HFL - Results of the half-year ended 28 February 2026
16/04/2026 08:30 NZST, HALFYRP
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
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.hendersonfareastincometrust.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
Please refer to the PDF version for the full announcement
For further information please contact:
Sat Duhra
Fund Manager
Henderson Far East Income Limited
Telephone: 020 7818 5919
Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 1818
Harriet Hall
PR Manager
Janus Henderson Investors
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.