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Henderson Far East Income: half-year results 2026

Henderson Far East Income (HFEL) has released its results for the half-year 2026. Dive into the details and discover how we're performing by watching a video from our fund manager, Sat Duhra, as he discusses the results and provides further insights.

Discrete year performance (%) Share price (total return) NAV (total return)
31/03/2025 to 31/03/2026 28.6 25.7
31/03/2024 to 31/03/2025 7.6 1.2
31/03/2023 to 31/03/2024 -5.0 0.9
31/03/2022 to 31/03/2023 -3.9 -8.0
31/03/2021 to 31/03/2022 -2.4 2.6

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

Source: at 31/03/26. © 2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.

Dividend

A variable discretionary payment made by a company to its shareholders.

MSCI AC Asia Pacific ex Japan Index

The MSCI AC Asia Pacific ex Japan Index captures large and mid cap representation across Developed Markets countries (excluding Japan) and Emerging Markets countries in the Asia Pacific region. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

MSCI AC Asia Pacific ex Japan Index High Dividend Yield Index

The MSCI AC Asia Pacific ex Japan High Dividend Yield Index measures the performance of high-dividend-paying large and mid-cap stocks across developed (excluding Japan) and emerging Asia-Pacific markets. It selects securities with higher-than-average, sustainable yields and quality characteristics, excluding REITs and stocks with poor fundamentals that might force dividend cuts.

Net asset value (NAV) total return (investment trusts):

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

Portfolio

A grouping of financial assets such as equities, bonds, commodities, properties or cash. Also often called a ‘fund’.

Share price total return (investment trusts)

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

Valuation metrics

Metrics used to gauge a company’s performance, financial health, and expectations for future earnings, e.g. P/E ratio and ROE.

Yield

The level of income on a security over a set period, typically expressed as a percentage rate. For equities, a common measure is the dividend yield, which divides recent dividend payments for each share by the share price. For a bond, in its simplest form, this is calculated as the coupon payment divided by the current bond price.

Important information

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

Past performance does not predict future returns.

There is no guarantee that past trends will continue, or forecasts will be realised.

Henderson Far East Income Limited (the ‘Company’), is a Jersey domiciled closed-ended investment company (a ‘Fund’), with registered offices at IFC1, The Esplanade, St Helier, Jersey, JE1 4BP. The fund is regulated by the Jersey Financial Services Commission.

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Tabula Investment Management Limited (reg. no. 11286661), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 78, Avenue de la Liberté, L-1930 Luxembourg, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).

Janus Henderson® and any other trademarks used herein are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.

 

Performance

The first half of the financial year to the end of February 2026 was a strong period for Asian markets. Henderson Far East Income delivered a net asset value total return of 23.3% over the period, compared with 26.2% for the MSCI All Country Asia Pacific ex Japan Index.

Performance drivers

Technology was the dominant driver of returns across Asia during the period as investment linked to artificial intelligence continued to accelerate. Strong demand for advanced chips, servers and data centre equipment supported Asian technology supply chains, particularly in North Asia.

Taiwan and South Korea were notable beneficiaries, with companies involved in sophisticated chip manufacturing leading market gains. South Korea also saw support from ongoing corporate reform, which is encouraging companies to improve capital discipline and shareholder returns.

Elsewhere, materials and energy companies also performed well, while consumer‑focused sectors were much weaker, which weighed on parts of South and Southeast Asia.

Our Korean holdings were key contributors to performance. Companies such as Samsung Electronics, Hyundai Motor, Kia Corporation, SK Square and Industrial Bank of Korea all delivered strong returns during the period.

However, not all areas contributed positively. India continued to underperform, reflecting weaker consumer demand, softer employment conditions and limited foreign direct investment. India was one of the weaker markets over the period.

From a stock perspective, our underweight positions in large technology index names such as TSMC and SK Hynix held back relative performance, given their significant influence on the benchmark. In addition, some high‑yield defensive holdings lagged in the strong equity market, including Macquarie Korea Infrastructure Fund and First Pacific. Energy names such as GAIL and Origin Energy also detracted from returns.

Portfolio changes

During the period, we made a number of targeted additions to strengthen the portfolio. We added Samsung Electronics preference shares, which are a different class of shares that typically pay a higher dividend than ordinary shares but do not carry voting rights. At the time, they were trading at a meaningful discount to Samsung’s ordinary shares while offering a higher dividend. This coincided with growing confidence in Samsung’s role in supplying memory chips used in AI applications.

We also initiated a position in CATL, a Chinese global leader in batteries and energy storage, where rising profits and cash generation are supporting future dividend potential.

In Southeast Asia, we increased exposure to Thailand through companies that generate strong, sustainable income, such as Advanced Info Service and PTT Exploration and Production, which stand to benefit from higher energy prices.

We also opened a new position in Keppel, a Singapore‑based infrastructure company that has been selling non‑core assets and simplifying its business. This should help free up cash and support higher dividends over time.

To fund these additions, we continued to reduce exposure to India, where near‑term growth remains more uncertain, and exited GAIL and Power Grid Corporation of India. In China, we sold Trip.com ahead of a regulatory investigation that later led to a sharp share price decline. We also took profits in Australia, selling Goodman Group and Wesfarmers after strong performance as valuations reached our target levels.

Outlook

Looking ahead, Asia continues to offer a compelling mix of long‑term growth and income opportunities. The region sits at the heart of global technology supply chains, with AI driving demand across semiconductors, infrastructure and energy. At the same time, banks are benefiting from digital adoption and corporate reform across markets such as South Korea, China and Singapore, supporting stronger shareholder returns.

While geopolitical risks and volatility remain, these conditions also create opportunities. With a diversified portfolio and a focus on resilient, cash‑generative companies, we believe we are well positioned to deliver both sustainable income and long‑term growth.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

There is no guarantee that past trends will continue, or forecasts will be realised.

 

Marketing Communication.

 

Glossary

 

 

 

Important information

Please read the following important information regarding funds related to this article.

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Henderson Far East Income Limited is a Jersey fund, registered at Liberté, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission] Ref: 34V
    Specific risks
  • The Company has significant exposure to Emerging Markets, which tend to be less stable than more established markets. These markets can be affected by local political and economic conditions as well as variances in the reliability of trading systems, buying and selling practices, and financial reporting standards.
  • If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
  • The portfolio allows the manager to use options for efficient portfolio management. Options can be volatile and may result in a capital loss.
  • Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
  • This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
  • The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
  • The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
  • All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.