Henderson Far East Income Limited (HFEL) has published its final results for the year ended 31 August 2026, reporting a net asset value total return per share of 26.1% and a share price total return of 26.4%. The Asia Pacific-focused investment trust declared a total dividend of 25.10p per ordinary share, delivering a yield of 9.5% based on a closing share price of 264.50p. Net assets rose to £591.9 million from £407.6 million the prior year, as strong investor demand drove the issuance of 51.3 million new shares raising proceeds of £130.9 million.

Key Points

  • Henderson Far East Income Limited (HFEL), managed by Janus Henderson Investors
  • NAV total return of 26.1% and share price total return of 26.4% for the year ended 31 August 2026
  • Total dividend of 25.10p per share; 19 consecutive years of progressive dividends; net assets of £591.9 million
  • Investors may be watching the 20th AGM on 19 January 2027 and proposed changes to the company's articles of association

HFEL's NAV and Share Price Both Advance 26% as Asian Equities Reach Record Highs

The trust, which invests across the Asia Pacific region seeking both income and capital growth, delivered a NAV total return of 26.1% for the year to 31 August 2026, with a share price total return of 26.4%. The MSCI AC Asia Pacific ex Japan Index, used by the company for comparison purposes only, returned 36.6% over the same period. The announcement states the relative shortfall reflects the portfolio's income bias, which limits direct exposure to low-yielding technology leaders such as TSMC, Samsung Electronics and SK Hynix, which together accounted for more than half of the index's return during the year.

Total Dividend of 25.10p Fully Funded from Revenue Across 19 Consecutive Years of Growth

Henderson Far East Income paid four interim dividends totalling 25.10p per ordinary share in respect of the year ended 31 August 2026, up from 24.90p the prior year, and the company confirmed the dividend was fully funded from revenue with a modest addition to reserves. Revenue return per share rose to 28.16p from 24.98p, while total income increased by 39.8% year-on-year. The announcement states income from option writing increased by 188.8%, driven by heightened Korean market volatility creating favourable conditions for call writing, while income from investments rose by 4.5%. The 9.5% dividend yield is based on the 264.50p closing share price at 31 August 2026.

51.3 Million New Shares Issued Raising £130.9 Million as Demand Exhausts AGM Authority

Investor demand was sufficiently strong during the year that the company sought additional share issuance authority from shareholders in May 2026, having exhausted the authority granted at its annual general meeting earlier that year. In total, 51.3 million new shares were issued, raising proceeds of £130.9 million, contributing to net assets growing from £407.6 million to £591.9 million. The board notes its responsibility to ensure new shares are issued at a sufficient premium to cover issuance costs without requiring new investors to overpay, the announcement states. The trust traded at a premium of 4.5% to NAV at 31 August 2026, compared with 3.4% a year earlier.

AGM Scheduled for January 2027 With Proposed Articles Changes to Strengthen Shareholder Protections

The company's 20th Annual General Meeting will be held on 19 January 2027 at 201 Bishopsgate, London, with a live internet stream available for shareholders unable to attend in person. The board is proposing amendments to the articles of association designed to strengthen shareholder protections, including a provision requiring independent shareholder votes on the appointment of a conflicted investment manager and reinforced director independence provisions. The proposed changes also address share dematerialisation and modernise communication provisions. The board visited Hong Kong and Shenzhen as part of its due diligence programme during the year. The ongoing charge fell slightly to 1.05% from 1.07% the prior year.