HFL - Financial results for the year ended 31 August 2025

LEGAL ENTITY IDENTIFIER: 2138008DIQREOD38O596

HENDERSON FAR EAST INCOME LIMITED
Financial results for the year ended 31 August 2025

This announcement contains regulated information

Investment Objective
The Company seeks to provide shareholders with a growing total annual dividend, as well as capital appreciation,
from a diversified portfolio of investments from the Asia Pacific region.

Total return performance to 31 August 2025
1 year
%
3 years
%
5 years
%
10 years
%
NAV
1, 8
12.7 9.6 19.7 80.9
Share price
2, 8
13.6 12.8 18.8 83.5
FTSE World Asia Pacific ex Japan Index
3
14.1 19.6 35.6 153.1
MSCI AC Asia Pacific ex Japan High Dividend Yield Index
3
13.9 33.8 67.7 146.2


Financial highlights at 31 August 2025 at 31 August 2024
Shareholders’ funds
Net assets (£’000) £407.6m £366.1m
NAV per share at end of year 223.32p 221.97p
Share price 231.00p 227.00p
Dividend yield 10.8%
4
10.8%
5





Year ended
31 August 2025
Year ended
31 August 2024
Profit/(loss) for year
Revenue return (£’000) 42,680 45,334
Capital return (£’000)
2,432 (6,005)

------------ ------------
Net total (loss)/profit 45,112 39,329

======= =======
Total earnings/(loss) per ordinary share
Revenue
24.98p 27.83p
Capital
1.42p (3.68p)

------------ ------------
Total earnings per ordinary share 26.40p 24.15p

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

1. Net Asset Value (‘NAV’) total return per ordinary share at 31 August 2025. Total return takes into account the rise and fall of the NAV and assumes
dividends are reinvested
2. Share price total return using closing price at 31 August 2025. Total return takes into account the rise and fall of the share price and assumes
dividends are reinvested
3. The Company does not have a benchmark and uses these indices for comparison purposes only.
4. Dividend yield based on a share price of 231.00p and dividends for the twelve months to 31 August 2025 totalling 24.90p per ordinary shar.
5. Dividend yield based on a share price of 227.00p and dividends for the twelve months to 31 August 2024 totalling 24.60p per ordinary share
6. Calculated using the methodology prescribed by the Association of Investment Companies
7. The premium expresses, as a percentage, the difference between the closing share price and NAV, including current year revenue, as at the
period end date
8. NAV total return, share price total return, the ongoing charge and premium are considered alternative performance measures. More information on
these can be found in the Company’s annual report
Sources: Morningstar Direct, Janus Henderson Investors

CHAIRMAN’S STATEMENT

Dear Shareholder,
As some of you may recall, my letter two years ago contained a sombre assessment of our results, reflecting a
frustration for all of us that ultimately led to a change of portfolio manager and some shifts in our approach. That
process of change has continued in the ensuing period with careful adjustments to holdings, position sizes, use of
our options strategy, levels of turnover and methods of dividend capture. Our most recent results confirm the value
of these changes and it is with pleasure that we present them now in this year’s annual report to shareholders.
The focus of our efforts during the past two years has been to achieve a better balance, a balance that delivers
strong dividends as well as underlying capital growth. We believe we are now firmly on the right path to achieve
this combination of income and capital growth with consistency over time, recognising that all markets have ups
and downs. Our Fund Manager’s report sets out the details of both what has changed and how, but I want to focus
on a few key points from the Board’s perspective.

The performance of Asian equities in the year to 31 August 2025, shows a period of significant transformation and
resilience. Amidst evolving global economic landscapes and regional dynamics, Asian markets have been
remarkably adaptable, influenced by rapid technological advancements, growing financial inclusion and major
corporate reform. Collectively, these factors have re-shaped investment patterns and outcomes, making this year
an intriguing chapter in the ongoing story of Asia’s economic development.

Performance
NAV total return for the year ended 31 August 2025 was 12.7%, only marginally behind the FTSE World Asia
Pacific ex Japan Index at 14.1% and the MSCI AC Asia Pacific ex Japan High Dividend Yield Index of 13.9%,
representing a major improvement in capital growth. The share price total return over the same period was 13.6%.
Pleasingly, our capital return per ordinary share is now in positive territory at 1.42p (2024: loss of 3.68p) once
again.

Our dividend yield remains steady at 10.8%, a full 4.2% ahead of our closest peer in the AIC sector.
Taking account of the more balanced composition of the portfolio following our strategic review last year, we will
be adopting a new comparator index – the MSCI AC Asia Pacific ex Japan Index and will be using this when
reporting to you on the half-year financial results.

Dividend
We declared four interim dividends in respect of the year ended 31 August 2025. These amounted to 24.90p per
ordinary share, an increase of 1.2% over the prior year and maintaining our 18 year track record of increasing
dividends.

The dividend has been substantially covered by portfolio revenues with a contribution of only £1.5m from reserves.
A return to corporate dividend growth in the region gives us confidence that our long-term dividend growth
opportunities remain very much intact for the future.

Share issuance
I am pleased to report that the Company traded at a premium throughout the period, the only constituent of the
AIC Asia Pacific Equity Income sector to do so and indeed one of only thirteen investment trusts to regularly issue
shares outside of a corporate action in the current calendar year.

In the year to 31 August 2025, the Company issued a total of 17.6m ordinary shares at a premium to NAV
generating £39.1m for further investment. In the period from the year end to 7 November 2025, we issued a
further 6.3m shares for £15.6m.

Board composition
In keeping with our ongoing Board refreshment plan, Julia Chapman retired from the Board on 29 October 2025,
leaving behind an outstanding period as our Senior Independent Director and a guiding force for all of us as we
have navigated a difficult period of fund manager and market transition. Carole Ferguson succeeded Julia as the
Senior Independent Director on her retirement.

On 5 June 2025, Steven Wilderspin joined the Board as a non-executive director. He brings extensive accounting
and auditing experience to the Board and is our Jersey resident director, thereby fulfilling our obligations to the
Jersey Financial Services Commission.

Annual General Meeting
The annual general meeting will be held at 12.30 pm on 20 January 2026 at the offices of our investment manager
at 201 Bishopsgate, London, EC2M 3AE.

The Notice of Meeting is included at the back of this annual report and I encourage all to attend the meeting if
they are able to, or to vote their shares ahead of the meeting. For shareholder democracy to be effective, your
vote is important and appreciated.

The Fund Manager will provide his usual presentation on the financial year just concluded and his outlook for
markets in the Asia Pacific region in the current year.

Outlook
After a fraught and confusing period for Asia’s equity markets, the outlook for stocks and dividends in the Asia
Pacific region is decidedly positive, notwithstanding a few areas of concern. Despite the challenges posed by US
trade tariffs which continue to morph and change, the region shows strong potential for growth. This growth is
being fuelled by relentless technological innovation, a massive growth in financial inclusion and corporate reform
in several key markets. These elements, along with the burgeoning middle class who are now spending again, are
setting a solid foundation for market expansion and increased investor confidence. As trade relationships adjust
and evolve, companies in the region are emerging more resilient and competitive, potentially leading to higher
dividend payouts and attractive equity performance. Investors can look forward to capitalising on these
developments, making the Asia Pacific markets a compelling prospect for the future.

Ronald Gould
Chairman



FUND MANAGERS’ REPORT

Introduction
It is useful to reiterate our comments from the half-year report highlighting elevated global volatility, this time
induced by the new US administration’s broad policy announcements, in particular, with respect to trade. This was
illustrated perfectly by the clash of positive sentiment from loosening monetary policy as the Federal Reserve cut
rates by 50bps in September 2024, the first cut in over four years, against the severe negative market reaction to
the 2 April 2025 Liberation Day tariff announcements. However, there was another twist as equities then staged a
quite remarkable rebound with the MSCI AC Asia Pacific ex Japan Index rising 31% from the trough of 9 April
2025 to the end of the period.

In the context of a weaker US dollar and uncertainty around the impact of the various new policies, particularly in
terms of trade tariffs, it is also worth reiterating our view that this remains a pivotal period with a potential reversal
of the performance differential between US and Asian equities. The broader MSCI AC Asia Pacific ex Japan Index
outperformed the S&P 500 Index during the period for the first time since our financial year ending August 2017.
However, the drivers of performance were not broad based with North Asia significantly outperforming the Indian
and ASEAN
1
markets, and it was notable that, by sector, technology and consumer discretionary were by some
distance the winners and energy the laggard.

Improved sentiment around China was key to the rebound. This was despite lacklustre macro economic data
which confirmed ongoing pressures on the consumer in a prolonged period of deflation alongside a weak property
market. The pivot away from India reflected a huge valuation disparity between the two markets as investors
digested the steady flow of piecemeal stimulus measures from the Chinese government, addressing the property
and stock markets. These positives were followed by an unexpected announcement on DeepSeek, the
domestically developed Artificial Intelligence (‘AI’) model that upended longstanding assumptions about AI
competition and China’s position. The low cost nature and high performance of the model surprised global

investors, leading them to re-assess the true level of progress that China had made in this key technology
battleground and to take more seriously a whole range of tech related developments in China.

In contrast, India was a weak market following years of stellar performance. The market has run out of steam with
nominal GDP growth slowing, initial signs of the credit quality of Indian banks worsening, weaker consumption
trends and employment prospects depressed. This has all been exacerbated by the comments from the US as
they significantly increased tariffs on Indian imports and the Indian rupee hit record lows against the US dollar.
Stretched valuations encouraged an investor shift that has seen a marked setback in Indian stock market results
in the period.

Performance
The NAV total return was 12.7% in sterling terms over the period with the share price total return at 13.6%. This
compared to the FTSE World Asia Pacific ex Japan Index, which returned 14.1%, and the MSCI AC Asia Pacific
ex Japan High Dividend Yield Index, which returned 13.9% over the period. The more growth oriented FTSE index
benefitted from its larger weighting in low yielding Taiwan Semiconductor Manufacturing Company (‘TSMC’) and
China technology names Tencent, Alibaba and Xiaomi. The MSCI index was a beneficiary of its traditionally large
weighting in Chinese financials. While the NAV total return underperformed the two indices, the portfolio produced
a second consecutive year of double-digit NAV total return as we shifted away from deep value high yield names
that would not have participated in recent market rallies towards a delicate balance between high yield and high
growth names. We feel this approach has allowed us to broadly match these growth indices, whilst providing a
significantly higher dividend yield.

In future, we will compare performance versus a single index, the broader growth and more commonly used MSCI
AC Asia Pacific ex Japan Index as it better reflects our recent shift towards a balanced growth and income
composition. This index returned 14.7% over the period, supported by large weightings in the technology sector.
In local currency terms, the FTSE World Asia Pacific ex Japan Index rose 18.5% with the 4.4% strength in sterling
impacting returns for the UK investor. China, Hong Kong, South Korea and Taiwan posted strong performance,
however, underlying this were structural growth drivers unique to each market. In China, we have mentioned the
great revival of technology names following positive news flow on AI investments. Equally important, however,
was the performance of high dividend paying State Owned Enterprises (‘SOEs’). Improving market sentiment
especially benefitted SOEs and domestic retail investors, and insurance companies sought higher yielding
domestic equities in the face of falling interest rates. In Hong Kong there was a rebound in the property market as
HIBOR, the interbank rate, fell dramatically and supported the attractiveness of our high yield property and
telecommunication holdings. In Taiwan, the dominance of AI related names such as TSMC, the global leader in
semiconductors, boosted performance as US tech giants battled to invest ever increasing amounts into AI. Finally,
South Korea was a huge beneficiary of renewed corporate reform under a recently elected president, with the
market up over 75% in US dollar terms by the end of October 2025.

India was the worst performer over the period, followed by the ASEAN markets of Indonesia, Malaysia, Philippines
and Thailand. Our exposure to these markets is limited, though we continue to believe India and Indonesia are
attractive long term growth markets. Developments over the course of the period have, though, led us to reduce
our exposure here. For India, a more positive outlook on private sector capital expenditure, with improved inward
foreign direct investment and employment prospects is key. Indonesia is enacting reform of its own, but some of
the communication has been less than clear and recent unemployment and static growth has led to some
consumer backlash. We are inclined to give the government the benefit of the doubt given some well-planned
initiatives to boost growth.

Our key contributors to performance were high yield value companies in China which have been firmly out of
fashion for several years. An example is China Hongqiao, the largest global aluminium manufacturer, which
appreciated by over 90% whilst paying a double-digit dividend yield. Our China financial holdings, namely China
CITIC Bank, China Construction Bank and New China Life, all performed well whilst paying high dividends.
Alongside this, we were able to utilise our option strategy to generate income from strongly performing growth
companies such as SEA Limited, whose valuation nearly doubled. Quanta Computer and TSMC were also strong
contributors. Volatility has allowed us to expand utilisation of our option strategy, allowing us to purchase more of
these exciting growth companies whilst maintaining a high and growing dividend per share.

Key performance detractors in the period were the remaining positions in India and the energy sector, despite our
low positioning in these areas. Bharat Petroleum, Woodside Energy and Infosys were underperformers and were

sold in the period. Power Grid and GAIL in India were weak in the period, but we continue to hold these
companies as they increase their dividends from high returns generated from key infrastructure assets. The
weaker macro data from Indonesia hurt the performance of Bank Mandiri, another detractor over the period. With
Indian valuations now somewhat less stretched, we remain alert to a return pivot to investments in that important
market.

Revenue
Dividend income from companies held in the portfolio fell by 11.1% while total income decreased by 3.1%
compared to last year. This reflects a return to more normal revenues following the exceptional increase in income
last year. Despite this, the year ended 31 August 2025 generated the Company’s second highest revenue return
per share ever as dividend growth continues to surprise positively in our region. Notably, the financial year just
ended, has produced a positive capital return per share for the first time since 2017, evidence of our subtle shift
toward achieving capital upside along with high income.

The geographical split of our income remains diverse with significant increases from Taiwan and Indonesia, and
continued high income from South Korea. The corporate reform program in South Korea is driving a fundamental
shift in the approach to shareholder returns and it remains a key income market for the years ahead. China has
followed suit and is addressing underperformance of SOEs by requiring them to focus on shareholder returns.
More recently, Singapore has launched its own version of a corporate reform program. These initiatives are very
positive for income growth in our region.

Portfolio activity
At a portfolio level, it is the shift in some of the country weights that is most notable during the period, with a
significant reduction in exposures to Australia and India, which were used to fund larger exposures in China.
Despite this, our position in China remains broadly neutral versus Asian indices as we remain cautious on the
overall macro picture. The reduction in Australian holdings mainly relates to a more negative view on the miners
with the positions in Pilbara Minerals, Rio Tinto, BHP Group and Fortescue sold as capex grows above
expectations, negatively impacting dividends. In India, we sold our information technology services holdings,
Infosys and HCL Technologies, to fund more attractive growth in Tencent and Alibaba.

We also sold Indian holdings NTPC and Bharat Petroleum following their strong performance which compressed
the dividend yields amid increasing concerns about the macro-economic outlook for the country and a weakening
earnings outlook. Our new additions in North Asia have been superior replacements including Quanta Computer,
SK Hynix and SK Square in the technology sector and high yield property and financial names in Hong Kong and
China, namely Kerry Properties and New China Life.

New China Life has a track record of strong growth in new business, increasing gross premium income, which is
supported by various distribution channels and the insurer’s strong brand value. It is committed to higher
shareholder returns via dividends. Kerry Properties, a property developer based in Hong Kong, has been reducing
its financial gearing ratio and continues to pay high dividends. Despite the weakness in the Chinese property
sector, Kerry’s pipeline development properties are located at prime locations in Hong Kong and tier-one markets
in China, where the sales recovery has been more positive. The purchase of China Hongqiao was based on an
attractive valuation and high yield as the company reported a significant improvement in its gross profit margin in
its full-year results and announced a higher-than-expected dividend pay-out as aluminum prices strengthened. An
extensive share buyback programme and high dividend yield continues to drive shareholder returns from the
company.

Outlook
We began by referring to the importance of a number of exciting structural growth themes in Asia which had been
masked somewhat by geopolitical headlines. However, the potential for these regional themes to support long
term performance is undiminished. The potential is rapidly turning into earnings growth and the opportunities are
broader than our initial expectations. Growth is being driven by several factors. These include Asia’s position as a
hub for technology supply chains, crucial to the development of AI given strength in hardware and semiconductor
manufacturing. There is also an incredible opportunity for financial companies in markets such as Indonesia, the
Philippines and India where hundreds of millions of bank accounts have been opened in recent years.
Infrastructure including renewable energy continues to grow with record levels of spend in India, Indonesia and
China. The emergence of strong domestic brands from China succeeding in foreign markets is another new trend
and along with more widespread corporate reform in South Korea, China and Indonesia.

These trends alongside the faster than expected dividend growth in recent years are a compelling mix, unmatched
by other markets. We are now benefitting from low relative valuations and some of the lowest dividend payout
ratios globally, which leaves significant room for improvement in the years ahead. The future of China will be
inextricably linked to the fortunes of the region and the rebound of that market has been supported by a calm,
measured response from its leaders in the face of significant global shifts, leaving investors reassured by the
number of policies left in its arsenal.

Sat Duhra
Fund Manager

1. Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam



Investment portfolio as at 31 August 2025
Ranking
2025
Ranking
2024 Company
Country of
incorporation Sector
Value 2025
£'000
% of
portfolio
1 2 Taiwan Semiconductor manufacturing
1
Taiwan Technology 22,883 5.29
2 22 Brilliance China Automotive China Consumer Discretionary 20,457 4.73
3 - Tencent China Technology 20,122 4.65
4 - China Hongqiao China Basic Materials 16,451 3.80
5 7 Oversea-Chinese Banking Singapore Financials 15,767 3.64
6 13 United Overseas Bank Singapore Financials 15,406 3.56
7 34 Lenovo China Technology 11,879 2.74
8 - Origin Energy Australia Utilities 11,388 2.63
9 8 Hon Hai Precision Industry Taiwan Technology 11,170 2.58
10 17 Macquarie Korea Infrastructure Fund South Korea Financials 11,085 2.56
Top Ten Investments 156,608 36.18
11 31 First Pacific Hong Kong Consumer Discretionary 10,745 2.48
12 - Suncorp Australia Financials 10,692 2.47
13 49 CTBC Financial Taiwan Financials 10,608 2.45
14 - Kerry Properties Hong Kong Real Estate 9,915 2.29
15 3 MediaTek Taiwan Technology 9,786 2.26
16 - New China Life China Financials 9,430 2.18
17 - Evergreen Marine Taiwan Industrials 9,320 2.15
18 - Bosideng International China Consumer Discretionary 9,313 2.1
19 11 PCCW Hong Kong Telecommunications 9,230 2.13
20 - Alibaba China Consumer Discretionary 9,156 2.12
Top Twenty Investments 254,803 58.86
21 40 China Resources Land China Real Estate 9,124 2.11
22 21 Astra International Indonesia Consumer Discretionary 8,558 1.98
23 - SK Hynix South Korea Technology 8,507 1.96
24 6 HKT Trust & HKT Hong Kong Telecommunications 8,426 1.95
25 - SK Square South Korea Technology 8,394 1.94
26 - Novatek Microelectronics Taiwan Technology 8,006 1.85
27 5 HDFC Bank India Financials 7,933 1.83
28 15 DB Insurance South Korea Financials 7,126 1.65
29 - GAIL Limited India Energy 6,505 1.50
30 27 Samsung Fire & Marine South Korea Financials 6,152 1.42
Top Thirty Investments 333,534 77.05
31 32 Midea China Consumer Discretionary 5,875 1.36
32 36 Trip.com China Consumer Discretionary 5,845 1.35
33 19 Wesfarmers Australia Consumer Discretionary 5,819 1.34
34 - Quanta Computer Taiwan Technology 5,675 1.31
35 4 Macquarie Group Australia Financials 5,574 1.29
36 42 Goodman Group Australia Real Estate 5,558 1.28
37 30 Swire Properties Hong Kong Real Estate 5,366 1.24
38 - PT Telkom Indonesia Telecommunications 5,050 1.17
39 12 Hyundai Motor
2
South Korea Consumer Discretionary 5,037 1.16
40 - SCB X Thailand Financials 4,982 1.15

Top Forty Investments 388,315 89.70
41 26 Power Grid India Utilities 4,831 1.12
42 33 Kia Corp South Korea Consumer Discretionary 4,821 1.11
43 48 China CITIC Bank China Financials 4,724 1.09
44 - Industrial Bank Of Korea South Korea Financials 4,656 1.08
45 47 Industrial Bank China Financials 4,443 1.03
46 28 HSBC Hong Kong Financials 4,426 1.02
47 - BDO Unibank Philippines Financials 4,324 1.00
48 23 Bank Negara Indonesia Indonesia Financials 4,177 0.96
49 46 China Construction Bank China Financials 4,150 0.96
50 - FinVolution Group
3
China Financials 3,619 0.84
Top Fifty Investments 432,486 99.91
51 - Resona Japan Financials 3,603 0.83
52 18 Bank Mandiri Indonesia Financials 3,486 0.80
53 53 China Forestry
4
China Basic Materials - -
54 - SK Square Call Option 168 (Expiry 12/09/25) South Korea Technology (27) (0.01)
55 - Alibaba Call Option 134 (Expiry 22/10/25) China Technology (53) (0.01)
56 - Alibaba Call Option 142 (Expiry 14/11/25) China Technology (59) (0.01)
57 - New China Life Call Option 58 (Expiry 0/10/25) China Financials (69) (0.02)
58 - MediaTek Put Option 129 (Expiry 14/10/25) Taiwan Technology (70) (0.02)
59 - SK Hynix Call Option 314 (Expiry 14/11/25) South Korea Technology (95) (0.02)
60 - SK Hynix Call Option 271 (Expiry 15/09/25) South Korea Technology (97) (0.02)
Top Sixty Investments 439,105 101.43
61 - China Resources Beijing Call Option 31.2
(Expiry 17/09/25)
China Real Estate (97) (0.02)
62 - Samsung Fire & Marine Call Option 478
(Expiry 07/11/25)
South Korea Financials (110) (0.03)
63 - ANTA Sports Put Option 91.8 (Expiry 9/09/25) China Consumer Discretionary (120) (0.03)
64 - FinVolution Group Put Option 8.5 (Expiry
2/10/25)
China Financials (135) (0.03)
65 - Lenovo Call Option 12.7 (Expiry 7/11/25) China Technology (153) (0.04)
66 - Resona Call Option 143 (Expiry 10/09/25) Japan Financials (184) (0.04)
67 - Brilliance China Automotive Call Option 3.3
(Expiry 18/09/25)
China Consumer Discretionary (219) (0.05)
68 - New China Life Call Option 48.2 (Expiry
14/10/25)
China Financials (318) (0.07)
69 - SK Square Call Option 153 (Expiry 7/11/25) South Korea Technology (363) (0.08)
70 - DB Insurance Call Option 118 (Expiry
10/09/25)
South Korea Financials (442) (0.10)
Top Seventy Investments 436,964 100.94
71 - China Hongqiao Call Option 23.6 (Expiry
22/10/25)
China Basic Materials (699) (0.16)
72 - China Hongqiao Call Option 16.6 (Expiry
10/09/25)
China Basic Materials (3,370) (0.78)
Total Investments 432,895 100.00


There were no convertible of fixed interest securities as at 31 August 2025 (2024: None)
1 Comprises Taiwan and American Depositary Share holdings, split £19,464,000 and £3,419,000 respectively
2 Preferred Shares
3 American Depositary Receipts
4 Unquoted investment held at £nil




Sector distribution of income for the year ended 31 August 2025
(% of portfolio excluding cash) 2025
%
2024
%
Financials 34.5 22.8
Consumer Discretionary 29.3 47.8
Technology 7.7 8.4
Industrials 6.6 0.5
Basic Materials 6.5 4.0
Telecommunications 6.1 4.9
Real Estate 5.6 4.4
Energy 2.5 4.2

Utilities 1.2 3.0
100.0 100.0



Geographic distribution of income for the year ended 31 August 2025
(% of portfolio excluding cash) 2025
%
2024
%
China 37.5 50.3
Taiwan 13.8 4.4
South Korea 11.1 11.0
Indonesia 11.0 7.0
Hong Kong 9.2 10.4
Australia 8.5 5.7
Singapore 3.9 3.5
India 2.6 5.5
Thailand 1.9 0.5
Japan 0.3 0.1
Vietnam 0.1 0.6
Philippines 0.1 -
New Zealand - 1.0
100.0 100.0



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.

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, level of gearing or use of the
options strategy, may result in underperformance against the companies in the peer group, and in the
Company’s shares trading on a discount.

Investments in Asian markets may be impacted by political, market and financial events resulting in changes
to the market value of the Company’s portfolio.

We manage these risks by ensuring a diversification of investments and a regular review of the extent of
borrowings and options writing. 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
and the level of options which may be written. 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, and Disclosure Guidance and Transparency Rules issued by the FCA and the Listing Rules of the New
Zealand Stock Exchange. To retain investment trust status, the Company must comply with the provisions of
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.

We engage reputable third-party service providers and expect the investment manager to provide 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.

• 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.

We engage 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
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 with a large number of approved counterparties whose credit
standard is periodically reviewed . Limits are set on the amount that may be due from any one counterparty
and cash is only held with the 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 95% 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.

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 parties
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

STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 August 2025 Year ended 31 August 2025

Revenue
return
£'000
Capital
return
£'000
Total
£'000
Revenue
return
£'000
Capital
return
£'000
Total
£'000

Investment income (note 3) 40,816 - 40,816 45,927 - 45,927
Other income (note 4) 9,793 - 9,793 6,304 - 6,304
Gains/ (losses) on investments held at
fair value through profit or loss - 4,838

4,838 - (3,715) (3,715)
Net foreign exchange profit/(loss)
excluding foreign exchange gains/
(losses) on investments - 860 860 - (84) (84)

----------- ----------- ----------- --------- ---------- -----------
Total income/(loss) 50,609 5,698 56,307 52,231 (3,799) 48,432

Expenses

Management fees (1,417) (1,417) (2,834) (1,402) (1,402) (2,804)
Other expenses (698) (698) (1,396) (569) (568) (1,137)

----------- ----------- ----------- --------- ---------- -----------
Profit/(loss) before finance costs and
taxation 48,494 3,583 52,077 50,260 (5,769) 44,491

Finance costs (745) (745) (1,490) (926) (926) (1,852)

----------- ----------- -----------
--------- ---------- -----------
Profit/(loss) before taxation 47,749 2,838 50,587 49,334 (6,695) 42,639

Taxation (5,069) (406) (5,475) (4,000) 690 (3,310)

----------- ----------- ----------- --------- ---------- -----------
Profit/(loss) for the year and total
comprehensive income 42,680 2,432 45,112 45,334 (6,005) 39,329

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

Earnings/(losses) per ordinary share –
basic and diluted (note 5) 24.98p 1.42p 26.40p 27.83p (3.68p) 24.15p

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

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.



STATEMENT OF CHANGES IN EQUITY
Year ended 31 August 2025



Stated
share
capital
£'000

Distributable
reserve
£'000

Capital
reserves
£'000

Revenue
reserve
£'000


Total
£'000

Total equity at 31 August 2024 272,708 177,596 (114,052) 29,852 366,104
Total comprehensive income:
Profit for the year - - 2,432 42,680 45,112
Transactions with owners, recorded directly to
equity:

Dividends paid - - - (42,701) (42,701)
Buyback of shares for treasury
Shares issued 39,252 - - - 39,252
Share issue costs (108) - - - (108)

------------ ------------ ------------ ------------ ------------
Total equity at 31 August 2025 311,852 177,596 (111,620) 29,831 407,659

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



Year ended 31 August 2024
Stated
share
capital
Distributable
reserve
£'000
Capital
reserves
£'000
Revenue
reserve
£'000
Total
£'000

£'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
======= ======= ======= ======= =======



BALANCE SHEET


31 August 2025
£’000
31 August 2024
£’000

Non current assets
Investments held at fair value through profit or loss 439,575 376,896


Current assets
Other receivables 2,520 3,427
Cash and cash equivalents 24,685 5,482

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

27,004 8,909

------------ ------------
Total assets 466,779 385,805

------------ ------------
Current liabilities
Investments held at fair value through profit or loss - written options (6,680) (988)
Deferred taxation (67) (203)
Other payables (2,550) (3,210)
Bank loans (49,591) (15,300)

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

(58,888) (19,701)

------------ ------------
Total assets less current liabilities
407,891 366,104

------------ ------------
Non-current liabilities
Deferred tax liability on Indian capital gains (232) -
(232) -

------------ ------------
Net assets 407,659 366,104

======= =======
Equity attributable to equity shareholders
Stated share capital 311,852 272,708
Distributable reserve 177,596 177,596
Retained earnings:
Capital reserves (111,620) (114,052)
Revenue reserves 29,831 29,852

------------ ------------
Total equity 407,659 366,104

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


Net asset value per ordinary share 223.32p 221.97p

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

STATEMENT OF CASH FLOWS


Year ended
31 August 2025
£’000
Year ended
31 August 2024
£’000

Cash flows from operating activities

Profit before taxation 50,587 42,639
Add back:
Finance costs 1,490 1,852
(Gains)/losses on investments held at fair value through profit or loss
(4,838) 3,715
Net foreign exchange (profit)/loss excluding foreign exchange losses on
investments
(860) 84
Withholding tax on investment income (4,934) (3,425)
(Increase)/decrease in prepayments and accrued income
(92) 1,037
Decrease/(increase) in amounts due from brokers 1,618 (1,618)
Increase in other payables 1,041 11
(Decrease)/Increase in amounts due to brokers (1,699) 1,699

----------- ----------
Net cash inflow from operating activities 42,313 45,994
----------- ----------
Cash flows from investing activities:
Sales of investments 492,486 445,964
Purchases of investments (544,635) (440,302)
Overseas capital gains tax on sales (889) (34)
------------- ------------
Net cash (outflow)/inflow from investing activities (53,038) 5,628

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

Loan drawdown 220,499 92,751
Loan repayment (186,156) (105,429)
Equity dividends paid (42,701) (39,927)
Buyback of shares for treasury - (1,721)
Share issue proceeds 39,021 6,436
Share issue costs (54) (45)
Interest paid (1,490) (1,852)

------------ ------------
Net cash inflow/(outflow) from financing activities 29,119 (49,787)

------------ ------------
Increase in cash and cash equivalents 18,349 1,835

------------ ------------
Cash and cash equivalents at the start of the year 5,482 3,944
Exchange movements 808 (297)

------------ ------------
Cash and cash equivalents at the end of the year 24,684 5,482

Net debt
Cash and cash equivalents
24,684 5,482
Bank loans and overdraft repayable within one year
(49,591) (15,300)
---------- ---------
Net debt (24,907) (9,818)


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

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 2025 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, together with interpretations of the International Accounting
Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee 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’) by 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

2025 2024

£’000 £'000
Overseas investment income 40,816 45,927

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

40,816
======
45,927
======

Analysis of investment income by geography:

Australia 3,461 2,620
China 15,306 23,094
Hong Kong 3,752 4,792
India 1,047 2,501
Indonesia 4,491 3,219
Japan 126 54
New Zealand - 435
Philippines 35 -
Singapore 1,599 1,627
South Korea 4,508 5,041
Taiwan 5,646 2,026
Thailand 788 244
Vietnam 57 274

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

40,816 45,927

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



4. Other income
2025 2024

£’000 £’000


Bank and other interest
210 160
Option premium income
9,583 6,144

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

9,793 6,304

===== =====
5. Earnings per ordinary share
The earnings per ordinary share figure is based on the net profit for the year of £45,112,000 (2024: £39,329,000) and on the
weighted average number of ordinary shares in issue during the year of 170,875,254 (2024: 162,877,255).

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

2025 2024
£’000 £’000

Revenue profit attributable to ordinary shares 42,680 45,335
Capital gain/(loss) attributable to ordinary shares 2,432 (6,005)
---------- ----------
Profit attributable to ordinary shares 45,112 39,329
====== ======

Weighted average number of ordinary shares in issue during the year 170,875,254 162,887,255

2525
Pence
2024
Pence

Revenue earnings per ordinary share 24.98 27.83
Capital gains/(losses) per ordinary share 1.42 (3.68)
-------- ---------
Total earnings per ordinary share 26.40 24.15
===== ======

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.

9. Dividends
2025 2024
Dividends Record date Pay date
Revenue
Reserve
£’000
Distributable
Reserve
£’000
Revenue
Reserve
£’000
Distributable
Reserve
£’000
Fourth interim dividend 6.10p for
the year ended 2023 27 Oct 2023

24 Nov 2023 - - 7,067 2,875
First interim dividend 6.10p for
the year ended 2024 26 Jan 2024

23 Feb 2024 - - 9,924 -
Second interim dividend 6.10p for
the year ended 2024

26 Apr 2024

31 May 2024 - - 9,893 -
Third interim dividend 6.20p for
the year ended 2024

26 Jul 2024

30 Aug 2024 - - 10,168 -
Fourth interim dividend 6.20p for
the year ended 2024

25 Oct 2024

29 Nov 2024 10,255 - - -
First interim dividend 6.20p for
the year ended 2025

31 Jan 2025

28 Feb 2025 10,401 - - -
Second interim dividend 6.20p for
the year ended 2025

2 May 2025

30 May 2025 10,714 - - -
Third interim dividend 6.25p for
the year ended 2025

25 Jul 2025

29 Aug 2025 11,331 - - -
---------- --------- ---------- ----------
42,701 - 37,052 2,875
====== ===== ====== ======


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:

2025
£’000
2024
£’000

Revenue available for distribution by way of dividend for the year 42,680 45,334
First interim dividend of 6.20p (2024: 6.10p) paid 28 February 2025 (23
February 2024)
(10,401) (9,924)
Second interim dividend of 6.20p (2024 : 6.10p) paid 30 May 2025 (31 May
2024)
(10,714) (9,893)
Third interim dividend of 6.25p (2024: 6.20p) paid 29 August 2025 (30August
2024)
(11,331) (10,168)
Fourth interim dividend for the year ended 31 August 2025 of 6.25p (2024:
6.20p) (based on 188,414,679 shares in issue at 30 October 2025) (2024:
165,402,179)
(11,776)
-----------
(10,255)
----------
(Transfer from revenue reserve)/undistributed revenue for s.1158
purposes
(1,542)
======
5,094
======

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:

2025 2024

Net asset value
per share
pence
Net asset value
attributable
£'000
Net asset value
per share
pence
Net asset value
attributable
£'000

Ordinary shares 223.32 407,659 221.97 366,104

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

The basic net asset value per ordinary share is based on 182,544,679 (2024: 164,937,179) 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:
2025
£’000
2024
£’000

Net assets attributable to ordinary shares at beginning of year 366,104 362,032
Total net profit after taxation 45,112 39,329
Dividends paid (42,701) (39,927)
Buyback of shares for treasury - (1,721)
Issue of ordinary shares net of issue costs 39,144
------------
6,391
-----------

407,659
=======

=======

8. Stated share capital

2025 2024


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 164,937,179 272,708 162,988,564 268,038
Buyback of shares for treasury - - (806,385) (1,721)
Issued during the year 17,607,500 39,252 2,755,000 6,436
Share issue costs - (108) - (45)

Closing balance at 31 August
-----------------
182,544,679
==========
------------
311,852
=======

-----------------
164,937,179
=========
------------
272,708
=======

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 17,607,500 (2024: 2,755,000) shares for the proceeds of £39,144,000
(2024: £6,391,000) net of costs. There was no shares repurchased for treasury in the year (2024: 806,385 repurchased) at a
cost of £nil (2024: £1,721,000).

9. Subsequent events
On 21 October 2025, the Company announced the fourth interim dividend of 6.25p per ordinary share in respect of the year
ended 31 August 2025. The dividend will be paid on 28 November 2025 to shareholders on the register at
31 October 2025 (the record date). The shares traded ex-dividend on 30 October 2025.

As at 7 November 2025, being the latest practicable date prior to the publication of this report, a further 6,270,000 ordinary
shares have been issued.

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 10 November 2026.

11. Financial information for 2024 and 2025
The figures and financial information for the years ended 31 August 2024 and 31 August 2025 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.

13. Annual Report 2025
The Company's annual report and financial statements for the year ended 31 August 2025 includes the Notice of Annual
General Meeting. The annual report is being published in hard copy format and will be posted to shareholders in November
2025. An electronic copy will shortly be available to view and download from the Company's website:
www.hendersonfareastincome.com. Hard copies are available on request from the corporate secretary at
ITSecretariat@janushenderson.com.

The Fund Manager discusses the financial results in a video available at www.hendersonfareastincome.com

The annual report, including the Notice of Annual General Meeting and the form of proxy, will shortly be uploaded to the
Financial Conduct Authority's National Storage Mechanism and will be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

14. Annual General Meeting (‘AGM’)
The AGM will be held on 20 January 2026 at 12.30 pm. The Board invites shareholders to attend the meeting at 201
Bishopsgate, London EC2M 3AE, or via videoconference if preferable. Only shareholders present in person or by proxy will be
able to participate in the vote. The Fund Manager will present his review of the year and thoughts on the future and will be
pleased to answer your questions, as will the Board.

Instructions on attending the meeting in person or virtually, and details of resolutions to be put to the AGM, are included in the
Notice of AGM in the annual report and are available at www.hendersonfareastincome.com.

15. General 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.

SEDOL/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), Timothy
Clissold, Carole Ferguson, Susan Rippingall and Steven Wilderspin. The Corporate Secretary is Janus Henderson Secretarial
Services UK Limited. The registered office is IFC1, The Esplanade, St Helier, Jersey, 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

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 4458
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.