Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
www.hendersonfareastincome.com
Henderson Far East Income Limited
Registered as an investment company in Jersey
Regulated by the Jersey Financial Services Commission
Registered office
IFC1, The Esplanade,
St Helier, Jersey JE1 4BP
Principal place of business
201 Bishopsgate
London, EC2M 3AE
ISIN/SEDOL number
B1GXH75/JE00B1GXH751
Companies Registry
registration number
00095064
London Stock Exchange
(TIDM) Code
HFEL
New Zealand Stock
Exchange code
HFL
Global Intermediary
Identification Number (GIIN)
NTTIYP.99999.SL.826
Legal Entity Identifier (LEI)
2138008DIQREOD38O596
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Henderson Far East
Income Limited
Consistent income, powered by Asia Pacific growth
Annual Report 2025
Henderson Far East Income Limited – Annual Report 2025
Contents
Strategic report
1 About us
2 Harnessing the strong dividend growth
trends in the region
3 Why choose Henderson Far East Income
Limited?
4 Our investing themes
5 Our manager: Janus Henderson Investors
6 Performance summary
8 Chairman’s statement
10 Fund Manager’s report
13 Portfolio snapshot
14 Portfolio holdings
16 Case studies
18 Business model
25 Measuring the Company’s performance
27 Board decision making
28 Managing risks
30 Viability statement
Governance
32 Directors
34 Corporate Governance report
41 Audit Committee report
43 Management Engagement Committee
report
44 Nominations and Remuneration
Committee report
45 Directors’ Remuneration report
47 Directors’ report
49 Statement of directors’ responsibilities
Financial statements
51 Independent auditor’s report to
the members
57 Statement of Comprehensive Income
58 Statement of Changes in Equity
59 Balance Sheet
60 Statement of Cash Flows
61 Notes to the financial statements
Additional information
80 Glossary
81 Alternative performance measures
83 General shareholder information
84 Historical record
85 Corporate information
AGM Notice
87 Notice of Annual General Meeting
www.hendersonfareastincome.com
Annual General
Meeting (‘AGM’)
The Board invites you to
attend the AGM at 12.30 pm
on 20 January 2026 either in
person or online. Scan the QR
code for more details and to
register your attendance.
Keeping in
touch
Scan the QR code to receive
the latest Company updates,
market insights, event
invitations and more.
Please send any general
enquiries about the Company
to itsecretariat@
janushenderson.com.
Warning to shareholders
Many companies are aware that their shareholders have received unsolicited phone calls or correspondence
concerning investment matters. These are typically from overseas based ‘brokers’ who target UK shareholders
offering to sell them what often turn out to be worthless or high-risk shares in US or UK investments. They can be
persistent and extremely persuasive. Shareholders are therefore advised to be wary of any unsolicited advice,
offers to buy shares at a discount or offers of free company reports. Please note that it is unlikely that either the
Company or the Company’s registrar, Computershare, would make unsolicited telephone calls to shareholders.
Any such calls would relate only to official documentation already circulated to shareholders and never in respect
of investment ‘advice’. If you are in any doubt about the veracity of an unsolicited phone call, please call the
Corporate Secretary at the number provided on page 85. You can also check the FCA Warning List at
#BeScamSmart – www.fca.org.uk/scamsmart.
Annual Report
for the year ended 31 August 2025
About us
Focused on income opportunities across
Asia Pacific.
Many industries considered advanced by investors
are still at the earlier stages in their lifecycle within
the Asia Pacific region, representing a clear
opportunity for growth. Our portfolio is managed
by Sat Duhra, who travels extensively in the region,
working closely with our on-the-ground local
experts. The team targets developing industries,
including infrastructure, technology, renewable
energy and financial services on a country-by-
country basis, to make the most of the growth
potential across the region.
Sat and the team aim to identify quality, sustainable
high dividend paying companies for income
alongside growth companies that are expected to
initiate higher dividend policies in line with earnings
growth to deliver a combination of income and
capital growth for shareholders.
Purpose
The Company’s purpose is to provide our
shareholders access to a growing income stream
and the potential for long-term capital growth
from one of the world’s most exciting regions.
See p.18 Business model
Income & Growth
Henderson Far East Income Limited aims to find the best
opportunities for investing for income in the fast-growing Asia
Pacific market. Our team of local experts identify investment
opportunities across different sectors in the region, led by an
experienced manager with a deep understanding of the Asia
Pacific market.
Our portfolio taps into two
powerful forces driving Asian
markets: a long history of growing
dividends that has accelerated in
recent years, and some of the
exciting structural trends that fuel
future capital growth.
See p.10 Fund Manager’s report
Sat Duhra
Fund Manager
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Strategic
report
1
Henderson Far East Income Limited Annual Report 2025
Henderson Far East Income Limited
Finding opportunity in a growing market
Henderson Far East Income benefits from deep local expertise to find the best investment
opportunities for income and growth.
d
d
China
29.9%
Taiwan
17.9%
South Korea
12.6%
Hong Kong
11.1%
Australia
9.0%
Singapore
7.2%
Indonesia
4.9%
India
4.5%
Thailand
1.1%
Philippines
1.0%
Japan
0.8%
% of portfolio
Harnessing the strong dividend growth trends in the region
1 Calculated using the average daily net asset value
2 Based on the total dividend of 24.90p per share and the closing share price at the year end
3 The ongoing charge and dividend yield are alternative performance measures. These are explained in more detail on pages 81 and 82
Source: Janus Henderson Investors. A glossary of terms is included on page 80
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.
Portfolio holdings
52
Investment focus
Income &
Growth
Regional focus
Asia Pacific
See p.14 Portfolio holdings
Ongoing charges
3
1.12%
1
For the year ended
31 August 2025
2024: 1.08%
Net assets
£408m
As at 31 August 2025
2024: £366m
Dividend yield
3
10.8%
2
As at 31 August 2025
2024: 10.8%
2
Henderson Far East Income Limited Annual Report 2025
Benefitting from
informed insights
into Asian markets
Why choose Henderson Far East Income Limited?
Long-held local expertise
The Fund Manager has spent the majority of his career in
the Far East. He is supported by an investment team
based in the region and travels extensively during the
year visiting companies for potential inclusion in the
portfolio. The Company’s Board includes members with
deep experience of Asian markets and business culture,
offering informed oversight of the Company’s activities.
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Strategic
report
3
Henderson Far East Income Limited Annual Report 2025
Tapping Asia’s
income growth
potential
An eye for income
As Asian economies and companies grow, their ability
to pay dividends alongside capital growth increases.
The Fund Manager seeks companies that are paying
income today or on a growth trajectory that could
fund income payments in the future. This approach
has provided income growth to the Company’s
shareholders for 18 consecutive years.
Investing in
innovative
solutions only
available in Asia
Evolving industries in emerging
economies
Innovation has been a dominant driver of US and
European markets over the last two decades. In Asia,
leaders in electric vehicles, semiconductors and
e-commerce are benefitting from global demand.
Meanwhile, local economies require local solutions,
with financial technology and information technology
infrastructure providing opportunities for investors
in Asia.
Using the investment
trust structure to add
to investment
strategy
Structural support
To meet its aim of offering a growing income and
investment growth over time, the Fund Manager seeks
to benefit from the investment trust structure. This
includes using gearing to gain greater exposure to the
market and writing options to boost the income
generated from lower-yielding stocks.
Our investing themes
Thematic focus: corporate reform
Corporate reform has been overdue in Asia
for some time. Japan’s government and
central bank saw significant success in
reforming the country’s shareholder and
business culture over the last decade and a
half. This has influenced Korea and China to
follow suit, with a number of positive
corporate reform initiatives.
In Korea, we own insurers and automotive companies,
which have a deep valuation discount and rising
dividends. The country’s corporate reform proposals
include incentivising paying higher dividends through the
tax system.
In China, we have added some state owned enterprises to
the portfolio. The proposals from the Chinese state include
capital market development, incentivising higher dividend
payouts and improving shareholder returns more generally.
Five megatrends in Asia
Infrastructure build-out
Government commitments to a renewable transition
in India and China combined with significant, rising
power demand is driving ongoing growth for
infrastructure providers.
Emerging consumer champions
The middle classes are expanding across Asia.
Domestic consumer champions – with the potential
to grow through the region and further afield – offer
an opportunity to benefit from this.
Financial inclusion
Banking access is expanding rapidly in India and
Indonesia. When coupled with the rise of digital
payments across multiple subsectors, this
represents a structural change in the region.
Infrastructure for tech arms race
Asian companies lead the world in semiconductor
production. Others provide unique tools for Artificial
Intelligence (‘AI’), electric vehicles and cloud services,
used by technology companies around the world.
Corporate reform
South Korea and China have both introduced
significant corporate reform initiatives. These
could boost shareholder returns, through
improved valuations, increased dividends and
share buybacks.
Five stocks experiencing improving
corporate reform
Company
% of
portfolio
Market
value
£’000
1
First Pacific
2.48 10,745
2
SK Square
1.94 8,394
3
DB Insurance
1.65 7,126
4
Samsung Fire & Marine
1.42 6,152
5
Hyundai Motor
1.16 5,037
Source: Janus Henderson Investors as at 31 August 2025
4
Henderson Far East Income Limited Annual Report 2025
Janus Henderson Investors
Our manager
Henderson Far East Income Limited is managed by
Janus Henderson Investors.
Janus Henderson Investors is a global asset manager with over 350
investment professionals and 25 offices globally, employing over
2,000 people and managing £359bn of client assets.
A long journey together
Janus Henderson Investors has extensive experience in managing
Henderson Far East Income Limited, having overseen its investments
since 1992 following Henderson’s acquisition of Touche Remnant.
The fund management team benefits from the insights of around 70
analysts across different sectors and regions. The team’s long-held
philosophy focuses on finding future growth potential at a reasonable
price. This philosophy is embedded in the team’s culture, along with a
substantial investing experience in the Asia Pacific region.
Investment trusts, understood
Janus Henderson Investors has been involved in investment trusts since
Henderson’s inception in 1934. It is one of the largest investment trust asset
managers in the UK, and currently manages eight investment trusts. As a
result, Henderson Far East Income Limited benefits from the support of a
dedicated investment trust team, including specialist legal, accounting,
marketing and sales support.
Assets under
management
£359bn
Employees
+2,000
Offices globally
25
Investment
professionals
+350
Source: Janus Henderson Investors as at
30 September 2025
Sat Duhra
15 years at Janus Henderson Investors
25 years of financial industry experience
Skills and experience
Sat Duhra is a Portfolio Manager on the Asia ex Japan Equity team at Janus
Henderson Investors. Prior to joining Henderson in 2011, he worked as an equities
analyst at Nomura and Credit Suisse.
Sat holds a BSc degree in economics from University College, London. He is an
associate of the Institute of Chartered Accountants of Scotland (CA) and has
25 years of financial industry experience.
Fund Manager
See p.10 Fund Manager’s report
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Strategic
report
5
Henderson Far East Income Limited Annual Report 2025
Performance
Total return performance
Performance summary
Year to 31 August 2025
Premium
at year end
3
3.4%
(2024: 2.3%)
NAV per share
at year end
223.32p
(2024:
221.97p
)
NAV
total return
1
12.7%
(2024: 11.9%)
Share price
total return
2
13.6%
(2024: 16.6%)
Share price
at year end
231.00p
(2024: 227.00p)
Total return performance to 31 August 2025
1 year % 3 years % 5 years % 10 years %
NAV
1, 6
12.7 9.6 19.7 80.9
Share price
2, 6
13.6 12.8 18.8 83.5
FTSE World Asia Pacific ex Japan Index
4
14.1 19.6 35.6 153.1
MSCI AC Asia Pacific ex Japan High Dividend Yield Index
4
13.9 33.8 67.7 146.2
Total return performance
5,6
%
1 Net asset value (‘NAV’) total return performance with dividends reinvested
2 Share price total return using closing price
3 Calculated using the NAV and closing share price at year end
4 The Company does not have a formal benchmark and uses these indices on a sterling adjusted basis for comparison purposes only
5 All indices are sterling adjusted and rebased to 100
6 The NAV total return, share price total return, NAV per share, premium and ongoing charge are alternative performance measures. These are explained in
more detail on pages 81 and 82
A glossary of terms is included on page 80
Sources: Morningstar Direct, Janus Henderson Investors
This indicates a key performance indicator (‘KPI’). KPIs are used to measure the success of your Company in meeting its
objective and by the directors to evaluate the performance of the Fund Manager. See pages 25 and 26.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2025202420232022202120202019
Share price
2, 6
NAV
1, 6
FTSE World Asia Pacific ex Japan
4
MSCI AC Asia Pacific ex Japan High Dividend Yield
4
50
100
150
200
250
300
6
Henderson Far East Income Limited Annual Report 2025
See p.10 Fund Manager’s report
Performance summary continued
Dividend performance
Total dividend
1
Per share for the year
24.90p
(2024: 24.60)
Dividend yield
2
At the end of the year
10.8%
(2024: 10.8%)
Revenue return
Per share
24.98p
(2024: 27.83p)
1 Comprising four interim dividends
2 Based on the dividends declared in the year ended 31 August 2025 of 24.90p per share and the closing share price of 231.00p per share
3 This represents the four interim dividends declared for the year to 31 August 2025 as compared to the previous year
4 Compound annual dividend growth rate to 31 December 2024 for the Company, FTSE World Asia Pacific ex Japan and the FTSE 100 indices based on
normalised ordinary dividends calculated by calendar year
Sources: Morningstar Direct, Janus Henderson Investors
Dividend growth
3
For the year
1.2%
(2024: 1.7%)
Dividend growth over 10 years
24.5%
Years of consecutive
dividend growth
18
Dividends paid by the Company
Compound annual dividend growth rate
4
(‘CAGR’)
Pence
2025
0
5
10
15
20
25
8.25
9.00
12.40
13.60
14.70
16.00
17.00
18.20
19.20
20.00
20.80
21.60
22.40
24.60
24.90
24.20
23.80
23.40
23.00
2011
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
2019
2020
2024
2023
2022
2021
Growth
2006
2008
2007
2009
2010
2011
2012
2013
2014
2015
2016
2017
2023
2022
2021
2020
2019
2018
FTSE World Asia Pacific ex Japan
Henderson Far East Income Limited
FTSE 100
80
100
120
140
160
180
200
220
240
260
1.5% CAGR
3.3% CAGR
4.8% CAGR
2024
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Strategic
report
7
Henderson Far East Income Limited Annual Report 2025
Ronald Gould
Chairman
Highlights of the year
NAV per share at year end
223.32p
(2024: 221.97p)
Dividend yield
10.8%
(2024: 10.8%)
Dividend for the year
24.90p
(2024: 24.60p)
18 years
of increasing dividends
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.
8
Henderson Far East Income Limited Annual Report 2025
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 shareholders 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
10 November 2025
Chairman’s statement continued
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Strategic
report
9
Henderson Far East Income Limited Annual Report 2025
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.
Fund Manager’s 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.
Summary
● The Company achieved a net asset
value total return of 12.7% in the year to
31 August 2025.
● Over the year, we shifted investment strategy
away from deep value high yield companies
that would not have participated in recent
market rallies towards a delicate balance
between high yield and growth companies.
● The geographical split of our income
remains diverse with significant increases
from Taiwan and Indonesia and
continued high income from
South Korea.
Sat Duhra
Fund Manager
1 Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam
10
Henderson Far East Income Limited Annual Report 2025
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.
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.
Fund Manager’s report continued
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Henderson Far East Income Limited Annual Report 2025
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.
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.
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
10 November 2025
Fund Manager’s report continued
12
Henderson Far East Income Limited Annual Report 2025
Sector breakdown
Regional breakdown
Portfolio snapshot
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
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
Geographical distribution of income for the year ended 31 August 2025
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Henderson Far East Income Limited Annual Report 2025
Sector distribution of income for the year ended 31 August 2025
1 Comprises Taiwan and American Depositary Share holdings, split £19,464,000 and £3,419,000 respectively
2 Preferred shares
Portfolio holdings
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 2.15
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
14
Henderson Far East Income Limited Annual Report 2025
3 American Depositary Receipts
4 Unquoted investment held at £nil (see note 10 in the financial statements)
Portfolio holdings continued
Ranking
2025
Ranking
2024 Company
Country of
incorporation Sector
Value
2025
£’000
% of
portfolio
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 30/10/25)
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 Land 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 29/09/25)
China Consumer Discretionary
(120) (0.03)
64 – FinVolution Group Put Option 8.5
(Expiry 02/10/25)
China Financials
(135) (0.03)
65 – Lenovo Call Option 12.7
(Expiry 07/11/25)
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 07/11/25)
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 or fixed interest securities as at 31 August 2025 (2024: None).
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Henderson Far East Income Limited Annual Report 2025
First Pacific
Case studies
Multi-sector income growth
Country of listing
Hong Kong
Proportion of portfolio
2.48%
(as at 31 August 2025)
First Pacific is a prominent investment holding company. It occupies a
strategic presence in Southeast Asia across its holdings in multiple listed
subsidiaries in various sectors such as consumer, telecommunication,
infrastructure and power.
Our investment case
Our investment case for First Pacific hinges on its strong foothold in the
dynamic ASEAN economies of Indonesia, Philippines, and Singapore.
These markets collectively encompass about 59% of the region’s
population and 63% of its GDP. These countries are at various stages of
economic development, each offering unique growth catalysts.
First Pacific boasts a robust portfolio with dominant market shares in
essential services, such as IndoFood, which has a 70% share in
Indonesia’s instant noodle market via its popular product, Indomie.
It also invests in PLDT and Metro Pacific, the leading telecommunications
provider and the largest infrastructure firm in the Philippines respectively.
Furthermore, First Pacific is venturing into emerging sectors such as
digital banking with Maya Digital Bank, and renewable energy projects
like the Singapore-Batam Solar Farm.
At the start of 2025, First Pacific was trading at a 60% discount to its NAV,
near its historical highest level due to a strong US dollar and previous
inconsistencies in shareholder returns. However, our engagements with the
company’s management indicated a shift towards a more robust dividend
policy and a more pro-active stance towards unlocking shareholder value
through initial public offerings of attractive assets. This strategic move,
alongside a weakening US dollar and clear investor engagement, made the
company an attractive option for both capital and income growth.
16
Henderson Far East Income Limited Annual Report 2025
Technological innovation and capital growth
Country of listing
Taiwan
Percentage of portfolio
2.58%
(as at 31 August 2025)
Hon Hai Precision Industry, commonly known as Foxconn, is a Taiwanese
multinational electronics contract manufacturer founded in 1974. It is the
world’s largest contract manufacturer of electronics, producing components
and finished products for major global brands, including Apple and Sony.
Our investment case
Recently, Hon Hai has been diversifying its business model, venturing into
high-margin sectors such as AI server manufacturing and automotive
electronics. This shift is aimed at reducing dependency on its traditional
assembly business and capitalising on emerging technological trends.
Despite these promising developments, Hon Hai’s stock appeared
undervalued. The valuation did not seem to reflect the company’s robust
earnings outlook or its strategic shift towards more lucrative business
areas. The market’s scepticism might have been linked to broader
concerns over AI spending and demand for Apple products, yet it was
our view that these factors did not fully account for Hon Hai’s evolving
business model and diversification efforts.
Given the conservative market valuation and the strategic realignment
of its business model, we thought Hon Hai presented an attractive
investment opportunity. The company’s shift towards high-margin,
technologically advanced products, combined with a solid execution
track record, positioned it well for future growth along with attractive
growth in dividends.
Hon Hai
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Henderson Far East Income Limited Annual Report 2025
Business model
Investment objective
The Company seeks to provide a growing total annual dividend per share, as
well as capital appreciation, from a diversified portfolio of investments from the
Asia Pacific region.
Investment policy
The Company invests in a diversified portfolio of shares
(equity securities) and other securities of companies
that are either listed in, registered in, or whose principal
business is in, the Asia Pacific region. The Asia Pacific
region includes Japan, the Indian subcontinent
and Australasia.
Stocks listed in the Asia Pacific region will make up not
less than 80% of NAV with the remaining exposure
being in stocks listed or dual listed elsewhere whose
principal business is in the Asia Pacific region.
The Company may use financial instruments known as
derivatives for the purpose of efficient portfolio
management or to generate additional income while
maintaining a level of risk consistent with the risk profile
of the Company.
The Company invests at least 80% of its gross assets in
listed shares, equity related securities and derivative
instruments. In addition, the Company may also invest
in unlisted securities which are expected to list,
preference shares, fixed income securities, convertible
securities, warrants and collective investment schemes.
No single investment will exceed 10% of net assets at
the time of investment. The Company does not invest
more than 15% of its gross assets in other UK listed
investment companies.
The portfolio is constructed without reference to the
composition of any stock market index or benchmark.
Gearing
The Company can borrow to make additional
investments with the aim of achieving a return that
is greater than the cost of the borrowing. The
Company may borrow up to 30% of gross assets
without shareholder approval to facilitate working
capital management and to seek a better total return
for shareholders.
Strategy
Our strategy is to offer investors a cost effective investment proposition which provides access to a professionally and
actively managed portfolio of investments.
The Company is an investment trust which is a pooled investment vehicle, allowing exposure to a diversified range
of assets through a single investment, thus spreading the investment risk. All services are delivered by reputable third-
party service providers whose performance is overseen by a Board of Directors (the ‘Board’). The Board is comprised
entirely of non-executive directors accountable to shareholders, who can remove a director from office where they
deem it to be in the interests of the Company. The non-executive directors are independent of the investment manager.
The significant advantage of our business model is its closed-end nature, which enables the Company to smooth
dividend payments from its substantial reserves and the ability to use leverage to increase returns for shareholders.
Values and culture
We aim to be viewed by our shareholders as a sound investment delivering returns in line with the investment objective.
Alongside this, we believe our shareholders would expect us to act professionally and with integrity, and to treat their
investment with the same care we would our own. Accordingly, we bring these values to our deliberations as a Board
and seek to build long-term relationships with like-minded and reputable service providers.
In particular, we apply this approach to our investment manager who we regard as our primary partner in fulfilling
our purpose.
The Company’s structure
The Company is Jersey incorporated and moved its tax residence to the United Kingdom with effect from 1 September
2018. The Company continues to meet its obligations under the Companies (Jersey) Law 1991 and remains regulated by
the Jersey Financial Services Commission under the Collective Investment Funds (Jersey) Law 1998. From 1 September
2018, the Company became subject to the provisions of the Corporation Tax Act 2010, as set out in English law and as it
pertains to investment trusts. The Company must therefore distribute at least 85% of its annual investment income to
shareholders to preserve its investment trust status. The directors are of the opinion that the Company has conducted
its affairs in compliance with s.1158 since approval was granted and intends to continue to do so.
18
Henderson Far East Income Limited Annual Report 2025
Business model continued
The Company is listed on the Main Market of the London Stock Exchange and is subject to the UK Listing Rules,
Prospectus Rules and Disclosure Guidance and Transparency Rules published by the Financial Conduct Authority.
The Company is listed on the Main Board of the New Zealand Stock Exchange (‘NZX’) and is subject to the NZX Listing
Rules. The Company is a member of the Association of Investment Companies (‘AIC’).
The Company, and the Board, is governed by its articles of association, amendments to which must be approved by
shareholders by way of a special resolution.
Promoting the Company’s success
Acting collectively as the Board, we aim to promote the long-term success of the Company for the benefit of the
shareholders. We regard a well governed business as essential for the successful delivery of our investment
proposition and apply this approach while being cognisant of the interests of other stakeholders.
We engage reputable third-party service providers with established track records to deliver the Company’s day-to-day
operations. The most important of these is the investment manager, and in particular the Fund Manager, who is
responsible for the management of the Company’s assets in line with the investment objective. The Board maintains a
close working relationship with the investment manager and holds it to account for the smooth running of the
Company’s day-to-day business. The Board retains responsibility for decisions over corporate strategy, governance
and the investment parameters for the portfolio.
To ensure the appointed service providers continue to deliver the expected level of service, we receive regular reports
from them, evaluate the control environments in place at each key service provider and formally assess their
appointment annually. By doing so, we seek to ensure that the key service providers continue to be appropriately
remunerated to deliver the level of service we expect from them.
Engaging with stakeholders
We, as directors, have the success of the Company foremost in our minds when making decisions. Decisions are taken with
the aim of achieving our purpose and are based on information provided by a range of sources. The impact on stakeholders
is assessed as part of our discussions, although the stakeholders affected may vary depending on the decision.
The table below sets out the primary ways in which we, as your Board, engage with the Company’s key stakeholders.
Stakeholder Engagement
Shareholders and
potential
investors
Investors rely on the Company to deliver a progressive dividend with the potential for capital growth.
Purpose:
• Keep investors updated on the Company’s performance.
• Promote the Company to new shareholders.
How we engage:
• Daily NAVs and monthly factsheets are published to keep shareholders up to date with the
value of the portfolio.
• Meetings with the Fund Manager, or Board members where shareholders prefer, are offered to
shareholders and potential shareholders to provide insight into the portfolio.
• Information on the Company and video updates from the Fund Manager are made available
on the Company’s website and via social medial channels with a view to keeping shareholders
informed on the positioning of the portfolio.
• The half-year report and annual report are published to keep shareholders informed of the
Company’s financial performance, its governance framework and any current matters of interest.
• The Fund Manager provides a presentation to shareholders and analysts following publication
of the annual financial results with a view to providing insight on the Company’s performance.
• The investment manager and corporate broker run a programme of engagement with wealth
managers and other professional investors throughout the year to promote the Company.
• The Board makes additional spend available to promote the Company’s investment
proposition to retail investors in the UK and holds the annual general meeting in London
enabling shareholders to attend in person and speak with directors and the Fund Manager.
Outcome:
• Shareholders are informed and there is regular demand for the Company’s shares.
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Henderson Far East Income Limited Annual Report 2025
Stakeholder Engagement
Investment
manager
Successful management of the Company’s portfolio is essential for meeting the investment
objective and policy, thereby fulfilling investors expectations.
Purpose:
• Maintain a close working relationship with the investment manager as this is key to achieving
the Company’s investment objective and promoting the Company to shareholders.
How we engage:
• The Fund Manager is invited to each Board meeting to provide an update on the performance
of the portfolio and to keep the directors in touch with his views on the markets and positioning
of the portfolio.
• The investment manager provides data on the key performance indicators at each meeting
enabling the directors to assess performance.
• The investment manager demonstrates compliance with the parameters of the investment
mandate at each meeting and provides access to senior managers in the Operational Risk
and Internal Audit teams enabling the directors to assess the effectiveness of internal controls
in operation.
• Senior members of the Investment trust sales and marketing functions provide regular
presentations to the Board on how the Company is promoted to professional and
retail investors.
Outcome:
• The investment objectives of the Company are met.
• The Board is confident that the Company’s assets are managed in line with the investment
objective and within approved parameters.
• The Board has a good understanding of how the Company is perceived in the market and
whether the investment objective remains relevant in the prevailing market conditions.
• The Fund Manager fully understands the Company’s mandate and risk appetite.
Service providers
• Corporate
broker
• Custodian
• Depositary
• Fund
administrator
• Registrar
The Company’s operations are carried out by experienced and capable third-party service providers.
Purpose:
• The Company’s day-to-day operations run smoothly.
• The directors are informed of any issues which may arise and can ensure that suitable action is
taken to address them.
How we engage:
• The Board receives regular reporting and presentations from its key third-party service
providers throughout the year.
• Designated staff at the investment manager engage regularly with all third-party service
providers through meetings and written reporting, and keep the Board updated with any areas
of concern.
• The Management Engagement Committee annually reviews the level of services delivered by
each service provider and the terms on which they are engaged, including all fee
arrangements, to ensure that these remain in line with market practice.
Outcome:
• Investors have a positive experience when dealing with the Company’s third-party service
providers, such as the investment manager or registrar.
• Third-party service providers are paid fees enabling them to deliver the expected level of
service and are incentivised to maintain a long-term relationship with the Company.
• The Board is confident in its selection of third-party service providers and maintains good
oversight of the Company’s operations.
Business model continued
20
Henderson Far East Income Limited Annual Report 2025
Stakeholder Engagement
Investee
companies
The Fund Manager researches potential investee companies and engages with management
teams with a view to ensuring the soundness of their respective businesses propositions.
Purpose:
• The Board has an understanding of the Fund Manager’s approach to selecting stocks for
the portfolio.
• The Fund Manager and members of his team engage with potential investee companies and
maintain ongoing dialogue with companies already held in the portfolio.
How we engage:
• The shares held in the Company’s portfolio are voted at general meetings and appropriate
engagement undertaken with investee companies where management proposals are
not supported.
Outcome:
• Investor value is preserved.
• The Company is a responsible investor.
Communities and
the environment
The Board is conscious of the need to take appropriate account of broader environmental, social
and governance (‘ESG’) concerns and to act as a good corporate citizen.
Purpose:
• The Fund Manager considers non-financial measures alongside financial measures when investing.
• The Board has an understanding of the level of ESG attainment in the Asia Pacific region
compared to developed markets.
How we engage:
• The Board discusses the Fund Manager’s investment processes with him and understands
where achieving the investment objective may impact ESG decisions.
• The Fund Manager, and directors where requested, meet with shareholders to understand their
investment objectives and if the Company can help achieve these.
Outcome:
• The Company is a good corporate citizen.
• The Company provides an accessible and actively managed, diversified investment option for
retail and institutional shareholders.
Management fee arrangements
The Company has appointed Janus Henderson Fund Management UK Limited (‘JHFM’) to act as its Alternative
Investment Fund Manager. JHFM delegates investment management services to Janus Henderson Investors UK
Limited in accordance with an agreement effective from 22 July 2014 and which was most recently updated in 2024.
The agreement can be terminated on six months’ notice. Both entities are authorised and regulated by the Financial
Conduct Authority (‘FCA’) and are part of the Janus Henderson Investors group of companies. References to ‘Janus
Henderson Investors’ or ‘JHI’ refer to the services provided to the Company by the investment manager’s group.
The Fund Manager is Sat Duhra who is based in London and has worked on the portfolio since 2011.
For the year under review, a flat fee of 0.75% of net assets was applicable across all of the Company’s assets.
The investment manager, and its subsidiaries, provide accounting, company secretarial, sales, marketing and general
administrative services to the Company.
Business model continued
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21
Henderson Far East Income Limited Annual Report 2025
Business model continued
How we invest
Our focus is on well managed companies with attractive valuations which have the ability to sustain and/or grow
dividends for the future. We invest in a combination of companies with high sustainable yields and dividend payout
ratios alongside those with higher earnings growth and greater potential for dividend growth as earnings increase
and dividend payout ratio increase over time.
We thoroughly research prospects and markets using sophisticated and often proprietary techniques before selection.
Options are used on an opportunistic basis to generate additional income from transactions. Put and call options are
written on individual stocks with strike prices aligned to our target prices. We do not employ either structural or long-
term gearing, preferring to use more flexible short-term borrowings when opportunities present themselves.
Alongside the quantitative and qualitative assessment of a company, which includes research into the fundamental
cash generative potential of a business, we consider ESG factors. No stock is added to the Company’s portfolio until we
have established that it has ESG policies in place. We believe engagement with corporates is the key to improving ESG
standards and therefore do not apply an exclusion policy. ESG policy is examined at the individual company level.
Dividend approach
One of the key investment objectives of the Company is to provide investors with a growing total annual dividend per
share. This underpins the Board’s approach to the dividend policy. In most years, we seek to pay dividends from
current revenue and add to the revenue reserve where possible. The purpose of this reserve is to smooth the dividend
in extreme market conditions. The Company is also able to make use of the distributable reserve for this purpose.
When deciding on whether to pay each quarterly dividend, we have regard to a variety of factors, including the current
and the forecasted levels of income, the sustainability of that income, cash resources and any macro-economic and
currency risks in relation to the countries in which the Company invests. The Fund Manager provides portfolio updates
together with a schedule of projected revenue generated by the underlying investments and options strategy to assist
the Board’s decision.
Cash flow
generation is key
to understanding
the true
economics of a
business, not
earnings per share
High yield and
dividend growth
combination, high
conviction,
portfolio of 40-60
holdings,
bottom-up with
no country/sector
bias
Search for stocks
where current
market value
understates future
cash-flows –
generally sectors
that have been
ignored
Management
meetings and
bespoke country
visits, discussion of
key risks and
in-house
investment team
interaction
Derive absolute
valuation to
understand
fundamental
value, less focus
on relative
valuations. Aim for
consistency not
complexity
Bottom-up, cash-flow focused, consistent disciplined approach
Investment philosophy
Focus on cash,
not accounting
based measures
Total return
focus
Identify market
mispricing
Qualitative
process as
important as
quantitative
Absolute
valuation
22
Henderson Far East Income Limited Annual Report 2025
We were eligible to vote at 66 (2024: 65) investee company meetings during the period
0 10 20 30 40 50 60 70
Number of meetings with at
least one vote against
Number of investee meetings
where we actually voted
Number of investee meetings where
we were eligible to vote
65
66
64
1
(98.5% of meetings)
66 (100% of meetings)
23 (35.4% of meetings)
30 (45.5% of meetings)
2025 2024
1 Shares are not voted where doing so restricts the Fund Manager’s ability to sell the stock ahead of the meeting
How we voted our shares
Voted with
management 89.6%
Voted against
management 10.4%
Business model continued
Stewardship
We believe that voting at general meetings is an important aspect of corporate stewardship and a means of signalling
shareholder views on board policy, practices and performance. We have tasked our investment manager with
considering how best to vote the rights attached to the shares in the Company’s portfolio. This enables us to utilise the
expertise of their Responsible Investment and Governance team in assessing engagement by investee companies and
the appropriateness of any resolutions which shareholders may be asked to approve. The Board retains oversight of the
process by receiving reports at each meeting indicating how the Company’s shares have been voted and where
support for management recommendations has not been warranted. We review the investment manager’s Responsible
Investment Policy and Proxy Voting Policy and Procedures at least annually.
Voting decisions are guided by the best interests of the investee companies’ shareholders and made in consultation
with the Fund Manager, who has an in-depth understanding of the respective company’s operations.
The Fund Manager believes in engaging with management and boards to resolve issues of concern rather than to vote
against shareholder meeting proposals. This approach is more likely to be effective in influencing company behaviour.
In the period under review, we voted at all general meetings held by investee companies. The only time shares
would not be voted is where doing so would have resulted in share-blocking. This is where voting would have
restricted the ability to trade the shares in advance of the meeting.
Figures in the charts are based on the period 1 September 2024 to 31 August 2025
Source: Janus Henderson Investors
Strategic
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statements
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information
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Henderson Far East Income Limited Annual Report 2025
Business model continued
The environment
As an investment trust, the Company’s own direct environmental impact is minimal. The Company has no greenhouse
gas emissions to report from its operations, nor does it have responsibility for any other emissions producing sources
under the Companies Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013. For the same reasons, the
Company considers itself to be a low energy user under the Streamlined Energy & Carbon Reporting (‘SECR’) regulations
and therefore is not required to disclose energy and carbon information.
TCFD report
The investment manager produces product-level Task Force on Climate-Related Financial Disclosures (‘TCFD’) reports.
These reports include an overview of the climate-related governance, strategy, risk management, and metrics and
targets of Janus Henderson Investors and its portfolios. Product-level metrics include absolute carbon emissions,
carbon footprint, weighted average carbon intensity, implied temperature rise and climate scenario analysis (Climate
Value at Risk). The investment manager’s TCFD Report specific to the Company is available on the Company’s website
at www.hendersonfareastincome.com.
Areas where we voted against management recommendations
0 5 10 15 20 25 30
Other
Climate related
Change to capital structure
Change to constitution
Director remuneration
Director independence/Board
or committee composition
2025 2024
17
3
8
8
30
9
11
4
16
5
Number of resolutions
Market breakdown by number of meetings voted
2
0
2
4
2025 2024
Australia 8 6
China 18 9
Hong Kong 4 4
India 7 16
Indonesia 4 3
Japan 1 0
Other 10 11
Singapore 2 3
South Korea 4 5
Taiwan 7 5
Vietnam 1 0
2
0
2
5
Figures in the charts are based on the period 1 September 2024 to 31 August 2025
Source: Janus Henderson Investors
24
Henderson Far East Income Limited Annual Report 2025
Measuring the Company’s performance
The directors use key performance indicators (‘KPI’) to measure the success of the Company in meeting its objective
and to evaluate the performance of the Fund Manager. The focus of the Board is on the longer term, but when
reviewing the performance of the Fund Manager each year, the Board uses the KPIs set out below. These KPIs are
explained in the glossary and alternative performance measures on pages 80-82.
KPI Action
Performance
against
comparator
indices
Although the Company has no benchmark, the Board considers performance against the
FTSE World Asia Pacific ex Japan and MSCI AC Asia Pacific ex Japan High Dividend Yield
indices as a useful backdrop to considering performance. From 1 September 2025, the
Board has replaced these two indices with the MSCI AC Asia Pacific ex Japan Index which
more closely reflects the balance of high yield and high growth stocks in the portfolio.
Performance against this index will be included in the half-year reporting.
Share Price
1
NAV
2
80
100
120
140
160
180
Aug
2020
Aug
2021
%
Aug
2022
Aug
2023
Aug
2024
Aug
2025
Feb
2021
Feb
2022
Feb
2023
Feb
2024
Feb
2025
FTSE World Asia Pacific ex Japan Index
3
MSCI AC Asia Pacific ex Japan High Dividend Yield Index
3
Dividend yield
4
The Board is aware of the importance of the dividend to shareholders and keeps the
dividend yield under review.
%
0 2 4 6 8 10 12
2025
2024
2023
2022
2021
2020
10.8
10.8
11.1
8.5
7.8
7.4
Source: Janus Henderson Investors
1 Share price total return using closing price
2 NAV total return performance with dividends reinvested
3 The Company does not have a formal benchmark and uses these indices on a sterling adjusted basis for comparison purposes only
4 Dividend yield is an alternative performance measure and is explained in more detail on page 82
Strategic
report
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statements
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information
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Henderson Far East Income Limited Annual Report 2025
Measuring the Company’s performance continued
Source: Janus Henderson Investors
1 The amount by which the market price per share is higher (premium) or lower (discount) than the NAV per share
2 AIC Asia Pacific Equity Income sector
3 Calculated using the AIC methodology
4 The premium/discount and ongoing charge are alternative performance measures. More information can be found on pages 81 and 82
KPI Action
Premium or
discount
1, 4
at which the
shares trade
The Board monitors the level of the Company’s share premium or discount compared to
the AIC sector.
2
-12
-10
-8
-6
-4
-2
0
2
4
6
Sep
2020
Sep
2021
Sep
2022
Sep
2023
Sep
2024
Sep
2025
Company AIC sector
2
average
%
Ongoing charge
3, 4
The Board monitors the ongoing charge to ensure the operating costs of the Company
are appropriately managed.
%
0.00 0.20 0.40 0.60 0.80 1.00 1.20
2025
2024
2023
2022
2021
2020
1.12
1.08
0.97
1.01
1.09
1.08
26
Henderson Far East Income Limited Annual Report 2025
We are mindful of acting in the best interests of shareholders as a whole and have regard to other stakeholders
when relevant to a decision. The Board takes into consideration the Company’s purpose, investment objective
and investment policy as well as the interests of the Company’s stakeholders when discussing matters and
making decisions.
In addition to regular, detailed discussions about the Company’s investment portfolio, strategy and market
performance, the following are examples of discussions held and decisions made by the Board during the
financial year ended 31 August 2025:
Dividend increase
We reviewed the Company’s financial position and the Fund Manager’s estimates, which included dividends received
and due to be received from investment companies as well as anticipated income from other sources such as the
option strategy. Our analysis and discussion on these figures enabled us to determine that the Company was well
positioned to continue its progressive dividend policy. We therefore increased the dividend from 6.20p per ordinary
share to 6.25p per ordinary share in respect of the 3rd interim dividend which was declared on 6 June 2025. A modest
amount of £1.5m will be drawn from our reserves to fund the fourth interim dividend. This brings our track record of
paying a progressive dividend to 18 years.
Share issuance
The Board remains committed to the refinements to the investment process which were introduced following our
strategic review in 2023. This is the means by which we maintain the progressive dividend and ensure that capital
return is not eroded as a result. Decisions in this respect include many facets, one of which is the number of new
shares we issue and the premium at which we deem it appropriate to issue new shares.
In the year to 31 August 2025, we issued 17.6m new shares and adjusted the premium over the course of the year
to ensure that the costs of the new issuance were not borne by existing shareholders and that the Fund Manager
had sufficient time to invest the proceeds before paying a dividend on the shares.
Reaching retail shareholders
The work led by our investment manager’s Sales team and the corporate brokers ensures that the Company’s
professional investors have access to the Fund Manager and are kept up to date with developments. Reaching
our retail shareholders is equally important, but far more difficult to achieve. Accordingly, we considered the
Company’s marketing strategy and budget. This included a review of options which could be used to enhance
communications to retail shareholders and where existing channels, which had not delivered the reach we
expected, could be replaced. At the conclusion of the Board’s discussion, we agreed adjustments to the strategy
from the prior year and approved a budget in this respect.
Multi-currency revolving credit facility
The Company’s multi-currency revolving credit facility expired shortly before the year end. We reviewed the
Company’s historic utilisation on the facility and the cost of the facility in relation to its benefits. Following that
analysis, we considered whether the Company should continue to maintain the facility and if the size of the facility
should be adjusted. The Board concluded that the facility should be maintained and that the current amount of
£50m remained appropriate. We reviewed pricing provided by several banks and determined that the Company
should open a new facility with Royal Bank of Scotland International Limited, London Branch.
Board decision making
Strategic
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information
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27
Henderson Far East Income Limited Annual Report 2025
Managing risks
Principal 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:
Risk Mitigating action
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 in 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.
We engage reputable third-party service providers and expect
the investment manager to provide investment management,
company secretarial, administration and accounting services
using 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 services providers at least annually.
28
Henderson Far East Income Limited Annual Report 2025
Risk Mitigating action
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
evaluate 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 risk, 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 on
pages 70 to 76.
Emerging risks and uncertainties
Alongside the principal risks, the Board considers emerging risks and uncertainties, 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. During the year under review, the Board did not identify any
emerging risks which are not already encompassed within the existing principal risks.
The Board considers that changing attitudes to investments, particularly shareholders moving away from regional
investment to global and multi-asset strategies a potential risk, alongside changes to the UK tax regime applicable
to investment trusts which could make these vehicles less tax efficient. Increased shareholder activism or more
aggressive arbitrageurs taking a significant stake in the Company’s shares could present a threat, as could, the
un-checked adoption of artificial intelligence technology by the Company’s third-party service providers.
Managing risks continued
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Strategic
report
29
Henderson Far East Income Limited Annual Report 2025
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 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 90% 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 revolving credit 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 ageing 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.
Approval
The Strategic report has been approved by the Board.
On behalf of the Board
Ronald Gould
Chairman
10 November 2025
30
Henderson Far East Income Limited Annual Report 2025
Governance
In this section
32 Directors
34 Corporate Governance report
41 Audit Committee report
43 Management Engagement Committee report
44 Nominations and Remuneration Committee report
45 Directors’ Remuneration report
47 Directors’ report
49 Statement of directors’ responsibilities
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
Henderson Far East Income Limited Annual Report 2025
31
Directors
The right balance of skills and experience
Ronald (‘Ron’)
N
ME
Gould
Position: Chairman
(from 21 June 2022)
Date of appointment:
28 October 2021
Skills and experience
Ron is an investor and strategic
consultant in the financial services
sector in both Asia and Europe. His
long career in investment
management and banking led to
extensive work as a government
advisor in both the UK and Asia. He
established the Greater China/Asia
business of the Promontory Financial
Group, leading efforts to improve
governance, risk control and
regulatory effectiveness for financial
companies in Asia from a base in
China. Prior to his work with
Promontory, he was Chief Executive of
Chi-X Asia, successfully developing
new market trading venues across
the Asian region.
Ron was Senior Adviser to the UK
Financial Services Authority and
remains a government adviser in
several jurisdictions. He was Chief
Executive Officer of investment bank
ABG Sundal Collier, Managing Director
of AXA Investment Managers and Vice
Chairman of Barclays Bank asset
management activities.
Other appointments
He is Chairman of BlackRock Smaller
Companies Trust plc and Think
Alliance Group in Hong Kong.
Board of Directors (at 10 November 2025)
See p.36 Leadership, roles and division of responsibilities
Nicholas
A
N
ME
George
Position: Chairman of the Audit
Committee
Date of appointment:
20 April 2016
Skills and experience
Nicholas is a Chartered Accountant
by training and has spent almost his
entire working life in various aspects
of investment banking, specialising in
the Asian markets. In his early career
he worked for a number of leading
City institutions and joined Robert
Fleming Securities initially as head of
Asian Securities in London and then
moved to Hong Kong to establish a
corporate broking division for Jardine
Fleming, subsequently taken over by
JPMorgan, where he remained as
Managing Director. In 2003 he
co-founded KGR Capital Partners, a
Hong Kong based Asian hedge fund
of funds registered with the Securities
and Futures Commission. Since that
time, he has become a non-executive
director of a number of diversified
businesses ranging from
telecommunications, investment
management, hotels to age care. He
continues to travel widely throughout
Asia, where he has built up an
impressive network of contacts.
Other appointments
Nicholas is a director of John Lamb
Hill Oldrige Limited.
Timothy (‘Tim’)
A
N
ME
Clissold
Position: Independent non-executive
director
Date of appointment:
3 September 2018
Skills and experience
Tim qualified as a Chartered
Accountant and has worked in
Australia, Hong Kong and China, where
he was co-founder of one of the first
private equity groups in the country.
He later ran Goldman Sachs China’s
distressed investment business in
Beijing. He co-founded another
business to originate UN carbon offsets
from GHG emission reduction projects.
Tim is a Visiting Fellow at Jesus College,
Cambridge. He mediates in dispute
resolution cases where issues have
arisen between Chinese and foreign
investors and he was a member of the
Strategic Advisory Board of Braemar
Ventures, a New York venture capital
fund focused on energy efficiency
technologies. He has written four books,
including Mr China and Chinese Rules.
Other appointments
Tim is a non-executive director of
Baillie Gifford China Growth Trust plc.
32
Henderson Far East Income Limited Annual Report 2025
Steven
A
N
ME
Wilderspin
Position: Independent non-executive
director
Date of appointment:
5 June 2025
Skills and experience
Steven is a Chartered Accountant
who qualified in the financial audit
practice of PwC in London before
transferring to Jersey where he now
lives. He then followed an executive
career with investment management
and administration businesses with
significant Asian client exposure.
In 2007 Steven launched a
governance business, subsequently
serving on the boards of a range of
investment businesses and funds,
and commercial companies. Most
recently, Steven has specialised in
audit and risk roles on listed
investment companies. He previously
served as chair of Blackstone Loan
Financing Limited which is now in
liquidation after selling its assets, and
chair of the Audit and Risk Committee
of 3i Infrastructure plc.
Steven is regulated by the Jersey
Financial Services Commission to act
as a director and is qualified to
conduct investment business in Jersey.
Other appointments
Steven is a non-executive director and
chair of the Audit and Risk Committees
of HarbourVest Global Private Equity
Limited and GCP Infrastructure
Investments Limited, and a non-
executive director of Phoenix Spree
Deutschland Limited.
Chair of Committee
A
Audit Committee
N
Nominations and
Remuneration Committee
ME
Management Engagement
Committee
Directors continued
Carole
A
N
ME
Ferguson
Position: Senior Independent Director
Date of appointment:
1 December 2023
Skills and experience
Carole is the Chief Executive Officer
and Research Director of Carbon
Transition Analytics. She has extensive
experience in the financial services
sector in research, finance,
sustainability and derivatives. She
worked for 10 years as a director and
fund manager at Societe Generale
Asset Manager and prior to that
worked in derivatives and structured
products in both Asia and London for
J P Morgan and the Flemings Group.
Other appointments
Carole is a non-executive director of
BlackRock Energy and Resources
Income Trust plc.
Susan (‘Susie’)
A
N
ME
Rippingall
Position: Independent non-executive
director
Date of appointment:
1 December 2023
Skills and experience
Susie has over 30 years’ fund
management experience in Asian
markets and was until 2013, portfolio
manager of Scottish Oriental Smaller
Companies Trust plc. She worked in
Hong Kong and Singapore, travelling
extensively throughout the region. She
is a former director of Aberdeen New
Dawn Investment Trust Limited and
Vietnam Enterprise Investments
Limited, so brings excellent knowledge
of the investment trust sector.
Other appointments
Susie is a non-executive director of
First Sentier Group and Sovereign
Asset Management.
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
33
Henderson Far East Income Limited Annual Report 2025
Corporate Governance report
Governance structure
Board of Directors
Comprises independent non-executive directors
Chair: Ronald Gould
Senior Independent Director: Carole Ferguson
The terms of reference for each of the committees of the Board are kept under regular review and are available
at www.hendersonfareastincome.com.
Contractually engages third-party service providers
Janus Henderson
Fund Management: Sat Duhra, Fund Manager
Sales, Marketing, Administration
Corporate Secretary: Janus Henderson Secretarial Services UK Limited
Alternative Investment Fund Manager: Janus Henderson Fund Management UK Limited
Auditor
PricewaterhouseCoopers
LLP
Custodian and
depositary
JP Morgan Chase Bank
N.A. (Jersey Branch)
and J.P. Morgan
Trust Company
(Jersey) Limited
Corporate broker
Cavendish Capital
Markets Limited
Registrar
Computershare
Investor Services plc
Audit
Committee
Chair:
Nicholas George
Purpose: Ensures the integrity
of financial reporting, evaluates
the effectiveness of the
systems of internal control and
risk management, and
oversees the relationship with
the external auditor
See p.41
Audit Committee Report
Nominations and
Remuneration
Committee
Chair:
Ronald Gould
Purpose: Ensures the Board has
a balance of skills, experience
and diversity, oversees
performance reviews of the
Board and its committees,
considers directors’ fees and
maintains an effective
framework for succession
planning, with a
formal approach to the
appointment of directors
See p.44 Nominations and
Remuneration Committee Report
Management
Engagement
Committee
Chair:
Ronald Gould
Purpose: Ensures the
performance of service
providers meets expectations
and their terms of engagement
remain appropriate
See p.43 Management
Engagement Committee Report
34
Henderson Far East Income Limited Annual Report 2025
Corporate Governance report continued
Governance codes
The Board is pleased to report to shareholders on the
Company’s governance arrangements and how the
Company has applied the principles of the Code of
Corporate Governance published by the Association of
Investment Companies.
The Company maintains a listing on the London Stock
Exchange and is therefore required to report on how the
principles of the UK Corporate Governance Code (the
‘UK Code’) have been applied. Being an investment
company, a number of the provisions of the UK Code are
not applicable as the Company has no executive
directors or internal operations. Consequently, the Board
considers the principles and recommendations of the
Code of Corporate Governance published by the
Association of Investment Companies issued in 2019
(the ‘AIC Code’). The AIC Code addresses the principles
set out in the UK Code as well as additional
recommendations on issues that are of specific
relevance to investment companies. The Financial
Reporting Council (‘FRC’) has endorsed the AIC Code and
confirmed that, by following it, the boards of investment
companies should meet their obligations in relation to
the UK Code and UK Listing Rules.
The Company also maintains a listing on the New Zealand
Stock Exchange (‘NZX’) where it is classified as a Foreign
Exempt Issuer. The Listing Rules of the NZX therefore require
the Company to comply with the provisions applicable to
its Home Exchange, being the London Stock Exchange, at
all times, notifying the NZX of any changes pertinent to the
listing on the Home Exchange and ensuring that any
announcements made to the Home Exchange are
simultaneously released to the market in New Zealand.
Accordingly, the Company reports against its compliance
with the AIC Code rather than the NZX Corporate
Governance Code.
An updated version of the UK Corporate Governance
Code was published in January 2024, with an updated
version of the AIC Code published in August 2024. The new
Codes will be applicable to financial years beginning on
or after 1 January 2025 and will become applicable to the
Company for the current financial year. Copies of the AIC
Code and the UK Code can be found on the respective
organisations’ websites: www.theaic.co.uk and
www.frc.org.uk.
Statement of Compliance
The Board has considered the principles of the AIC Code
and confirms that it has complied with these throughout
the reporting period.
The Company has no executive directors so does not
consider executive remuneration. As a fully managed
investment company, the Company has no internal
operations so does not maintain an internal audit
function, although the Audit Committee regularly
considers the need for it.
Overview
The Board is comprised entirely of non-executive directors
and has constituted three principal committees: the Audit
Committee, the Management Engagement Committee
and the Nominations and Remuneration Committee. The
Board has also constituted an Insider Committee which
meets when required to assist the Board in discharging its
responsibilities under the Market Abuse Regulations.
The terms of reference for each Committee are kept under
regular review by the Board and are available on the
Company’s website www.hendersonfareastincome.com.
The Board engages third-party service providers to deliver
the operations of the Company. Janus Henderson
Investors has been appointed to manage the investment
portfolio and is the Company’s Alternative Investment
Fund Manager. The investment manager provides the
day-to-day accounting, company secretarial,
administrative, sales and marketing activities.
The Company has appointed a custodian and depositary
who are responsible for the safe custody of the
Company’s financial assets and record keeping/asset
verification of other assets. The Company has appointed
a registrar to maintain the Register of Members and assist
shareholders with queries in respect of their holdings. The
Company entered into each of these principal
engagements after full and proper consideration of the
quality and cost of the services offered, including the
operation of their internal control systems in relation to the
affairs of the Company. The Board and its committees
maintain oversight of third-party service providers
through regular and ad hoc reporting and ongoing
monitoring by the investment manager.
Board leadership and purpose
The Board is responsible for providing leadership and
setting the tone from the top in terms of the Company’s
culture and values. The Board appoints all third-party
service providers and monitors their performance
throughout the year. The directors formally evaluate the
quality of the service provided by each third-party
service provider and consider the appropriateness of
the terms of their engagement at least annually. The
Board aligns the Company’s risk appetite with the
investment objective set by shareholders and
establishes investment restrictions accordingly. The
Board keeps under regular review the risks faced by the
Company and assesses the effectiveness of internal
controls put in place to mitigate these.
As well as making the strategic decisions regarding the
Company’s purpose and establishing, as well as
monitoring, the risk management framework, the Board’s
purpose is to provide independent oversight of the
operations delivered by the Company’s third-party service
providers and to challenge the decisions and
recommendations made by them, particularly the
investment manager. The Board does this by meeting
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
35
Henderson Far East Income Limited Annual Report 2025
Corporate Governance report continued
formally at least four times a year, with additional Board
or committee meetings arranged when required. The
directors have regular contact with the Fund Manager
and other employees of the investment manager in
connection with the delivery of company secretarial,
sales, marketing and other administrative services.
The Board has a formal schedule of matters specifically
reserved for its decision, which includes setting strategy
and providing oversight of performance against agreed
measures. It approves any changes to the structure and
capital arrangements for the Company, has oversight of
financial reporting and assesses the effectiveness of the
internal control framework. The Board approves
communications with shareholders, the appointment of
new directors, oversees governance matters and is
responsible for determining the remuneration of
individual directors. Each meeting follows an agenda
agreed with the Chairman and includes a review of the
Company’s investment performance, financial position,
compliance with the investment parameters and a review
of notable changes to the share register, along with any
sales and marketing activities undertaken. This reporting
enables the Board to ensure that control is maintained
over the Company’s affairs.
The investment manager ensures that the directors
receive relevant management, regulatory and financial
information. Employees of the investment manager attend
each Board meeting enabling the directors to probe
further on matters of concern. The Chairman is invited to
attend meetings of all the chairmen of the investment
companies managed by the investment manager which
provides a forum to discuss industry matters. The directors
have access to the advice and services of the Corporate
Secretary through its designated representative who is
responsible for ensuring that Board and Committee
procedures are followed. The proceedings of all Board
and Committee meetings are minuted, with any particular
concerns raised by the directors appropriately recorded.
The Board and the investment manager operate in a
supportive, co-operative and open environment.
The Company has a procedure for directors to take
independent professional advice at the expense of the
Company in the furtherance of their duties. In order to
enable them to discharge their responsibilities, all
directors have full and timely access to relevant
information.
Leadership, roles and division of responsibilities
Role Primary responsibilities
Shareholders
• approving the Company’s investment objective and policy and any material changes;
• making decisions regarding changes to the Company’s constitution;
• electing and re-electing directors to the Board, or removing them from office if deemed
appropriate;
• determining the overall limit for directors’ remuneration; and
• formally appointing the statutory auditor.
Chairman
• leading and managing Board business and ensuring the timely flow of information from
service providers to the Board. He facilitates open, honest and constructive debate
among directors;
• leading the Nominations and Remuneration Committee in developing succession
planning and the identification of potential candidates for appointment to the Board
(except when considering his own succession);
• leading the Board in determining its governance framework, culture and values;
• representing the Company, alongside the Fund Manager, externally at business, and
community level; and
• managing the relationship with the investment manager.
Senior Independent
Director
• acts as a sounding board to the Chairman;
• serves as an intermediary for the other directors and shareholders; and
• is responsible for leading the performance evaluation of the Chairman.
Independent non-
executive directors
• providing constructive and effective challenge, especially to the decisions of the
investment manager;
• scrutinising and holding to account the performance of the:
– Fund Manager in meeting the investment objective;
– investment manager in the promotion of the Company and day-to-day smooth
operation of the Company’s business; and
• providing strategic guidance and offering specialist advice.
36
Henderson Far East Income Limited Annual Report 2025
Corporate Governance report continued
Role Primary responsibilities
Committee chairs
• the leadership and governance of their committee;
• maintaining the relationships with specialist service providers delivering services within
the remit of their committees;
• reporting on the activities of their committee to the Board; and
• seeking approval from the Board for the responsibilities set out in their respective terms
of reference.
Investment manager
• promoting the Company’s investment proposition to professional and retail investors;
• making the necessary reporting to the FCA regarding the Company’s status as an
Alternative Investment Fund;
• providing accounting, company secretarial and other administrative services to the
Company ensuring compliance with the applicable statutory and regulatory provisions;
and
• coordinating the delivery of services provided by the Company’s other third-party service
providers.
Fund Manager
• selecting the stocks held within the portfolio;
• diversification and risk management through stock selection and size of investment;
• determining the volume and timing of acquisitions and disposals; and
• determining the frequency and level of gearing within the overall limits set by the Board.
Board composition
At the date of this report, the Board comprises six non-
executive directors. Their business experience is set out
on pages 32 and 33.
Appointment, tenure and retirement
of directors
The Board may appoint directors at any time during the
year. Any director so appointed stands for election by
shareholders at the next annual general meeting. Directors
are generally expected to serve two terms of three years,
which may be extended to a third term, and occasionally
beyond, at the discretion of the Board and subject to
satisfactory performance evaluation and annual re-
election by shareholders. This approach takes account of
the entirely non-executive membership of the Board and
the outsourced business model which the Company uses.
All directors stand for re-election by shareholders
annually in keeping with the provisions of the AIC Code.
The articles permit shareholders to remove a director
before the end of their term by passing an ordinary
resolution at a general meeting. An appointment may
be terminated by either party giving written notice
without compensation payable.
Chairman’s tenure
Given the entirely non-executive nature of the Board and
the fact that the Chairman may not be appointed as such
at the time of their initial appointment as a director, the
Chairman’s tenure may be longer where this is considered
by the Board to be in the best interests of the Company.
As with all directors, the continuing appointment of the
Chairman is subject to satisfactory performance
evaluation, annual re-election by shareholders and may
be further subject to the particular circumstances of the
Company at the time he intends to retire from the Board.
Directors’ independence
The independence of the directors is determined with
reference to the AIC Code and is reviewed by the
Nominations and Remuneration Committee at least
annually. The Committee considers each of the director’s
other appointments and commitments, as well as their
tenure and any connections they may have with the
investment manager or other key service providers.
Following completion of the evaluation, the Committee
concluded that all directors continued to be independent
in character and judgement.
The Board is firmly of the view that length of service does
not automatically impair a director’s ability to act
independently, but that the longer perspective adds value
to the deliberations of the Board, especially in light of its
entirely non-executive nature.
Diversity
The Board supports the principle of boardroom diversity,
of which gender and ethnicity are two aspects. The
Company’s policy is that the Board should comprise
directors with a diverse range of skills, knowledge and
experience and that all appointments should be made on
merit, against objective criteria. The objective of the policy
is to have a broad range of approaches, backgrounds,
skills, knowledge and experience present on the Board.
Diversity of perspectives and backgrounds is therefore a
key consideration in any director search process.
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
37
Henderson Far East Income Limited Annual Report 2025
Corporate Governance report continued
Alongside this, the Board will not discriminate on the
grounds of age, gender, personal background, sexual
orientation, disability or socioeconomic background in
considering the appointment of directors.
The UK Listing Rules require companies to report on
whether they have achieved the following diversity targets:
• at least 40% of individuals on the board are women;
• at least one senior board position is held by a woman;
• at least one individual on the board is from a minority
ethnic background.
At 31 August 2025, the Board complied with these
requirements.
Gender diversity
Number of
Board
members
% of the
Board
Number of
senior
positions
on the
Board
1
Men
4 57 1
Women
3 43 1
Ethnic diversity
White British or other
white
6 85 2
Other
1 15 –
1 As a fully managed investment company, the Company does not have
a CEO or CFO. Accordingly, only the roles of chair and senior independent
director are applicable to this disclosure
Conflicts of interest
The articles permit the Board to consider and, if it sees fit,
to authorise situations where a director has an interest
that conflicts, or may possibly conflict, with the interests of
the Company (‘situational conflicts’). The Board has a
formal process in place for directors to declare situational
conflicts to be authorised by those directors who have no
interest in the matter being considered. In deciding
whether to authorise a situational conflict, the non-
conflicted directors must act honestly and in good faith
with a view to the best interests of the Company. The
directors may impose limits or conditions when giving the
authorisation, or subsequently, if they think this is
appropriate. Any situational conflicts which are
considered, are recorded in the minutes.
Induction and ongoing training
Newly appointed directors are offered a bespoke
induction programme which covers the legal and
regulatory framework for investment companies and the
operations of the investment manager, including the
compliance and risk management frameworks,
accounting, sales and marketing, and other administrative
services carried out by the investment manager.
Directors are provided with information on the Company’s
policies, regulatory and statutory requirements affecting
the Company, as well as changes to the directors’
responsibilities as they arise. They are encouraged to
attend external training and industry seminars, and may
do so at the expense of the Company.
Directors’ time commitment
The Board expects directors to be able to devote sufficient
time to meet the demands of the business. Directors
should attend all scheduled meetings except when
unforeseen and serious circumstances arise at short
notice, such as sudden illness or death in the close family.
The Board expects directors to be able to make
themselves available at reasonably short notice to
consider any ad hoc matters that may arise.
Directors’ other commitments are considered as part of
the candidate selection process for new appointments
and annually as part of the overall performance
evaluation of each director.
The table below sets out individual directors’ meeting
attendance for the period under review. In addition to the
meetings indicated in the table, one further strategy
session was held during the period. All directors in office
at the time of the annual general meeting held on
24 January 2025, attended this meeting.
Director Board
Audit
Committee
Nominations
and
Remuneration
Committee
Management
Engagement
Committee
Ronald
Gould
4/4 4/4
1
2/2 1/1
Julia
Chapman
2
4/4 4/4 2/2 1/1
Timothy
Clissold
4/4 4/4 2/2 1/1
Carole
Ferguson
4/4 4/4 2/2 1/1
Nicholas
George
4/4 4/4 2/2 1/1
Susan
Rippingall
4/4 4/4 2/2 1/1
Steven
Wilderspin
3
1/1 1/1 0/0 0/0
1 Attends the Audit Committee by invitation
2 Retired on 29 October 2025
3 Appointed to the Board on 5 June 2025
Succession planning
To be effective the Board must maintain a balance of skills
and experience, and seek to refresh these on a regular
basis to ensure that the Board’s oversight of the
Company’s operations is robust.
As the Board is comprised entirely of non-executive
directors and all operations are outsourced, ensuring a
suitable balance of skill and experience includes retaining
a detailed knowledge of the Board’s deliberations and
decisions over the long term, which may mean some
directors remain on the Board for longer than nine years.
The Board usually considers its membership annually
following individual performance evaluation and when
recommending directors to shareholders for re-election.
The Board maintains a succession plan which remains
subject to the challenges facing the Company at the
time these plans are implemented, the skills the Board
believes it requires to ensure the safeguarding of
shareholders’ assets and the obligations placed on it by
the Jersey regulator in respect of the number of Jersey
based directors who must be appointed to the Board.
38
Henderson Far East Income Limited Annual Report 2025
Corporate Governance report continued
Performance evaluation
During the year, the performance of the Board,
Committees, and individual directors was evaluated
though an assessment process led by an external
facilitator, Fletcher Jones.
The review process was tailored to the specific
environment, operating style and strategic goals and
challenges faced by the Company. It involved each
director completing a questionnaire, followed by private
one-to-one conversations between the external reviewer
and each director, the Fund Manager and the Company
Secretary. The anonymity of the respondents was
ensured throughout the process, in order to promote an
open and frank exchange of views.
The external reviewer provided a formal report of their
findings, which was considered by the Board. The report
presented an objective view on the current working of the
Board as a whole as well as the quality of contributions
made by individual directors. The intention of the review
process was to further strengthen the working of the
Board by providing an opportunity for the objective
consideration of the Board’s strengths and current skills,
any areas for further development, and any potential
gaps in its composition. The report also considered the
challenges, opportunities and strategic direction of travel
anticipated over the near to medium-term.
The report’s findings noted that the Board and each
committee was operating effectively, with an
appropriate and sufficient balance of experience and
skills on all areas of importance, resulting in a well-
managed, well-run, and effective board. Some minor
points for development were highlighted, which will be
discussed and actioned by the Board. The main theme
identified by the review was that of a respectful Board
faced with a number of challenges. Topics such as
further investor engagement, facilitating the succession
of the Audit Committee Chairman, continuing to refine
strategy, oversee performance, and navigating a
difficult macro-economic environment were key
themes, which are all discussed proactively.
Risk management and internal control
The Board has overall responsibility for the Company’s
system of internal control and for reviewing its
effectiveness. The Board has established an ongoing
process for identifying, evaluating and managing the
principal risks faced by the Company. The process
accords with the FRC’s guidance on Risk Management,
Internal Control and Related Business and Financial
Reporting. The system was in operation throughout the
year and up to the date of this report. The system is
designed to meet the specific risks faced by the Company
and takes account of the nature of the Company’s
reliance on its service providers and their internal controls.
The system therefore manages rather than eliminates the
risk of failure to achieve the Company’s business
objectives and provides reasonable, but not absolute
assurance against material misstatement or loss.
The diagram on the following page illustrates the
Company’s framework.
The key components of the internal control
framework include:
• clearly defined investment criteria, specifying levels
of authority and exposure limits. The Board reviews
reports on investment performance against and
compliance with the criteria at each meeting;
• regular financial reporting which allows the Board
to assess the Company’s financial position. The
management accounts and forecasts are reviewed
by the Board at each meeting;
• contractual agreements with the investment manager
and all other third-party service providers. The Board
reviews performance levels and adherence to relevant
provisions in the agreements on a regular basis
through reporting to the Board and conducts a formal
evaluation of the overall level of service provided at
least annually;
• the review of controls at the investment manager and
other third-party service providers. The Board receives
quarterly reporting from the investment manager and
depositary, and reviews assurance reports on the
effectiveness of the control environments at the
Company’s key service providers;
• review of additional reporting provided by:
– the investment manager’s Operational Risk team on
the control environment in operation at the
investment manager and their view of the control
environments in place at the third-party service
providers used by the Company; and
– the investment manager’s Internal Audit team
on areas of operation which are relevant to
the Company.
The Audit Committee’s usual review of the reports on the
effectiveness of internal controls in operation at its key
service providers identified that two reports had received
qualified opinions from the service auditor. The Audit
Committee considered the particular controls giving rise
to the respective qualifications, whether these had
impacted the Company directly and what corrective
actions were being taken by management. Following
these discussions, the Audit Committee was satisfied that
the Company’s internal controls had operated as
intended and that the qualifications had no direct impact
on the Company.
The Board has reviewed the effectiveness of the
Company’s system of internal controls for the year ended
31 August 2025 and is satisfied that it has not identified
or been advised of any failings or weaknesses that have
been determined as significant.
By order of the Board
Janus Henderson Secretarial Services UK Limited
Corporate Secretary
10 November 2025
Strategic
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Financial
statements
Additional
information
AGM Notice
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Govern ance
39
Henderson Far East Income Limited Annual Report 2025
Board of Directors
(six non-executive directors)
PricewaterhouseCoopers LLP
(Statutory auditor)
JP Morgan
Chase Bank N.A.
(Jersey Branch)
and J.P. Morgan
Trust Company
(Jersey) Limited
Depositary/Custodian
Reporting
Depositary’s report
(quarterly)
Presentation from the
depositary and
custodian (annually)
Effectiveness of
control environment
(annually)
Janus Henderson
(‘JHI’ or
investment
manager)
(Investment
management,
company secretarial,
sales, marketing,
financial reporting
and administration)
Reporting
Investment
performance update
at each meeting
Investment limits and
restrictions (monthly)
Internal controls
report (quarterly)
Effectiveness of
control environment
(annually)
BNP Paribas
(‘BNP’)
(Accounting and
administration
services engaged
by the Manager)
Reporting
Balance sheet
Liquidity and gearing
Income forecasts
Portfolio valuation
Portfolio transactions
Portfolio attribution
Effectiveness of
control environment
(annually)
Computershare
Investor
Services PLC
(‘Computershare’)
(Registrar)
Reporting
Voting and scrutineer
reports pre- and
post-shareholder
meetings
Shareholder
correspondence
Operational service
updates
Effectiveness of
control environment
(annually)
System of internal controls
How the system of internal control operates
The Board appoints third-party service providers to undertake the Company’s operational activities. It maintains
oversight of these service providers throughout the year by receiving regular reporting on their activities.
In respect of its principal service providers, the Board receives quarterly reporting on the control environment and
assesses the effectiveness of the control environment through review of the independently audited assurance
reports from each organisation.
The management Engagement Committee formally evaluates the performance and service delivery of all service
providers at least annually.
The Audit Committee evaluates the performance, independence and objectivity of the statutory auditor as part of
each audit cycle.
Corporate Governance report continued
40
Henderson Far East Income Limited Annual Report 2025
Audit Committee report
Nicholas George, Chairman of the Audit Committee
reports to shareholders on the Committee’s activities
for the year to 31 August 2025.
The Audit Committee is responsible for ensuring the
integrity of the Company’s financial reporting, evaluating
the effectiveness of the systems of internal control and
risk management and monitoring the effectiveness and
objectivity of the external auditor.
Membership
All of the independent non-executive directors are
members of the Committee, excluding the Chairman of
the Board. The Committee is chaired by Nicholas George,
who is considered by the Board to have recent and
relevant financial experience.
Meetings
The Committee meets four times a year. The Company’s
auditors, the Fund Manager and the investment
manager’s Financial Reporting Senior Manager for
Investment Trusts are invited to attend meetings of the
Committee on a regular basis, as is the Chairman of the
Board. Other representatives of the investment manager
and BNP Paribas may also be invited to attend if deemed
necessary by the Committee.
Activities during the year
In discharging its duties over the course of the year, the
Committee considered:
• the appropriateness of the Company’s accounting
policies and of the quality and effectiveness of the
accounting records and management information
maintained on behalf of the Company;
• the Company’s annual report and half-year financial
statements, whether these were fair, balanced and
understandable, and the use of the going concern
basis for their preparation;
• the assessment of the principal risks facing the
Company and its long term viability in light of these risks;
• the independently reviewed reports on the
effectiveness of internal controls in operation at the
Company’s key third-party service providers;
• the need for a separate internal audit function;
• the nature and scope of the statutory audit, agreeing
the auditor’s fee and reviewing their findings;
• the policy on the provision of non-audit services that
may be provided by the auditor; and
• the whistleblowing arrangements in place at the
investment manager enabling staff to raise concerns
about possible improprieties in confidence.
Internal audit function
Systems are in operation to safeguard the Company’s
assets and shareholders’ investments, to maintain proper
accounting records and to ensure that financial information
used within the business, or published, is reliable.
The Company is an investment company, has no
employees and delegates all executive activities to
third-party service providers, principal among them, the
investment manager. The Board places reliance on the
Company’s framework of internal control and the Audit
Committee’s view on reporting received from specific
second and third line of defence teams at
the investment manager.
The investment manager’s Operational Risk team support
the Audit Committee in considering the independently
reviewed reports on the effectiveness of internal controls
in place at the Company’s third-party service providers.
The investment manager’s Internal Audit function provides
regular reporting to the Board on the operations at the
investment manager and presents at least annually to the
Audit Committee. The Audit Committee has therefore
concluded, and accordingly made a recommendation to
the Board, that it is not necessary for the Company to
have its own internal audit function at the present time.
Appointment and tenure of the auditor
The Company follows the EU Audit Directive and
Regulation which sets out that the Company should
conduct an audit tender every ten years and rotate
audit firms every 20 years.
The Audit Committee carried out an audit tender process in
2022 which resulted in the appointment by shareholders of
PricewaterhouseCoopers LLP (‘PwC’) at the annual general
meeting held on 27 January 2023. PwC presented their first
report in respect of the year ended 31 August 2023.
Subject to the audit being effective and shareholder
re-election of PwC as the statutory auditor, the Audit
Committee does not envisage conducting a further audit
tender process until 2032.
Auditor’s independence
The Committee monitors the auditor’s independence
through three aspects of its work: the approval of a
policy regulating the non-audit services that may be
provided by the auditor to the Company; assessing the
appropriateness of the fees paid to the auditor for all work
undertaken by them and by reviewing the information
and assurances provided by the auditor on their
compliance with the relevant ethical standards.
PwC confirmed that all of its partners and staff involved
with the audit were independent of any links to the
Company, and that these individuals had complied with
their ethics and independence policies and procedures
which are fully consistent with the FRC’s Ethical Standards.
Strategic
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Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
41
Henderson Far East Income Limited Annual Report 2025
Audit Committee report continued
Significant matters
In relation to the annual report for the year ended 31 August 2025, the following significant matters were considered
by the Committee:
Significant matter How the issue was addressed
Valuation and ownership
of the Company’s
investments
The directors have appointed the investment manager to perform the valuation of the
Company’s assets in accordance with its responsibilities under the AIFMD rules. As required
under the AIFMD rules, the investment manager has adopted a written valuation policy,
which may be modified from time to time. Actively traded investments are valued using
stock exchange prices provided by third-party pricing vendors. The options are valued by
reference to the Black-Scholes model.
Ownership of listed investments is verified by reconciliation to the custodian’s records and
the directors have received quarterly reports from the depositary, who has responsibility for
overseeing the Company’s operations, including verification of ownership and valuation.
The Board reviews the portfolio valuation at each meeting.
Recognition of income Income received, including special dividends, is accounted for in line with the Company’s
accounting policy (as set out on page 62). Special dividends, and their treatment as
revenue or capital, have been reviewed by the Committee and the rationale agreed.
The Board reviews revenue forecasts at each Board meeting in support of the Company’s
future dividends.
Internal control
environment
The Committee performs oversight over the Company’s service providers by receiving
regular reports on internal controls from its key third-party service providers. The Committee
has access to the relevant personnel of JHI who have a responsibility for risk management
and internal audit. The assurance report for two of the Company’s service providers was
qualified by the respective service auditor. The Committee thoroughly reviewed the
instances giving rise to the qualification and received confirmation that the exceptions
identified had no impact on the Company.
Viability and going
concern
The Committee scrutinised assumptions around the Company’s viability, especially factors
behind macroeconomic and geopolitical uncertainties, US tariff reform and economic
uncertainties, to satisfy itself of the Company’s resilience over the five-year time frame.
The Committee further considered the appropriateness of using the going concern basis of
preparation for the financial statements and the Company’s ability to continue in
operational existence for at least twelve months from the date of their approval.
FRC review of the
Company’s audit
The Company’s audit for the year ended 31 August 2024 was selected by the Financial
Reporting Council (‘FRC’) for review as part of their audit quality inspections. The review
assessed the quality of the audit as ‘good’ and there were no key or other findings. The
Committee considered the findings set out in the FRC’s letter to the Company.
Policy on non-audit services
The Committee has approved, and keeps under regular
review, the policy on the provision of non-audit services
by the auditor. The policy sets out that the Company’s
auditor will not be considered for non-audit work where
this is prohibited by the current EU regulations and
where it appears to affect their independence and
objectivity. In addition, the provision of any non-audit
services by the auditor is not permitted to exceed 70% of
the average annual statutory audit fee for the three
consecutive financial periods preceding the financial
period to which the cap applies. Such services require
approval in advance by the Audit Committee, or Audit
Committee Chairman, following due consideration of
the proposed services.
Effectiveness of the external audit
The Committee’s process for evaluating the effectiveness of
the external audit comprises two components:
consideration is given to the findings of the FRC’s latest Audit
Quality Inspection Report for the auditor and a post-audit
assessment is carried out led by the Committee Chairman.
In assessing the effectiveness of the audit process, the
Committee Chairman invites views from the directors,
Fund Manager and other members of the investment
manager’s staff in assessing the robustness of the audit,
level of challenge offered by the audit team, the quality of
the audit team and timeliness of delivering the tasks
required for the audit and reporting to the Committee.
On completion of the assessment, the Committee remained
satisfied with the effectiveness of the audit provided by PwC.
Nicholas George
Chairman of the Audit Committee
10 November 2025
42
Henderson Far East Income Limited Annual Report 2025
Management Engagement Committee report
Continued appointment of the
investment manager and service
providers
The findings of the annual effectiveness review of the
investment manager and other service providers were
positive overall.
Following completion of the review, the Committee
recommended to the Board that the continued
appointment of the investment manager on the
terms agreed was in the best interests of the
Company’s shareholders as a whole and its long-term
sustainable success.
The Committee also recommended the continuation of
the other third-party service providers’ appointments.
The Board subsequently approved the Committee’s
recommendations.
Ronald Gould
Chairman
10 November 2025
Ronald Gould, Chairman of the Management
Engagement Committee, reports to shareholders on the
Committee’s activities during the year to 31 August 2025.
The Management Engagement Committee is responsible
for formally evaluating the overall performance of
and terms of engagement of the investment manager
and other third-party service providers engaged by
the Company.
Membership
The Committee is chaired by the Chairman of the Board.
All of the independent non-executive directors are
members of the Committee.
Meetings
The Committee meets at least annually, with additional
meetings scheduled when required.
Activities during the year
In discharging its duties over the course of the year, the
Committee considered:
• the investment performance of the Company, taking
account of the comparator indices and performance
of competitors in the closed-end and open ended
sectors, the share price, the level of premium and, for a
short period, the discount, as well as the gearing;
• the quality and experience of the team involved in
managing all aspects of the Company’s business;
• the fee structures of its closed-end competitors and
other, similar sized investment companies;
• the key clauses of the investment agreement, how the
investment manager had fulfilled these and whether
these continued to be appropriate; and
• the performance and fees of the Company’s other
third-party service providers, including the broker,
depositary, custodian, registrar, research providers,
legal counsel and accountants.
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
43
Henderson Far East Income Limited Annual Report 2025
Nominations and Remuneration Committee report
Ronald Gould, Chairman of the Nominations and
Remuneration Committee, reports to shareholders
on the Committee’s activities during the year to
31 August 2025.
The Nominations and Remuneration Committee is
responsible for ensuring the Board retains an appropriate
balance of skills, experience and diversity, has a formal,
rigorous and transparent approach to the appointment
of directors and maintains an effective framework for
succession planning. The Committee further considers the
overall policy and approach to the remuneration of the
non-executive directors and makes recommendations to
the Board on the level of remuneration for individual roles.
Meetings
The Committee meets at least annually, with additional
meetings scheduled when required.
Membership
The Committee is chaired by the Chairman of the Board,
except when discussing succession planning for his role.
All of the independent non-executive directors are
members of the Committee.
Activities during the year
In discharging its duties over the course of the year, the
Committee considered:
• the composition of the Board and each of its
committees, taking account of the skills, experience
and knowledge of each director and whether the
diversity of these continued to contribute to the
success of the Company;
• the process to be used for the recruitment of a new
director, as well as the characteristics, qualities and
experience determined as a priority for any successful
candidate;
• the tenure of each of the directors, giving consideration
as to whether the Board retained a sufficient balance
of length of service without becoming complacent;
• the independence of the directors taking account of
the guidelines established by the AIC Code as well as
the directors’ other commitments;
• the time commitment of the directors and whether
this had been sufficient over the course of the year;
• succession planning for appointments to the Board,
the tenure of the current directors and
recommendations of the AIC Code in respect of the
length of service of directors and the Chairman;
• the contribution of the directors standing for re-election
at the forthcoming annual general meeting;
• the Company’s remuneration policy with a view to
ensuring this continued to reflect market practice
and enable the Company to attract and retain an
appropriate calibre of director; and
• the individual remuneration of the Chairman, Senior
Independent Director, Chairman of the Audit
Committee and other directors, making appropriate
recommendations to the Board based on their findings.
Directors’ remuneration
The Committee reviewed the directors’ fees and
increases in the AIC Asia Pacific Equity Income sector and
wider AIC Asia Pacific sector, along with the fees paid by
trusts of a similar size and those paid to other trusts
managed by the investment manager. The Committee
further considered the annual review of fees for the
sector prepared by Trust Associates.
Taking account of the responsibilities borne by directors,
the Committee recommended that fees be increased
and proposed rates applicable to each role. The Board
subsequently approved the recommendation. The last
increase to directors’ fees was made in 2016.
Recruitment
With Julia Chapman due to retire from the Board, the
Committee led the search for a Jersey resident director.
Proposals from several recruitment firms were reviewed
by the Committee and Fletcher Jones was engaged to
assist with the search for a suitable candidate. Fletcher
Jones undertook the externally facilitated performance
evaluation of the Board, its committees and individual
directors, stepping in to undertake this exercise when
the service provider initially selected was unable to fulfil
the engagement.
A role description was prepared setting out the core
competencies for the role and Fletcher Jones compiled
a long list of candidates with a suitable background in
accounting and auditing. The Committee reviewed the
list and agreed to invite a number of candidates for
interviews.
Following completion of the interviews, the Committee
was pleased to recommend the appointment of Steven
Wilderspin to the Board. The Board subsequently
approved his appointment and Steven was appointed as
a director on 5 June 2025.
Directors for re-election
The Committee considered the performance of the
directors standing for re-election at the forthcoming
annual general meeting and concluded that all directors
should be supported.
The Committee’s view was that the directors continued to
bring their wide-ranging knowledge and experience to
bear in making decisions regarding the Company and are
able to commit additional time as necessary.
The Committee further recommended that the Board support
the election of Steven Wilderspin by shareholders, following
his appointment to the Board during the year under review.
Ronald Gould
Chairman
10 November 2025
44
Henderson Far East Income Limited Annual Report 2025
Directors’ Remuneration report
The report sets out how the Company’s Remuneration
Policy has been implemented during the year.
A resolution to approve this report will be put to
shareholders at the forthcoming annual general meeting.
Statement from the Chairman
Directors’ remuneration is reviewed annually by the
Nominations and Remuneration Committee, with
appropriate recommendations made to the Board.
Following recommendations from this Committee, the
Board approved increases in directors’ fees for the first
time since 2016. Further details on the Committee’s
process for reviewing the fees are set out in their report
on page 44.
Directors’ fees
Directors’ fees are set out in the table below.
Role
Rate at
31 August
2025
£
Rate at
31 August
2024
£
Chairman of the Board 45,000
40,950
Chairman of the Audit
Committee 38,200
35,700
Senior Independent Director 33,500
n/a
Non-executive director 31,500
29,400
Directors’ interests in shares
The directors’ interests in the Company’s shares are set
out in the table below.
Number of ordinary shares
31 August
2025
31 August
2024
Ronald Gould 46,723 46,723
Timothy Clissold 80,000 80,000
Julia Chapman
1
2,616 2,616
Carole Ferguson 12,000 6,000
Nicholas George 47,550 47,550
Susan Rippingall 12,000 12,000
Steven Wilderspin
2
– n/a
1 Retired as a director on 29 October 2025
2 Appointed as a director on 5 June 2025
There have been no changes in directors’ interests since
31 August 2025 and the date of this report.
Remuneration Policy
The Remuneration Policy (the ‘Policy’) sets out the
principles applied in the remuneration of the
Company’s directors. The Policy was last approved
by shareholders at the annual general meeting on
24 January 2024 and will put to shareholders for
consideration at the annual general meeting to be
held in 2027.
The Company’s approach is that fees should:
• reflect the time spent on the Company’s affairs;
• reflect the responsibilities borne by the directors;
• be sufficient to promote the long-term success of
the Company; and
• not exceed the aggregate limit established by
shareholders (currently £250,000).
Directors are remunerated in the form of fees which
are payable quarterly in arrears. The level of
remuneration paid to each director is reviewed
annually, although such review will not necessarily
result in a change to the fee. No director is eligible
to receive bonuses, pension benefits, share options
or other benefits and no long-term incentive
schemes are in place. The directors may be
reimbursed for all reasonable and properly
documented expenses incurred in the performance
of their duties. Given that Board meetings are held
in the UK and that certain directors’ expenses are
taxable, non-UK based directors receive an
additional amount of £3,000 per annum in lieu of
claiming expenses so as not to disadvantage them
from serving on the Board.
The Policy, irrespective of changes, is put to
shareholders at intervals of not more than three years.
Shareholders’ views
Any feedback from shareholders on the fees paid to
directors is taken into account by the Board when
reviewing remuneration levels.
Letters of Appointment
All directors are non-executive and are appointed
under a Letter of Appointment, which is an
engagement for services and not a contract for
employment. The appointment may be terminated
at any time by written notice with no
compensation payable.
Recruitment principles
All directors, including any new appointments to the
Board, are paid at the same rate. The Chairman of
the Board, Senior Independent Director and
Chairman of the Audit Committee are paid a higher
fee in recognition of their additional responsibilities.
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
45
Henderson Far East Income Limited Annual Report 2025
Directors’ Remuneration report continued
Directors’ fees
The fees paid to the directors who served during the years ended 31 August 2025 and 31 August 2024 were as follows:
Year ended 31 August 2025 Year ended 31 August 2024
Fees
£
Taxable
benefits
£
Total
£
Fees
£
Taxable
benefits
£
Total
£
Ronald Gould
1
43,650 – 43,650 40,950 – 40,950
Julia Chapman
2
35,133 – 35,133 32,400 – 32,400
Timothy Clissold
30,800 – 30,800 29,400 – 29,400
Carole Ferguson
30,800 – 30,800 22,077 – 22,077
Nicholas George
3
37,367 – 37,367 35,700 – 35,700
David Mashiter
4
– – – 12,936 – 12,936
Susan Rippingall
30,800 – 30,800 22,077 – 22,077
Steven Wilderspin
5
8,214 – 8,214 – – –
Total
216,764 – 216,764 195,540 – 195,540
Non-UK based directors are paid an additional amount of £3,000 in lieu of claiming expenses so as not to disadvantage them from serving on the Board.
Notes:
1 Chairman and highest paid director
2 Retired as a director on 29 October 2025
3 Chairman of the Audit Committee
4 Retired as a director on 24 January 2024
5 Appointed as a director on 5 June 2025
Ronald Gould
Chairman
10 November 2025
46
Henderson Far East Income Limited Annual Report 2025
Directors’ report
The directors present their report and the audited financial
statements for the year ended 31 August 2025.
The Corporate Governance Report, committee reports
and Additional information on pages 34 to 44 and 80
to 85, form part of this report.
Share capital
The Company’s share capital comprises ordinary shares of
no par value, with each share carrying one vote per share.
As at 31 August 2025 there were 182,544,679 ordinary shares
in issue with total voting rights in the same amount.
The directors seek annual authority from shareholders to
allot shares, disapply pre-emption rights in respect of
these allotments and to buy back, whether to be
cancelled or held in treasury, the Company’s ordinary
shares. At the annual general meeting held on 24 January
2025, shareholders authorised the directors to allot and
disapply pre-emption rights in respect of 10% of the
issued share capital and to repurchase up to 14.99% of
the issued share capital at the date of the meeting. At a
further general meeting held on 5 August 2025,
shareholders authorised the directors to allot and
disapply pre-emption rights over a further 10.0% of the
issued share capital.
No shares were repurchased during the year under review.
A total of 17,607,500 new ordinary shares were issued at
prices ranging from 200.0p to 238.00p per share. The new
shares allotted amounted to 10.7% of the issued share
capital at the start of the period and were issued for
proceeds (net of commissions and costs) of £39.1m.
There are no restrictions concerning the transfer of
shares in the Company, no special rights with regard to
control attached to shares, no restrictions on voting, no
agreements between holders of shares regarding their
transfer known to the Company and no agreement to
which the Company is party that affects its control
following a takeover bid. The holders of ordinary shares
are entitled to all capital growth in the Company and
all the income from the Company that is resolved by
the directors to be distributed. Upon a winding-up, after
meeting the liabilities of the Company, the surplus
assets would be distributed to the shareholders pro
rata to their holding of ordinary shares.
Holdings in the Company’s shares
There are no notifiable holdings as required by the UK
Listing Rules.
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 on
page 77.
Annual General Meeting
The Company’s annual general meeting will be held at
12.30 pm on 20 January 2026 at 201 Bishopsgate, London,
EC2M 3AE. For those unable to travel, the event will be
streamed live on the internet:
https://www.janushenderson.com/hfel-agm.
No live voting will be available via this medium so members
not attending the physical meeting are encouraged to
submit their votes via proxy, or through their share dealing
platform, ahead of the respective deadlines.
Instructions on attending the meeting and details of
resolutions to be put to shareholders are included in
the Notice of Meeting set out in this annual report.
If shareholders would like to submit any questions
in advance, they are welcome to send these to the
corporate secretary at itsecretariat@janushenderson.com.
Directors’ statement as to disclosure of
information to the auditor
Each of the directors who were members of the Board at
the date of approval of this report confirms that to the
best of their knowledge and belief, there is no information
relevant to the preparation of the annual report of which
the Company’s auditor is unaware and they have taken
all the steps a director might reasonably be expected to
have taken to be aware of relevant audit information
and to establish that the Company’s auditor are aware
of that information.
Borrowings
The Company had a £50m multi-currency loan facility with
SMBC Bank International plc. The facility expired on
18 August 2025 and the Board opened a new facility for the
same amount with Royal Bank of Scotland International
Limited, London Branch in August 2025.
The maximum amount drawn during the reporting period
was £49.2m (2024: £48.9m) with borrowing costs and
interest totalling £1.67m (2024: £1.95m).
Directors’ insurance and
indemnification
Directors’ and officers’ liability insurance cover is in place
which indemnifies the directors against certain liabilities
arising from the carrying out of their duties. The
Company’s articles of association further permit
indemnities to be put in place for directors in respect of
costs which they may incur relating to the defence of any
proceedings brought against them arising from their
position as directors, of which they are acquitted or
judgement is given in their favour. No such indemnities
were in place during the reporting period or up to the date
of this report.
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
Govern ance
47
Henderson Far East Income Limited Annual Report 2025
Directors’ report continued
Single identifiable table (UKLR 6.6)
Principal activities
Refer to the Investment
objective and Investment policy
on page 18
Incorporation details Refer to The Company’s
structure on page 18
Details of new ordinary
shares issued
Refer to Share capital on
page 47
Directors at the date of
this report
Refer to pages 32 and 33
Dividends paid during
the year
Refer to note 9 on page 67
For the Company’s
registered office, service
providers and auditor
Refer to Corporate information
on page 85
By order of the Board
Janus Henderson Secretarial Services UK Limited
Corporate Secretary
10 November 2025
48
Henderson Far East Income Limited Annual Report 2025
Statement of directors’ responsibilities
The directors are responsible for preparing the annual
report and the financial statements in accordance with
applicable law and regulations.
The Companies (Jersey) Law 1991 requires the directors
to prepare financial statements for each financial year.
Under that law the directors have prepared the financial
statements in accordance with International Financial
Reporting Standards (‘IFRS’) as adopted by the European
Union. Under company law the directors must not approve
the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for that
year. In preparing these financial statements, the directors
are required to:
• select suitable accounting policies and then apply
them consistently;
• make judgements and estimates that are reasonable
and prudent;
• state whether applicable IFRS as adopted by the
European Union have been followed, subject to any
material departures disclosed and explained in the
financial statements; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
The directors are responsible for safeguarding the
assets of the Company and hence for taking reasonable
steps for the prevention and detection of fraud and
other irregularities. They are further responsible for
keeping adequate accounting records that are sufficient
to show and explain the Company’s transactions and
disclose with reasonable accuracy at any time the
financial position of the Company and enable them
to ensure that its financial statements comply with the
Companies (Jersey) Law 1991. They are responsible for
such internal control as they determine is necessary to
enable the preparation of financial statements that are
free from material misstatement, whether due to
fraud or error, and have general responsibility for taking
such steps as are reasonably open to them to
safeguard the assets of the Company and to prevent
and detect fraud and other irregularities. The directors
confirm they have complied with all the above
requirements in preparing the financial statements.
Fair, balanced and understandable
The directors consider that the annual report and financial
statements, taken as a whole, are fair, balanced and
understandable and provide the information necessary
for shareholders to assess the Company’s position and
performance, business model and strategy.
Statement under Disclosure Guidance
and Transparency Rule 4.1.12
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.
On behalf of the Board
Ronald Gould
Chairman
10 November 2025
Strategic
report
Financial
statements
Additional
information
AGM Notice
Governance
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49
Henderson Far East Income Limited Annual Report 2025
The financial statements are published on the Company’s website, www.hendersonfareastincome.com, the
maintenance and integrity of which is the responsibility of Janus Henderson Investors. Legislation in Jersey governing
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Financial
statements
In this section
51 Independent auditor’s report to the members
57 Statement of Comprehensive Income
58 Statement of Changes in Equity
59 Balance Sheet
60 Statement of Cash Flows
61 Notes to the financial statements
50
Henderson Far East Income Limited Annual Report 2025
Independent auditors’ report to the members of
Henderson Far East Income Limited
Report on the audit of the financial statements
Opinion
In our opinion, Henderson Far East Income Limited’s financial statements:
• give a true and fair view of the state of the Company’s affairs as at 31 August 2025 and of its profit and cash flows for
the year then ended;
• have been properly prepared in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted in
the European Union;
• have been prepared in accordance with the requirements of the Companies (Jersey) Law 1991.
We have audited the financial statements, included within the Annual Report 2025 (the ‘annual report’), which comprise:
the Balance Sheet as at 31 August 2025; the Statement of Comprehensive Income, the Statement of Changes in Equity
and the Statement of Cash Flows for the year then ended; and the notes to the financial statements, comprising
material accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law.
Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, which includes the Financial Reporting Council’s (‘FRC’) Ethical Standard, as
applicable to listed public interest entities in accordance with the requirements of the Crown Dependencies’ Audit Rules
and Guidance for market-traded companies, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard
were not provided.
We have provided no non-audit services to the Company in the period under audit.
Our audit approach
Overview
Audit scope
• Overall Materiality: £4,076,000 based on 1% of net assets.
• The Company is a standalone investment trust company and engages Janus Henderson Fund Management UK
Limited (the ‘investment manager’) to manage its assets.
• We conducted our audit of the financial statements using information from BNP Paribas S.A. (the ‘administrator’) to
whom the investment manager, with the consent of the directors, delegated the provision of certain administrative
functions.
• We tailored the scope of our audit taking into account the types of investments within the Company, the involvement
of the third-parties referred to above, the accounting processes and controls, and the industry in which the
Company operates.
• We obtained an understanding of the control environment in place at both the investment manager and the
administrator and adopted a fully substantive testing approach using reports obtained from the administrator.
Key audit matters
• Valuation and existence of investments and written options.
• Accuracy, occurrence and completeness of income from investments.
Materiality
• Overall materiality: £4,076,000 (2024: £3,661,000) based on 1% of net asset value.
• Performance materiality: £3,057,000 (2024: £2,746,000).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements.
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report
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statements
Additional
information
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Financial
Statements
Additional
information AGM Notice
Strategic
report
Financial
statements
51
Henderson Far East Income Limited Annual Report 2025
Independent auditors’ report to the members of Henderson Far East Income Limited
continued
Key audit matters
Key audit matters are those matters that, in the auditor’s professional judgement, were of most significance in the
audit of the financial statements of the current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) identified by the auditor, including those which had the greatest effect on:
the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Valuation and existence of listed investments and
written options
Refer to the Audit Committee report and note 10 to the
financial statements. The investment portfolio at the year
end comprised listed equity investments held at fair value
through profit or loss valued at £439.6 million.
The written options are also held at fair value through
profit or loss and are valued at £6.7 million as a liability.
We assessed the accounting policy for investments held
at fair value through profit or loss for compliance with
accounting standards and performed testing to check
that investments are accounted for in accordance with
the stated accounting policy. We tested the valuation of
all the listed equity investments by agreeing the prices
used in the valuation to independent third-party sources.
We tested the valuation of a sample of written options by
performing an independent revaluation. We tested the
existence of all the listed investments agreeing investment
holdings to an independent custodian confirmation. We
selected a sample of the written options to agree to third
party confirmations.
Our procedures did not identify any material
misstatements.
Accuracy, occurrence and completeness of income
from investments
Refer to the Audit Committee report and note 3 to the
financial statements.
Income from investments comprised dividend income.
We focused on the accuracy, completeness and
occurrence of investment income recognition as
incomplete or inaccurate income could have a material
impact on the Company’s net asset value and dividend
cover. We also focused on the accounting policy for
investment income recognition and the presentation of
investment income in the Statement of Comprehensive
Income for compliance with the requirements of the
Association of Investment Companies Statement of
Recommended Practice (the ‘AIC SORP’), as incorrect
application could indicate a misstatement in income
recognition.
We assessed the accounting policy for investment income
recognition for compliance with accounting standards
and the AIC SORP and performed testing to check that
income from investments had been accounted for in
accordance with this stated accounting policy. We found
that the accounting policies implemented were in
accordance with accounting standards and the AIC SORP,
and that income from investments has been accounted for
in accordance with the stated accounting policy.
We tested accuracy of dividend receipts by agreeing a
sample of the dividend rates from investments to
independent market data. To test for completeness, we
tested, for all investment holdings in the portfolio, that all
dividends declared in the market for investment holdings
had been recorded.
We also tested the allocation and presentation of
dividend income between the revenue and capital return
columns of the Statement of Comprehensive Income in
line with the requirements set out in the AIC SORP by
determining reasons behind dividend distributions.
We verified the occurrence of dividend and derivative
income by ensuring that the recorded dividend and
derivative income for the year was earned by tracing a
sample of received dividend and derivative income to
the bank statements.
Our procedures did not identify any material misstatements.
52
Henderson Far East Income Limited Annual Report 2025
Independent auditors’ report to the members of Henderson Far East Income Limited
continued
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the
financial statements as a whole, taking into account the structure of the Company, the accounting processes and
controls, and the industry in which it operates.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements. In particular, we looked at where the directors made subjective judgements, for example in
respect of significant accounting estimates that involved making assumptions and considering future events that are
inherently uncertain.
The impact of climate risk on our audit
In planning and conducting our audit, we made enquiries of the directors and investment manager to understand the
extent of the potential impact of the climate change risk on the Company’s financial statements. Both concluded that
the impact on the measurement and disclosures within the financial statements is not material because the
Company’s investment portfolio comprises mostly Level 1 quoted securities which are valued at fair value based on
market prices. We found this to be consistent with our understanding of the Company’s investment activities.
We also considered the consistency of the climate change disclosures included in the Strategic report with the financial
statements and our knowledge from our audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for
materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in
evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall company materiality
£4,076,000 (2024: £3,661,000).
How we determined it
1% of net asset value.
Rationale for benchmark applied
We believe that net assets is the primary measure used by the shareholders in
assessing the performance of the Company, and is a generally accepted
auditing benchmark. This benchmark provides an appropriate and consistent
year on year basis for our audit.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in
determining the scope of our audit and the nature and extent of our testing of account balances, classes of
transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75%
(2024: 75%) of overall materiality, amounting to £3,057,000 (2024: £2,746,000) for the Company financial statements.
In determining the performance materiality, we considered a number of factors – the history of misstatements, risk
assessment and aggregation risk and the effectiveness of controls – and concluded that an amount in the upper of
our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above
£203,000 (2024: £183,000) as well as misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going concern basis of
accounting included:
• evaluating the directors’ risk assessment and considering whether it addressed relevant threats;
• evaluating the directors’ assessment of potential operational impacts, considering their consistency with other
available information and our understanding of the business and assessed the potential impact on the financial
statements;
• reviewing the directors’ assessment of the Company’s financial position in the context of its ability to meet future
expected operating expenses, their assessment of liquidity as well as their review of the operational resilience of the
Company and oversight of key third-party service providers; and
• assessing the implication of significant reductions in net asset value as a result of market performance on the
ongoing ability of the Company to operate.
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Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going
concern for a period of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the
Company’s ability to continue as a going concern.
From our work on the Corporate Governance report described below, we have nothing material to add or draw
attention to in relation to the directors’ statement in the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the directors
with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the annual report other than the financial statements and our
auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements
does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent
otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency
or material misstatement, we are required to perform procedures to conclude whether there is a material
misstatement of the financial statements or a material misstatement of the other information. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report based on these responsibilities.
Corporate governance statement
As explained in the Corporate Governance report, the directors have chosen to demonstrate how the company has
met its obligations under the UK Corporate Governance Code (‘the Code’) by reporting under the 2019 Association of
Investment Companies’ Code of Corporate Governance (‘the AIC Code’). As such, we refer to the AIC Code where we
report the matters required under ISAs (UK) in respect of directors’ statements in relation to going concern, longer-term
viability and that part of the Corporate Governance report relating to the Company’s compliance with the provisions of
the UK Corporate Governance Code specified by the UK Listing Rules for our review. Our additional responsibilities with
respect to the corporate governance statement as other information are described in the Reporting on other
information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
corporate governance statement, included within the Corporate Governance report is materially consistent with the
financial statements and our knowledge obtained during the audit, and we have nothing material to add or draw
attention to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the annual report that describe those principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the
going concern basis of accounting in preparing them, and their identification of any material uncertainties to the
Company’s ability to continue to do so over a period of at least twelve months from the date of approval of the
financial statements;
• The directors’ explanation as to their assessment of the Company’s prospects, the period this assessment covers
and why the period is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due over the period of its assessment, including any related
disclosures drawing attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the Company was substantially less in
scope than an audit and only consisted of making inquiries and considering the directors’ process supporting their
statement; checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance
Code; and considering whether the statement is consistent with the financial statements and our knowledge and
understanding of the Company and its environment obtained in the course of the audit.
Independent auditors’ report to the members of Henderson Far East Income Limited
continued
54
Henderson Far East Income Limited Annual Report 2025
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements
of the corporate governance statement is materially consistent with the financial statements and our knowledge
obtained during the audit:
• The directors’ statement that they consider the annual report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for the members to assess the Company’s position,
performance, business model and strategy;
• The section of the annual report that describes the review of effectiveness of risk management and internal control
systems; and
• The section of the annual report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the
Company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code
specified under the UK Listing Rules for review by the auditor.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of
the financial statements in accordance with the applicable framework and for being satisfied that they give a true and
fair view. The directors are also responsible for such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line
with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with
laws and regulations related to the ongoing qualification as an investment trust company under the Corporation Tax
Act 2010, and we considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the financial statements such
as the Companies (Jersey) Law 1991. We evaluated management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of override of controls), and determined that the principal
risks were related to posting of inappropriate journal entries to increase income or to overstate the value of investments
and increase the net asset value of the Company. Audit procedures performed by the engagement team included:
• discussions with the directors, the investment manager and the administrator including consideration of known or
suspected instances of non-compliance with laws and regulations and fraud;
• evaluation of the controls implemented by the investment manager and the administrator designed to prevent and
detect irregularities;
• assessment of the Company’s compliance with the requirements of s.1158 of the Corporation Tax Act 2010, including
recalculation of numerical aspects of the eligibility conditions;
• identifying and testing journal entries, in particular a sample of journals posted as part of the financial year end close
process; and
• designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances
of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the
financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
Independent auditors’ report to the members of Henderson Far East Income Limited
continued
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Henderson Far East Income Limited Annual Report 2025
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data
auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing
complete populations. We will often seek to target particular items for testing based on their size or risk characteristics.
In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the
sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in
accordance with Article 113A of the Companies (Jersey) Law 1991 and for no other purpose. We do not, in giving these
opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies (Jersey) Law 1991 exception reporting
Under the Companies (Jersey) Law 1991 we are required to report to you if, in our opinion:
• we have not obtained all the information and explanations we require for our audit; or
• proper accounting records have not been kept by the Company, or proper returns adequate for our audit have not
been received from branches not visited by us; or
• the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Jennifer March
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Recognised Auditor
London
10 November 2025
Independent auditors’ report to the members of Henderson Far East Income Limited
continued
56
Henderson Far East Income Limited Annual Report 2025
Statement of Comprehensive Income
Year ended 31 August 2025 Year ended 31 August 2024
Notes
Revenue
return
£’000
Capital
return
£’000
Total
£’000
Revenue
return
£’000
Capital
return
£’000
Total
£’000
3 Investment income
40,816 – 40,816 45,927 – 45,927
4 Other income
9,793 – 9,793 6,304 – 6,304
10 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)
5
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
6
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
7
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
8
Earnings/(losses) per ordinary share –
basic and diluted
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.
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57
Henderson Far East Income Limited Annual Report 2025
The notes on pages 61-78 form part of these financial statements
Statement of Changes in Equity
Retained earnings
Notes
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:
9 Dividends paid
– – – (42,701) (42,701)
14 Shares issued
39,252 – – – 39,252
14 Share issue costs
(108) – – – (108)
Total equity at 31 August 2025
311,852 177,596 (111,620) 29,831 407,659
Retained earnings
Notes
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:
9 Dividends paid
– (2,875) – (37,052) (39,927)
14 Buyback of shares for treasury
(1,721) – – – (1,721)
14 Shares issued
6,436 – – – 6,436
14 Share issue costs
(45) – – – (45)
Total equity at 31 August 2024
272,708 177,596 (114,052) 29,852 366,104
58
Henderson Far East Income Limited Annual Report 2025
The notes on pages 61-78 form part of these financial statements
Balance Sheet
Notes
31 August
2025
£’000
31 August
2024
£’000
Non current assets
10 Investments held at fair value through profit or loss
439,575 376,896
Current assets
11 Other receivables
2,520 3,427
Cash and cash equivalents
24,684 5,482
27,204 8,909
Total assets
466,779 385,805
Current liabilities
10 Investments held at fair value through profit or loss – written options
(6,680) (988)
7(c) Deferred taxation
(67) (203)
12(a) Other payables
(2,550) (3,210)
12(b) Bank loans
(49,591) (15,300)
(58,888) (19,701)
Total assets less current liabilities
407,891 366,104
Non-current liabilities
7(c) Deferred tax liability on Indian capital gains (232) –
(232) –
Net assets
407,659 366,104
Equity attributable to equity shareholders
14 Stated share capital
311,852 272,708
15 Distributable reserve
177,596 177,596
Retained earnings:
16 Capital reserves
(111,620) (114,052)
Revenue reserves
29,831 29,852
Total equity
407,659 366,104
17 Net asset value per ordinary share
223.32p 221.97p
The financial statements on pages 57-78 were approved by the Board of Directors on 10 November 2025 and were
signed on its behalf by:
Ronald Gould
Chairman
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Henderson Far East Income Limited Annual Report 2025
The notes on pages 61-78 form part of these financial statements
Statement of Cash Flows
Notes
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
10 (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
10 Sales of investments
492,486 445,964
10 Purchases of investments
(544,635) (440,302)
7(b) Overseas capital gains tax on sales
(889) (34)
Net cash (outflow)/inflow from investing activities
(53,038) 5,628
Cash flow from financing activities
Loan drawdown
220,499 92,751
Loan repayment
(186,156) (105,429)
9 Equity dividends paid
(42,701) (39,927)
14 Buyback of shares for treasury
– (1,721)
14 Share issue proceeds
39,021 6,436
14 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
18,394 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)
60
Henderson Far East Income Limited Annual Report 2025
The notes on pages 61-78 form part of these financial statements
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 (‘IFRSs’). 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.
The principal accounting policies adopted are set out below. Where presentational guidance set out in the Statement
of Recommended Practice (the ‘SORP’) for investment trusts issued 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.
Accounting standards
(i) The following new and amended standards are relevant and applicable to the Company and have been adopted
although they have had no material impact on the financial statements:
Amendments to IFRS as adopted by the E.U. Pronouncements issued and effective for current year end:
Effective for annual periods
beginning on or after
IAS 1 Amendments Classification of Liabilities as Current or Non-Current 1 January 2024
IAS 1 Amendments Non-current Liabilities with Covenants 1 January 2024
(ii) Relevant new standards, amendments and interpretations issued but not effective for the current financial year and
not early adopted by the Company:
Effective for annual periods
beginning on or after
IAS 21 Amendments Lack of Exchangeability 1 January 2025
Annual Improvements 2023-24 Minor amendments to IFRS 1, 7, 9, 10, and IAS 7 1 January 2026
IFRS 7 and 9 Amendments Classification and Measurement of Financial Instruments 1 January 2026
IFRS 7 and 9 Amendments Contracts Referencing Nature-dependent Electricity 1 January 2026
IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027
b) 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.
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Notes to the financial statements continued
2 Material accounting policies continued
c) Investments held at fair value through profit or loss
All investments are classified upon initial recognition as held at fair value through profit or loss. Financial assets are
recognised/de-recognised at the trade date of the purchase/disposal. The fair value of the financial assets is based on
their quoted bid price at the Balance Sheet date, without deduction of the estimated future selling costs. The fair value
of option contracts is determined by reference to the Black-Scholes model.
A financial asset is derecognised when the contractual rights to the cash flows from the asset expire, or the Company
transfers the rights to receive the contractual cash flows in the transaction in which substantially all of the risk and
rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset. Sale proceeds
are recognised net of any transaction costs.
Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal,
including exchange gains and losses, are recognised in the Statement of Comprehensive Income as ‘Gains or losses on
investments held at fair value through profit or loss’. Also included within ‘Gains or losses on investments held at fair
value through profit or loss’ are transaction costs in relation to the purchase or sale of investments.
d) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment company, and in accordance with guidance issued by the AIC,
supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and
capital nature has been presented alongside the Statement of Comprehensive Income.
e) Income
Dividends receivable on equity shares are recognised as revenue for the period on an ex-dividend basis. Special
dividends are treated as revenue return or as capital return, depending on the facts of each individual case. Bank
interest is accounted for on an accruals basis. Option premium income is recognised upon the trade date of the
option contracts.
f) Expenses
All administration expenses, including the management fee and finance costs are accounted for on an accruals basis.
On the basis of the Board’s expected long term split of returns equally between capital gains and income, the Company
charges 50% of operating expenses to capital. Expenses which are incidental to the purchase or sale of an investment
are charged to the capital column of the Statement of Comprehensive Income and allocated to capital reserves.
g) Taxation
The tax expense represents a current tax and deferred tax charge.
The current tax charge is based on the taxable profit for the year. Taxable profit differs from net profit as reported in
the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The liability for current tax
is calculated using the effective tax rate of corporation tax for the accounting period.
In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses
presented against capital returns in the supplementary information in the Statement of Comprehensive Income is
the ‘marginal basis’. Under this basis, if taxable income is capable of being offset entirely by expenses presented in
the revenue return column of the Statement of Comprehensive Income, then no tax relief is transferred to the capital
return column.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit,
and is accounted for using the statement of financial position liability method. Deferred tax liabilities are recognised
for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences can be utilised. Investment trusts
which have approval as such under s.1158 of the Corporation Tax Act 2010 are not liable for taxation on capital gains.
The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset is realised. Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it
relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
62
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
2 Material accounting policies continued
h) Foreign currency
For the purposes of the financial statements, the results and financial position of the Company is expressed in
sterling, which is the functional and presentational currency of the Company. Sterling is the functional currency
because it is the currency of the primary economic environment in which the Company operates. The Company is a
closed-end investment company, incorporated in Jersey, with its shares listed on the London and New Zealand stock
exchanges. Sterling is the currency in which the majority of the costs of the Company are incurred, capital is raised
and dividends are paid.
Transactions recorded in overseas currencies during the year are translated into sterling at the appropriate daily
exchange rates. Monetary assets and liabilities denominated in overseas currencies at the Balance Sheet date are
translated into sterling at the exchange rates ruling at that date. Exchange gains and losses on investments held at
fair value through profit or loss are included in ‘Gains or losses on investments held at fair value through profit or loss’.
Exchange gains and losses on other balances are disclosed separately in the Statement of Comprehensive Income.
i) Cash and cash equivalents
Cash comprises current accounts and demand deposits excluding bank loans. Cash equivalents have a term of three
months or less, are highly liquid investments that are readily convertible to known amounts of cash and are subject to
insignificant risks of changes in value.
j) Bank loans
Interest-bearing bank loans are recorded as the proceeds are received net of direct issue costs, which approximates
fair value. Loans are subsequently carried at amortised cost. The Company de-recognises a financial liability when the
obligation under the liability is discharged, cancelled or expired.
k) Amounts due to/from brokers
Amounts due to or from brokers are accounted for at the value of the outstanding trades at the year end.
l) Segmental reporting
Under IFRS 8, operating segments are considered to be the components of an entity, about which separate financial
information is available, that is evaluated regularly by the chief operating decision-maker (‘CODM’) being the
investment manager with oversight from the Board in deciding how to allocate resources and in assessing
performance. The financial information reported to the CODM is based on IFRS. Therefore no reconciliation between the
financial statements and operating segment financial information has been presented. The directors meet regularly to
consider investment strategy and to monitor the Company’s performance. The Fund Manager attends all Board
meetings at which investment strategy and performance are discussed. The directors consider that the Company is
organised as one operating segment which invests in equity securities, debt instruments and related derivatives. All of
the Company’s activities are interrelated and each activity is dependent on the others.
The business is not managed on a geographical basis, however, for the convenience of investors, disclosure by
geographical segment has been provided in page 3. Further analyses of expenses, investment gains or losses, profit
and other assets and liabilities by country have not been given as either it is not possible to prepare such information in
a meaningful way or the results are not considered to be significant.
In the year, the Company has invested in a single investment, Brilliance China Automotive, which has generated income
of 19% (2024: 39%) of the total revenue.
m) Share issue costs
Issue costs incurred in respect of new ordinary shares issued are offset against the proceeds received and dealt with in
stated share capital.
n) Dividends payable to shareholders
Interim dividends payable to shareholders are recognised in the financial statements when they are paid. Dividends are
recorded in the Statement of Changes in Equity. Dividends can be paid from the distributable reserve, the capital
reserve arising on revaluation of investments and the revenue reserve.
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
2 Material accounting policies continued
o) Capital and reserves
Capital reserve
The following are accounted for in this reserve:
– gains and losses on the disposals of investments;
– expenses and finance costs allocated to capital;
– realised and unrealised foreign exchange differences of a capital nature; and
– increases and decreases in the valuation of investments held at the year end.
Revenue reserve
The revenue reserve represents accumulated revenue profits retained by the Company that have not currently been
distributed to shareholders as dividends allocated to this reserve.
Distributable reserve
The distributable reserve represents the net proceeds from the issue of 77,622,619 shares in the Company on
15 December 2006 and was established following the confirmation by the Royal Court of Jersey of the reduction of the
Company’s Capital account on 23 January 2007. The distributable reserve was reduced in 2024 due to the payment of
a dividend. Further detail is set out in note 15.
Stated share capital
The stated share capital represents the net proceeds from the issue of ordinary shares less the cost of share buy backs.
p) Significant accounting judgements and estimates
The preparation of the Company’s financial statements requires management to make judgements, estimates and
assumptions that affect the amounts recognised in the financial statements; however, uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the
asset or liability affected in the future. As the majority of the Company’s financial assets are quoted securities, in the
opinion of the directors, the amounts included as assets and liabilities in the financial statements are not subject to
significant judgements, estimates or assumptions except as indicated below. In respect of special dividends, the
accounting treatment as a revenue or capital return is assessed depending on the facts of each individual case.
q) Additional estimate disclosures
The obligations relating to the options valued at £6,680,000 (2024: £988,000) are valued by reference to the Black-
Scholes model. The position in China Forestry was written down to zero value (cost: £5,507,000) following a missed
coupon payment, delayed publication of annual report and accounts and resignation of Chief Financial Officer and
Company Secretary in June 2014 and, in the Board’s opinion, it is still appropriate to value this investment at nil at
31 August 2025 (2024: same).
3 Investment income
2025
£’000
2024
£’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.
64
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
4 Other income
2025
£’000
2024
£’000
Bank and other interest
210
160
Option premium income
9,583
6,144
9,793
6,304
5 Other expenses
2025 2024
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Directors’ fees (see the Directors’ Remuneration report
on page 46)
109 108 217 98 98 196
Auditors’ remuneration – statutory audit
31 31 62 30 30 60
Bank and custody charges
138 137 275 133 134 267
Loan arrangement and non-utilisation fees
90 90 180 48 48 96
Marketing fees
1
134 135 269 94 95 189
Registrar’s fees
30 30 60 26 25 51
Depositary fees
10 11 21 10 10 20
Printing and stationery
11 11 22 11 10 21
Broker fees
8 7 15 4 4 8
AIC subscriptions
11 11 22 11 10 21
Stock Exchange fees
32 33 65 26 26 52
Other expenses
94 94 188 78 78 156
698 698 1,396 569 568 1,137
1
Payable to Janus Henderson Investors
6 Finance costs
2025 2024
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Bank loans 745 745 1,490 926 926 1,852
7 Taxation
a) Analysis of the charge/(credit) for the year
2025 2024
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Corporation tax
1,365 – 1,365 546 – 546
Double tax relief
(56) – (56) (46) – (46)
Tax relief from capital
715 (715) – 724 (724) –
Overseas tax
3,181 – 3,181 2,722 – 2,722
Indian capital gains tax on sales
– 889 889 – 34 34
Total current tax charge/(credit) for the year
5,205 174 5,379 3,946 (690) 3,256
Deferred tax
(136) – (136) 54 – 54
Movement in deferred tax charge on Indian capital gains
– 232 232 – – –
Total deferred tax (credit)/charge for the year
(see note 7c)
(136) 232 96 54 – 54
Total tax charge/(credit) for the year (see note 7b)
5,069 406 5,475 4,000 (690) 3,310
The Company is liable to Indian capital gains tax under Section 115 AD of the Indian Income Tax Act 1961. Accordingly,
when investments are realised at a value above cost and investments are held at fair value above cost, a tax charge
will result.
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
7 Taxation continued
b) Factors affecting the tax charge/(credit) for the year
The UK corporation tax rate is 25% (2024: 25%). The tax charge/(credit) for the year is different from the corporation
tax rate.
The differences are explained below:
2025 2024
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Profit/(loss) before taxation
47,749 2,838 50,587 49,334 (6,695) 42,639
Corporation tax at 25% (2024: 25%)
11,937 710 12,647 12,334 (1,674) 10,660
Effects of:
Non-taxable gains less losses on investments held at
fair value through profit or loss
– (1,210) (1,210) – 929 929
Non-taxable overseas dividends
(9,843) – (9,843) (10,839) – (10,839)
Currency (gains)/losses
– (215) (215) – 21 21
Overseas tax
3,181 – 3,181 2,722 – 2,722
UK dividends
(162) – (162) (192) – (192)
Excess management expenses
(578) 715 137 (759) 724 (35)
Indian capital gains tax charged on sales
– 889 889 – 34 34
Movement in deferred tax charge on Indian capital
gains
– 232 232 – – –
Expenses not deductible for tax purposes
11 – 11 2 – 2
Tax relief from capital
715 (715) – 724 (724) –
Double tax relief
(56) – (56) (27) – (27)
Effect of income taxable in different periods
(136) – (136) 35 – 35
Total tax charge/(credit) for the year (see note 7a)
5,069 406 5,475 4,000 (690) 3,310
c) Deferred taxation
2025 2024
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Provision at start of the year
203 – 203 149 – 149
Deferred tax (credit)/charge for the year
(136) – (136) 54 – 54
Deferred tax charge on Indian capital gains
– 232 232 – – –
Provision at end of the year
67 232 299 203 – 203
d) Provision for deferred taxation
As at 31 August 2025, the Company has recognised a deferred tax liability of £67,000 (2024: £203,000) due to timing
differences of taxable accrued income. It has been calculated using the standard rate of corporation tax applicable
by 25% (2024: 25%).
The Company has also recognised a deferred tax liability of £232,000 (2024: £nil) on capital gains which may arise
if investments in India are sold. Indian capital gains tax is charged at 12.5% on long-term holdings and 20% on short-
term holdings.
66
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
8 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 per ordinary share figure can be further analysed between revenue and capital, as below:
2025
£’000
2024
£’000
Revenue profit attributable to ordinary shares
42,680 45,334
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
170,875,254 162,877,255
2025
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 October 2023 24 November 2023
– – 7,067 2,875
First interim dividend 6.10p for
the year ended 2024 26 January 2024 23 February 2024
– – 9,924 –
Second interim dividend 6.10p for
the year ended 2024 26 April 2024 31 May 2024
– – 9,893 –
Third interim dividend 6.20p for
the year ended 2024 26 July 2024 30 August 2024
– – 10,168 –
Fourth interim dividend 6.20p for
the year ended 2024 25 October 2024 29 November 2024
10,255 – – –
First interim dividend 6.20p for
the year ended 2025 31 January 2025 28 February 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 July 2025 29 August 2025
11,331 – – –
42,701 – 37,052 2,875
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
9 Dividends continued
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 (30 August 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 31 October 2025) (2024: 165,402,179)
(11,776) (10,255)
(Transfer from reserves)/undistributed revenue for s.1158 purposes
(1,542) 5,094
10 Investments held at fair value through profit or loss
2025
£’000
2024
£’000
Cost at beginning of year
358,851 400,901
Investment holding gain/(loss) at the beginning of the year
17,057 (15,616)
Valuation of investments and options written at the beginning of the year
375,908 385,285
Movements in the year:
Purchases at cost
544,635 440,302
Sales – proceeds
(492,486) (445,964)
Sales – realised losses on sales
(5,618) (36,388)
Increase in investment holdings gains
10,456
32,673
Closing value of investments and options written at the end of the year
432,895 375,908
Cost at the end of the year
405,382 358,851
Investment holding gain
27,513 17,057
Closing value of investments and options written at the end of the year
432,895 375,908
Total investments:
2025
£’000
2024
£’000
Investments held at fair value through profit or loss
439,575 376,896
Written options
(6,680) (988)
432,895 375,908
The Company received £492,486,000 (2024: £445,964,000) from investments sold in the year. The book cost of these
investments when they were purchased was £498,104,000 (2024: £482,352,000). These investments have been revalued
over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.
There is one unquoted investment, China Forestry, which was written down to zero value in 2014.
68
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
10 Investments held at fair value through profit or loss continued
2025
£’000
2024
£’000
Gains/(losses) on investments held at fair value
Realised losses on sales of investments
(5,618) (36,388)
Increase in investment holdings gains
10,456 32,673
4,838 (3,715)
Transaction costs
During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or
loss. These have been expensed through capital reserve and are included within gains/(losses) on investments held at
fair value through profit or loss in the Statement of Comprehensive Income.
2025
£’000
2024
£’000
Purchases
640 577
Sales
748 737
1,388 1,314
11 Other receivables
2025
£’000
2024
£’000
Withholding tax recoverable
913 469
Corporation tax recoverable
– 57
Prepayments and accrued income
1,376 1,283
Amounts due from brokers
– 1,618
Share issue proceeds
231 –
2,520 3,427
12 Current liabilities
2025
£’000
2024
£’000
a) Other payables
Corporation tax payable
340 –
Other payables
2,210 3,210
2,550 3,210
2025
£’000
2024
£’000
b) Bank loans (unsecured)
49,591 15,300
The interest rates applicable to the loans is at a margin over SONIA, or its relevant currency equivalent, with the margin
being 1% (2024: 1%) per annum. Further detail on the bank loan is provided in note 13.2.
The loan agreement with RBSi (2024: SMBC) provides that net asset value will not be less than £150,000,000 throughout
the year and consolidated gross borrowings will not exceed 30%. The Company may not deliver a Utilisation Request if,
as a result of the proposed utilisation, more than 15 loans would be outstanding. The conditions of the loan agreement
were met throughout the year.
Non-current liabilities
2025
£’000
2024
£’000
c) Deferred tax liability on Indian capital gains
232 –
232 –
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures
As an investment company, the Company invests in equities and other investments for the medium to long term so as
to secure its investment objectives as stated in the Strategic report. In pursuing its investment objective, the Company
is exposed to a variety of financial risks that could result in either a reduction in the Company’s net assets or a reduction
in the profits available for distribution by way of dividends.
These financial risks, market risk (comprising market price risk, currency risk and interest rate risk), liquidity risk and credit
risk, and the directors’ approach to the management of these risks, are set out below.
The Board and the investment manager co-ordinates the Company’s risk management and there are various risk
management systems in place.
The Board determines the objectives, policies and processes for managing the risks, and these are set out in the
following pages under the relevant risk category. The policies for the management of risk have not changed from the
previous accounting period.
13.1 Market risk
The fair value of a financial instrument held by the Company may fluctuate due to changes in market prices. Market risk
comprises market price risk (see note 13.1.1), currency risk (see note 13.1.2) and interest rate risk (see note 13.1.3). The
investment manager assesses the exposure to market risk when making each investment decision, and monitors the
overall level of market risk on the whole of the investment portfolio on an ongoing basis.
13.1.1 Market price risk
Market price risks (i.e. changes in market prices other than those arising from interest rate risk or currency risk) may
affect the fair value of the quoted investments.
Management of the risk
When appropriate, the Company may buy or sell put or call options on indices and on equity investments in its portfolio
to manage its exposure to price risk or to generate income. The Board manages the risks inherent in the investment
portfolio by full and timely review of relevant information from the investment manager. Investment performance is
reviewed at each Board meeting. The Board monitors the investment manager’s compliance with the Company’s
investment limits and restrictions.
The Company’s exposure to changes in market prices at 31 August 2025 on its investments amounted to £439,575,000
(2024: £376,896,000) and £6,680,000 (2024: £988,000) in respect of liabilities on option derivatives.
Concentration of exposure to market price risks
A geographical analysis of the Company’s investment portfolio is shown on page 2. It is recognised that an investment’s
country of domicile or of listing does not necessarily equate to its exposure to the economic conditions in that country.
Market price risk sensitivity
The following table illustrates the sensitivity of the return after taxation for the year and total equity at the year end to
an increase or decrease of 10% (2024: 10%) in the fair values of the Company’s investments. This level of change is
considered to be possible based on observation of current market conditions. The sensitivity analysis is based on the
Company’s equities at each Balance Sheet date, with all other variables held constant.
2025 2024
Increase
in fair
value
£’000
Decrease
in fair
value
£’000
Increase
in fair
value
£’000
Decrease
in fair
value
£’000
Statement of Comprehensive Income – profit/(loss) after tax
Revenue return
(162) 162 (141) 141
Capital return
43,128 (43,128) 37,450 (37,450)
Impact on total return after tax for the year and shareholders’ funds
42,966 (42,966) 37,309 (37,309)
70
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures continued
13.1.2 Currency risk
The majority of the Company’s assets, liabilities and income are denominated in currencies other than sterling (the
Company’s functional and presentational currency). As a result, movements in exchange rates may affect the sterling
value of those items.
Management of the risk
The investment manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the
Board at each Board meeting. The investment manager measures the risk to the Company of the foreign currency
exposure by considering the effect on the Company’s net asset value and total return of a movement in the exchange
rate to which the Company’s assets, liabilities, income and expenses are exposed.
Investment income denominated in foreign currencies is usually converted into US dollars or sterling on receipt. The
Company does not use financial instruments to mitigate the currency exposure in the period between the time that
income is included in the financial statements and its receipt.
Foreign currency exposure
The fair values of the Company’s monetary items that have foreign currency exposure as at 31 August 2025 and 2024
are shown below. Where the Company’s equity investments which are not monetary items are denominated in a
foreign currency, they have been included separately in the analysis so as to show the overall level of exposure.
Exposure to other currencies in the table below includes the Indonesian rupiah, Japanese yen, Thailand bhat and
Philippine peso (2024: Indonesian rupiah).
2025
AUS$
£’000
TW$
£’000
KRW
£’000
CNY
£’000
HK$
£’000
S$
£’000
US$
£’000
INR
£’000
Other
£’000
Receivables (due from brokers,
dividends and other income
receivable)
212 624 67 – 911 – 140 238 –
Payables (due to brokers, accruals
and other creditors)
– – – – – – (266) – –
Cash and cash equivalents
87 – 302 – – 482 – 464 –
Bank loans
– – – – – – (49,591) – –
Total foreign currency exposure on
net monetary items
299 624 369 – 911 482 (49,717) 702 –
Investments at fair value through
profit or loss
39,031 73,959 54,644 10,319 163,601 31,173 6,903 19,269 33,996
Total net foreign currency exposures
39,330 74,583 55,013 10,319 164,512 31,655 (42,814) 19,971 33,996
2024
AUS$
£’000
TW$
£’000
KRW
£’000
CNY
£’000
HK$
£’000
S$
£’000
US$
£’000
INR
£’000
Other
£’000
Receivables (due from brokers,
dividends and other income
receivable)
138 75 1,618 – 749 – 95 608 –
Cash and cash equivalents
– – – – – – – 269 –
Payables (due to brokers, accruals
and other creditors)
– – – – (1,699) – (23) – –
Bank loans
– – – – – – (15,300) – –
Total foreign currency exposure on
net monetary items
138 75 1,618 – (950) – (15,228) 877 –
Investments at fair value through
profit or loss
52,862 36,199 56,866 15,938 91,746 19,627 27,645 49,190 21,128
Total net foreign currency exposures
53,000 36,274 58,484 15,938 90,796 19,627 12,417 50,067 21,128
The above amounts are not necessarily representative of the exposure to risk during the year as levels of monetary
foreign currency exposure may have changed significantly throughout the year.
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures continued
13.1.2 Currency risk continued
Foreign currency sensitivity
The following table illustrates the sensitivity of the profit/(loss) return after tax for the year and the net assets in regard to
movements in the Company’s foreign currency financial assets, financial liabilities and income caused by changes in the
exchange rates (+/-10%) for sterling against each currency set out in the table below.
These percentages are deemed reasonable based on the average market volatility in exchange rates in recent years. The
sensitivity analysis is based on the Company’s financial assets and financial liabilities held at each Balance Sheet date. Whilst
some exchange rates may have been more volatile in the twelve months prior to the Balance Sheet date, a 10% movement is
deemed reasonable based on longer term volatility and market conditions at the Balance Sheet date. Higher sensitivity levels
for each currency can be extrapolated from the 10% level that is shown in the table below.
If sterling had depreciated against the currencies shown, the impact on total return and net assets would have been as follows:
2025
AUS$
£’000
TW$
£’000
KRW
£’000
CNY
£’000
HK$
£’000
S$
£’000
US$
£’000
INR
£’000
Other
£’000
Statement of Comprehensive
Income –
Revenue return
268 580 466 352 1,579 164 186 114 587
Capital return
4,319 8,185 6,047 1,141 18,103 3,450 763 2,132 3,760
Total return after tax for the year
4,587 8,765 6,513 1,493 19,682 3,614 949 2,246 4,347
2024
AUS$
£’000
TW$
£’000
KRW
£’000
CNY
£’000
HK$
£’000
S$
£’000
US$
£’000
INR
£’000
Other
£’000
Statement of Comprehensive
Income –
Revenue return
196 221 508 299 2,647 196 294 242 162
Capital return
5,851 4,006 6,292 1,763 10,145 2,172 3,059 5,444 2,338
Total return after tax for the year
6,047 4,227 6,800 2,062 12,792 2,368 3,353 5,686 2,500
If sterling had appreciated against the currencies shown, the impact on total return and net assets would have been as
follows:
2025
AUS$
£’000
TW$
£’000
KRW
£’000
CNY
£’000
HK$
£’000
S$
£’000
US$
£’000
INR
£’000
Other
£’000
Statement of Comprehensive
Income –
Revenue return
(220) (474) (382) (288) (1,292) (134) (152) (94) (480)
Capital return
(3,534) (6,697) (4,948) (933) (14,812) (2,823) (625) (1,745) (3,076)
Total return after tax for the year
(3,754) (7,171) (5,330) (1,221) (16,104) (2,957) (777) (1,839) (3,556)
2024
AUS$
£’000
TW$
£’000
KRW
£’000
CNY
£’000
HK$
£’000
S$
£’000
US$
£’000
INR
£’000
Other
£’000
Statement of Comprehensive
Income –
Revenue return
(160) (181) (416) (244) (2,166) (160) (240) (198) (642)
Capital return
(4,787) (3,278) (5,149) (1,442) (8,301) (1,776) (2,502) (4,454) (1,911)
Total return after tax for the year
(4,947) (3,459) (5,565) (1,686) (10,467) (1,936) (2,742) (4,652) (2,553)
13.1.3 Interest rate risk
Interest rate movements may affect the level of interest receivable from cash at bank and on deposit, and the interest
payable on the Company’s short term borrowings.
Management of the risk
The majority of the Company’s financial assets are non-interest bearing. As a result, the Company’s financial assets are
not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates.
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into
account when making investment decisions.
The Company finances part of its activities through borrowings at levels approved and monitored by the Board.
Derivative contracts are not used to hedge against the exposure to interest rate risk.
72
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures continued
13.1.3 Interest rate risk continued
Interest rate exposure
The exposure at 31 August 2025 of financial assets can be found on the Balance Sheet under the heading ‘Cash and cash
equivalents’ and the financial liabilities exposure to interest rate risk to floating interest rates is shown under note 12(b).
The Company does not have any fixed interest rate exposure.
Interest received on cash balances, or paid on bank loans, is at a margin over SONIA or its foreign currency equivalent
(2024: same).
The year end amounts are not representative of the exposure to interest rates during the year, as the level of exposure
changes as investments are made, borrowings are drawn down and repaid, and the mix of borrowings subject to floating
or to fixed interest rates changes.
Interest rate sensitivity
Based on the Company’s financial instruments at each Balance Sheet date, an increase or decrease of 100 basis points
in interest rates would decrease or increase revenue return after tax by £3,000 (2024: £22,000), capital return after tax by
£248,000 (2024: £76,000), total profit after tax and shareholders’ funds £251,000 (2024: £98,000).
This level of change is considered to be reasonably possible based on observation of current market conditions. This is
not representative of the year as a whole, since the exposure changes as investments are made. In the context of the
Company’s Balance Sheet, the outcome is not considered to be material.
13.2 Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Management of the risk
Liquidity risk is monitored by the investment manager on a daily basis to ensure that financial liabilities can be paid as
they fall due. The majority of the Company’s assets are investments in quoted securities that are readily realisable. The
Company has an overdraft facility with the custodian the extent of which is determined by the custodian on a regular
basis by reference to the value of the securities held by it on behalf of the Company. The overdraft facility was not
drawn down at 31 August 2025.
The Company has a 24 month multi-currency loan facility of £50 million with RBSi (2024: £50 million facility with SMBC)
of which £49,591,000 (2024: £15,300,000) was drawn down at the year end. This facility is under regular review and
unless renewed will expire on 20 August 2027.
The Board gives guidance to the investment manager as to the maximum amount of the Company’s resources that
should be invested in any one investment. The policy is that the Company should generally remain fully invested and
that short term borrowings be used to manage short term cash requirements and also to take advantage of specific
investment opportunities.
Liquidity risk exposure
The remaining contractual maturities of the financial liabilities at 31 August 2025 and 31 August 2024, based on the
earliest date on which payment could be required was as follows:
2025 2024
Due within
3 months
£’000
Due between
3 months and
one year
£’000
Due within
3 months
£’000
Due between
3 months and
one year
£’000
Bank loans
1
49,925 – 15,324 –
Written options
2
9,293 – 86 –
Amount to brokers and accruals
2,550 – 3,210 –
61,768 – 18,620 –
1 Includes interest on loans payable to maturity date
2 Calculated as the contractual maturity value of the options
None of the items in the above table have been discounted due to the short term nature and immateriality of any
such discount.
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures continued
13.3 Credit risk
The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the
Company suffering a loss.
Management of the risk
Credit risk is managed as follows:
• transactions involving derivatives are entered into only with investment banks, the credit rating of which is taken into
account so as to minimise the risk to the Company of default;
• investment transactions are carried out with a large number of approved brokers, whose credit-standard is reviewed
periodically by the investment manager, and limits are set on the amount that may be due from any one broker; and
• cash at banks is held only with reputable banks with high quality external credit ratings and which are reviewed
regularly by the investment manager’s Credit Risk Committee.
There was £6,627,000 of cash in collateral accounts at 31 August 2025 (2024: £1,110,000). None of the other financial
assets or liabilities of the Company are secured by collateral or other credit enhancements.
The Company has not been materially exposed to credit risk throughout the year. In summary, the exposure to credit
risk at 31 August 2025 was to cash and cash equivalents of £24,684,000 (2024: £5,482,000) and to other receivables of
£2,491,000 (2024: £3,404,000).
The Company is also exposed to credit risk through the use of banks for its cash position. Bankruptcy or insolvency of
banks may cause the Company’s rights with respect to cash held by banks to be delayed or limited. The majority of the
Company’s cash balances are held by the custodian. The directors believe this counterparty to be of high quality
therefore the Company has minimal exposure to credit risk.
The Company has an ongoing contract with the custodian for the provision of custody services. Details of securities
held in custody on behalf of the Company are received and reconciled monthly. The custodian has regulatory
responsibilities relating to segregation and safe keeping of the Company’s financial assets, amongst other duties.
The Board has direct access to the custodian and depositary and receives regular reports from them via the
investment manager.
None of the Company’s financial assets are past due and the expected credit loss within IFRS 9 for calculating
impairment on such balances has not had a material impact on the Company.
13.4 Fair values of financial assets and financial liabilities
Financial assets and financial liabilities, are either carried in the Balance Sheet at their fair value (investments and
derivatives) or the Balance Sheet amount is a reasonable approximation of fair value (due from brokers, dividends and
tax receivable, due to brokers, accruals, cash at bank and bank loans).
13.5 Fair value hierarchy disclosures
The table below sets out fair value measurements using the IFRS 13 fair value hierarchy.
Financial assets and liabilities at fair value through profit or loss at 31 August 2025
Level 1
£’000
Level 2
£’000
Level 3
1
£’000
Total
£’000
Equity investments
439,575 – – 439,575
OTC derivatives (options)
– (6,680) – (6,680)
439,575 (6,680) – 432,895
Financial assets and liabilities at fair value through profit or loss at 31 August 2024
Level 1
£’000
Level 2
£’000
Level 3
1
£’000
Total
£’000
Equity investments
376,868 – – 376,868
Equity investments – rights
– 28 – 28
OTC derivatives (options)
– (988) – (988)
376,868 (960) – 375,908
1 Level 3 investments related to one holding of China Forestry, transferred into level 3 in 2012, written to zero market value during 2014 following a missed
coupon payment, delayed publication of annual report and accounts and resignation of Chief Financial Officer and Company Secretary. This investment
has continued to be held at zero value throughout 2024 and 2025
74
Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures continued
13.5 Fair value hierarchy disclosures continued
The table below sets out the OTC derivatives that were unsettled as at 31 August 2025.
Description of open position
Nominal
amount Currency
Strike Price
(Currency)
ANTA Sports Put Option (Expiry 29/09/25)
600,000 HK$ 91.8
Alibaba Call Option (Expiry 14/11/25)
300,000 HK$ 142.0
Alibaba Call Option (Expiry 22/10/25)
250,000 HK$ 134.0
Brilliance China Automotive Call Option (Expiry 18/09/25)
10,000,000 HK$ 3.3
China Hongqiao Call Option (Expiry 10/09/25)
4,000,000 HK$ 16.6
China Hongqiao Call Option (Expiry 22/10/25)
2,811,000 HK$ 23.6
China Resources Land Call Option (Expiry 17/09/25)
2,000,000 HK$ 31.2
DB Insurance Call Option (Expiry 10/09/25)
60,000 KRW 118.0
FinVolution Group Put Option (Expiry 02/10/25)
600,000 US$ 8.5
Lenovo Call Option (Expiry 07/11/25)
5,500,000 HK$ 12.7
MediaTek Put Option (Expiry 14/10/25)
98,000 TW$ 129.0
New China Life Call Option (Expiry 14/10/25)
1,200,000 HK$ 48.2
New China Life Call Option (Expiry 30/10/25)
800,000 HK$ 58.0
Resona Holdings Call Option (Expiry 10/09/25)
478,200 JPY 143.0
Samsung Fire & Marine Call Option (Expiry 07/11/25)
13,000 KRW 478.0
SK Hynix Call Option (Expiry 15/09/25)
20,000 KRW 271.0
SK Hynix Call Option (Expiry 14/11/25)
25,000 KRW 314.0
SK Square Call Option (Expiry 12/09/25)
33,816 KRW 168.0
SK Square Call Option (Expiry 07/11/25)
50,000 KRW 153.0
The table below sets out the OTC derivatives that were unsettled as at 31 August 2024.
Description of open position
Nominal
amount Currency
Strike Price
(Currency)
ASE Technology Call Option (Expiry 15/10/24)
840,000 TW$ 192.6
ASE Technology Call Option (Expiry 31/10/24)
500,000 TW$ 162.3
China Resources Land Call Option (Expiry 12/09/24)
1,200,000 HK$ 28.9
Hon Hai Precision Call Option (Expiry 06/11/24)
530,000 TW$ 192.6
MediaTek Call Option (Expiry 06/11/24)
90,000 TW$ 1,228.4
MediaTek Call Option (Expiry 11/09/24)
93,000 TW$ 1,391.5
MediaTek Call Option (Expiry 31/10/24)
150,000 TW$ 1,306.1
Meituan Call Option (Expiry 22/10/24)
250,000 CNY 137.9
NetEase Call Option (Expiry 19/09/24)
205,800 HK$ 159.2
Samsung Fire & Marine Call Option (Expiry 02/09/24)
10,500 KRW 370,569.6
Sea Put Option (Expiry 14/11/24)
35,000 S$ 69.8
Taiwan Semiconductor Manufacturing Call Option (Expiry 06/11/24)
20,000 TW$ 175.4
Taiwan Semiconductor Manufacturing Call Option (Expiry 24/10/24)
22,000 TW$ 183.9
The Company recognises transfers between levels of the fair value hierarchy at the half year and year end reporting
period during which the change has occurred.
There have been no transfers between levels of the fair value hierarchy during the year ended 31 August 2025 and year
ended 31 August 2024.
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the
fair value measurement of the relevant asset as follows:
Level 1 – inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 – inputs other than quoted market prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly. The Company’s holdings in over-the-counter options are included within Level 2.
Level 3 – inputs are unobservable inputs for the asset or liability. The valuation techniques used by the Company are
explained in the accounting policies note on page 62.
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Henderson Far East Income Limited Annual Report 2025
Notes to the financial statements continued
13 Risk management policies and procedures continued
13.6 Capital management policies and procedures
The Company’s capital management objectives are:
• to ensure that it will be able to continue as a going concern; and
• to maximise the income and capital return to its equity shareholders through an appropriate balance of equity
capital and debt.
The portfolio includes one unquoted investment, which was written down to zero fair value in 2014. The Company writes
over-the-counter options resulting in a liability of £6,680,000 (2024: £988,000).
The Company’s capital at 31 August 2025 comprises its equity share capital, reserves and bank debt that are shown in
the Balance Sheet as a total of £457,250,000 (2024: £381,404,000).
The Board with the assistance of the investment manager monitors and reviews the broad structure of the Company’s
capital on an ongoing basis. This review includes:
• the desirability of buying back shares for cancellation, which takes account of the difference between the net asset
value per share and the share price (i.e. the level of share price discount or premium);
• the opportunity for new issues of shares;
• the extent to which revenue should be retained; and
• the level of gearing.
The Company is subject to additional externally imposed capital requirements:
• under a multi-currency loan facility the total net asset value should not be less than £150m and consolidated gross
borrowings should not exceed 30%; the Company may not deliver a Utilisation Request if, as a result of the proposed
utilisation, more that fifteen loans would be outstanding; and
• as a public company, the Company should have a minimum share capital of £50,000.
These requirements are materially unchanged since last year and were readily met by the Company throughout the year.
14 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 were no shares repurchased for treasury in the year (2024: 806,385 shares
repurchased) at a cost of £nil (2024: £1,721,000).
76
Henderson Far East Income Limited Annual Report 2025
15 Distributable reserve
2025
£’000
2024
£’000
Start of the year
177,596 180,471
Distribution in prior year
– (2,875)
At 31 August
177,596 177,596
Due to a shortfall in revenue for the fourth interim dividend 2023, the directors agreed to support this by a 50/50 split
between revenue reserve and distributable reserve. As a result the reserve has reduced by £2,875,000. For further detail
see note 9.
The Royal Court of Jersey confirmed the reduction of Capital account in the Company by an amount of £180,983,000
less issue costs of £512,000 on 23 January 2007 being the proceeds from the issue of 77,622,619 shares in the Company
on 15 December 2006.
16 Capital reserves
2025
£’000
2024
£’000
Start of the year
(114,052) (108,047)
Foreign exchange profit/(losses)
860 (84)
Movement in investment holding gains
10,456 32,673
Realised losses on investments
(5,618) (36,388)
Costs charged to capital
(3,266) (2,206)
At 31 August
(111,620) (114,052)
The reserve reflects any gains or losses on investments realised in the period, together with any increases or decreases
in the fair value of investments held that have been recognised in the Statement of Comprehensive Income.
17 Net asset value per ordinary shares
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
407,659 366,104
18 Contingent liabilities
There were no contingent liabilities as at 31 August 2025 (2024: £nil).
Notes to the financial statements continued
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Henderson Far East Income Limited Annual Report 2025
19 Transactions with the investment manager and directors
Under the terms of an agreement effective from 22 July 2014 and most recently updated in 2024, the Company has
appointed Janus Henderson Fund Management UK Limited to provide investment management, company secretarial,
sales and marketing, and general administrative services.
Details of the fee arrangements for these services are given on page 21. The management fees payable to the
investment manager under the agreement in respect of the year ended 31 August 2025 were £2,834,000
(2024: £2,804,000). The amount outstanding at 31 August 2025 was £1,228,000 (2024: £1,176,000).
In addition to the above services, the investment manager facilitates marketing activities with third parties which are
recharged to the Company. Total amounts paid to the investment manager in respect of marketing, for the year ended
31 August 2025 amounted to £269,000 (2024: £189,000). The amount outstanding at 31 August 2025 was £222,000
(2024: £57,000).
Fees paid to the directors are considered to be related party transactions. Details of the amounts paid are included in
note 5 on page 65. These amounts do not include national insurance contributions on the directors’ fees of £24,000
(2024: £14,000) which are included in other expenses. Directors’ shareholdings are shown on page 45.
Henderson Global Investors (Holdings) Limited, a wholly owned subsidiary of the investment manager, is the registered
holder of 3,000 shares in the Company.
20 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.
21 Reconciliation of net debt
The following tables show the movements during the year of net debt in the Balance Sheet:
Notes
At
1 September
2024
£’000
Net cash flows
£’000
Foreign
exchange
movement
£’000
At
31 August
2025
£’000
Financing activities
Bank loans 12b)
15,300 34,343 (52) 49,591
15,300 34,343 (52) 49,591
Non-financing activities
Cash and cash equivalents
(5,482) (18,394) (808) (24,684)
(5,482) (19,394) (808) (24,684)
Net Debt
9,818 15,949 (860) 24,907
Notes
At
1 September
2023
£’000
Net cash flows
£’000
Foreign
exchange
movement
£’000
At
31 August
2024
£’000
Financing activities
Bank loans 12b)
28,191 (12,678) (213) 15,300
28,191 (12,678) (213) 15,300
Non-financing activities
Cash and cash equivalents
(3,944) (1,835) 297 (5,482)
(3,944) (1,835) 297 (5,482)
Net Debt
24,247 (14,513) 84 9,818
Notes to the financial statements continued
78
Henderson Far East Income Limited Annual Report 2025
Additional
information
In this section
80 Glossary
81 Alternative performance measures
83 General shareholder information
84 Historical record
85 Corporate information
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Henderson Far East Income Limited Annual Report 2025
Glossary
Term Definition
Alternative
Investment Fund
Managers Directive
(“AIFMD”)
Issued by the European Parliament and written into English legislation, the AIFMD classifies
certain investment vehicles, including investment companies, as Alternative Investment
Funds (AIFs) and requires them to appoint an Alternative Investment Fund Manager (AIFM).
As the Company’s AIFM intends to market itself in the EU, a depositary must be appointed to
manage and oversee the operations of the investment vehicle. The Board retains
responsibility for strategy, operations and compliance. The directors retain a fiduciary duty to
all shareholders.
Association of
Investment
Companies (“AIC”)
The Company is a member of the AIC which is the trade body for investment companies and
represents the industry in relation to various matters which impact the regulation of
such entities.
Benchmark
An index against which performance is compared. The Company does not have a formal
benchmark. It uses the FTSE World Asia Pacific ex Japan and MSCI AC Asia Pacific ex Japan
High Dividend Yield indices (sterling adjusted) for comparison purposes only. With effect from
1 September 2025, the Company will use the MSCI AC Asia Pacific ex Japan Index as a
comparator index.
Custodian
The custodian is responsible for ensuring the safe custody of the Company’s assets and
ensuring that all transactions in the underlying holdings are transacted in an accurate and
timely manner.
Depositary
All AIFs including the Company, were required to appoint a depositary which has
responsibility for overseeing the operations of the Company including record keeping and
asset verification of other assets.
Derivative
A contract between two or more parties in relation to an underlying security. The value of a
derivative will fluctuate in accordance with the value of the security. The fluctuations in value
are usually greater than the fluctuations in the underlying security’s value therefore some
derivatives are a form of gearing. Examples of derivatives are put and call options, swap
contracts, futures and contracts for difference. Foreign exchange, interest rates and
commodities may also be traded using derivative contracts.
Dividend dates
When declared or recommended, each dividend will have three key dates applied to it. The
payment date is the date on which shareholders will receive their dividend, either by BACS
transfer or by receipt of a dividend cheque. The record date applied to the dividend is used
as a cut-off for the Company’s registrars to know which shareholders should be paid
a dividend. Only shareholders on the Register of Members at the close of business on the
record date will receive the dividend. The ex-dividend date is the business day before the
record date and is the date upon which the Company’s net asset value will be disclosed
ex-dividend.
Investment
companies
Investment companies are public limited companies, listed on the London Stock Exchange,
which provide shareholders with a professionally managed portfolio of investments.
Liquidity
In the context of the liquidity of shares in the stock market, this refers to the availability of
buyers and sellers in the market for the share in question. Where the market in a particular
share is described as liquid, that share will be in demand and holders wishing to sell their
shares should find ready buyers. Conversely, where the market in a share is illiquid the
difficulty of finding a buyer or seller will tend to depress or increase the price that might be
negotiated for a sale or purchase. Investment companies can use allotment or buy back
powers to assist the market liquidity in their shares.
Market capitalisation
(“market cap”)
The market value of a company, calculated by multiplying the mid-market price per share
by the number of shares in issue.
80
Henderson Far East Income Limited Annual Report 2025
Alternative performance measures
The Company uses the following Alternative Performance Measures (‘APMs’) throughout the annual report, financial
statements and notes to the financial statements. The APMs are reconciled to the financial statements through the
narrative below. The Board believes that each of the APMs, which are typically used within the investment trust sector,
provide additional useful information to shareholders to help assess the Company’s performance against its peer group.
Discount or premium
The amount by which the market price per share of an investment trust is either higher (premium) or lower (discount)
than the NAV per ordinary share, expressed as a percentage of the NAV per ordinary share.
NAV
pence
Share
price
pence
Premium/
(discount)
to NAV
At 31 August 2025
223.32 231.00 3.4
At 31 August 2024
221.97 227.00 2.3
Gearing/(net cash)
Gearing represents the excess amount above shareholders’ funds of total investments, expressed as a percentage of
the shareholders’ funds. If the amount calculated is negative, this is a ‘net cash’ position and no gearing.
2025 2024
Investments held at fair value through profit or loss (page 68) (£’000)
(A) 432,895 375,908
Net assets (page 59) (£’000)
(B) 407,659 366,014
Gearing (C = (A/B) -1) (%)
(C) 6.2 2.7
Net asset value (‘NAV’) per ordinary share
The value of the Company’s assets (i.e. investments (see Note 10) and cash held (see Balance Sheet) less any liabilities
(i.e. bank loans (see Note 12b )) for which the Company is responsible divided by the number of shares in issue (see
Note 14). The aggregate NAV is also referred to as total equity in the Balance Sheet. The NAV per share is published daily
and the year end NAV can be found on page 6 and further information is available on page 77 in note 17 within the
notes to the financial statements.
Ongoing charges
The ongoing charges ratio has been calculated in accordance with the guidance issued by the AIC as the total
investment management fees and administrative expenses and expressed as a percentage of the average net asset
values throughout the year.
2025
£’000
2024
£’000
Management fees
2,834 2,804
Other administrative expenses (note 5)
1,396 1,137
Less: non-recurring expenses
2
(69) (6)
Ongoing charges (A)
4,161 3,935
Average net assets
1
(B)
372,716 364,934
Ongoing charges ratio (C = (A/B) x 100) (C)
1.12% 1.08%
1 Calculated using the average daily net asset value
2 Non-recurring expenses included those relating to the externally facilitated board evalution, recruitment and legal expenses
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81
Total return
The total return on the share price or NAV takes into account both the rise and fall of NAVs/share prices and dividends
paid to shareholders. Each component of the total return needs to be compounded as a geometric return to arrive
at the total return. Any dividends received by a shareholder are assumed to have been reinvested in either additional
shares (for share price total return) or the Company’s assets (for NAV total return). Dividends paid and payable are
set out in note 9 on page 67.
2025 2024
NAV per share Share price NAV per share Share price
Opening NAV/Share price per share (pence)
221.97 227.00 222.12 218.00
Closing NAV/Share price per share (pence)
223.32 231.00 221.97 227.00
Change in the year (%)
0.6 1.8 (0.1) 4.1
Impact of dividends reinvested (%)
12.0 11.6 11.8 12.0
Total return for the year (%)
12.7 13.6 11.9 16.6
Dividend yield
The yield is the annual dividend expressed as a percentage of the year end share price.
31 August
2025
31 August
2024
Annual dividend (p)
(A) 24.90 24.60
Share price (p)
(B) 231.00 227.00
Yield (C=A/B) (%)
(C) 10.8 10.8
Alternative performance measures continued
82
Henderson Far East Income Limited Annual Report 2025
General shareholder information
AIFMD disclosures and remuneration
In accordance with the Alternative Investment Fund
Managers Directive (AIFMD), information in relation to the
Company’s leverage and remuneration the investment
manager, as the Company’s Alternative Investment Fund
Manager (AIFM) is required to be made available to
investors. These disclosures, including those on the AIFM’s
remuneration policy, are contained in a separate
document called ‘AIFMD Disclosures’ which can be found
on the Company’s website.
BACs
Dividends and interest can be paid to shareholders by
means of BACS (Bankers Automated Clearing Systems).
Mandate forms for this purpose are available from the
registrar. Alternatively, shareholders can write to the
registrar to give their instructions. These must include
the bank account number, the bank account title and the
sort code of the bank to which payments are to be made.
Common Reporting Standard (CRS)
Tax legislation under The Organisation for Economic
Co-operation and Development Common Reporting
Standard for Automatic Exchange of Financial Account
Information was introduced with effect from 1 January
2016. The legislation requires the Company to provide
personal information to HMRC on certain investors who
purchase shares in investment trusts. This information
must be submitted annually to the local tax authority
of the tax residencies of a number of non-UK based
certificated shareholders and corporate entities.
Equality Act
Copies of this report and other documents issued by
the Company are available from the Corporate
Secretary. If needed, copies can be made available in
a variety of formats, including Braille, audio tape or larger
type as appropriate.
You can contact the registrar, Computershare Investor
Services (Jersey) Limited, which has installed textphones to
allow speech and hearing impaired people who have their
own textphone to contact them directly, without the need
for an intermediate operator by dialling 0370 702 0005.
Specially trained operators are available during normal
business hours to answer queries via this service.
Alternatively, if you prefer to go through a ‘typetalk’ operator
(provided by the Royal National Institute for Deaf People),
enter 18001 followed by the number you wish to dial.
General Data Protection Regulation
(GDPR)
A privacy statement can be found on the website
www.janushenderson.com.
Non-mainstream pooled investments
(NMPI) status
The Company currently conducts its affairs so that its
ordinary shares can be recommended by independent
financial advisers to ordinary retail investors
in accordance with the FCA rules in relation to non-
mainstream investment products and intends to continue
to do so for the foreseeable future. The shares are
excluded from the FCA’s restrictions which apply to
non-mainstream investment products because they are
shares in an investment trust.
ISA
The Company intends to continue to manage its affairs in
order to qualify as an eligible investment for a stocks and
shares ISA.
Share price and NAV
Details of the Company’s share price and NAV can be found
on the website at: www.hendersonfareastincome.com.
The Company’s NAV is published daily and the market
prices of the Company’s shares can be found in the
London Stock Exchange Daily Official List.
Shareholder details
Shareholders who hold their shares in certificated form
can check their shareholding with the registrar via
www.computershare.com. Please note that to gain
access to your details on the Computershare site you will
need the shareholder reference number shown on your
share certificate.
New Zealand listing
The Company’s shares are also listed on the New Zealand
Stock Exchange so that New Zealand shareholders can
trade their shares more easily and, in addition, receive
dividends in New Zealand dollars. A New Zealand
shareholder may transfer shares to the Auckland register
by contacting the registrars in New Zealand,
Computershare Investor Services Limited.
Taxonomy regulation
Regulation (EU) 2020/852 establishes the basis for the EU
taxonomy. The EU taxonomy is a classification system,
establishing a list of environmentally sustainable economic
activities to provide companies, investors and policymakers
with appropriate definitions for which economic activities
can be considered environmentally sustainable. In
accordance with the Taxonomy Regulation, the Company
confirms that the investments underlying this financial
product do not take into account the EU criteria for
environmentally sustainable economic activities.
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Henderson Far East Income Limited Annual Report 2025
83
At 31 August
Net assets
£’000
NAV per
ordinary
share
5
p
Closing
price per
ordinary
share
p
Premium/
discount)
5
%
Profit/
(loss) for
year
£’000
Revenue
return per
ordinary
share
p
Capital
return per
ordinary
share
p
Total
return per
ordinary
share
p
Dividend
per
ordinary
share
5
p
Ongoing
charge
5
%
2016
386,859 337.76 343.00 1.6 95,375 21.13 62.41 83.54 20.00 1.17
2017
442,482 375.19 380.00 1.3 67,211 21.94 36.09 58.03 20.80 1.12
2018
441,004 359.26 357.00 (0.6) 6,595 22.21 (16.77) 5.44 21.60 1.09
2019
469,121 358.99 361.00 0.6 28,306 23.38 (0.95) 22.43 22.40 1.11
2020
425,927 301.02 311.00 3.3 (48,819) 23.71 (59.23) (35.52) 23.00 1.08
2021
452,644 299.58 301.50 0.6 29,677 23.22 (2.82) 20.40 23.40 1.09
2022
435,576 281.11 281.00 0.0 7,957 24.41 (19.18) 5.23 23.80 1.01
2023
362,032 222.12 218.00 (1.9) (56,240) 20.92 (56.35) (35.43) 24.20 0.97
2024
366,104 221.97 227.00 2.3 39,329 27.83 (3.68) 24.15 24.60 1.08
2025
407,659 223.32 231.00 3.4 45,112 24.98 1.42 26.40 24.90 1.12
1 Net asset value (‘NAV’) total return performance with dividends reinvested
2 Share price total return using closing price and including dividends reinvested
3 The Company does not have a formal benchmark and uses these indices (sterling adjusted) for comparison purposes only
4 All indices are sterling adjusted and rebased to £100
5 The NAV total return, share price total return, NAV per share, premium or discount, ongoing charge and dividend per share are considered to be
alternative performance measures. More information can be found on pages 81 and 82
Historical record
84
Henderson Far East Income Limited Annual Report 2025
Corporate information
Registered office
IFC1, The Esplanade, St. Helier
Jersey JE1 4BP
Principal place of business
201 Bishopsgate, London EC2M 3AE
Service providers
Alternative Investment Fund Manager
Janus Henderson Fund Management UK Limited
201 Bishopsgate
London EC2M 3AE
Corporate Secretary
Janus Henderson Secretarial Services UK Limited
201 Bishopsgate
London EC2M 3AE
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
Depositary and custodian
J.P. Morgan Trust Company (Jersey) Limited
JP Morgan Chase Bank N.A., (Jersey Branch)
4th Floor, Ensign House, 29 Seaton Place, St. Helier,
Jersey JE2 3QL
Administrator
BNP Paribas S.A.
IFC1, The Esplanade, St. Helier, Jersey JE1 4BP
Telephone: 01534 813800
Corporate broker
Cavendish Capital Markets Limited
One Bartholomew Close
London EC1A 7BL
Registrar
Computershare Investor Services (Jersey) Limited
13 Castle Street, St Helier, Jersey JE1 1ES
Telephone: 0370 707 4040
Email: info@computershare.co.je
New Zealand Registrar
Computershare Investor Services Limited
PO Box 92119, Auckland 1142, New Zealand
Telephone: (0064) 9 488 8777
Independent auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London SE1 2RT
Financial calendar
Financial period end 31 August
4th Interim dividend 28 November 2025
Annual General Meeting 20 January 2026
1st Interim dividend 28 February 2026
2nd Interim dividend 30 May 2026
3rd Interim dividend 29 August 2026
Dividend dates refer to the payment date
Information sources
For more information about the Company, visit the
website at www.hendersonfareastincome.com.
This includes factsheets, interviews, current information
on the Company and up-to-date share price and net
asset value details.
To sign up for expert insights about investment trusts,
updates from our Fund Managers as well as AGMs
please visit this page:
www.janushenderson.com/en-gb/investor/subscriptions
Follow the Janus Henderson Investment Trusts on
LinkedIn – Janus Henderson Investment Trusts, UK.
Investing
Shares can be purchased in the market via a stockbroker
or through share dealing platforms. They can also be held
through share plans, ISAs or pensions and links to various
providers are included on the website.
Potential investors are reminded that the value of
investments and the income from them may go down
as well as up and investors may not receive back the full
amount invested. Tax benefits may vary as a result of
statutory changes and their value will depend
on individual circumstances.
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Henderson Far East Income Limited Annual Report 2025
85
Notice of Annual
General Meeting
Henderson Far East Income Limited Annual Report 2025
86
Notice of Annual General Meeting
Notice is hereby given that the 19th Annual General
Meeting of Henderson Far East Income Limited (‘the
Company’) will be held at 201 Bishopsgate, London,
EC2M 3AE on 20 January 2026 at 12.30pm for the
transaction of the following business:
Ordinary resolutions
1 To receive the annual report and audited financial
statements for the year ended 31 August 2025.
2 To approve the Directors’ Remuneration Report for the
year ended 31 August 2025.
3 To elect Steven Wilderspin as a director.
4 To re-elect Ronald Gould as a director.
5 To re-elect Timothy Clissold as a director.
6 To re-elect Carole Ferguson as a director.
7 To re-elect Susan Rippingall as a director.
8 To re-elect Nicholas George as a director.
9 To re-appoint PricewaterhouseCoopers LLP as the
auditor to the Company.
10 To authorise the directors to determine the auditors’
remuneration.
Under provisions of the Company’s articles of association,
Resolution 11 and onwards are considered special business.
11 To approve the Company’s dividend policy of paying
four interim dividends.
12 THAT, the Company be and is hereby generally and
unconditionally authorised to hold up to 10% of the
Company’s own shares (whether purchased pursuant
to Resolution 13 or otherwise) as treasury shares
pursuant and subject to Articles 58A and 58B of the
Companies (Jersey) Law 1991, as amended.
Special resolutions
13 THAT, the Company be and is hereby generally and
unconditionally authorised to make one or more market
purchases on a stock exchange of, and to cancel, or
(subject to Resolution 12) hold as treasury shares, ordinary
shares of no par value in the capital of the Company
(‘shares’), pursuant to Article 57 of the Companies (Jersey)
Law 1991, as amended (the ‘Law’), provided that:
(a) the maximum number of shares hereby authorised
to be purchased is 14.99% of the issued share
capital of the Company as at the date of the
passing of this resolution;
(b) the maximum price, exclusive of expenses, which
may be paid for a share shall not be more than
the higher of
(i) an amount equal to 105% of the average of the
middle market quotations for a share taken
from the Official List for the five business days
immediately preceding the day on which the
share is purchased; and
(ii) the higher of the last independent trade and
the highest current independent bid as
stipulated by Commission-adopted Regulatory
Technical Standards pursuant to Article 5(6) of
the Market Abuse Regulation;
(c) the minimum price, exclusive of expenses, which
may be paid for a share is one penny;
(d) the directors of the Company can, prior to each
such purchase, make the solvency statement
required by the Law and fulfil all other requirements
of the Law in relation to purchases of a company’s
own shares; and
the authority hereby conferred shall expire at the
conclusion of the next annual general meeting of the
Company or, if earlier, on the expiry of 15 months from
the passing of this resolution, unless such authority is
renewed prior to such time.
14 THAT, the directors are authorised to allot ordinary
shares on a non-pre-emptive basis up to a number
equivalent to 10% of the total number of shares in issue
as at the date of this resolution, provided that such
authority shall expire (unless and to the extent
previously revoked, varied or renewed by the Company
in general meetings by special resolution) at the earlier
of the conclusion of the next annual general meeting
or 15 months from the date of this resolution but so
that this power shall enable the Company to make
offers or agreements before such expiry which would
or might require equity securities to be issued after
such expiry and the directors of the Company may
issue ordinary share in pursuance of any such offer or
agreement as if such expiry had not occurred.
By order of the Board
Janus Henderson Secretarial Services UK Limited
Corporate Secretary
10 November 2025
Registered office:
IFC1, The Esplanade St. Helier Jersey JE1 4BP
AGM venue
MOORGATE
BISHOPSGATE
PRIM ROSE ST.
WORSH IP STR EET
201 Bishopsgate
London EC2M 3AE
LIVERPOOL
STREET
STATION
APPO LD ST.
SUN STREET
BROADGATE
CIRCLE
FINS BURY PAVE.
EARL S T.
WORSHIP STREET
ROPEM AKER ST REET
LIVERPOOL S T
LONDON WALL
WILSON ST.
BISHOPSGATE
GREAT EASTERN ST.
COMMERCIAL ST.
SHOREDITCH
HOUNDSDITCH
AL DGATE
MIDDLESEX
STREET
CHISW ELL STR EET
SOUTH PLACE
ELDON ST.
FINSBU RY
CIRCUS
CITY ROAD
FINS BURY SQ .
FINS BURY SQ .
CLIF TON ST.
SPITALFIELDS
MARKET
FOLGATE ST.
NORTO N
MIDDLESEX ST.
BRUS HFIEL D STREE T
APPO LD ST.
The annual general meeting will be held at Janus
Henderson Investors’ offices at 201 Bishopsgate, London
EC2M 3AE. It is a few minutes’ walk from Liverpool Street
Station and from Moorgate Underground Station.
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Henderson Far East Income Limited Annual Report 2025
87
Notice of Annual General Meeting continued
Explanatory notes
The information set out below is an explanation of the business to be considered at the Meeting. Members are
recommended to view the Company’s website www.hendersonfareastincome.com on which they can find the
Company’s annual report and financial statements.
Resolutions 1 to 12 are proposed as ordinary resolutions. This means that, for each of those resolutions to be passed,
more than half of the votes cast must be in favour of the resolution. Resolutions 13 and 14 are proposed as special
resolutions which require at least two thirds of the votes cast to be in favour of the resolution.
Resolution 1: Company’s annual report and
financial statements (ordinary resolution)
Members will be given an opportunity at the Meeting to
ask questions on the annual report. At the end of the
discussion, members will be invited to receive the
annual report and audited financial statements.
Resolutions 2: Approve the Directors’
Remuneration Report
(ordinary resolution)
Members are requested to approve the Directors’
Remuneration Report for the year ended 31 August 2025.
The report is set out on pages 45 and 46 of this annual
report. The vote is advisory and does not affect the
remuneration payable to any individual director.
However, the Board will take feedback from members
regarding remuneration and incorporate this into any
future remuneration discussions.
Resolution 3 to 8: Election/re-election of
directors (ordinary resolutions)
In accordance with provisions of the Code of
Corporate Governance issued by the Association of
Investment Companies, all directors seek re-election
on an annual basis.
Resolution 3 relates to the election of Steven Wilderspin,
who was appointed to the Board on 5 June 2025. Steven
has extensive accounting and auditing experience. He is
Jersey resident.
Resolution 4 relates to the re-election of Ronald Gould,
who was appointed to the Board on 28 October 2021 and
became Chairman on 21 June 2022. Ronald is an investor
and strategic consultant in the financial services sector
in both Asia and Europe.
Resolution 5 relates to the re-election of Timothy
Clissold, who was appointed to the Board on
3 September 2018. Timothy is a qualified Chartered
Accountant and has worked in Australia, Hong Kong and
spent more than 20 years living and working in China,
where he was co-founder of one of the first private
equity groups in the country.
Resolution 6 relates to the re-election of Carole
Ferguson who was appointed to the Board on
1 December 2023. Carole has extensive experience in the
financial services sector in research, finance,
sustainability and derivatives.
Resolution 7 relates to the re-election of Nicholas
George, who was appointed to the Board on 20 April
2016. Nicholas has a strong background in investment
banking, specialising in Asian markets. He spent much
of his career in Hong Kong and London.
Resolution 8 relates to the re-election of Susan
Rippingall who was appointed to the Board on
1 December 2023. She has more than 25 years’ fund
management experience in Asian markets.
The Board has reviewed the performance and
commitment of the directors standing for election and
re-election and consider that each of them continue to
bring wide-ranging, current and relevant business
experience that allows them to contribute effectively to
the leadership of the Company.
Furthermore, the Board is satisfied that, having
considered each directors’ experience and the nature
of, and anticipated demands on their time by other
business commitments, that each director is able to
commit the time required to fulfil his or her
responsibilities as a director of the Company.
All the directors are considered by the Board to
be independent for the purposes of the Code of
Corporate Governance issued by the Association
of Investment Companies.
Directors’ biographies can be found on pages 32 and 33
of this annual report.
Resolutions 9 and 10: Appointment and
remuneration of the auditors
(ordinary resolutions)
Members are invited to re-appoint the Company’s
auditor each year and give authority for the directors to
determine their remuneration. PricewaterhouseCoopers
LLP (‘PwC’) were appointed at the annual general
meeting held on 27 January 2023. PwC has completed
their third audit and, following assessment of the
effectiveness of the audit, the Board is recommending
their reappointment and asking members to allow the
directors to agree their remuneration.
Resolution 11: Approval of the dividend
policy (ordinary resolution)
The directors seek members’ approval of the Company’s
dividend policy, which is to pay quarterly interim dividends.
In the year ended 31 August 2025 these have totalled
24.90p per share. The vote is advisory as the directors
have the ability under provisions of the articles to
determine and approve the payment of interim dividends.
Resolution 12: Treasury shares
(ordinary resolution)
The directors are seeking authority to hold up to 10% of
the Company’s own shares which may be repurchased
subject to this resolution, or otherwise, as treasury shares.
88
Henderson Far East Income Limited Annual Report 2025
Explanatory notes continued
Resolution 13: Repurchase of the Company’s
ordinary shares (special resolution)
On 24 January 2025 the directors were granted authority
to repurchase up to 14.99% of the issued share capital as
at that date for cancellation or to be held in treasury.
The Company has not repurchased any shares during
the period.
This resolution seeks to renew the Company’s authority
to buy back shares. The authority under this resolution is
limited to the purchase of a maximum of 14.99% of the
ordinary shares in issue at the date of the passing of this
resolution. The Company may cancel or hold in treasury
(up to 10% of the issued share capital at the date of the
resolution) any shares bought back under this authority.
The directors believe that, from time to time and subject
to market conditions, it will continue to be in the
members’ interests to buy back the Company’s shares
when they are trading at a discount to the underlying net
asset value per share. Repurchases of the Company’s
shares provide a modest uplift in the NAV for existing
members and often results in the share price more
closely reflecting the underlying value of the portfolio.
The Company may utilise the authority to purchase
shares by either a single purchase or a series of
purchases when market conditions allow, with the aim of
maximising the benefit to members. This proposal does
not indicate that the Company will purchase shares at
any particular time or price, nor imply any opinion on the
part of the directors as to the market or other value of
the Company’s shares.
This authority will expire at the conclusion of the next
annual general meeting or within 15 months from the
date of the passing of this resolution (whichever is
earlier) and it is the present intention of the directors to
seek a similar authority annually.
Resolution 14: Disapplication of pre-emption
rights (special resolution)
This resolution authorises directors to allot ordinary
shares on a non-pre-emptive basis. The authority is in
respect of 10% of the issued share capital as at the date
this resolution, which will expire on the earlier of
15 months from the date of the resolution or at the
conclusion of the next annual general meeting.
In accordance with the requirements of the UK Listing
Authority this disapplication will be proposed for
renewal annually.
Notes to the Notice of Meeting
1 Voting record date
Pursuant to Article 40 of the Companies (Uncertificated
Securities) (Jersey) Order 1999, the Company specifies
that only those members entered on the Register of
Members of the Company as at 12.30pm on 16 January
2026 or, in the event that the Meeting is adjourned, on
the Register of Members 48 hours before the time of any
adjourned meeting, shall be entitled to attend and vote
at the Meeting in respect of the number of shares
registered in their name at that time. Changes to the
entries on the Register of Members after 12.30pm on
16 January 2026 or, in the event that the Meeting is
adjourned, in the Register of Members 48 hours before
the time of any adjourned meeting, shall be disregarded
in determining the rights of any person to attend or vote
at the Meeting, notwithstanding any provisions in any
enactment, the articles of association of the Company
or other instrument to the contrary.
2 Rights to attend and vote
A member entitled to attend and vote is entitled to
appoint a proxy or proxies to attend and, on a poll, to
vote instead of them. A proxy need not be a member of
the Company. A Form of Proxy is enclosed.
3 Rights to appoint proxies
Instruments of proxy and the power of attorney or other
authority, if any, under which they are signed or a
notarially certified copy of that power of attorney or
authority should be sent to the Registrars, Computershare
Investor Services (Jersey) Limited, c/o The Pavilions,
Bridgwater Road, Bristol BS99 6ZY so as to arrive not less
than 48 hours before the time fixed for the Meeting.
4 Receipt and termination of proxies
A Form of Proxy is enclosed and to be valid must be
lodged with the Company’s Registrars (Computershare
Investor Services (Jersey) Limited, c/o The Pavilions,
Bridgwater Road, Bristol BS99 6ZY) before 12.30pm on
16 January 2026. A member may terminate a proxy’s
authority at any time before the commencement of the
Meeting. Termination must be provided in writing and
submitted to the Company’s Registrar at the above
address.
5 Communication with the Company
Members may not use any electronic address provided
either in the Notice or any related documents (including
the Form of Proxy) to communicate with the Company
for any purpose other than those expressly stated.
Notice of Annual General Meeting continued
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statements
Additional
information
AGM Notice
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Governance
Financial
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Strategic
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Henderson Far East Income Limited Annual Report 2025
89
Notice of Annual General Meeting continued
6 Electronic receipt of proxies
CREST members who wish to appoint a proxy or proxies by
utilising the CREST electronic proxy appointment service
may do so for the Meeting and any adjournment(s)
thereof by utilising the procedures described in the CREST
manual, which is available to download from the
Euroclear website (www. euroclear.com/CREST). CREST
personal members or other CREST sponsored members,
and those CREST members who have appointed a voting
service provider(s), should refer to their CREST sponsor or
voting service provider(s), who will be able to take the
appropriate action on their behalf.
In order for a proxy appointment made by means of
CREST to be valid, the appropriate CREST message (a
‘CREST Proxy Instruction’) must be properly authenticated
in accordance with Euroclear UK & Ireland Limited’s
specifications and must contain the information required
for such instructions, as described in the CREST manual.
The message must be transmitted so as to be received by
the Issuer’s agent (ID 3RA50) by the latest time for receipt
of proxy appointments specified in note (4) above.
For this purpose, the time of receipt will be taken to be
the time (as determined by the timestamp applied to the
message by the CREST applications host) from which the
Issuer’s agent is able to retrieve the message by enquiry
to CREST in the manner prescribed by CREST.
CREST members and, where applicable, their CREST
sponsors or voting service provider(s) should note that
Euroclear UK & Ireland Limited does not make available
special procedures in CREST for any particular
messages. Normal system timings and limitations will
therefore apply in relation to the input of CREST Proxy
Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST
personal member or sponsored member or has
appointed a voting service provider(s), to procure that
his CREST sponsor or voting service provider(s) take(s))
such action as shall be necessary to ensure that a
message is transmitted by means of the CREST system
by any particular time. In this connection, CREST
sponsors or voting service providers are referred, in
particular, to those sections of the CREST manual
concerning practical limitations of the CREST system
and timings.
The Company may treat as invalid a CREST Proxy
Instruction in the circumstances set out in Article 33 of the
Companies (Uncertificated Securities) (Jersey) Order 1999.
If you are an institutional investor you may be able to
appoint a proxy electronically via the Proxymity platform,
a process which has been agreed by the Company and
approved by the registrar. For further information
regarding Proxymity, please go to www.proxymity.io.
Your proxy must be lodged by 12.30 pm on 16 January
2026 in order to be considered valid. Before you can
appoint a proxy via this process you will need to have
agreed to Proxymity’s associated terms and conditions.
It is important that you read these carefully as you will
be bound by them and they will govern the electronic
appointment of your proxy.
7 Website
A copy of the Notice of the Meeting, is available from the
Company’s website, www.hendersonfareastincome.com.
8 Total voting rights
As at 6 November 2025 (being the last practicable date
prior to the publication of this Notice) the Company’s
issued share capital comprised 188,814,679 ordinary
shares of no par value.
Each ordinary share carries the right to one vote at a
general meeting of the Company and, as no shares are
held in treasury, this figure also represents the total
number of voting rights in the Company.
9 New Zealand listing
The Company’s ordinary shares are also listed on
the New Zealand Stock Exchange so that New Zealand
members can trade their shares more easily and, in
addition, receive dividends in New Zealand Dollars.
A New Zealand shareholder may transfer shares to
the Auckland register by contacting the Registrars in
New Zealand, Computershare Investor Services Limited.
90
Henderson Far East Income Limited Annual Report 2025
Contents
Strategic report
1 About us
2 Harnessing the strong dividend growth
trends in the region
3 Why choose Henderson Far East Income
Limited?
4 Our investing themes
5 Our manager: Janus Henderson Investors
6 Performance summary
8 Chairman’s statement
10 Fund Manager’s report
13 Portfolio snapshot
14 Portfolio holdings
16 Case studies
18 Business model
25 Measuring the Company’s performance
27 Board decision making
28 Managing risks
30 Viability statement
Governance
32 Directors
34 Corporate Governance report
41 Audit Committee report
43 Management Engagement Committee
report
44 Nominations and Remuneration
Committee report
45 Directors’ Remuneration report
47 Directors’ report
49 Statement of directors’ responsibilities
Financial statements
51 Independent auditor’s report to
the members
57 Statement of Comprehensive Income
58 Statement of Changes in Equity
59 Balance Sheet
60 Statement of Cash Flows
61 Notes to the financial statements
Additional information
80 Glossary
81 Alternative performance measures
83 General shareholder information
84 Historical record
85 Corporate information
AGM Notice
87 Notice of Annual General Meeting
www.hendersonfareastincome.com
Annual General
Meeting (‘AGM’)
The Board invites you to
attend the AGM at 12.30 pm
on 20 January 2026 either in
person or online. Scan the QR
code for more details and to
register your attendance.
Keeping in
touch
Scan the QR code to receive
the latest Company updates,
market insights, event
invitations and more.
Please send any general
enquiries about the Company
to itsecretariat@
janushenderson.com.
Warning to shareholders
Many companies are aware that their shareholders have received unsolicited phone calls or correspondence
concerning investment matters. These are typically from overseas based ‘brokers’ who target UK shareholders
offering to sell them what often turn out to be worthless or high-risk shares in US or UK investments. They can be
persistent and extremely persuasive. Shareholders are therefore advised to be wary of any unsolicited advice,
offers to buy shares at a discount or offers of free company reports. Please note that it is unlikely that either the
Company or the Company’s registrar, Computershare, would make unsolicited telephone calls to shareholders.
Any such calls would relate only to official documentation already circulated to shareholders and never in respect
of investment ‘advice’. If you are in any doubt about the veracity of an unsolicited phone call, please call the
Corporate Secretary at the number provided on page 85. You can also check the FCA Warning List at
#BeScamSmart – www.fca.org.uk/scamsmart.
Annual Report
for the year ended 31 August 2025
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
www.hendersonfareastincome.com
Henderson Far East Income Limited
Registered as an investment company in Jersey
Regulated by the Jersey Financial Services Commission
Registered office
IFC1, The Esplanade,
St Helier, Jersey JE1 4BP
Principal place of business
201 Bishopsgate
London, EC2M 3AE
ISIN/SEDOL number
B1GXH75/JE00B1GXH751
Companies Registry
registration number
00095064
London Stock Exchange
(TIDM) Code
HFEL
New Zealand Stock
Exchange code
HFL
Global Intermediary
Identification Number (GIIN)
NTTIYP.99999.SL.826
Legal Entity Identifier (LEI)
2138008DIQREOD38O596
Designed by Instinctif. Typeset by 2112 Communications, London.
Printed by Paragon Leycol.
JHI9203/2025
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Awards
2024
JHI9203/2025
Henderson Far East
Income Limited
Consistent income, powered by Asia Pacific growth
Annual Report 2025
Henderson Far East Income Limited – Annual Report 2025