HFL – Financial results for year ended 31 August 2024

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024

Highlights
• NAV total return of 11.9%
• Share price total return of 16.6%
• Total dividend amounting to 24.60p per share funded from revenue
• Revenue reserve up to £29.9m

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 1 of 21

LEGAL ENTITY IDENTIFIER: 2138008DIQREOD38O596


HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024


This announcement contains regulated information

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.

Total return performance to 31 August 2024 (including dividends reinvested)
1 year
%
3 years
%
5 years
%
10 years
%
NAV
1, 5
11.9 -0.8 -4.3 42.5
Share price
2, 5
16.6 0.3 -3.5 42.1
FTSE World Asia Pacific ex Japan Index
3
13.0 1.3 28.2 95.7
MSCI AC Asia Pacific ex Japan High Dividend Yield Index
3
17.4 26.1 35.9 86.2


Financial highlights at 31 August 2024 at 31 August 2023
Shareholders’ funds
Net assets (£’000) 366.1m
362.0m
NAV per ordinary share 221.97p 222.12p
Share price
227.00p 218.00p

Year ended
31 August 2024
Year ended
31 August 2023
Profit/(loss) for year
Revenue return (£’000)
Capital return (£’000)
45,334 33,219
(6,005) (89,459)
------------ ------------
Net total (loss)/profit 39,329 (56,240)
======= =======
Total earnings/(loss) per ordinary share
Revenue 27.83p 20.92p
Capital
(3.68p) (56.35p)
------------ ------------
Total earnings/(loss) per ordinary share 24.15p (35.43p)
======= =======
Ongoing charge
4,5
1.08% 0.97%

1. Net asset value (NAV) total return performance including dividends reinvested
2. Share price total return using closing price including dividends reinvested
3. The Company does not have a benchmark and uses these indices for comparison purposes only
4. Calculated using the methodology prescribed by the Association of Investment Companies
5. NAV total return, share price total return and the ongoing charge are considered alternative performance measures. More information on
these can be found in the Company’s annual report.

Sources: Morningstar Direct, Janus Henderson Investors

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 2 of 21

CHAIRMAN’S STATEMENT

Introduction
Asian markets fared much better this financial year, overcoming challenges posed by a weak Chinese economy,
geopolitical tension in a number of areas and a number of national elections which all had the ability to derail
markets. Despite investor concerns about evolving interest rate policies, especially in the US, many of our
previously identified investment themes drove positive market performance from our portfolio. The Federal
Reserve finally cut rates by a larger-than-expected 50bps, allowing investors to re-focus on company
fundamentals which will favour our bottom-up style. This rate cut also provides central banks in our region with
more monetary flexibility to react to any potential external shocks that might arise from the US election, elevated
geopolitical tension in the Middle East or the disappointing performance of China’s economy.

These issues should not mask what was clearly a stronger year for the Asia-Pacific region overall. A particular
highlight was the excitement around the infrastructure roll-out for Artificial Intelligence (‘AI’) which boosted the
performance of technology stocks not only in the US but also in Taiwan, a key part of the supply chain for anything
AI related. The performance of India was also notable as the strength of the economy and domestic investor
purchases offset the unexpected national election result. While Modi’s loss of a clear parliamentary majority
certainly created significant volatility in the market, this was in the end, short-lived. Your Company remains
positioned to fully participate in the most attractive growth themes in our region and our analysis underscores that
there are still outstanding, long term growth opportunities across our markets.

As you may recall from last year, I made a strong statement about our expectations for a return of historic dividend
growth in the region. In the end, our forecast was exceeded as both corporates and regulators renewed their focus
on increasing dividends and share buybacks. A highlight, from which your Company was a beneficiary, was the
well-planned corporate reform developments in South Korea and some early promise from Chinese regulators
which is already increasing, in some cases quite dramatically, the level of dividends we received this financial
year. These changes support our thesis that dividend growth will continue in the years ahead and enable us to
maintain a compelling combination of growth and high-income investments.

Performance
Performance for the 12 months to 31 August 2024 has seen an improvement compared with prior years, with the
NAV total return in positive territory at 11.9%. This is only slightly behind the FTSE All-World Asia Pacific ex Japan
Index which returned 13.0% for the same period. The return for the MSCI AC Asia Pacific ex Japan High Dividend
Yield Index returned 17.4%, which we lagged by 5.5%.

Alongside the improvement in NAV total return figures, it is worth noting the recovery in the capital return position.
While this is still not yet positive, it is significantly better than this time last year.

I am also very pleased to report that the share price total return was in positive territory at 16.6%. These figures
reflect the successful work undertaken by our Fund Manager, Sat Duhra, in restructuring the Company’s portfolio
during the closing months of the 2023 calendar year.

Dividend
I am pleased to report that we have once again maintained the Company’s 17-year track record of increasing
dividends. A total dividend of 24.60p has been paid in respect of the year ended 31 August 2024, representing a
1.7% increase over the prior year.

It is also particularly pleasing to confirm that our dividend has been fully covered by portfolio revenues during the
financial year as we witnessed a strong resurgence of dividend growth in line with longer term trends. We will, as
we always do in years of surplus, be adding a considerable amount to the revenue reserve which we seek to
strengthen when we can. The revenue reserve can be used to smooth dividends through periods of revenue
shortfall. This reserve now stands at £29.9m.

Discount management and share issuance
Over the period under consideration, the average discount to NAV for investment trusts widened considerably.
The weighted average discount for equity investment trusts was -10.76% over the 12 months to 31 August 2024,
while the Company’s was -1.52%. As a result, from December 2023 to March 2024, we repurchased a total of
806,385 shares in the market.

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 3 of 21

We are one of the few investment trusts to have returned to a premium following the historic widening of discounts
in late 2023. The Company’s shares began trading at a premium in April 2024 and since that time, we have issued
3.5m shares to satisfy demand in the market. We are one of only a handful of trusts to issue shares in the 2024
calendar year.

Board composition
As you well know, Carole Ferguson and Susie Rippingall joined the Board on 1 December 2023 and were elected
by shareholders at the annual general meeting held in January this year. Their expertise has brought a fresh view
to our deliberations.

We anticipate initiating a further recruitment process over the coming 12 months in the search for a successor to
Julia Chapman. Julia is our Jersey resident director and we will have to be mindful of our obligations to the Jersey
regulator in seeking a suitable replacement.

AGM
The Company’s 18th Annual General Meeting is due to be held at 12.30 pm on 24 January 2025 at the offices of
our investment manager, 201 Bishopsgate, London, EC2M 3AE. The Notice of Meeting has been posted to
shareholders with a copy of this annual report and I encourage all shareholders to attend the meeting and vote
their shares if they are able to do so. If you cannot attend in person, please ensure you vote your shares using the
proxy form provided or, if you hold shares on a share dealing platform, please instruct your platform to vote your
shares accordingly.

The Fund Manager will provide his usual update on the Company’s performance and the outlook for the region.
He, along with all directors, will be available to answer any questions you may have.

Recent results & outlook
A key challenge for our region remains the lacklustre performance of the Chinese economy, burdened as well by
geopolitical cross-currents that have made many Chinese companies univestable for some foreign investors. Our
reduced China exposure has benefitted performance this year. Recent stimulus efforts by the Chinese
government have been cautiously well-received by investors but it is unclear whether these measures will be
enough to sustainably improve economic and corporate performance. We will monitor developments and do not
rule out an increased China exposure in response to depressed valuations and high dividend yields.

Outside of China the picture is much clearer in Asia. With strong macro-economic performance from countries like
India and Indonesia, world class technology companies in Taiwan, widespread infrastructure build-out and high
stable dividends from mature markets such as Australia and Singapore, the region continues to offer outstanding
investment opportunities for growth and income. The region offers a compelling mix of growth and income for
investors seeking high dividends with capital protection from quality companies with strong free cash flow and
solid balance sheets alongside participation in attractive investment themes.

Better performance in Asian markets combined with a weaker US dollar has recently improved sentiment towards
the region among global investors. If we do indeed see a sustainable stimulus programme in China then the
outlook will improve further. The attractive relative valuations of many Asia-Pacific markets along with their growth
and income prospects are likely to attract global investors as we look ahead, especially given the exciting
investment themes in technology, infrastructure, financial inclusion and corporate reform.


Ronald Gould
Chairman
6 November 2024

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 4 of 21

FUND MANAGERS’ REPORT

In many respects the period under review shared several similarities with the year preceding it; India and Taiwan
were the strongest markets and technology was a standout sector performer whilst China remained weak and
sentiment arguably worsened over the period. Furthermore, it seemed that not a day passed without conjecture
around the path of interest rates which created volatility for our markets. However, the outcome was more positive
with performance much improved following a difficult year for Asia and your Company. We are also pleased to
report the return of strong dividend growth in our region enabling us to rebuild the revenue reserve to its highest
ever level, supporting our long track record of dividend growth.

Rising expectations of loosening monetary policy from the Federal Reserve supported equities and, at the time
of writing, we have witnessed a larger than expected 50bps reduction in September 2024, the first cut in over four
years. We expect this to provide a supportive backdrop for high yielding equities and Asian currencies as the US
dollar has recently weakened. Asian central banks are likely to follow suit which will provide a timely boost to our
markets. Fiscal positions in Asia were less stretched by Covid-19 relative to Western economies and hence there
remains a degree of flexibility to support the economy if required. As fears of a US recession subside, the World
Bank now expects an upwards revised global growth figure of 2.6% in 2024 with an increase to 2.7% in 2025-26.

The macro-economic strength of India and an Artificial Intelligence (‘AI’) induced rally in the Taiwanese market
were significant contributors to Asian market performance. Predictably it was a repeat of the issues challenging
sentiment towards China; the property market remained under pressure with a collapse in volumes and weak
demand leading to high inventory levels. Local government indebtedness created concern of potential defaults;
deflation was evident from overcapacity in some industries combined with ongoing subdued consumer behaviour.
Geopolitical risk in the form of tension with US was another reason for global investors to remain cautious.

Our repositioning of the portfolio at the beginning of the period was positive for performance given that we had
predominantly increased exposure to two of the strongest performing markets – India and Taiwan. To recap we
had expected that capital performance would benefit from a more balanced approach in terms of exposure to
growth themes and income. With respect to India, the broad based macro-economic improvement led to a
widening out of market performance, as we had expected when we added exposures in the utility, energy, and IT
services sectors. All of these names have been positive contributors in the period. In December, Indian equities
performed strongly as Modi’s BJP party won several state elections. However, the general election in June
surprised investors as Modi lost his majority and was forced into a coalition with regional parties which was
expected to reduce the effectiveness of his reform agenda. However, Indian stock markets recovered from an
early slump after the general election and reached record highs for key benchmarks such as the blue-chip Nifty 50
and BSE Sensex 30 indices by the end of the month.

In addition, the revival of the AI theme drove technology shares higher following strong earnings guidance from
Nvidia, the US company that has become synonymous with the potential of AI. The expected surge in power
demand from data centres to support the AI infrastructure roll-out also supported the utility sector, a strong
performer over the period, as power shortages had been acknowledged as a potential roadblock by AI industry
leaders.

Performance
The NAV total return was 11.9% in sterling terms over the period with the share price total return at 16.6%. This
compared to the FTSE All-World Asia Pacific ex Japan Index which returned 13.0%, a marked improvement on
last financial year’s fall of 7.4%. Performance lagged the more concentrated MSCI AC Asia Pacific ex Japan High
Dividend Yield Index which returned 17.4% over the period, mainly due to its weighting in high yield state owned
enterprise (‘SOE’) stocks in China such as the large-cap banks which outperformed the market. The re-positioning
of the portfolio towards markets such as India and Taiwan and increased technology exposure whilst reducing
China has had a positive impact on performance as our bias to value and income ideas broadly kept pace with
more growth-oriented indices such as the FTSE All-World Asia Pacific ex Japan Index.

In local currency terms the FTSE All -World Asia Pacific ex Japan index rose 16.3% with the 3.3% strength in
sterling impacting returns for the UK investor, though a significant improvement on last year’s 10.3% impact. Most
markets posted a positive return in sterling terms, though China and Hong Kong were once again the worst

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 5 of 21

performing, along with Thailand following political wrangling. By sector, the basic materials and consumer sectors
were the weakest as the lack of demand from China, in particular, impacted commodities.

An emerging theme supporting dividend growth in our region was corporate reform, with the Korean government
recently announcing a wide-ranging initiative to improve shareholder returns, taking a leaf out of Japan’s book.
This ‘Value-up’ initiative has been received positively by the market. Finally, India was another bright spot as
macro-economic data continued to strengthen, which led to a broadening out of market performance. This
favoured the more value orientated sectors where we have exposure, such as energy and utilities. It is
encouraging that the re-positioning of our portfolio at the beginning of the period captured performance in many of
these areas.

The Company’s performance greatly benefitted from our Indian holdings with our exposure in utility and energy
sectors performing strongly. Bharat Petroleum, Power Grid, NTPC and ONGC all appeared in our list of top
contributors. The other positive area was technology with the likes of TSMC, MediaTek and Hon Hai Precision key
contributors. Our other recent additions of Samsung Fire & Marine and Wesfarmers, an Australian conglomerate,
were also in the top ten contributors. Performance was negatively impacted by our China holdings with JD.com,
Guangdong Investment and Li Ning weak as Chinese economic data continued to falter. Guangdong Investment
was the worst performer following a larger-than-expected dividend cut and impairments which created a weaker
outlook for the company. These names are no longer held in the portfolio. The other weak spot was materials and
energy in Australia with Fortescue, Pilbara Minerals and Woodside Energy the key detractors.

Revenue
Dividend income from companies held in the portfolio rose by 23.0% while total income increased by 29.7%
compared to last year. Dividends from our portfolio holdings rose at a faster pace this year against even our own
optimistic expectations. This has allowed us to replenish our revenue reserve which now amounts to £29.9m,
enabling us to retain flexibility in future as we focus on a better outcome for capital along with high income.

Whilst we expect dividends to continue increasing over the long term at around the historical 10% rate per annum
this is unlikely to be a linear path. In future there will be periods, similar to the last financial year, when the strength
of sterling and some conservatism on the part of Asian corporates in a slower global growth environment leads to
slower dividend growth. However, this year has once again demonstrated that there is fundamentally an
unwavering commitment to dividends in Asia.

The income from our China holdings increased significantly, with a number of stocks where the dividend per share
has increased by around 50% this year, well above our expectations. The payout from Brilliance China
Automotive, the BMW joint venture partner in China, was the most impressive with a very significant dividend paid
from its large cash balance and high stable recurring income from the BMW operations. Management has made
clear that dividends will remain a focus given its strong balance sheet.

Another driver of income was option premia following elevated volatility in our markets, a remarkable example
being in August 2024 when the Japanese market’s 12% one day stock-market plunge spilled over to other
markets. We capitalised on such volatility to write covered calls on existing portfolio positions. We managed to
lock in attractive option premiums while hedging some of the Company’s exposure to the technology sector.

We would reiterate that the ability of Asian corporates to pay dividends is certainly not in question with record
levels of cash held on balance sheets in the region and one of the lowest net debt to equity ratios globally. The
unwillingness of corporates to increase dividends in periods of elevated global volatility has contributed to a recent
lack of meaningful growth in dividends, particularly in sterling terms. Over time we expect that Asia will return to a
growth profile in line with historical trends and nominal Gross Domestic Product (‘GDP’).

Portfolio activity
We have previously discussed in detail the change in country and sector allocation at the beginning of our
financial year and this had largely been completed in October and November 2023. We significantly reduced the
weighting in China selling China Yongda Auto, Li Ning, Ping An Insurance and China National Building Material.
We used the proceeds to purchase typically more defensive, high-quality growth-style stocks with the ability to
grow dividends, including Infosys and HCL Technologies in India, and Bank Negara Indonesia. We also added

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 6 of 21

Wesfarmers in Australia, another high-quality, dividend-paying stock with its historically strong returns being
attractive to us in a volatile market environment.

Towards the end of 2023 we added to South Korea ahead of official announcements of a widespread corporate
reform initiative. We added two new positions in South Korean insurance companies, DB Insurance and Samsung
Fire & Marine, due to expectations of higher dividends, an improving competitive landscape and attractive
valuations. We also added a position in Hyundai Motor and Kia Corp owing to their growing dividend, pipeline of
new auto models and positive growth forecasts. All of these names have performed strongly following the
government’s reform announcements. We sold LG Corp and SK Telecom to fund these positions.

In India we added a position in Bharat Petroleum, given our expectations of a high yield, generally improving
margins for oil marketing companies, and the company’s financial de-leverage efforts. We have been wary of high
dividend stocks that have defensive characteristics but do not fit our structural growth themes and, on that basis,
we sold many of our positions in the telecommunications sector such as Spark New Zealand and Telkom
Indonesia. We feel there are better opportunities in sectors such as technology and utilities which have similar
levels of dividend yield but more growth.

In April, following a trip to Beijing where we met high yield SOEs, we found the prospect of corporate reform in
China compelling given the low valuations and exceptionally high yields available for some of these entities.
On that basis, we added positions in China CITIC Bank and Industrial Bank in China. We also added another
SOE, China Resources Land, a high-quality property investment group in China with a high yield and a key
beneficiary of the recent property loosening measures in the country. Following these purchases we have seen a
continued trickle of positive news, mainly relating to monetary policy support and more recently in September
there appears to be more tangible efforts to stimulate the economy and these names are seeing increased
investor interest.

In addition, there are a number of unique growth opportunities in China at depressed valuations, namely out-of-
favour Chinese internet stocks, where cash flow is typically strong and competitive and regulatory environments
more benign. On this basis, we added positions in Meituan and Trip.com alongside our regional ecommerce and
gaming company Sea where competition is also more benign. We expect that the strong cash generation will
eventually lead to an attractive dividend policy though share buybacks are already being routinely announced for
growth companies in China. We sold the small holdings in JD.com and Alibaba to fund these trades, given their
weak operational outlook.

ESG
We have continued to engage with companies we invest in to ensure that we understand the key environmental,
social and governance concerns supported by our centralised Responsibility team which partners with our
investment teams to integrate financially material ESG risks and opportunities. We believe it is important that
companies convey a clear policy to demonstrate their understanding of financially material ESG risks and how
they manage these issues. We have increased our engagement with corporates on these issues during the
financial year and produce more formal documentation to record this along with proprietary and third-party ESG
data and analytics tools. This has helped us assess the effectiveness of our approach from year to year.

Our approach remains pragmatic and looks to engage rather than avoid. Hence, aside from munitions, we do not
exclude any sectors from our investment universe. We have progressively increased the standards that we seek in
companies and now produce initial analysis on ESG policies before we invest and follow this up during corporate
meetings. As responsible investors, it is our duty to help this transition rather than to divest and hand that
responsibility to someone else.

Outlook
Asia is well placed to take advantage of a number of unique exposures for global investors. It remains a hub for
technology supply chains and is crucial to the development of AI given the strength in hardware and semi-
conductor manufacturing for example. There is an incredible opportunity for financial companies in markets such
as Indonesia and India where hundreds of millions of bank accounts have been opened in recent years.
Infrastructure continues to forge ahead with record levels of spend in India, in addition to a strong commitment to
renewable energy. The emergence of strong domestic brands and widespread corporate reform in South Korea

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 7 of 21

and to a degree China are other bright spots. There is much to be excited about and your Company is positioned
to take advantage of growth in these themes alongside strong dividend growth.

The outlook for dividends has been strengthened by a very positive payout during our financial year, the long term
trend of strong dividend growth is certainly intact and provides a very supportive backdrop for our strategy. Our
investment region has progressively improved its commitment to dividends but remains one of the lowest payout
ratios globally, it is our belief that this can only improve in future years.

Asia has seen the transfer of power in several markets as Taiwan, India and Indonesia held elections that passed
by without incident and continue to support our recent shift towards these markets. However, China remains a
concern and its economic challenges have been well documented but there are numerous signals that the
government is taking a more proactive stance towards stimulus though it is piecemeal. The underlying economic
model focused on high investment rates as a percentage of GDP is failing to create jobs whilst weak consumption
trends are being neglected creating structural imbalances.

There are of course many potential pitfalls for global markets. China’s economy may continue to falter although
recent stimulus initiatives are clearly having a positive impact short-term. The Middle East remains a tragic area of
instability, war continues in Ukraine and the policies of a new US administration are hard to predict.
Notwithstanding all this, Asia remains attractive on valuation metrics versus developed markets and with strong
balance sheets and positive free cash flow we remain optimistic about the outlook for our region as rate cuts
provide more accommodative policy. The recent weakness of the US dollar has been an additional boost for our
markets given the historical headwinds that a stronger dollar creates for emerging markets. Many of our markets
have strong macro-economic positions, valuations are generally attractive and the potential for capital and income
growth at high quality companies representing some of the most attractive investment themes globally is an
exciting prospect for the years to come.



Sat Duhra
Fund Manager
6 November 2024

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 8 of 21


Investment portfolio as at 31 August 2024

Ranking
2024
Ranking
2023 Company
Country of
incorporation Sector
Value
2024
£'000
% of
portfolio
1 4 Samsung Electronics
1
South Korea Technology 20,665 5.50
2 1 Taiwan Semiconductor Manufacturing
2
Taiwan Technology 19,931 5.30
3 41 MediaTek Taiwan Technology 13,630 3.63
4 12 Macquarie Group Australia Financials 12,984 3.45
5 25 HDFC Bank India Financials 11,633 3.10
6 33 HKT Trust & HKT Hong Kong Telecommunications 11,544 3.07
7 26 Oversea-Chinese Banking Singapore Financials 11,359 3.02
8 2 Hon Hai Precision Industry Taiwan Technology 9,922 2.64
9 42 ASE Technology Taiwan Technology 9,325 2.48
10 - Bharat Petroleum India Energy 9,021 2.40

Top Ten Investments 130,014 34.59
11 - PCCW Hong Kong Telecommunications 8,906 2.37
12 - Hyundai Motor
1
South Korea Consumer Discretionary 8,322 2.21
13 21 United Overseas Bank Singapore Financials 8,268 2.20
14 - HCL Technologies India Technology 7,970 2.12
15 - DB Insurance South Korea Financials 7,679 2.04
16 45 NTPC India Utilities 7,528 2.00
17 3 Macquarie Korea Infrastructure Fund South Korea Financials 7,516 2.00
18 7 Bank Mandiri Indonesia Financials 7,491 1.99
19 - Wesfarmers Australia Consumer Discretionary 7,245 1.93
20 - Meituan China Technology 6,992 1.86

Top Twenty Investments 207,931 55.31
21 28 Astra International Indonesia Consumer Discretionary 6,897 1.84
22 - Brilliance China Automotive China Consumer Discretionary 6,771 1.80
23 - Bank Negara Indonesia Indonesia Financials 6,738 1.79
24 13 Woodside Energy Australia Energy 6,646 1.77
25 - Infosys India Technology 6,565 1.75
26 39 Power Grid India Utilities 6,474 1.72
27 - Samsung Fire & Marine South Korea Financials 6,468 1.72
28 23 HSBC Hong Kong Financials 6,416 1.71
29 9 BHP Group Limited Australia Basic Materials 6,353 1.69
30 35 Swire Properties Hong Kong Real Estate 6,298 1.68

Top Thirty Investments 273,557 72.78
31 - First Pacific Hong Kong Consumer Discretionary 6,259 1.66
32 6 Midea Group China Consumer Discretionary 6,200 1.65
33 - Kia Corp South Korea Consumer Discretionary 6,187 1.65
34 17 Lenovo China Technology 6,092 1.62
35 22 Nari Technology China Industrials 5,731 1.52
36 - Trip.com China Consumer Discretionary 5,590 1.49
37 - ANTA Sports China Consumer Discretionary 5,553 1.48
38 30 Pilbara Minerals Australia Basic Materials 5,314 1.41
39 - Samsonite Hong Kong Consumer Discretionary 5,238 1.39
40 - China Resources Land China Real Estate 5,186 1.38

Top Forty Investments 330,907 88.03

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 9 of 21


Ranking
2024
Ranking
2023 Company
Country of
incorporation Sector

Value
2024
£'000
% of
portfolio
41 - Sea
2
Singapore Technology 5,007 1.33
42 14 Goodman Group Australia Real Estate 5,000 1.33
43 - Fortescue Australia Basic Materials 872 1.30
44 5 VinaCapital Vietnam Opportunity Fund
3
Vietnam
3
Financials 4,708 1.25
45 8 Rio Tinto Limited Australia Basic Materials 4,448 1.18
46 - China Construction Bank China Financials 4,049 1.08
47 - Industrial Bank China Financials 4,007 1.07
48 - China CITIC Bank Corporation China Financials 3,961 .05
49 - CTBC Financial Holdings Taiwan Financials 3,935 1.05
50 - Pinduoduo
2
China Technology 3,038 0.81

Top Fifty Investments 373,932 99.48
51 - NetEase China Technology 2,936 0.78
52

Macquarie Korea Infrastructure Fund
4
South Korea Financials 28 0.01
53 50 China Forestry
5
China Basic Materials - -
54 - China Resources Land Call 28.9 (Expiry
12/09/24)
China Real Estate - -
55 - NetEase Call 159.2 (Expiry 19/09/24) China Technology (1) -
56 - Samsung Fire & Marine Call 370,569.6
(Expiry 02/09/24)
South Korea Financials
(1)
-
57 - MediaTek Call 1,391.5 (Expiry 11/09/24) Taiwan Technology (8) -
58 - ASE Technology Call 192.6 (Expiry 15/10/24) Taiwan Technology (11) -
59 - Meituan Call 137.9 (Expiry 22/10/24) China Consumer Discretionary (44) (0.01)
60 - ASE Technology Call 162.3 (Expiry 31/10/24) Taiwan Technology (66) (0.02)

Top Sixty Investments 376,765 100.24
61 - Sea Put 69.80 (Expiry 14/11/24) Singapore Technology (68) (0.02)
62 - Taiwan Semiconductor Call 184 (Expiry
24/10/24)
Taiwan Technology (101) (0.03)
63 - Hon Hai Precision Call 193 (Expiry 06/11/24) Taiwan Technology (108) (0.03)
64 - Taiwan Semiconductor Call 175 (Expiry
06/11/24)
Taiwan Technology (161) (0.04)
65 - MediaTek Call 122 (Expiry 06/11/24) Taiwan Technology (206) (0.06)
66 - MediaTek Call 130 (Expiry 31/10/24) Taiwan Technology (213) (0.06)


Total Investments 375,908 100.00

1. Preferred shares

2. American Depositary Receipts

3. Incorporated in Guernsey with 100% exposure to Vietnam

4. Equity investment – rights (priced using theoretical price
calculator)


5. Unquoted investment valued at £nil

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 10 of 21


Sector exposure at 31 August 2024
(% of portfolio excluding cash)
2024
%
2023
%
Technology 29.6 16.0
Financials 28.5 28.2
Consumer Discretionary 17.1 13.6
Basic Materials 5.6 9.0
Telecommunications 5.4 8.3
Real Estate 4.4 9.4
Energy 4.2 6.7
Utilities 3.7 4.0
Industrials 1.5 4.8
100 100.0




Geographic exposure at 31 August 2024
(% of portfolio excluding cash)
2024
%
2023
%
China 17.5 19.7
South Korea 15.1 10.7
Taiwan 14.9 11.7
Australia 14.1 17.2
India 13.1 6.4
Hong Kong 11.9 12.3
Singapore 6.5 7.5
Indonesia 5.6 6.3
Vietnam 1.3 3.2
New Zealand - 1.9
Japan - 1.8
Thailand - 1.3
100.0 100.0

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 11 of 21

MANAGING RISKS
Principal risks and emerging risks
Investing, by its nature, carries inherent risk. The Board, with the assistance of the investment manager, carries
out a robust assessment of the principal and emerging risks and uncertainties facing the Company which could
threaten the
business model and future performance, solvency and liquidity of the portfolio. A matrix of these
risks, along with the steps taken to mitigate them, is maintained and kept under regular review. The mitigating
measures include a schedule of investment limits and restrictions within which the Fund Manager must operate.
We do not believe these principal risks to have changed over the course of the year.

Alongside the principal risks, the Board considers emerging risks, which are defined as potential trends, sudden
events or changing risks which are characterised by a high degree of uncertainty in terms of the probability of
them happening and the possible effects on the Company. Should an emerging risk become sufficiently clear, it
may be classified as a principal risk.

Our assessment includes consideration of the possibility of severe market disruption and some of the areas which
we reviewed over the course of the year are outlined in the table below. The principal risks which have been
identified and the steps we have taken to mitigate these are set out below:

• Investment and strategy
An inappropriate investment strategy, for example, in terms of asset allocation or level of gearing, may result
in underperformance against the companies in the peer group, and in the Company’s shares trading on a
wider 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.

We manage these risks by ensuring a diversification of investments and a regular review of the extent of
borrowings. The investment manager operates in accordance with investment limits and restrictions
determined by the Board, which include limits on the extent to which borrowings may be employed. We review
compliance with limits and monitor performance at each Board meeting.

The Fund Manager maintains a diverse portfolio (sector and country) with buy/sell disciplines and employs
suitable quantitative and qualitative metrics, which incorporate environmental, social and governance (‘ESG’)
considerations, for assessing stocks for inclusion or evaluating those already held within the portfolio.

The Board reviews the Key Performance Indicators (‘KPI’s), portfolio composition and levels of gearing at
each meeting.

The Board furthermore maintains an understanding of the Fund Manager’s investment process and considers
the potential for climate change to impact the value of the portfolio, alongside other factors which may have
the same effect.

• 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, Transparency Guidance and Disclosure Rules and Prospectus Regulation 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 s.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 s.1158 could result in
capital gains realised within the portfolio being subject to corporation tax.

The investment manager provides investment management, company secretarial, administration and
accounting services through qualified professionals. We receive quarterly internal control reports from
the investment manager which demonstrate compliance with legal and regulatory requirements and assess
the effectiveness of the internal control environment in operation at the investment manager and our key third-
party service providers at least annually.

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 12 of 21


• 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.

The Board engages reputable third-party service providers and formally evaluates their performance, and
terms of appointment, at least annually.

The Audit Committee assesses the effectiveness of internal controls in place at the Company’s key third-party
service providers through review of their reports on the effectiveness of internal controls, quarterly internal
control, reports from the investment manager and monthly reporting on compliance with the investment limits
and restrictions established by the Board.

• 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.

We determine the investment parameters and monitor compliance with these at each meeting. We review the
portfolio liquidity at each meeting and periodically consider the appropriateness of hedging the portfolio
against currency risk. The Company is denominated in sterling, but receives dividends in a wide range of
currencies from the Asia Pacific region. The income received is therefore subject to the impact of movements
in exchange rates. The portfolio remains unhedged.

The Board reviews the portfolio valuation at each meeting.

Investment transactions are carried out by a large number of approved brokers whose credit standard is
periodically reviewed and limits are set on the amount that may be due from any one broker, cash is only held
with the depositary/custodian or reputable banks.

We review the broad structure of the Company’s capital including the need to buy back or allot ordinary shares
and the extent to which revenue in excess of that which is required to be distributed, should be retained.
Further detail on how we mitigate these risks are set out in note 13 in the annual report.

VIABILITY STATEMENT
In keeping with provisions of the Code of Corporate Governance issued by the Association of Investment
Companies in 2019 (the ‘AIC Code’), we have assessed the prospects of the Company over a period longer than
the 12 months required by the going concern provision.

We consider the Company’s viability over a five-year period as we believe this is a reasonable timeframe reflecting
the longer-term investment horizon for the portfolio, but which acknowledges the inherent shorter term
uncertainties in equity markets. As part of the assessment, we have considered the Company’s financial position,
as well as its ability to liquidate the portfolio and meet expenses as they fall due. The following aspects formed
part of our assessment:
● the Company’s purpose and investment approach which means we remain a medium to long term investor;
● consideration of the principal risks and uncertainties facing the Company (set out in the table above) and
determined that no significant issues had been identified;
● the nature of the portfolio which remained diverse comprising a wide range of stocks which are traded on major
international exchanges meaning that, in normal market conditions, over 80% of the portfolio can be liquidated
in 2 to 7 days;
● the closed end nature of the Company which does not need to account for redemptions;
● the level of the Company’s revenue reserves and size of the banking facility; and
● the expenses incurred by the Company, which are predictable and modest in comparison with the assets and
the fact that there are no capital commitments currently foreseen which would alter that position.

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 13 of 21

As well as considering the principal risks and financial position of the Company, the Board has made the following
assumptions:
● an aging population will continue to seek income opportunities through investing;
● investors will continue to wish to have exposure to investing in the Asia Pacific region;
● investors will continue to invest in closed-end funds; and
● the Company will continue to have access to adequate capital when required.

Based on the results of the viability assessment, we have a reasonable expectation that the Company will be able
to continue its operations and meet its expenses and liabilities as they fall due for our assessment period of five
years. Forecasting over a longer period is imprecise given investments are bought and sold regularly.

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 year, with the 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 the investment manager affecting the financial position of the Company during
the year under review. More details on transactions with the investment manager, including amounts outstanding
at the year end, are given in note 19 in the annual report.

DIRECTORS’ RESPONSIBILITY STATEMENTS
Each of the directors in office at the date of this report confirms that, to the best of their knowledge:

● the Company's financial statements, which have been prepared in accordance with IFRS as adopted by the
European Union on a going concern basis, give a true and fair view of the assets, liabilities, financial position
and profit of the Company; and

● the annual report and financial statements include a fair review of the development and performance of the
business and the position of the Company, together with a description of the principal risks and uncertainties
that it faces.

For and on behalf of the Board


Ronald Gould
Chairman
6 November 2024

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 14 of 21


STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 August 2024 Year ended 31 August 2023

Revenue
return
£'000
Capital
return
£'000
Total
£'000
Revenue
return
£'000
Capital
return
£'000
Total
£'000
Investment income (note 3)
45,927 - 45,927 37,331 - 37,331
Other income (note 4)
6,304 - 6,304 2,937 - 2,937
Losses on investments held at fair value
through profit or loss - (3,715) (3,715) - (87,446) (87,446)
Net foreign exchange (loss)/profit excluding
foreign exchange losses on investments - (84) (84) - 318 318
----------- ----------- -----------
--------- ---------- -----------
Total income/(loss)
52,231 (3,799) 48,432 40,268 (87,128) (46,860)


Expenses

Management fees
(1,402) (1,402) (2,804) (1,456) (1,456) (2,912)
Other expenses
(569) (568) (1,137) (525) (524) (1,049)
----------- ----------- -----------
--------- ---------- -----------
Profit/(loss) before finance costs and
taxation 50,260 (5,769) 44,491 38,287 (89,108) (50,821)


Finance costs
(926) (926) (1,852) (766) (766) (1,532)
----------- ----------- -----------
--------- ---------- -----------
Profit/(loss) before taxation
49,334 (6,695) 42,369 37,521 (89,874) (52,353)


Taxation (4,000) 690 (3,310) (4,302) 415 (3,887)
----------- ----------- -----------
--------- ---------- -----------
Profit/(loss) for the year and total
comprehensive income 45,334 (6,005) 39,329 33,219 (89,549) (56,240)
====== ====== ======
====== ====== ======


Earnings/(losses) per ordinary share – basic
and diluted (note 5) 27.83p (3.68p) 24.15p 20.92p (56.35p) (35.43p)
====== ====== ======
====== ====== ======


The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with IFRS as
adopted by the European Union. The revenue return and capital return columns are supplementary to this and are prepared
under guidance published by the Association of Investment Companies.

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 15 of 21


STATEMENT OF CHANGES IN EQUITY
Year ended 31 August 2024



Stated
share
capital
£'000

Distributable
reserve
£'000

Capital
reserves
£'000

Revenue
reserve
£'000


Total
£'000
Total equity at 31 August 2023 268,038 180,471 (108,047) 21,570 362,032
Total comprehensive income:
(Loss)/profit for the year - - (6,005) 45,334 39,329
Transactions with owners, recorded directly to
equity:

Dividends paid - (2,875) - (37,052) (39,927)
Buyback of shares for treasury (1,721) - - - (1,721)
Shares issued 6,436 - - - 6,436
Share issue costs (45) - - - (45)

------------ ------------ ------------ ------------ ------------
Total equity at 31 August 2024 272,708 177,596 (114,052) 29,852 366,104

======= ======= ======= ======= =======




Year ended 31 August 2023
Stated
share
capital
£'000
Distributable
reserve
£'000
Capital
reserves
£'000
Revenue
reserve
£'000
Total
£'000
Total equity at 31 August 2022 246,997 180,471 (18,588) 26,696 435,576
Total comprehensive income:
(Loss)/profit for the year - - (89,459) 33,219 (56,240)
Transactions with owners, recorded directly to
equity:
Dividends paid - - - (38,345) (38,345)
Shares issued 21,083 - - - 21,083
Share issue costs (42) - - - (42)
------------ ------------ ------------ ------------ ------------
Total equity at 31 August 2023 268,038 180,471 (108,047) 21,570 362,032
======= ======= ======= ======= =======

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 16 of 21


BALANCE SHEET


31 August 2024
£’000
31 August 2023
£’000

Non current assets
Investments held at fair value through profit or loss 376,896 386,867


Current assets
Other receivables 3,427 2,587
Cash and cash equivalents 5,482 3,944

------------ ------------

8,909 6,531

_______ ------------
Total assets 385,805 393,398

------------ ------------
Current liabilities
Investments held at fair value through profit or loss - written options (988) (1,582)
Deferred taxation (203) (149)
Other payables (3,210) (1,444)
Bank loans (15,300) (28,191)

------------ ------------

(19,701) (31,366)

_______ ------------
Net assets 366,104 362,032

======= =======
Equity attributable to equity shareholders
Stated share capital 272,708 268,038
Distributable reserve 177,596 180,471
Retained earnings:
Capital reserves (114,052) (108,047)
Revenue reserves 29,852 21,570

------------ ------------
Total equity 366,104 362,032

======= =======


Net asset value per ordinary share 221.97p 222.12p

======= =======

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 17 of 21


STATEMENT OF CASH FLOWS


Year ended
31 August 2024
£’000
Year ended
31 August 2023
£’000

Cash flows from operating activities

Profit/(loss) before taxation 42,639 (52,353)
Add back:
Finance costs 1,852 1,532
Losses on investments held at fair value through profit or loss 3,715 87,446
Net foreign exchange loss/(profit) excluding foreign exchange losses on
investments
84 (318)
Withholding tax on investment income (3,425) (3,727)
Decrease in prepayments and accrued income 1,037 839
(Increase)/decrease in amounts due from brokers (1,618) 37
Increase/(decrease) in other payables 11 (1,064)
Increase in amounts due to brokers 1,699 -

---------- ----------
Net cash inflow from operating activities 45,994 32,392
---------- ----------
Cash flows from investing activities:
Sales of investments 445,964 348,721
Purchases of investments (440,302) (383,956)
Overseas capital gains tax on sales (34) -
---------- ----------
Net cash inflow/(outflow) from investing activities 5,628 (35,235)

---------- ----------
Cashflow from financing activities

Loan drawdown 92,751 211,162
Loan repayment (105,429) (199,302)
Equity dividends paid (39,927) (38,345)
Buyback of shares for treasury (1,721) -
Share issue proceeds 6,436 21,083
Share issue costs (45) (42)
Interest paid (1,852) (1,522)

---------- ----------
Net cash outflow from financing activities (49,787) (6,966)

______ ----------
Increase/(decrease) in cash and cash equivalents 1,835 (9,809)

---------- ----------
Cash and cash equivalents at the start of the year 3,944 14,310
Exchange movements (297) (557)

---------- ----------
Net debt


Cash and cash equivalents
5,482 3,944
Bank loans and overdraft repayable within one year
(15,300) (28,191)

---------- ---------

(9,818) (24,247)

====== ======

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 18 of 21

NOTES TO THE FINANCIAL STATEMENTS

1. General information
The entity is a closed-end company, registered as a no par value company under the Companies (Jersey) Law
1991, with its shares listed on the London and New Zealand stock exchanges. The Company’s registered office
is IFC1, The Esplanade, St Helier, Jersey, JE1 4BP and its principal place of business is 201 Bishopsgate,
London EC2M 3AE. The Company was incorporated on 6 November 2006.

2. Material accounting policies
a) Basis of preparation
The Company’s financial statements for the year ended 31 August 2024 have been prepared in accordance with
International Financial Reporting Standards as adopted by the European Union (‘IFRS’). These comprise
standards and interpretations approved by the International Accounting Standards Board (‘IASB’), together with
interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the
International Accounting Standards Committee (‘IASC’) that remain in effect, to the extent that IFRS have been
adopted by the European Union. The financial statements have been prepared on a going concern basis and on
the historical cost basis, except for the revaluation of financial assets and liabilities designated as held at fair
value through profit and loss.

The financial statements are presented in sterling and all values are rounded to the nearest thousand pounds
(£’000) except where otherwise indicated.

Where presentational guidance set out in the Statement of Recommended Practice (the ‘SORP’) for investment
trusts issued by the Association of Investment Companies (the ‘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.

3. Investment income

2024 2023

£’000 £'000
Overseas investment income 45,927 37,304
Stock dividends - 27

---------- ----------

45,927
======
37,331
======

Analysis of investment income by geography:

Australia 2,620 6,154
China 23,094 10,561
Hong Kong 4,792 2,653
India 2,501 347
Indonesia 3,219 2,271
Japan 54 181
New Zealand 435 579
Singapore 1,627 2,583
South Korea 5,041 5,488
Taiwan 2,026 5,351
Thailand 244 836
Vietnam 274 327

----------- ----------

45,927 37,331

====== ======
All of the above income is derived from equity related investments.


4. Other income


2024 2023

£’000 £'000
Bank and other interest 160 68
Option premium income 6,144 2,869

--------- --------

6,304
=====
2,937
=====

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 19 of 21

5. Earnings/(losses) per ordinary share
The earnings/(losses) per ordinary share figure is based on the net profit for the year of £39,329,000 (2023: loss
£56,240,000) and on the weighted average number of ordinary shares in issue during the year of 162,877,255
(2023: 158,745,879).

The earnings/(losses) per ordinary share figure can be further analysed between revenue and capital, as below:


2024 2023

£’000 £’000
Revenue profit attributable to ordinary shares 45,334 33,219
Capital loss attributable to ordinary shares (6,005)
----------
(89,459)
-----------
Profit/(loss) attributable to ordinary shares 39,329
======
(56,240)
======



Weighted average number of ordinary shares in issue during the year 162,887,255 158,745,879




2024
Pence
2023
Pence
Revenue earnings per ordinary share 27.83 20.92
Capital losses per ordinary share (3.68)
---------
(56.35)
---------
Total earnings/(loss) per ordinary share 24.15
=====
(35.43)
======

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.

6. Dividends
2024 2023
Dividends Record date Pay date
Revenue
Reserve
£’000
Distributable
Reserve
£’000
Revenue
Reserve
£’000
Fourth interim dividend 6.00p for the year
ended 2022
28 Oct 2022 25 Nov 2022 - - 9,319
First interim dividend 6.00p for the year
ended 2023
27 Jan 2023 24 Feb 2023 - - 9,461
Second interim dividend 6.00p for the year
ended 2023
28 Apr 2023 26 May 2023 - - 9,650
Third interim dividend 6.10p for the year
ended 2023
28 July 2023 25 Aug 2023 - - 9,915
Fourth interim dividend of 6.10p for the year
ended 2023
27 Oct 2023 24 Nov 2023 7,067 2,875 -
First interim dividend of 6.10p for the year
ended 2024
26 Jan 2024 23 Feb 2024 9,924 - -
Second interim dividend of 6.10p for the
year ended 2024
26 Apr 2024 31 May 2024 9,893 - -
Third interim dividend of 6.20p for the year
ended 2024
26 Jul 2024 30 Aug 2024 10,168 - -
---------- --------- ----------
37,052 2,875 38,345
====== ===== ======


The fourth interim dividend for the year ended 31 August 2024 has not been included as a liability in these
financial statements as it was announced and paid after the year-end. The table which follows sets out the total
dividends paid and to be paid in respect of the financial year and the previous year. The revenue available for
distribution by way of dividend for the year is £45,334,000 (2023: £33,219,000).

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 20 of 21

The total dividends payable in respect of the financial year which form the basis of s.1158 of the Corporation Tax
Act 2010 are set out below:


2024
£’000
2023
£’000
Revenue available for distribution by way of dividend for the year 45,334 33,219
First interim dividend of 6.10p (2023: 6.00p) paid 23 February 2024 (24 February 2023) (9,924) (9,461)
Second interim dividend of 6.10p (2023: 6.00p) paid 31 May 2024 (26 May 2023) (9,893) (9,650)
Third interim dividend of 6.20p (2023: 6.10p) paid 30 August 2024 (25 August 2023) (10,168) (9,915)
Fourth interim dividend for the year ended 31 August 2024 of 6.20p (2023: 6.10p) (based on
165,402,179 shares in issue at 25 October 2024) (2023: 162,988,564)
(10,255)
-----------
(9,942)
----------
Undistributed revenue/(Transfer from revenue reserve) for s.1158 purposes 5,094
======
(5,749)
======

7. Net asset value per share
The basic net asset value per ordinary share and the net asset value attributable to ordinary shareholders at the
year-end calculated in accordance with the articles of association were as follows:


2024 2023

Net asset value
per share
pence
Net asset value
attributable
£'000
Net asset value
per share
pence
Net asset value
attributable
£'000
Ordinary shares 221.97 366,104 222.12 362,032

======= ====== ====== ======

The basic net asset value per ordinary share is based on 164,937,179 (2023: 162,988,564) ordinary shares, being
the number of ordinary shares in issue.

The movements during the year in net assets attributable to the ordinary shares were as follows:
2024
£’000
2023
£’000
Net assets attributable to ordinary shares at beginning of year 362,032 435,576
Total net profit/(loss) after taxation 39,329 (56,240)
Dividends paid (39,927) (38,345)
Buyback of shares for treasury (1,721) -
Issue of ordinary shares net of issue costs 6,391
------------
21,041
------------

366,104
=======
362,032
=======

8. Stated share capital
2024 2023


Authorised
Number of
shares
issued and
fully paid

£’000
Number of
shares issued
and fully paid

£’000
Opening balance at 1 September
Ordinary shares of no par value Unlimited 162,988,564 268,038 154,948,564 246,997
Buyback of shares for treasury (806,385) (1,721)
Issued during the year 2,755,000 6,436 8,040,000 21,083
Share issue costs - (45) - (42)

Closing balance at 31 August
----------------
164,937,179
=========
-----------
272,708
======

----------------
162,988,564
=========
-----------
268,038
======

The holders of ordinary shares are entitled to all the capital growth in the Company and all the income from the
Company that is resolved by the directors to be distributed. Each shareholder present at a general meeting has
one vote on a show of hands and on a poll every member present in person or by proxy has one vote for each
share held. The Company has no significant or controlling shareholders.

During the year, the Company issued 2,755,000 (2023: 8,040,000) shares for the proceeds of £6,391,000
(2023: £21,041,000) net of costs and 806,385 shares were repurchased for treasury at a cost of £1,721,000
(2023: nil).

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2024
Page 21 of 21
9. Subsequent events
On 15 October 2024, the Company announced a dividend of 6.20p per ordinary share in respect of the year ended
31 August 2024 which was payable to shareholders on the register at 25 October 2024. The shares were quoted
ex dividend on 24 October 2024.
A t
otal of 715,000 new shares have been issued since the year-end and the date of this report.
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 being 6 November 2025.
11 . Fi
nancial information for 2024
The figures and financial information for the year ended 31 August 2024 are compiled from an extract of the latest
financial statements and do not constitute statutory accounts. These financial statements included the report of the
auditors which was unqualified.
12 . Fi
nancial information for 2023
The figures and financial information for the year ended 31 August 2023 are compiled from an extract of the
published accounts and do not constitute the statutory accounts for that year.
13
. Annual Report 2024
The annual report and financial statements will be posted to shareholders in November 2024 and copies will be
available on the Company's website at: www.hendersonfareastincome.com.
14 . An
nual General Meeting
The 18th Annual General Meeting will be held at the offices of Janus Henderson Investors at 201 Bishopsgate,
London EC2M 3AE at 12.30 pm on 24 January 2024. The Notice of the Meeting will be sent to shareholders with
the Annual Report 2024.
15 . Ge
neral Information
Company Status
The Company was incorporated in Jersey in 2006, number 95064, and is a closed-end investment company. The
Company is regulated by the Jersey Financial Services Commission under the Collective Investment Funds
(Jersey) Law 1998. It is listed on the London and New Zealand stock exchanges and became UK tax resident
with effect from 1 September 2018.
SEDO
L/ISIN: B1GXH75/JE00B1GXH751
London Stock Exchange (TIDM) code: HFEL
New Zealand Stock Exchange code: HFL
Global Intermediary Identification Number (GIIN): NTTIYP.99999.SL.832
Legal Entity Identifier (LEI):
2138008DIQREOD38O596
Directors and Secretary
The directors of the Company are Ronald Gould (Chairman), Nicholas George (Chairman of the Audit Committee),
Julia Chapman, Timothy Clissold, Carole Ferguson, Nicholas George and Susan Rippingall. The Corporate
Secretary is Janus Henderson Secretarial Services UK Limited. The registered office is IFC1, The Esplanade, St
Helier, Jersey, JF1 4BP. The Company’s principal place of business is 201 Bishopsgate, London, EC2M 3AE.
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
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.