manager's report explains some of the key drivers for this
performance.
Dividends
The Company has declared two interim dividends of 6.25p each for the financial
year ending 31 August 2026. This represents an increase of 0.8% on the
dividends declared in the first half of the last financial year.
Our dividend yield at 28 February 2026 was 9.3%.
Share issuance
Demand for the Company's shares has remained strong, with just under 16m new
shares issued in the first six months of the current financial year, and a
further 4.8m new shares issued since the period end up to the date of this
report. Not only did this raise £39.1m, and a further £12.0m respectively,
for investment, but it has also meant that your Company is now a constituent
of the FTSE 250.
We anticipate that demand will continue to be robust and are seeking
additional shareholder authority to continue to issue shares at a premium to
satisfy market demand. An extraordinary general meeting is being convened
for 14 May 2026 at 10.00 am for this purpose. The Notice of Extraordinary
General Meeting can be found on the Company's website
www.hendersonfareastincome.com (http://www.hendersonfareastincome.com)
I encourage all shareholders to vote their shares, whether by completing their
proxy form or instructing their share dealing platform to do so on their
behalf.
Outlook
The International Monetary Fund expects Asia to remain the world's fastest
growing region, contributing roughly 60% of global growth in 2026. This is
driven by structural growth themes such as AI and technology supply chains,
and is supported by accommodative fiscal policy across the region. A further
tailwind is the corporate reform underway in Japan and South Korea, where
local regulators are encouraging companies to re-think their approach to
delivering shareholder returns. Against these positives we note the prospect
of a more restrictive interest rate environment to address the surge in oil
price related inflation.
Conflict in the Middle East is contributing to increased market volatility
across the region. While the duration and broader economic consequences of the
conflict remain unclear, energy‑related inflationary pressures may challenge
policymakers and temporarily weigh on sentiment.
Despite the ongoing global macroeconomic uncertainty, the region's expanding
middle class, improving corporate governance, and strong balance sheets remain
supportive of sustainable dividend generation. Monetary policy divergence
across key Asian markets may create short‑term volatility; however, it is
also likely to present appealing opportunities to invest in robust,
cash-generative companies. Our fund manager's focus remains on identifying
businesses with resilient fundamentals, prudent capital allocation, and the
potential to deliver both consistent income and long‑term capital
appreciation. With diversification across sectors and geographies, your
Company remains well positioned to navigate the evolving environment and
capture the breadth of opportunities that Asia continues to offer.
Ronald Gould
Chairman
14 April 2026
Fund Manager's report
We are encouraged by a strong period of performance for Asian markets with
Asian indices reaching all-time highs at the end of the reporting period,
significantly outperforming the S&P 500 US Index. We reiterate our view
that now is a pivotal period where the recent outperformance of Asian equities
versus US equities could be the beginning of a reversal of an unjustifiably
wide valuation differential.
Asia was the beneficiary of stellar performance from the technology sector, by
far the strongest sector over the period followed by materials and energy.
Consumer sectors were weak in the period, which was negative for South Asian
markets. South Korea's total return of over 120% was boosted by the
performance of Samsung Electronics and SK Hynix as they enjoyed pricing power
from a shortage of memory chips, combined with the broader 'value-up'
corporate reform program which is leading to higher shareholder returns from
other sectors.
India continues to underperform as poor consumption, employment and a failure
to attract meaningful foreign investment weigh on the outlook, while Indonesia
was one of the weakest performers over the period. Both markets remain
attractive given their respective economies' longer-term growth potential, but
the immediate challenges have been exacerbated by the ineffectiveness of new
policies in the face of US tariffs and weakening consumer sentiment.
Performance
The Company delivered a NAV total return of 23.3% for the six-month period
ended 28 February 2026, compared to a return of 26.2% from the MSCI AC Asia
Pacific ex Japan Index. The share price total return was 22.9% over the same
period. The index is dominated by technology names with well over half of the
performance being derived from large weightings in Taiwan Semiconductor
Manufacturing Company ('TSMC'), Samsung Electronics and SK Hynix, where we
were underweight given our value and income bias.
The Company broadly matched the strong rise in the Asia index justifying our
previous tilt to a balanced approach between growth and income.
Our Korean holdings were key contributors over the period with Samsung
Electronics, Hyundai Motor, Kia Corp, SK Square and Industrial Bank of Korea
amongst the top performers. Principal detractors were our underweight
positions in TSMC and SK Hynix and weak relative performance from high yield
defensive businesses which underperformed in a strong market, namely Macquarie
Korea Infrastructure Fund and First Pacific. Energy names GAIL and Origin
Energy also underperformed.
Revenue
Total income rose by 63.4% compared to last year. The income from investments
rose 90.8% from the same period last year, while income from option writing
increased by 19.0%. The underlying investment income was boosted by a large
dividend from our Chinese holding, Brilliance China Automotive, alongside a
number of other positive dividend surprises. In addition, the elevated
volatility in recent months has contributed to larger than expected option
premia.
Portfolio activity
We added Samsung Electronics preference shares which were trading at a
significant discount to the ordinary shares, whilst paying a higher dividend.
There is renewed optimism in the chipmaker's ability to supply
cutting-edge high-bandwidth memory ('HBM') chips that are designed for AI
applications. We also added Contemporary Amperex Technology, a global leader
in batteries and the energy storage build out, where rising profits and
cashflow is leading to more upside for dividends. We increased our weightings
in Thailand by purchasing the high yield names Advanced Information Services
and PTT Exploration & Production ('PTTEP'). PTTEP is a clear beneficiary
of rising oil price expectations amidst the current supply disruption. We also
opened a new position in Singapore-based Keppel, as we believe its ongoing
asset monetisation programme is likely to lead to higher dividends in the
years ahead.
To fund these positions, we continued to reduce our weight in India where the
growth outlook is more uncertain and exited GAIL and Power Grid Corporation of
India. In China, where our weight was significantly lower at the end of the
period, we sold Trip.com ahead of a regulatory investigation which led to a
sharp drawdown in the share price, along with Tencent and China Hongqiao,
following periods of strong performance. In Australia, we sold Goodman Group
and Wesfarmers following strong performance as valuation reached our target
prices.
Outlook
Asian investors have faced several exogenous risks in recent years with
conflict in the Middle East the most recent potential shock. However, the
growth drivers of our markets are broad based and have already demonstrated
resilience in uncertain times. They stretch across technology, financials,
infrastructure, consumer and wide-ranging corporate reform. Asia has a unique
position as a hub for technology supply chains; banks are bringing millions of
consumers into the banking system accelerated by a digital rollout and
infrastructure is benefitting from significant power demand boosted by AI. In
addition, widespread corporate reform in South Korea, China and Singapore is
enhancing shareholder returns.
These trends, in combination with faster than expected dividend growth offer a
compelling and unique exposure for investors. Whilst there are signs of a
confusing and uncertain period ahead, our highlighted investment themes have
stood the test of time following a measured and effective response from the
region's governments. This bodes well for investors seeking high income with
a structural growth backdrop.
Sat Duhra
Fund Manager
14 April 2026
Principal risks and uncertainties
The principal risks and uncertainties facing the Company are:
Investment and strategy
An inappropriate investment strategy, for example, in terms of asset
allocation, level of gearing or use of the options strategy, may result in
underperformance against the companies in the peer group, and in the Company's
shares trading on a discount. Investments in Asian markets may be impacted by
political, market and financial events resulting in changes to the market
value of the Company's portfolio.
Accounting, legal and regulatory
The Company is regulated by the Jersey Financial Services Commission, under
the Collective Investment Funds (Jersey) Law 1998, and is required to comply
with the Companies (Jersey) Law 1991, the UK Listing Rules, and Disclosure
Guidance and Transparency Rules issued by the FCA and the Listing Rules of the
New Zealand Stock Exchange. To retain investment trust status, the Company
must comply with the provisions of section 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 section 1158 could result in capital gains realised within the portfolio
being subject to corporation tax.
Operational
Disruption to, or the failure of, the investment manager's 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 Company may be exposed
to cyber risk through vulnerabilities at one or more of its service providers.
Financial
The financial risks faced by the Company include market risk (comprising
market price, currency risk and interest rate risk), liquidity risk
and credit risk.
Further information on these risks and how they are managed is given in the
Annual Report 2025. In the view of the Board these principal risks and
uncertainties are as applicable to the remaining six months of the financial
year as they were to the six months under review.
Directors' responsibility statement
The directors (listed in note 13) confirm that, to the best of their
knowledge:
· the unaudited condensed set of financial statements have been
prepared in accordance with IAS 34 - Interim Financial Reporting ('IAS 34')
and gives a true and fair view of the assets, liabilities, financial position
and profit or loss of the Company as required by Disclosure Guidance and
Transparency Rule ('DTR') 4.2.4R;
· the interim management report includes a fair review of the
information required:
- by DTR 4.2.7R (indication of important events during the first six
months of the financial year, and their impact on the unaudited condensed set
of financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the year); and
- by DTR 4.2.8R (disclosure of related party transactions that have
taken place in the first six months of the current financial year and that
have materially affected the financial position or the performance of the
Company during the period; and any changes in the related party transactions
described in the latest annual report that could have a material impact in the
first six months of the current financial year).
Legislation in Jersey governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions. The directors
remain responsible for establishing and controlling the process for doing so,
and for ensuring that the financial statements are complete and unaltered in
any way.
On behalf of the Board
Ronald Gould
Chairman
14 April 2026
INVESTMENT PORTFOLIO at 28 February 2026
Country of Valuation % of
Company incorporation Sector £'000 portfolio
1 Taiwan Semiconductor Manufacturing(1) Taiwan Technology 26,873 5.00
2 Samsung Electronics(2) South Korea Technology 21,978 4.09
3 SK Hynix South Korea Technology 21,380 3.98
4 Advanced Information Services Thailand Technology 20,384 3.80
5 Kia Corp South Korea Consumer Discretionary 19,573 3.64
6 Industrial Bank of Korea South Korea Financials 18,943 3.53
7 Oversea-Chinese Banking Singapore Financials 17,448 3.25
8 MediaTek Taiwan Technology 17,289 3.22
9 PTT Exploration & Production Thailand Energy 16,797 3.13
10 Alibaba China Consumer Discretionary 16,497 3.07
Top ten investments 197,162 36.71
11 DB Insurance South Korea Financials 14,407 2.68
12 Singapore Telecommunications Singapore Telecommunications 13,787 2.57
13 Hon Hai Precision Industry Taiwan Technology 13,101 2.44
14 Rio Tinto Australia Basic Materials 12,809 2.39
15 Keppel Singapore Industrials 12,147 2.26
16 China Construction Bank China Financials 11,432 2.13
17 HDFC Bank India Financials 10,549 1.96
18 Origin Energy Australia Utilities 10,119 1.88
19 SK Square South Korea Technology 9,879 1.84
20 Contemporary Amperex Technology China Industrials 9,801 1.82
Top twenty investments 315,193 58.68
21 United Overseas Bank Singapore Financials 9,365 1.75
22 Macquarie Korea Infrastructure Fund South Korea Financials 9,084 1.69
23 CTBC Financial Taiwan Financials 8,988 1.67
24 ANZ Group Australia Financials 8,966 1.67
25 LG South Korea Technology 8,953 1.67
26 Sino Land Hong Kong Real Estate 8,704 1.62
27 DBS Singapore Financials 8,394 1.56
28 Hyundai Motor(2) South Korea Consumer Discretionary 8,314 1.55
29 Bank Mandiri Indonesia Financials 8,117 1.51
30 Telekom Indonesia Persero Indonesia Telecommunications 7,960 1.48
Top thirty investments 402,038 74.85
31 Link Hong Kong Real Estate 7,955 1.48
REIT
32 Bank Negara Indonesia Indonesia Financials 7,839 1.46
33 China CITIC Bank China Financials 7,565 1.41
34 First Pacific Hong Kong Consumer Discretionary 7,524 1.40
35 Samsung Fire & Marine South Korea Financials 7,119 1.33
36 Industrial Bank China Financials 7,112 1.32
37 Ampol Australia Energy 6,618 1.23
38 HSBC Hong Kong Financials 6,545 1.22
39 Midea China Consumer Discretionary 6,540 1.22
40 HKT Trust & HKT Hong Kong Telecommunications 6,311 1.18
Top forty investments 473,166 88.10
41 FinVolution Group(3) China Financials 6,088 1.13
42 BDO Unibank Philippines Financials 6,032 1.12
43 SCB X Thailand Financials 6,010 1.12
44 Kerry Properties Hong Kong Real Estate 5,836 1.09
45 Macquarie Group Australia Financials 5,768 1.07
46 PCCW Hong Kong Telecommunications 5,696 1.06
47 Astra International Indonesia Consumer Discretionary 5,630 1.05
48 Swire Properties Hong Kong Real Estate 5,628 1.05
49 Brilliance China Automotive China Consumer Discretionary 5,214 0.97
50 China Resources Land China Real Estate 4,885 0.91
Top fifty investments 529,953 98.67
51 Bosideng International China Consumer Discretionary 4,853 0.90
52 Lenovo China Technology 4,459 0.83
53 Quanta Computers Taiwan Technology 4,182 0.78
54 New China Life China Financials 4,034 0.75
55 Anta Sports China Consumer Discretionary 3,639 0.68
56 China Forestry(4) China Basic Materials - -
57 Alibaba Call 175 (Expiry 12/03/26) China Consumer Discretionary (2) -
58 China Hongqiao Put 29.8 (Expiry 04/05/26) China Basic Materials (10) -
59 Alibaba Call 194 (Expiry 27/04/26) China Consumer Discretionary (22) -
60 New China Life Call 71.2 (Expiry 13/04/26) China Financials (22) (0.01)
Top sixty investments 551,064 102.60
61 Lenovo Call 10.3 (Expiry 19/03/26) China Technology (53) (0.01)
62 China Hongqiao Put 29.8 (Expiry 04/05/26) China Basic Materials (69) (0.01)
63 Samsung Fire & Marine Call 531 (Expiry 03/03/26) South Korea Financials (70) (0.01)
64 Hon Hai Precision Industry Call 259 (Expiry 07/04/26) Taiwan Technology (108) (0.02)
65 MediaTek Call 206 (Expiry 04/05/26) Taiwan Technology (268) (0.05)
66 Taiwan Semiconductor Manufacturing Call 353 (Expiry 06/03/26) Taiwan Technology (361) (0.07)
67 SK Square Call 643 (Expiry 11/05/26) South Korea Technology (512) (0.10)
68 Hyundai Motor Call 315 (Expiry 28/04/26) South Korea Consumer Discretionary (606) (0.11)
69 DB Insurance Call 139 (Expiry 03/03/26) South Korea Financials (1,130) (0.21)
70 MediaTek Call 152 (Expiry 12/03/26) Taiwan Technology (1,495) (0.28)
Top seventy investments 546,392 101.73
71 SK Hynix Call 672 (Expiry 19/03/26) South Korea Technology (1,893) (0.35)
72 Taiwan Semiconductor Manufacturing Call 157 (Expiry 02/03/26) Taiwan Technology (1,917) (0.36)
73 SK Square Call 355 (Expiry 19/03/26) South Korea Technology (2,660) (0.49)
74 SK Hynix Call 687 (Expiry 12/03/26) South Korea Technology (2,823) (0.53)
Total investments 537,099 100.00
1. Comprises Taiwan and American Depositary Share holdings, split
£21,299,000 and £5,574,000 respectively
2. Preferred shares
3. American Depositary Receipts
4. Unquoted investment held at £nil
Geographic exposure 28 February 2026 31 August 2025
% %
South Korea 24.2 12.6
China 17.1 29.9
Taiwan 12.3 17.9
Singapore 11.4 7.2
Hong Kong 10.1 11.1
Australia 8.2 9.0
Thailand 8.1 1.1
Indonesia 5.5 4.9
India 2.0 4.5
Philippines 1.1 1.0
Japan - 0.8
Total 100.0 100.0
Sector exposure 28 February 2026 31 August 2025
% %
Financials 35.1 33.5
Technology 25.4 24.4
Consumer Discretionary 14.4 19.7
Telecommunications 6.3 5.2
Real Estate 6.1 6.9
Energy 4.3 1.5
Industrials 4.1 2.2
Basic Materials 2.4 2.9
Utilities 1.9 3.7
Total 100.0 100.0
Condensed Statement of Comprehensive Income
Half year ended Half year ended Year ended
28 February 2026 28 February 2025 31 August 2025
(unaudited) (unaudited) (audited)
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
£'000 £'000 return £'000 £'000 return £'000 £'000 return
£'000 £'000 £'000
Investment income 14,275 - 14,275 7,481 - 7,481 40,816 - 40,816
Other income 5,708 - 5,708 4,750 - 4,750 9,793 - 9,793
Gains on investments held at fair value through profit or loss - 81,602 81,602 - 740 740 - 4,838
4,838
Net foreign exchange (loss)/ profit excluding foreign exchange (losses)/gains - (896) (896) - (678) (678) - 860 860
on investments
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total income 19,983 80,706 100,689 12,231 62 12,293 50,609 5,698 56,307
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Expenses
Management fees (889) (889) (1,778) (697) (697) (1,394) (1,417) (1,417) (2,834)
Other expenses (358) (358) (716) (307) (307) (614) (698) (698) (1,396)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Profit/(loss) before finance costs and taxation 18,736 79,459 98,195 11,227 (942) 10,285 48,494 3,583 52,077
Finance costs (478) (478) (956) (270) (270) (540) (745) (745) (1,490)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Profit/(loss) before taxation 18,258 78,981 97,239 10,957 (1,212) 9,745 47,749 2,838 50,587
Taxation (1,741) 648 (1,093) (1,437) (213) (1,650) (5,069) (406) (5,475)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Profit/(loss) for the period and total comprehensive income/(loss) 16,517 79,629 96,146 9,520 (1,425) 8,095 42,680 2,432 45,112
====== ====== ====== ====== ====== ====== ====== ====== ======
Earnings/ (losses) per ordinary share - basic and diluted 8.69p 41.90p 50.59p 5.73p (0.86p) 4.87p 24.98p 1.42p 26.40p
(note 2)
====== ====== ====== ====== ====== ====== ====== ====== ======
The total return columns of this statement represents the Condensed Statement
of Comprehensive Income of the Company, prepared in accordance with IAS 34.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies ('AIC'). All items in the above statement derive from continuing
operations.
All income is attributable to the equity shareholders of the Company. There
are no minority interests.
Condensed Statement of Changes in Equity
Half year ended 28 February 2026 (unaudited)
Stated share capital Distributable Capital Revenue
£'000 reserve reserves reserve Total
£'000 £'000 £'000 £'000
Total equity at 31 August 2025 311,852 177,596 (111,620) 29,831 407,659
Total comprehensive income: - - 79,629 16,517 96,146
Profit for the period
Transactions with owners,
recorded directly to equity:
Dividends paid - (771) - (23,275) (24,046)
Shares issued 39,204 - - - 39,204
Share issue costs (62) - - - (62)
------------ ------------ ------------ ------------ ------------
Total equity at 28 February 2026 350,994 176,825 (31,991) 23,073 518,901
======= ======= ======= ======= =======
Half year ended 28 February 2025 (unaudited)
Stated share capital Distributable Capital Revenue
£'000 reserve reserves reserve Total
£'000 £'000 £'000 £'000
Total equity at 31 August 2024 272,708 177,596 (114,052) 29,852 366,104
Total comprehensive income: - - (1,425) 9,520 8,095
(Loss)/profit for the period
Transactions with owners,
recorded directly to equity:
Dividends paid - - - (20,655) (20,655)
Shares issued 9,685 - - - 9,685
------------ ------------ ------------ ------------ ------------
Total equity at 28 February 2025 282,393 177,596 (115,477) 18,717 363,229
======= ======= ======= ======= =======
Year ended 31 August 2025 (audited)
Stated share capital Distributable Capital Revenue
£'000 reserve reserves reserve Total
£'000 £'000 £'000 £'000
Total equity at 31 August 2024 272,708 177,596 (114,052) 29,852 366,104
Total comprehensive income: - - 2,432 42,680 45,112
Profit for the period
Transactions with owners,
recorded directly to equity:
Dividends paid - - - (42,701) (42,701)
Shares issued 39,252 - - - 39,252
Share issue costs (108) - - - (108)
------------ ------------ ------------ ------------ ------------
Total equity at 31 August 2025 311,852 177,596 (111,620) 29,831 407,659
======= ======= ======= ======= =======
Condensed Balance Sheet
28 February 2026 28 February 2025 31 August 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non current assets
Investments held at fair value through profit or loss (note 8) 551,120 379,335 439,575
------------ ------------ ------------
Current assets
Other receivables 8,707 3,656 2,520
Cash and cash equivalents 25,110 9,272 24,684
------------ ------------ ------------
33,817 12,928 27,204
------------ ------------ ------------
Total assets 584,937 392,263 466,779
------------ ------------ ------------
Current liabilities
Investments held at fair value through profit or loss - written options (note (14,021) (1,661) (6,680)
8)
Deferred taxation - - (67)
Other payables (2,139) (3,547) (2,550)
Bank loans (49,876) (23,826) (49,591)
------------ ------------ ------------
(66,036) (29,034) (58,888)
------------ ------------ ------------
Total assets less current liabilities 518,901 363,229 407,891
------------ ------------ ------------
Non-current liabilities
Deferred tax liability on Indian capital gains - - (232)
------------ ------------ ------------
- - (232)
------------ ------------ ------------
Net assets 518,901 363,229 407,659
======= ======= =======
Equity attributable to equity shareholders
Stated share capital 350,994 282,393 311,852
Distributable reserve 176,825 177,596 177,596
Retained earnings:
Capital reserves (31,991) (115,477) (111,620)
Revenue reserve 23,073 18,717 29,831
------------ ------------ ------------
Total equity 518,901 363,229 407,659
======= ======= =======
Net asset value per ordinary share (note 3) 261.38p 216.48p 223.32p
======= ======= =======
Condensed Statement of Cash Flows
Half year ended Half year ended Year ended
28 February 2026 (unaudited) 28 February 2025 31 August 2025
£'000 (unaudited) (audited)
£'000 £'000
Cash flows from operating activities
Profit before taxation 97,239 9,745 50,587
Add back:
Finance costs 956 540 1,490
Gains on investments held at fair value through profit or loss (81,602) (740) (4,838)
Withholding tax on investment income (1,235) (1,294) (860)
Net foreign exchange loss/(profit) excluding foreign exchange losses/(gains) 896 678 (4,934)
on investments
(Increase)/decrease in prepayments and accrued income (841) 104 (92)
(Increase)/decrease in amounts due from brokers (4,506) 1,517 1,618
(Decrease)/increase in other payables (419) 476 1,041
Decrease in amounts due to brokers - (225) (1,699)
-------------- -------------- -----------
Net cash inflow from operating activities 10,488 10,801 42,313
-------------- -------------- --------------
Cash flows from investment activities
Sales of investments 258,494 211,851 492,486
Purchases of investments (281,097) (214,225) (544,635)
Overseas capital gains tax on sales (15) (531) (889)
-------------- -------------- -------------
Net cash outflow from investing activities (22,618) (2,905) (53,038)
-------------- -------------- --------------
Cash flow from financing activities
Loan drawdown 58,196 83,180 220,499
Loan repayment (58,495) (73,542) (186,156)
Equity dividends paid (24,046) (20,655) (42,701)
Share issue proceeds 38,225 9,241 39,021
Share issue costs (56) - (54)
Interest paid (956) (540) (1,490)
-------------- -------------- ------------
Net cash inflow/(outflow) from financing activities 12,868 (2,316) 29,119
-------------- -------------- --------------
Increase in cash and cash equivalents 738 5,580 18,349
-------------- -------------- --------------
Cash and cash equivalents at the start of the period/year 24,684 5,482 5,482
Exchange movements (312) (1,790) 808
-------------- -------------- --------------
Cash and cash equivalents at the end of the period/year 25,110 9,272 24,684
======== ======== ========
Net debt
Cash and cash equivalents 25,110 9,272 24,684
Bank loans repayable within one year (49,876) (23,826) (49,591)
-------------- -------------- --------------
Net debt (24,766) (14,554) (24,907)
======== ======== ========
Notes to the condensed financial statements
1. Accounting Policies:
(a) Basis of preparation
The condensed interim financial statements have been prepared on a going
concern basis in accordance with IAS 34 and the UK Disclosure Guidance and
Transparency Rules.
The annual report and financial statements for the year ended 31 August 2025
were prepared in accordance with International Financial Reporting Standards
('IFRS') as adopted by the European Union. Where presentational guidance as
set out in the Statement of Recommended Practice (the 'SORP') for investment
trusts issued by the Association of Investment Companies ('AIC') in July 2022
is consistent with the requirements of IFRS, the directors have sought to
prepare the financial statements on a basis consistent with the
recommendations of the SORP. The unaudited results for the half-year ended 28
February 2026 have been prepared in accordance with the same accounting
policies as those applied in the Company's financial statements for the year
ended 31 August 2025.
There has been no change to the segmental reporting assessment compared to the
31 August 2025 financial statements.
These condensed financial statements do not include all information required
for a full set of financial statements. The figures and financial information
for the year ended 31 August 2025 are an extract based on the published
financial statements and should be read in conjunction with them.
The condensed financial statements for the half-years ended 28 February 2026
and 28 February 2025 have not been audited or reviewed by the auditor.
(b) Investments held at fair value through profit or loss
All investments are classified upon initial recognition as held at fair value
through profit or loss and are measured initially and subsequently at fair
value. These financial assets are designated on the basis that they are part
of a group of financial assets which are managed and have their performance
evaluated on a fair value basis. Financial assets are recognised/de-recognised
at the trade date of the purchase/disposal. Proceeds will be measured at fair
value, which will be regarded as the proceeds of sale less any transaction
costs. The fair value of the financial assets is based on their quoted bid
price at the Balance Sheet date, without deduction of the estimated future
selling costs. The fair value of option contracts is determined by reference
to the Black-Scholes model. The fair values of unquoted financial instruments
within the portfolio are based on their last audited net asset values
discounted where necessary to arrive at fair value.
Changes in the fair value of investments held at fair value through profit or
loss and gains and losses on disposal, including exchange gains and losses,
are recognised in the Statement of Comprehensive Income as 'Gains on
investments held at fair value through profit or loss'. Also included within
this caption are transaction costs in relation to the purchase or sale of
investments, including the difference between the purchase price of an
investment and its bid price at the date of purchase.
(c) Material accounting judgements and estimates
The preparation of the Company's financial statements requires management to
make judgements, estimates and assumptions that affect the amounts recognised
in the financial statements; however, uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the
carrying amount of the asset or liability affected in the future. As the
majority of the Company's financial assets are quoted securities, in the
opinion of the directors, the amounts included as assets and liabilities in
the financial statements are not subject to significant judgements, estimates
or assumptions.
The obligations relating to the options valued at £14,021,000 (liability) (28
February 2025: £1,661,000 (liability), 31 August 2025: £6,680,000
(liability)) are valued by reference to the Black-Scholes model.
2. Earnings per ordinary share
The earnings per ordinary share figure is based on the net profit after
taxation of £96,146,000 (half-year ended 28 February 2025: £8,095,000; year
ended 31 August 2025: £45,112,000) and on 190,046,823 ordinary shares
(half-year ended 28 February 2025: 166,062,138; year ended 31 August 2025:
170,875,254) being the weighted average number of ordinary shares in issue
during each of the periods, excluding shares held in treasury.
The earnings per ordinary share detailed above can be further analysed between
revenue and capital, as below:
Half-year ended Half-year ended Year ended
28 February 2026 (unaudited) 28 February 2025 (unaudited) 31 August 2025
£'000 £'000 (audited)
£'000
Net revenue profit 16,517 9,520 42,680
Net capital profit/(loss) 79,629 (1,425) 2,432
Net total profit 96,146 8,095 45,112
Weighted average number of ordinary shares in issue during the period / year 190,046,823 166,062,138 170,875,254
Pence
Pence Pence
Revenue earnings per ordinary share 8.69 5.73 24.98
Capital earnings/(losses) per ordinary share 41.90 (0.86) 1.42
Total earnings per ordinary share 50.59 4.87 26.40
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.
3. Net asset value per ordinary share
The net asset value per ordinary share is based on a net asset value of
£518,901,000 (half-year ended 28 February 2025: £363,229,000; year ended 31
August 2025: £407,659,000) and 198,524,679 (half-year ended 28 February 2025:
167,789,679; year ended 31 August 2025: 182,544,679) ordinary shares, being
the number of ordinary shares in issue at each period end, excluding shares
held in treasury.
4. Transaction costs
Purchase transaction costs for the half year ended 28 February 2026 were
£349,000 (half year ended 28 February 2025: £232,000; year ended 31 August
2025: £640,000). Sales transaction costs for the half year ended 28 February
2026 were £450,000 (half year ended 28 February 2025: £268,000; year ended
31 August 2025: £748,000). Transaction costs for both purchases and sales
principally consist of commission fees.
5. Stated share capital
At 28 February 2026, there were 198,524,679 shares in issue.
During the half year period ended 28 February 2026, 15,980,000 shares were
issued for net proceeds of £39,142,000 (half year ended 28 February 2025:
4,237,500 shares for net proceeds £9,685,000; year ended 31 August 2025:
17,607,500 shares for net proceeds £39,144,000). No shares were repurchased
for treasury (half-year ended 28 February 2025 and year ended 31 August 2025 -
no shares repurchased).
Since the period end and up to 13 April 2026, being the latest practicable
date before publication of these results, a further 4.8m shares have been
issued raising £12.0m for investment.
6. Dividends
The Company pays dividends on a quarterly basis. On 28 November 2025, a final
dividend of 6.25p per share was paid in respect of the year ended 31 August
2025. A first interim dividend, in respect of the year ending 31 August 2026,
of 6.25p per share was paid on 27 February 2026. The second interim dividend
of 6.25p per share will be paid on 29 May 2026 to shareholders on the register
on 1 May 2026. The Company's shares will be quoted ex-dividend on 30 April
2026. Based on the number of shares in issue on 13 April 2026, the cost of
this dividend will be £12,708,000.
7. Management fee
The management fee calculation is a flat rate of 0.75% of net assets per
annum, charged quarterly in arrears.
8. Financial Instruments
At the period end the carrying value of financial assets and financial
liabilities approximates their fair value.
Financial instruments carried at fair value
Fair value hierarchy
The table below analyses recurring fair value measurements for financial
assets and financial liabilities. These fair value measurements are
categorised into different levels in the fair value hierarchy based on the
inputs to valuation techniques used. The different levels are defined as
follows:
· Level 1: inputs are quoted prices in active markets for identical
assets or liabilities that the entity can access at the measurement date.
· Level 2: inputs other than quoted market prices included within
Level 1 that are observable for the asset or liability, either directly or
indirectly.
· Level 3: inputs are unobservable inputs for the asset or
liability.
Financial assets and financial liabilities at fair value through profit or Level 1 Level 2 Level 3 Total
loss at 28 February 2026
£'000 £'000 £'000 £'000
Investments including derivatives:
- Equity investments 551,120 - - 551,120
- OTC derivatives (options) - (14,021) - (14,021)
551,120 (14,021) - 537,099
Financial assets and financial liabilities at fair value through profit or Level 1 Level 2 Level 3 Total
loss at 28 February 2025
£'000 £'000 £'000 £'000
Investments including derivatives:
- Equity investments 379,335 - - 379,335
- OTC derivatives (options) - (1,661) - (1,661)
379,335 (1,661) - 377,674
Level 1 Level 2 Level 3 Total
Financial assets and financial liabilities at fair value through profit or £'000 £'000 £'000 £'000
loss at 31 August 2025
Investments including derivatives:
- Equity investments 439,575 - - 439,575
- OTC derivatives (options) - (6,680) - (6,680)
439,575 (6,680) - 432,895
Level 3 investments related to one holding of China Forestry, transferred into
level 3 in 2012 and written to zero market value during 2014 following a
missed coupon payment, delayed publication of annual report and accounts and
resignation of Chief Financial Officer and Company Secretary. This
investment has continued to be held at zero value throughout 2025 and to 28
February 2026.
There have been no transfers into/out of, and no movements, in Level 3
investments during the half-year ended 28 February 2026 and 28 February 2025
and the year ended 31 August 2025.
The Company's holdings in options are included within Level 2.
The valuation techniques used by the Company are explained in note 1(b).
Premiums from written options during the half-year ended 28 February 2026 were
£5,543,000 (half-year ended 28 February 2025: £4,658,000; year ended 31
August 2025: £9,583,000).
9. Net debt reconciliation
Bank loans and
Cash and overdraft repayable
cash equivalents within one year Total
£'000 £'000 £'000
Net debt as at 31 August 2025 24,684 (49,591) (24,907)
Cash flows 738 299 1,037
Exchange movements (312) (584) (896)
Net debt as at 28 February 2026 25,110 (49,876) (24,766)
Bank loans and
Cash and overdraft repayable
cash equivalents within one year Total
£'000 £'000 £'000
Net debt as at 31 August 2024 5,482 (15,300) (9,818)
Cash flows 5,580 (9,638) (4,058)
Exchange movements (1,790) 1,112 (678)
Net debt as at 28 February 2025 9,272 (23,826) (14,554)
Cash and cash equivalents Bank loans and overdraft repayable within one year Total
£'000 £'000 £'000
Net debt as at 31 August 2024 5,482 (15,300) (9,818)
Cash flows 18,394 (34,343) (15,949)
Exchange movements 808 52 860
Net debt as at 31 August 2025 24,684 (49,591) (24,907)
10. Going concern
The directors have determined that it is appropriate to prepare the financial
statements on a going concern basis and have concluded that the Company has
adequate resources to continue in operational existence for at least twelve
months from the date of approval of the financial statements. In coming to
this conclusion, the directors have considered the nature of the portfolio,
being that the securities held are readily realisable, the size and covenants
of the Company's bank overdraft and the strength of its distributable
reserves. As part of their usual assessment of risks facing the Company, the
directors considered the macro-economic and geopolitical environment, as well
as the possible impact of climate change risk on the value of the portfolio.
The directors have concluded that the Company is able to meet its financial
obligations, including the repayment of the loan facility, as they fall due
for a period of at least twelve months from the date of this report.
11. Related party transactions
The Company's current related parties are its directors and the investment
manager. There have been no material transactions between the Company and the
directors during the period, with only amounts paid to them being in respect
of remuneration.
In relation to the provision of services by the investment 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
investment manager affecting the financial position of the Company during the
period under review.
12. Half year report
The Company's half year report for the six months ended 28 February 2026,
together with a summary extract is available on the Company's website at:
www.henderson (http://www.hendersonfareastincome.com) far
(http://www.hendersonfareastincome.com) eastincome.com
(http://www.hendersonfareastincome.com) . Copies of the summary will be
posted to shareholders in April 2026. Both documents will shortly be available
for inspection on the National Storage Mechanism at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
13. General information
a) Company Status
The Company is registered with limited liability in Jersey as a closed end
investment company, number 95064, under the Companies (Jersey) Law 1991 and is
certified as a collective investment fund under the Collective Investment
Funds (Jersey) Law 1998. The Company has obtained a Fund Certificate under
Article 7 of the Collective Investment Funds (Jersey) Law. The Company is
listed on the London and New Zealand stock exchanges and became UK tax
resident with effect from 1 September 2018.
SEDOL/ISIN: B1GXH75/JE00B1GXH751
London Stock Exchange (TIDM) code: HFEL
New Zealand Stock Exchange code: HFL
Global Intermediary Identification Number (GIIN): nttiyp.99999.sl.826
Legal Entity Identifier (LEI): 2138008DIQREOD38O596
b) Directors, Secretary and Registered Office
The directors of the Company are Ronald Gould (Chairman), Timothy Clissold,
Carole Ferguson (Senior Independent Director), Nicholas George (Chairman of
the Audit Committee), Susan Rippingall and Steven Wilderspin. The Corporate
Secretary is Janus Henderson Secretarial Services UK Limited. The registered
office is IFC1, The Esplanade, St Helier, Jersey, JE1 4BP. The principal
place of business is 201 Bishopsgate, London, EC2M 3AE.
c) 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 (http://www.hendersonfareastincome.com)
For further information please contact:
Sat Duhra
Fund Manager
Henderson Far East Income Limited
Telephone: 020 7818 5919
Dan Howe Harriet Hall
Head of Investment Trusts PR Manager
Janus Henderson Investors Janus Henderson Investors
Telephone: 020 7818 1818 Telephone: 020 7818 2919
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BLGDSUGBDGLS
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Henderson Far East Income
See all newsREG - HendersonFarE IncLtd - Net Asset Value(s)
AnnouncementREG - HendersonFarE IncLtd - Half-year Financial Report
AnnouncementREG - HendersonFarE IncLtd - Dividend Declaration
AnnouncementREG - HendersonFarE IncLtd - Issue of Equity
AnnouncementREG - HendersonFarE IncLtd - Net Asset Value(s)
Announcement