Henderson Far East Income: full-year results 2026

Henderson Far East Income (HFEL) has released its results for the full-year ended 31 August 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)
30/9/2025 to 30/9/2026	24.3	24.9
30/9/2024 to 30/9/2025	15.7	14.6
30/9/2023 to 30/9/2024	18.8	12.8
30/9/2022 to 30/9/2023	-8.5	-4.2
30/9/2021 to 30/9/2022	-3.5	-5.8

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

Source: at 30/09/26. © 2026 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.

Key terms defined

Balance sheet
A financial statement that summarises a company’s assets, liabilities, and shareholders’ equity at a particular point in time. Each segment gives investors an idea as to what the company owns and owes, as well as the amount invested by shareholders. It is called a balance sheet because of the accounting equation: assets = liabilities + shareholders’ equity.

Cash flow
The net balance of cash that moves in and out of a company. Positive cash flow shows more money is moving in than out, while negative cash flow means more money is moving out than into the company.

Discount
Refers to a situation when a security is trading for lower than its fundamental or intrinsic value. The opposite of trading at a premium.

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

Exposure
The amount invested in an asset or market, and could potentially lose, should an investment fail. It is another way of describing financial risk.

Financial year/fiscal year (FY)
A 12-month accounting period used for financial and tax reporting by businesses and individuals. The relevant dates vary between countries.

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.

Option
A contract between two parties that gives one of them the right to buy or the right to sell a specific asset, such as shares, bonds, or currencies at a date and price that is fixed when the option is bought. Option trading can be speculative in nature and carries a substantial risk of loss. An option is a form of derivative.

Outperform
To deliver a return greater than that of a portfolio’s assigned benchmark, also often called excess return.

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

Position
An investment in a single financial instrument or group of financial instruments, such as shares or bonds. For example, a portfolio can have a position in a technology company or hold several different stocks to take a position in the technology sector.

Preference shares
Securities that represent fractional ownership of a company and typically pay a fixed dividend but do not offer voting rights. Preference shares are given priority when it comes to dividend payments and bankruptcy liquidation.

Share buybacks
Where a company buys back their own shares from the market, thereby reducing the number of shares in circulation, with a consequent increase in the value of each remaining share. It increases the stake that existing shareholders have in the company, including the amount due from any future dividend payments. It typically signals the company’s optimism about the future and a possible undervaluation of the company’s equity.

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.

Volatility
The rate and extent at which the price of a portfolio, security, or index, moves up and down. If the price swings up and down with large movements, it has high volatility. If the price moves more slowly and to a lesser extent, it has lower volatility. The higher the volatility, the higher the risk of the investment.

Important information

Allocations and holdings are subject to change without notice. The above are the Portfolio Managers’/team’s views and should not be construed as advice and may not reflect other opinions in the organisation. The views are subject to change without notice.

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.

Performance

Asian markets had another strong year, reaching record highs and outperforming the S&P 500.

HFEL delivered a net asset value, or NAV, total return of 26.1%, compared with 36.6% for the MSCI AC Asia Pacific ex Japan Index in sterling terms. The share price total return was 26.4% for the year.

Income is at the heart of what we do, so we naturally invest more in dividend-paying companies and less in some of the index’s biggest technology stocks, which tend to pay lower dividends. This means there will be times when our performance differs from the index, and this was one of those years.

Just three companies, TSMC, Samsung Electronics and SK Hynix, generated more than half of the index return. We held less in these companies because of our income focus, although our technology holdings and options strategy meant we still benefited from their strong performance. More recently, we’ve seen the other side of that, with HFEL outperforming as some of the index’s biggest AI-related stocks have come under pressure.

Performance drivers

AI remained the big story across Asian markets, fuelling demand for advanced chips, servers and data-centre equipment. Taiwan and South Korea were among the main beneficiaries, with South Korea also supported by corporate reforms aimed at encouraging companies to make better use of their capital and return more to shareholders.

That was reflected in some of our strongest performers. SK Hynix benefited from the upturn in memory chips, while SK Square gave us exposure to the same underlying business through shares trading at a discount. MediaTek, Samsung Electronics preference shares, United Microelectronics and TSMC also contributed.

There were strong performers outside technology too. CTBC Financial benefited from improving banking margins and wealth-management fees, while Overseas China Banking also performed well.

On the other side, Indonesia remained a drag despite our reduced exposure, with Telkom Indonesia, Bank Mandiri and United Tractors all declining. FinVolution and China Hongqiao also detracted and were sold, and we also exited HDFC Bank following its weaker performance and concerns around corporate governance.

Changes to the portfolio

During the year, we focused on companies where improving profits and cash generation could support higher returns to shareholders over time.

We increased our position in Samsung Electronics, giving us greater exposure to the recovery in high-bandwidth memory, while a significantly higher distribution supported the income case.

We also invested in Contemporary Amperex Technology (CATL), a leading battery and energy-storage company, where stronger profits and cash generation increased its capacity to return capital to shareholders.

In Thailand, we added Advanced Info Service and PTT Exploration & Production, broadening the portfolio’s sources of income. We also invested in Keppel, where the sale of assets could unlock value and support future distributions to shareholders.

On the other side, we reduced our exposure to India as the economic and earnings outlook weakened, selling GAIL and Power Grid Corporation of India.

In China, we sold Trip.com ahead of a regulatory investigation. We also took profits in Australian companies Goodman Group and Wesfarmers after their share prices reached our valuation targets.

Outlook

Looking ahead, Asia continues to offer an attractive combination of long-term growth and income opportunities.

AI remains an important part of that story, driving demand for the chips, servers and power infrastructure in which Asian companies play a leading role. But the opportunities extend well beyond technology. Digital services are helping banks reach more customers at a lower cost, while corporate reforms in South Korea, China and Singapore are encouraging companies to put surplus cash to better use, including through higher dividends and share buybacks.

Geopolitical tensions, energy prices and market volatility will continue to create uncertainty. In this environment, we believe companies with strong balance sheets, healthy cash flows and resilient dividends should be particularly well placed.

For income investors, that creates an interesting combination: new sources of growth are emerging at the same time as more companies are returning cash to shareholders. We believe in businesses that can invest for future growth while also supporting rising dividends offer some of the most attractive long-term opportunities.

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.

Before investing in an investment trust referred to in this article, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change.

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

Some of the administrative expenses are taken from capital. This allows more income to be paid but it may also restrict capital growth or even reduce the capital over time.
Losses could be incurred if a counterparty became unwilling or unable to meet its obligations, or as a result of failure or delay in operational processes or the failure of a third party provider.
The portfolio 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 variations 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 (as well as the potential for greater reward) than a portfolio that is diversified across more countries.
The Company may use options for efficient portfolio management and to increase income. Options can be volatile and may sometimes result in loss of capital.
This investment should be held as part of a broader diversified portfolio. Balancing it with investments that have different risk profiles can help reduce the impact of any single investment underperforming.
The Company may borrow to invest, which could magnify gains or losses.
As the Company may borrow to invest, changes in interest rates could increase or decrease the cost of any borrowings.
The Company invests in the shares of other companies. These shares may become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
Your return on investment is directly related to the market price of the Company's shares, which may be higher (trading at a premium) or lower (trading at a discount) than the value of its underlying net asset value assets. This means your returns may differ from the performance of those assets.
While active management techniques are typically positive for performance, this approach may also result in periods of underperformance relative to the benchmark and comparable passive and index-tracking funds, particularly during unexpected market shifts.
Shares can gain and lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may rise and fall in line with the underlying equity markets.
If the companies in which the portfolio is invested persistently reduce their dividend payments, the Company will find it more difficult to maintain or grow its own dividend payments each year.
The portfolio invests in currencies other than sterling, meaning fluctuations in exchange rates could affect returns.
The Company maintains a portfolio with a bias towards income-generating companies. This may result in the Company significantly underperforming or outperforming the wider market.