Final Results
Summary by AI BETAClose X
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LEGAL ENTITY IDENTIFIER: 2138008DIQREOD38O596 This announcement contains regulated information
HENDERSON FAR EAST INCOME LIMITED Financial results for the year ended 31 August 2026
Highlights
Investment Objective The Company seeks to provide shareholders with a growing total annual dividend, as well as capital appreciation, from a diversified portfolio of investments in the Asia Pacific region. |
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Performance to 31 August 2026 | ||||
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1 year % |
3 years % |
5 years % |
10 years % |
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NAV total return per share1, 8 |
26.1 |
58.9 |
40.8 |
73.0 |
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Share price total return per share2, 8 |
26.4 |
67.3 |
43.9 |
73.8 |
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MSCI AC Asia Pacific ex Japan Index4 |
36.6 |
76.9 |
55.5 |
154.5 |
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Financial highlights |
at 31 August 2026 |
at 31 August 2025 |
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Shareholders’ funds |
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Net assets (£’000) |
£591.9m |
£407.6m |
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NAV per share at end of year |
253.13p |
223.32p |
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Share price |
264.50p |
231.00p |
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Dividend yield |
9.5%3 |
10.8%5 |
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Ongoing charge |
1.05% |
1.07%6 |
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Premium7 |
4.5% |
3.4% |
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Year ended 31 August 2026 |
Year ended 31 August 2025 |
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Profit/(loss) for year |
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Revenue return (£’000) |
56,836 |
42,680 |
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Capital return (£’000) |
48,178 |
2,432 |
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------------ |
------------ |
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Net total (loss)/profit |
105,014 |
45,112 |
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======= |
======= |
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Total earnings/(loss) per ordinary share |
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Revenue |
28.16p |
24.98p |
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Capital |
23.88p |
1.42p |
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------------ |
------------ |
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Total earnings per ordinary share |
52.04p |
26.40p |
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======= |
======= |
Sources: Morningstar Direct, Janus Henderson Investors
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Chairman’s Statement
Dear Shareholder, Despite a complex geopolitical backdrop and the economic challenges this has created, Asian equities delivered another strong year, extending their outperformance of the S&P 500 as investor confidence in the region’s long-term growth prospects remained firm. Technology stocks provided the principal impetus, supported by continued enthusiasm for artificial intelligence, semiconductors and digital infrastructure, together with growing demand for the advanced components and manufacturing capabilities in which many Asian companies play a leading role. These trends helped to sustain positive momentum across several of the region’s major markets and reinforced Asia’s importance within global technology supply chains.
Conflict in the Middle East heightened concerns over energy security and the potential for disruption to global trade, while renewed volatility in oil and gas prices presented a particular risk for Asian economies, many of which remain heavily dependent on imported fuel. A significant proportion of the region’s oil and liquefied natural gas supplies pass through the Strait of Hormuz, making the security of this strategically important route particularly relevant to the region’s economic outlook.
Nevertheless, Asian markets proved resilient, with the strength of the technology sector and confidence in the region’s structural growth opportunities outweighing these external pressures during the year. Our fund manager capitalised on the opportunities, both in terms of stock selection and weighting, and use of the options strategy.
Performance The NAV total return for the year to 31 August 2026 was 26.1%, with a share price total return of 26.4%.
While we use the MSCI AC Asia Pacific ex Japan Index as a broad baseline measure for performance, I should highlight that the portfolio has an income bias meaning we hold more higher yielding stocks compared to the index. This allows us to achieve our income objective and we therefore expect our performance to differ from the index. The MSCI AC Asia Pacific ex Japan Index delivered a NAV total return performance of 36.6% over the same period, reflecting its greater growth bias and higher holding of AI and technology stocks.
Dividend Four interim dividends were paid in respect of the year ended 31 August 2026, totalling 25.10p per share and delivering a yield of 9.5%. This continues the Company’s track record of returning a progressive dividend for 19 consecutive years.
I am pleased to report that the dividend has been fully funded from revenue, and we have added a modest amount to reserves this year.
Share issuance and rating The Company has once again had a strong year for issuance. Demand from investors wishing to buy shares resulted in a total of 51.3m new shares being issued, raising proceeds of £130.9m. Demand was so strong that we sought additional authority from shareholders in May 2026 to continue issuing shares, as the authority provided at the annual general meeting earlier in the year had been exhausted.
While it is good to know that the Company’s investment opportunity is in demand, the Board is conscious that we also have a duty to ensure that these shares are issued at a sufficient premium to cover the cost of issuance, but not too high a premium so as to make new investors overpay for their shares.
Due diligence visit to Asia The Board undertakes due diligence visits to regions where we focus on particular investment themes. In addition to keeping the Board up-to-date with companies, market changes and analyst thinking these trips allow us to spend time with the Asia based investment team as part of our overall strategic governance framework. These visits provide valuable insights for the Board in terms of the fund manager’s investment and monitoring process and how the fund management team interact with investee companies. Our trip on this occasion was to Hong Kong and Shenzhen.
Annual General Meeting The 20th Annual General Meeting (‘the AGM’) of the Company will be held at 12.30pm on 19 January 2027 at the offices of our investment manager at 201 Bishopsgate, London EC2M 3AE.
The AGM is a great opportunity for shareholders to hear first-hand from the fund manager and to pose questions to both him and the Board.
I encourage as many shareholders as possible to join us at the AGM to vote on the resolutions under consideration, or to complete their proxy form ahead of the meeting.
For those wishing to attend the AGM, but unable to travel, the event will be streamed live via the internet, although shareholders will not be able to vote via this medium.
This year we are proposing changes to the Company’s articles of association with the aim of strengthening shareholder protections and supporting effective governance. We are seeking to introduce a provision requiring the vote of independent shareholders on the appointment of a conflicted investment manager and to strengthen provisions around directors’ independence, with the intention of reinforcing independent oversight of the Company’s business.
Alongside this, we have taken the opportunity to modernise the articles. Amongst other things, these forward-looking amendments will place the Company in a good position to take advantage of technological changes in terms of how we communicate with shareholders and how shares are held and transferred. The proposed changes will also prepare the Company for the dematerialisation of share certificates in the UK market.
I encourage all shareholders to support the adoption of the new articles.
Outlook We believe the case for Asian equities is increasingly underpinned by a range of powerful structural trends. The region sits at the centre of the global expansion in artificial intelligence, semiconductors and digital infrastructure, while growing investment in automation, robotics and advanced manufacturing is strengthening its position in international supply chains. At the same time, the transition towards cleaner energy and transport is creating opportunities across renewable power, battery technology and electric vehicles. These developments are complemented by rising household incomes, urbanisation and the continued growth of the middle class, which should support increasing demand for financial services, healthcare, travel and higher-value consumer goods.
These long-term shifts are likely to develop at different speeds across the region and will inevitably be accompanied by periods of volatility. Geopolitical tensions, changing trade relationships, regulatory intervention and Asia’s reliance on imported energy remain important considerations. Nevertheless, the breadth of the structural changes taking place should continue to create attractive opportunities for companies able to innovate, gain market share and convert growth into sustainable cash flows and dividends.
Against this backdrop, we believe that the fund manager’s disciplined stock selection, focus on sustainable income and flexible use of the options strategy leave the Company well placed to identify the beneficiaries of these trends and to deliver an attractive combination of income and capital growth for shareholders over the long term.
Ronald Gould Chairman 10 November 2026 | ||
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Fund mANAGERS’ REPORT
Introduction Asia entered the financial year with a compelling combination of discounted valuations, strengthening earnings and improving corporate discipline. The region’s persistent valuation gap with the US had become increasingly difficult to justify, and the year provided further evidence that this is beginning to close: Asian equities reached record highs, outperforming the S&P 500. Equally important was the market’s resilience. Conflict in the Middle East, a stronger US dollar, higher bond yields and shifting enthusiasm for artificial intelligence repeatedly tested sentiment, yet none derailed the earnings cycle. Asia is increasingly being rewarded not simply for being cheaper, but for delivering stronger profits, cash generation and shareholder returns.
Market leadership was narrow, but it rested on a powerful earnings cycle. Tight memory-chip supply lifted profits at Samsung Electronics and SK Hynix, propelled South Korea and strengthened the case for the country’s ‘value-up’ reforms. Taiwan captured the same acceleration in AI infrastructure spending, while financials, materials and energy provided more selective support. India and Indonesia lacked a comparable technology engine and were further constrained by softer consumption, weaker foreign investment and less predictable policy. North Asia consequently accounted for a disproportionate share of the region’s return.
Concentrated leadership also made the market more sensitive to positioning. Conflict in the Middle East triggered a sharp risk-off move in March, exposing Asia’s reliance on energy flows through the Strait of Hormuz. The rebound in April and May returned attention to accelerating AI demand, but crowded positions, leverage and harder questions about returns on investment drove a rapid reset in semiconductor valuations in July. August’s recovery confirmed that the AI cycle remains powerful, while also showing that future returns will depend more heavily on converting demand into earnings and cash flow.
Economic performance was equally uneven. China’s first-quarter growth of 5.0% exceeded expectations and producer prices turned positive for the first time in more than three years. However, softer industrial production, retail sales and second-quarter growth showed that the recovery remained fragile. South Korea and Taiwan converted technology exports into stronger corporate profits, while Singapore’s banks combined resilient activity with improving distributions. India faced higher oil prices, a weaker currency and subdued earnings; Indonesia was weighed down by fiscal concerns, intervention in commodity exports and the risk of index downgrades. Both retain long-term potential, but current valuations did not adequately compensate for these near-term risks.
July’s rotation reduced the market’s reliance on AI-led gains and widened the sources of return. As investors cut crowded technology positions, capital moved towards China, Hong Kong and Singapore, where easier financial conditions, resilient bank earnings and rising distributions offered a different return profile. For an income portfolio, this was constructive: it rewarded our exposure to corporate-reform beneficiaries and cash-generative franchises, while reducing dependence on a single, increasingly expensive segment of the market.
Performance For the year ended 31 August 2026, the Company delivered a NAV total return of 26.1%, compared with 36.6% for the MSCI AC Asia Pacific ex Japan Index in sterling terms. The share price total return was 26.4%. The relative shortfall was largely a consequence of index concentration in low-yielding technology leaders. Taiwan Semiconductor Manufacturing (‘TSMC’), Samsung Electronics and SK Hynix generated more than half of the index return, while technology accounted for over three quarters of its advance. The portfolio’s income objective constrained the size of direct holdings in these index heavyweights as AI-related earnings accelerated. Selective holdings supported by our option strategy retained exposure to the technology rally, while the underweights reduced the impact of July’s reversal in crowded positions.
The strongest contributors reflected targeted exposure to that technology cycle rather than benchmark replication. SK Hynix benefited directly from the memory upturn; SK Square provided the same underlying exposure through a holding-company discount; MediaTek added chip-design earnings; and Samsung Electronics preference shares offered access to Samsung’s recovery at a discount to the ordinary shares and with a higher yield. United Microelectronics and TSMC also contributed as stronger demand and improved guidance reinforced the earnings outlook for both mature-node and leading-edge foundry capacity.
Away from the technology rally, company-specific fundamentals played a greater role in returns. CTBC Financial gained as banking margins and wealth-management fees improved. Oversea-China Banking also performed well, supported by expectations of higher interest rates, growth in wealth management, share buybacks and Singapore’s Equity Market Development Programme initiative to raise market valuations. Indonesia remained a drag despite our reduced exposure, as Telkom Indonesia, Bank Mandiri and United Tractors all declined. FinVolution Group and China Hongqiao also detracted and were sold. We exited HDFC Bank after it underperformed amid concerns about corporate governance
This performance pattern illustrates a structural problem for Asian income investors: many of the strongest earnings compounders distribute little cash, while some of the highest yields compensate for weak profits and can become ‘value traps’. We addressed that imbalance through selective holdings in technology leaders, alternative share classes and discounted holding-company exposure, while option premiums supplemented modest dividends. Our aim is to capture the benchmark’s earnings growth without compromising the portfolio’s capacity to generate durable income.
Revenue Total income increased by 39.8% compared with the previous year. Income from investments increased by 4.5%, while income from option writing increased by 188.8%. Revenue return per share was 28.16p, compared with 24.98p in the prior year.
Korean market volatility created unusually favourable pricing for call writing and drove the sharp increase in option income. That contribution should moderate as conditions normalise, but the year demonstrated how temporary dislocations can be converted into distributable revenue.
Call writing does carry a cost when a stock performs more strongly than expected. If the share price rises above the strike, the option generates a loss equal to the difference between the market price and the strike price. This represents profit forgone rather than a cash loss, and it is partly offset by the premium received. As calls are never written on an entire holding at any one time, the portfolio continues to benefit from the rise in the uncovered portion, while exercised options effectively serve as a disciplined means of trimming positions into strength. The strategic benefit extended beyond the revenue itself. Option premiums reduced the need to source income exclusively from conventional high-yield stocks, giving us greater scope to own companies with low current yields but stronger cash conversion and dividend potential. This improved the quality of the income base without abandoning exposure to growth.
Investment income was supported by a significant dividend from Brilliance China Automotive and positive revisions across a broader range of markets and sectors. The composition mattered as much as the headline increase: dividend growth was no longer confined to the market’s traditional high-yield segments, but increasingly reflected stronger balance sheets and rising corporate cash flow.
Policy reform could make that broadening more durable. South Korea’s ‘value-up’ programme is requiring companies to account more clearly for surplus capital; Chinese state-owned enterprises face stronger expectations to raise dividends and repurchase shares; and Singapore is developing its own reform agenda. The significance lies in changing recurring payout behaviour rather than extracting isolated special dividends. With Asian payout ratios still low by international standards, modest improvements in capital discipline could support distribution growth for years.
Portfolio activity Purchases focused on cases where improving earnings could support higher distributions. Our Samsung Electronics position increased exposure to the high-bandwidth memory recovery while remaining consistent with the portfolio’s income objective as they announced a significantly higher distribution. We added Contemporary Amperex Technology as stronger profits and cash generation improved its capacity to return capital, increased Thailand exposure through Advanced Info Service and PTT Exploration and Production, and initiated Keppel to capture value from asset monetisation and the resulting distribution potential. We focused on companies where higher distributions were supported by observable improvements in earnings, cash generation or asset realisations.
Subsequent purchases broadened the portfolio’s sources of earnings and income. Kasikornbank combined surplus capital with scope for special dividends or buybacks. ASUSTeK Computer paired an established hardware franchise and strong balance sheet with growing exposure to enterprise AI servers. By August, higher geopolitical risk had improved the risk-reward in selected resources companies, prompting us to reintroduce BHP and Woodside Energy for their income and exposure to constrained commodity supplies.
Together, the additions balanced near-term income with longer-term distribution growth. Kasikornbank, BHP and Woodside offered surplus capital or established payouts that could support current revenue, while technology holdings such as Samsung Electronics, Contemporary Amperex Technology and ASUSTeK linked future distributions to improving earnings and cash conversion. By diversifying the sources and timing of distributions, the portfolio became less exposed to sector-specific earnings cycles and to high yields unsupported by growth.
Sales were driven by deteriorating financial, operational or policy risk. We reduced India in the first half, exiting GAIL and Power Grid Corporation of India as the macroeconomic and earnings outlook weakened. Trip.com was sold ahead of a regulatory investigation, while Goodman Group and Wesfarmers were realised at our valuation target price. We later exited Bank Negara Indonesia, FinVolution, ANZ Group and Astra International as prospective returns became less attractive, and closed Alibaba and Bank Mandiri where capital requirements or macroeconomic conditions reduced the scope for shareholder distributions. In August, tighter oversight of Indonesia’s mining industry increased the regulatory risk around United Tractors, prompting us to sell the holding.
These decisions materially altered the portfolio’s return profile. Exposure to India and Indonesia fell as growth, policy visibility and earnings momentum weakened. Capital moved towards North Asian technology and financials, selected Thai income opportunities and, later, Australian resources. Technology exposure diversified across a number of areas such as mature-node foundries, chip design and AI servers rather than clustering in the benchmark’s largest stocks. Financial holdings became more concentrated in institutions with surplus capital and visible distribution capacity.
Outlook Asia’s case now rests on more than faster growth and lower valuations. Structural demand is beginning to translate into corporate cash flow: technology investment is lifting utilisation and pricing in selected supply chains; financial inclusion is expanding banks’ addressable markets; and infrastructure spending is creating long-duration revenues. The fact that these gains have emerged despite tighter financial conditions and geopolitical disruption makes the improvement more significant.
AI remains the clearest source of incremental demand, but broad index exposure alone says little about the quality of returns. Asia supplies much of the memory, foundry capacity, chip design, servers and power equipment required for the build-out. The next phase will distinguish companies with pricing power and free cash flow from those whose returns are consumed by capital expenditure. July’s correction began that process, resetting indiscriminate valuations and improving entry points where earnings quality is demonstrable.
Evidence of operating leverage is already emerging. Higher utilisation, firmer memory pricing and a richer product mix are raising margins across parts of the semiconductor and server ecosystem. Where this is accompanied by disciplined investment and strong balance sheets, earnings can support higher distributions rather than another round of unchecked capacity expansion. We therefore favour businesses where AI demand is visible in margins and cash conversion, not merely in larger order books or spending plans.
The opportunity is not confined to technology. Digital distribution is lowering the cost of serving underbanked customers in India, Indonesia and the Philippines, while rising power demand is accelerating investment in grids, generation and renewable infrastructure. Chinese consumer and industrial companies are also becoming more competitive overseas. Meanwhile, reforms in South Korea, China and Singapore are requiring companies to justify surplus cash through productive investment, higher distributions or buybacks. That combination of new earnings pools and tighter capital discipline could matter more for long-term returns than headline GDP growth alone.
For income investors, this combination is particularly attractive. New sources of earnings are emerging just as capital discipline is improving, increasing the likelihood that a greater share of corporate cash flow reaches shareholders. Geopolitics, energy prices, currencies and crowded technology positions will keep returns uneven, but will place a premium on balance sheet strength and dividend resilience. Companies able to fund both reinvestment and rising distributions from growing cash flow should deliver the most durable combination of income growth and capital appreciation.
Sat Duhra Fund Manager 10 November 2026 |
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Investment portfolio as at 31 August 2026 | ||||||
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Rank 2026 |
Rank 2025 |
Company |
Country of incorporation |
Sector |
Value £’000 |
% of portfolio |
|
1 |
- |
Samsung Electronics1 |
South Korea |
Technology |
39,093 |
6.35 |
|
2 |
2 |
Brilliance China Automotive |
China |
Consumer Discretionary |
32,447 |
5.27 |
|
3 |
15 |
MediaTek |
Taiwan |
Technology |
27,981 |
4.55 |
|
4 |
1 |
Taiwan Semiconductor Manufacturing |
Taiwan |
Technology |
26,953 |
4.38 |
|
5 |
23 |
SK Hynix |
South Korea |
Technology |
26,184 |
4.26 |
|
6 |
49 |
China Construction Bank |
China |
Financials |
25,432 |
4.13 |
|
7 |
34 |
Quanta Computer |
Taiwan |
Technology |
19,718 |
3.21 |
|
8 |
- |
United Microelectronics |
Taiwan |
Technology |
19,618 |
3.19 |
|
9 |
31 |
Midea |
China |
Consumer Discretionary |
19,412 |
3.16 |
|
10 |
16 |
New China Life |
China |
Financials |
17,137 |
2.79 |
|
|
|
Top ten investments |
|
|
253,975 |
41.29 |
|
11 |
13 |
CTBC Financial |
Taiwan |
Financials |
16,871 |
2.74 |
|
12 |
- |
Singapore Telecommunications |
Singapore |
Telecommunications |
16,856 |
2.74 |
|
13 |
10 |
Macquarie Korea Infrastructure Fund |
South Korea |
Financials |
16,642 |
2.70 |
|
14 |
- |
ASUSTeK Computer |
Taiwan |
Technology |
16,608 |
2.70 |
|
15 |
5 |
Oversea-Chinese Banking |
Singapore |
Financials |
16,606 |
2.70 |
|
16 |
25 |
SK Square |
South Korea |
Technology |
16,555 |
2.69 |
|
17 |
6 |
United Overseas Bank |
Singapore |
Financials |
16,398 |
2.67 |
|
18 |
- |
Contemporary Amperex Technology |
China |
Industrials |
15,978 |
2.60 |
|
19 |
9 |
Hon Hai Precision Industry |
Taiwan |
Technology |
14,868 |
2.42 |
|
20 |
- |
BHP |
Australia |
Basic Materials |
13,925 |
2.26 |
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Top twenty investments |
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415,282 |
67.51 |
|
21 |
- |
Keppel |
Singapore |
Utilities |
13,141 |
2.14 |
|
22 |
18 |
Bosideng International |
China |
Consumer Discretionary |
12,993 |
2.11 |
|
23 |
- |
Huaneng Power |
China |
Utilities |
11,484 |
1.87 |
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24 |
- |
Woodside Energy |
Australia |
Energy |
11,206 |
1.82 |
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25 |
8 |
Origin Energy |
Australia |
Utilities |
11,143 |
1.81 |
|
26 |
38 |
PT Telkom |
Indonesia |
Telecommunications |
11,011 |
1.79 |
|
27 |
21 |
China Resources Land |
China |
Real Estate |
9,601 |
1.56 |
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28 |
- |
DBS |
Singapore |
Financials |
8,858 |
1.44 |
|
29 |
19 |
PCCW |
Hong Kong |
Telecommunications |
8,799 |
1.43 |
|
30 |
43 |
China CITIC Bank |
China |
Financials |
8,502 |
1.38 |
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Top thirty investments |
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522,020 |
84.86 |
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31 |
24 |
HKT Trust & HKT |
Hong Kong |
Telecommunications |
8,098 |
1.32 |
|
32 |
28 |
DB Insurance |
South Korea |
Financials |
8,085 |
1.31 |
|
33 |
- |
Link REIT |
Hong Kong |
Real Estate |
8,050 |
1.31 |
|
34 |
35 |
Macquarie Group |
Australia |
Financials |
6,778 |
1.10 |
|
35 |
- |
Kasikornbank |
Thailand |
Financials |
6,666 |
1.08 |
|
36 |
- |
LG Corp |
South Korea |
Technology |
6,567 |
1.07 |
|
37 |
30 |
Samsung Fire & Marine |
South Korea |
Financials |
6,250 |
1.02 |
|
38 |
- |
Ampol |
Australia |
Energy |
6,170 |
1.00 |
|
39 |
37 |
Swire Properties |
Hong Kong |
Real Estate |
6,092 |
0.99 |
|
40 |
46 |
HSBC |
Hong Kong |
Financials |
5,837 |
0.95 |
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Top forty investments |
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590,613 |
96.01 |
|
41 |
40 |
SCB X |
Thailand |
Financials |
5,794 |
0.94 |
|
42 |
11 |
First Pacific |
Hong Kong |
Consumer Staples |
5,453 |
0.88 |
|
43 |
- |
Sino Land |
Hong Kong |
Real Estate |
5,334 |
0.87 |
|
44 |
- |
Advanced Info Service |
Thailand |
Telecommunications |
5,257 |
0.85 |
|
45 |
42 |
Kia |
South Korea |
Consumer Discretionary |
4,636 |
0.75 |
|
46 |
39 |
Hyundai Motor1 |
South Korea |
Consumer Discretionary |
4,184 |
0.68 |
|
47 |
53 |
China Forestry2 |
China |
Basic Materials |
- |
- |
|
48 |
- |
SK Hynix Call Option 247 (Expiry 11/09/26) |
South Korea |
Technology |
(3) |
- |
|
49 |
- |
Kia Corp Call Option 161 (Expiry 28/09/26) |
South Korea |
Consumer Discretionary |
(21) |
- |
|
50 |
- |
United Microelectronics Call Option 161 (Expiry 16/09/26) |
Taiwan |
Technology |
(22) |
- |
|
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Top fifty investments |
|
|
621,225 |
100.98 |
|
51 |
- |
MediaTek Call Option 465 (Expiry 11/09/26) |
Taiwan |
Technology |
(26) |
- |
|
52 |
- |
Samsung Electronics Call Option 231 (Expiry 11/09/26) |
South Korea |
Technology |
(26) |
- |
|
53 |
- |
Huaneng Power Call Option 6.68 (Expiry 29/10/26) |
China |
Utilities |
(30) |
- |
|
54 |
- |
Hon Hai Precision Industry Call Option 278 (Expiry 06/10/26) |
Taiwan |
Technology |
(67) |
(0.01) |
|
55 |
- |
Samsung Fire & Marine Call Option 755 (Expiry 28/09/26) |
South Korea |
Financials |
(105) |
(0.02) |
|
56 |
- |
SK Hynix Call Option 199 (Expiry 28/09/26) |
South Korea |
Technology |
(190) |
(0.03) |
|
57 |
- |
SK Hynix Call Option 211 (Expiry 23/11/26) |
South Korea |
Technology |
(266) |
(0.04) |
|
58 |
- |
Samsung Electronics Call Option 248 (Expiry 23/11/26) |
South Korea |
Technology |
(309) |
(0.05) |
|
59 |
- |
DB Insurance Call Option 184 (Expiry 28/10/26) |
South Korea |
Financials |
(401) |
(0.07) |
|
60 |
- |
SK Square Call Option 122 (Expiry 8/09/26) |
South Korea |
Technology |
(784) |
(0.13) |
|
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Top sixty investments |
|
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619,021 |
100.63 |
|
61 |
- |
ASUSTeK Computer Call Option 765 (Expiry 05/10/26) |
Taiwan |
Technology |
(3,855) |
(0.63) |
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Total investments |
|
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615,166 |
100.00 |
- Preferred shares
- Unquoted investment held at £nil
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(% of portfolio excluding cash) |
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(% of portfolio excluding cash) |
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MANAGING RISKS
Principal risks and emerging risks Investing, by its nature, carries inherent risk. The Board, with the assistance of the investment manager, carries out a robust assessment of the principal and emerging risks and uncertainties facing the Company which could threaten the business model and future performance, solvency and liquidity of the portfolio. A matrix of these risks, along with the steps taken to mitigate them, is maintained and kept under regular review. The mitigating measures include a schedule of investment limits and restrictions within which the fund manager must operate. We do not believe these principal risks to have changed over the course of the year.
Investment and strategy Investment objective or policy is not appropriate in the prevailing market or sought by investors leading to a wide discount and hostile/activist shareholders. Poor investment performance over an extended period or inability to maintain the dividend, leading to loss of shareholder value. This may be the result of:
Investment process or mandate restrictions are inappropriate leading to poor stock selection or out-of-scope investments which may negatively impact shareholder value.
Material control The Board periodically reviews the investment objective and policy in line with best practice and taking account of investor appetites. The Board receives regular updates on professional and retail investor activity from the investment manager and the corporate broker to inform themselves of investor sentiment and how the Company is perceived in the market. The Board reviews the KPIs, portfolio composition and diversification, gearing, compliance with the investment mandate limits, the level of premium or discount and changes to the share register at each meeting. The Board considers the AIFM’s Consumer Duty assessment of value annually. The Board determines the overall limit of gearing and option writing and must approve changes to the loan facility and the investment limits and restrictions. The Board maintains an understanding of the fund manager’s investment process and the options strategy. The Board considers the potential for macro-economic events to impact the value of the portfolio. The Audit Committee keeps under review the principal and emerging risks facing the Company.
Operational Selection of inappropriate third-party service providers or failure of, disruption to or inadequate service levels provided by third-party service providers leading to loss of shareholder value or reputational damage. This includes failure to incentivise and retain suitably qualified and competent employees to undertake the Company’s activities and failure to maintain appropriate relationship with regulatory authorities. Service providers maintain inadequate operational controls, resilience and security arrangements covering areas such as information technology systems, money laundering, financial crime, production of marketing materials and similar.
Material control The Board engages reputable third-party service providers after suitable tender processes have been carried out. The Management Engagement Committee formally evaluates the performance, terms of appointment and fees for each third-party service provider at least annually. The Audit Committee receives regular reporting from the investment manager’s Chief Information Security Officer on the firm’s cyber security framework, any material incidents and their oversight of the cyber security arrangements in place at third-party service providers. The Audit Committee reviews the independently tested assurance reports from third-party service providers which set out the effectiveness of the internal controls in place. These include controls relating to information technology and the robustness of recovery arrangements.
Legal and regulatory Loss of investment trust status i.e. section 1158 approval from HMRC or change in taxation regime applicable to investment trusts. Breach of the Company’s articles, or legal and/or regulatory obligations leading to reputational damage, financial penalties and/or suspension of the Company’s listing (includes Companies (Jersey) Law 1991, Collective Investment Funds (Jersey) Law 1988, UK/NZ Listing Rules, Prospectus Rules and/or Disclosure Guidance and Transparency Rules, Alternative Fund Managers Directive, material deviation from UK/NZ governance codes). Legal action brought against Company/directors/investment manager resulting in reputational damage.
Material control The Board reviews investment limits and restrictions which include compliance with provisions set out in the Corporation Tax Act 2010. The Board engages reputable third-party service providers to deliver the Company’s operations. Service levels are agreed and monitored, and the services delivered by the Company’s third-party service providers are undertaken by suitably qualified individuals. The Management Engagement Committee formally reviews the performance, terms of engagement and fees of third-party service providers annually. The Company maintains suitable Directors’ and Officers’ Liability insurance.
Financial Market risk arises from the uncertainty about the future prices of the Company’s investments which may affect shareholder value. Market risk includes market price risk, currency risk and interest rate risk. Liquidity risk or poor capital management may result in the Company being unable to meet its financial liabilities as they become due. Credit risk arising from the failure of a counterparty which could lead to financial loss to the Company.
Material control The Board has limited ability to influence market risk which is driven by external macro-economic factors. The Board determines appropriate investment limits and restrictions with a view to mitigating market risk through diversification and exposure limits, including to counterparties. The fund manager maintains a diverse portfolio (country and sector allocation) with buy/sell disciplines and employs suitable quantitative and qualitative metrics for assessing stocks for inclusion or held within the portfolio. The Board receives management accounts at each meeting enabling it to monitor the Company’s financial position. The Board secures a bank loan facility at competitive interest rates to enhance returns and improve cash flow where required. Transactions involving derivatives are only entered into with investment banks with appropriate credit ratings; investment transactions are carried out by a large number of approved brokers whose credit standard is periodically reviewed and limits are set on the amount that may be due from any one broker, cash is only held with the depositary/custodian or reputable banks.
VIABILITY STATEMENT In keeping with provisions of the Code of Corporate Governance issued by the Association of Investment Companies in 2024 (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;
As well as considering the principal risks and financial position of the Company, the Board has made the following assumptions:
Based on the results of the viability assessment, we have a reasonable expectation that the Company will be able to continue its operations and meet its expenses and liabilities as they fall due for our assessment period of five years. Forecasting over a longer period is imprecise given investments are bought and sold regularly.
RELATED PARTIES The Company’s current related parties are its directors and the investment manager. There have been no material transactions between the Company and the directors during the year, with the only amounts paid to them being in respect of remuneration. In relation to the provision of services by the investment manager, other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with the investment manager affecting the financial position of the Company during the year under review. More details on transactions with the investment manager, including amounts outstanding at the year end, are given in the Annual Report 2026.
Directors’ responsibility STATEMENTS Each of the directors in office at the date of this report confirms that, to the best of their knowledge:
● the Company's financial statements, which have been prepared in accordance with IFRS as adopted by the European Union on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and
● the annual report and financial statements include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.
For and on behalf of the Board
Ronald Gould Chairman |
|
statement of Comprehensive Income | ||||||
|
|
Year ended 31 August 2026 |
Year ended 31 August 2025 | ||||
|
|
Revenue return £'000 |
Capital return £'000 |
Total £'000 |
Revenue return £'000 |
Capital return £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
|
Investment income (note 3) |
42,645 |
- |
42,645 |
40,816 |
- |
40,816 |
|
Other income (note 4) |
28,113 |
- |
28,113 |
9,793 |
- |
9,793 |
|
Gains on investments held at fair value through profit or loss |
- |
52,084 |
52,084 |
- |
4,838 |
4,838 |
|
Net foreign exchange (loss)/profit excluding foreign exchange (losses)/gains on investments |
- |
(1,500) |
(1,500) |
- |
860 |
860 |
|
|
----------- |
----------- |
----------- |
--------- |
---------- |
----------- |
|
Total income |
70,758 |
50,584 |
121,342 |
50,609 |
5,698 |
56,307 |
|
Expenses |
|
|
|
|
|
|
|
Management fees |
(1,885) |
(1,885) |
(3,770) |
(1,417) |
(1,417) |
(2,834) |
|
Other expenses |
(757) |
(757) |
(1,514) |
(698) |
(698) |
(1,396) |
|
|
----------- |
----------- |
----------- |
--------- |
---------- |
----------- |
|
Profit before finance costs and taxation |
68,116 |
47,942 |
116,058 |
48,494 |
3,583 |
52,077 |
|
|
|
|
|
|
|
|
|
Finance costs |
(1,182) |
(1,181) |
(2,363) |
(745) |
(745) |
(1,490) |
|
|
----------- |
----------- |
----------- |
--------- |
---------- |
----------- |
|
Profit before taxation |
66,934 |
46,761 |
113,695 |
47,749 |
2,838 |
50,587 |
|
|
|
|
|
|
|
|
|
Taxation |
(10,098) |
1,417 |
(8,681) |
(5,069) |
(406) |
(5,475) |
|
|
----------- |
----------- |
----------- |
--------- |
---------- |
----------- |
|
Profit for the year and total comprehensive income |
56,836 |
48,178 |
105,014 |
42,680 |
2,432 |
45,112 |
|
|
====== |
====== |
====== |
====== |
====== |
====== |
|
Earnings per ordinary share – basic and diluted (note 5) |
28.16p |
23.88p |
52.04p |
24.98p |
1.42p |
26.40p |
|
|
====== |
====== |
====== |
====== |
====== |
====== |
|
|
|
|
|
|
|
|
|
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. All revenue and capital items in the above statement derive from continuing operations. | ||||||
|
Statement of CHANGES IN EQUITY | |||||
|
|
Year ended 31 August 2026 | ||||
|
|
|
|
Retained earnings / (accumulated losses) |
| |
|
|
Stated share capital £'000 |
Distributable reserve £'000 |
Capital reserves £'000 |
Revenue reserve £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
Total equity at 31 August 2025 |
311,852 |
177,596 |
(111,620) |
29,831 |
407,659 |
|
Total comprehensive income: |
|
|
|
|
|
|
Profit for the year |
- |
- |
48,178 |
56,836 |
105,014 |
|
Transactions with owners, recorded directly to equity: |
|
|
|
|
|
|
Dividends paid |
- |
(771) |
- |
(50,619) |
(51,390) |
|
Shares issued |
130,898 |
- |
- |
- |
130,898 |
|
Share issue costs |
(295) |
- |
- |
- |
(295) |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
Total equity at 31 August 2026 |
442,455 |
176,825 |
(63,442) |
36,048 |
591,886 |
|
|
======= |
======= |
======= |
======= |
======= |
|
|
|
|
|
|
|
|
|
Year ended 31 August 2025 | ||||
|
|
|
|
Retained earnings / (accumulated losses) |
| |
|
|
Stated share capital £'000 |
Distributable reserve £'000 |
Capital reserves £'000 |
Revenue reserve £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
Total equity at 31 August 2024 |
272,708 |
177,596 |
(114,052) |
29,852 |
366,104 |
|
Total comprehensive income: |
|
|
|
|
|
|
Profit for the year |
- |
- |
2,432 |
42,680 |
45,112 |
|
Transactions with owners, recorded directly to equity: |
|
|
|
|
|
|
Dividends paid |
- |
- |
- |
(42,701) |
(42,701) |
|
Shares issued |
39,252 |
- |
- |
- |
39,252 |
|
Share issue costs |
(108) |
- |
- |
- |
(108) |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
Total equity at 31 August 2025 |
311,852 |
177,596 |
(111,620) |
29,831 |
407,659 |
|
|
======= |
======= |
======= |
======= |
======= |
|
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
|
|
31 August 2026 £’000 |
31 August 2025 £’000 |
|
|
|
|
|
Non-current assets |
|
|
|
Investments held at fair value through profit or loss |
621,271 |
439,575 |
|
|
|
|
|
Current assets |
|
|
|
Other receivables |
3,627 |
2,520 |
|
Cash and cash equivalents |
11,751 |
24,685 |
|
|
------------ |
------------ |
|
|
15,378 |
27,004 |
|
|
------------ |
------------ |
|
Total assets |
636,649 |
466,779 |
|
|
------------ |
------------ |
|
Current liabilities |
|
|
|
Investments held at fair value through profit or loss - written options |
(6,105) |
(6,680) |
|
Deferred taxation |
(101) |
(67) |
|
Other payables |
(6,526) |
(2,550) |
|
Bank loans |
(32,031) |
(49,591) |
|
|
------------ |
------------ |
|
|
(44,763) |
(58,888) |
|
|
------------ |
------------ |
|
Total assets less current liabilities |
591,886 |
407,891 |
|
|
------------ |
------------ |
|
Non-current liabilities |
|
|
|
Deferred tax liability on Indian capital gains |
- |
(232) |
|
|
- |
(232) |
|
|
------------ |
------------ |
|
Net assets |
591,886 |
407,659 |
|
|
======= |
======= |
|
Equity attributable to equity shareholders |
|
|
|
Stated share capital |
442,455 |
311,852 |
|
Distributable reserve |
176,825 |
177,596 |
|
Retained earnings/(accumulated losses): |
|
|
|
Capital reserves |
(63,442) |
(111,620) |
|
Revenue reserves |
36,048 |
29,831 |
|
|
------------ |
------------ |
|
Total equity |
591,886 |
407,659 |
|
|
======= |
======= |
|
Net asset value per ordinary share |
253.13p |
223.32p |
|
|
======= |
======= |
|
STATEMENT OF CASH FLOWS |
|
|
|
|
Year ended 31 August 2026 £’000 |
Year ended 31 August 2025 £’000 |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
Profit before taxation |
113,695 |
50,587 |
|
Adjustments for: |
|
|
|
Finance costs |
2,363 |
1,490 |
|
Gains on investments held at fair value through profit or loss |
(52,084) |
(4,838) |
|
Net foreign exchange loss/(profit) excluding foreign exchange losses/(gains) investments |
1,500 |
(860) |
|
Withholding tax on investment income |
(8,975) |
(4,934) |
|
Increase in prepayments and accrued income |
(367) |
(92) |
|
Decrease in amounts due from brokers |
- |
1,618 |
|
Increase in other payables |
4,032 |
1,041 |
|
Decrease in amounts due to brokers |
- |
(1,699) |
|
|
----------- |
---------- |
|
Net cash inflow from operating activities |
60,164 |
42,313 |
|
|
----------- |
---------- |
|
Cash flows from investing activities: |
|
|
|
Sales of investments |
544,008 |
492,486 |
|
Purchases of investments |
(674,195) |
(544,635) |
|
Overseas capital gains tax on sales |
(15) |
(889) |
|
|
------------- |
------------ |
|
Net cash outflow from investing activities |
(130,202) |
(53,038) |
|
|
------------- |
------------ |
|
Cashflow from financing activities |
|
|
|
Loan drawdown |
179,289 |
220,499 |
|
Loan repayment |
(197,800) |
(186,156) |
|
Equity dividends paid |
(51,390) |
(42,701) |
|
Share issue proceeds |
130,269 |
39,021 |
|
Share issue costs |
(351) |
(54) |
|
Interest paid |
(2,363) |
(1,490) |
|
|
------------ |
------------ |
|
Net cash inflow from financing activities |
57,654 |
29,119 |
|
|
------------ |
------------ |
|
(Decrease)/increase in cash and cash equivalents |
(12,384) |
18,349 |
|
|
------------ |
------------ |
|
Cash and cash equivalents at the start of the year |
24,684 |
5,482 |
|
Exchange movements |
(549) |
808 |
|
|
------------ |
------------ |
|
Cash and cash equivalents at the end of the year |
11,751 |
24,684 |
|
|
------------ |
------------ |
|
Net debt |
|
|
|
Cash and cash equivalents |
11,751 |
24,684 |
|
Bank loans |
(32,031) |
(49,591) |
|
|
---------- |
--------- |
|
Net debt |
(20,280) |
(24,907) |
|
|
====== |
====== |
|
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 2026 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS’). These comprise standards and interpretations approved by the International Accounting Standards Board, together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee that remain in effect, to the extent that IFRS have been adopted by the European Union.
The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the revaluation of financial assets and liabilities designated as held at fair value through profit and loss.
The financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£’000) except where otherwise indicated.
Where presentational guidance set out in the Statement of Recommended Practice (the ‘SORP’) 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.
3. Investment income | ||
|
|
2026 |
2025 |
|
|
£’000 |
£'000 |
|
|
|
|
|
Overseas investment income |
42,645 |
40,816 |
|
|
---------- |
---------- |
|
|
42,645 |
40,816 |
|
|
====== |
====== |
|
Analysis of investment income by geography: |
|
|
|
|
|
|
|
Australia |
1,758 |
3,461 |
|
China |
13,930 |
15,306 |
|
Hong Kong |
4,853 |
3,752 |
|
India |
417 |
1,047 |
|
Indonesia |
5,177 |
4,491 |
|
Japan |
- |
126 |
|
Philippines |
128 |
35 |
|
Singapore |
2,469 |
1,599 |
|
South Korea |
4,278 |
4,508 |
|
Taiwan |
4,961 |
5,646 |
|
Thailand |
4,674 |
788 |
|
Vietnam |
- |
57 |
|
|
----------- |
---------- |
|
|
42,645 |
40,816 |
|
All of the above income is derived from equity related investments. |
====== |
====== |
|
|
|
|
|
4. Other income |
2026 |
2025 |
|
|
£’000 |
£’000 |
|
|
|
|
|
Bank and other interest |
442 |
210 |
|
Option premium income |
27,671 |
9,583 |
|
|
--------- |
--------- |
|
|
28,113 |
9,793 |
|
|
===== |
===== |
|
|
|
|
|
5. Earnings per ordinary share The earnings per ordinary share figure is based on the net profit for the year of £105,014,000 (2025: 45,112,000) and on the weighted average number of ordinary shares in issue during the year of 201,800,071 (2025: 170,875,254).
The earnings per ordinary share figure can be further analysed between revenue and capital, as below: | ||
|
|
2026 |
2025 |
|
|
£’000 |
£’000 |
|
|
|
|
|
Revenue profit attributable to ordinary shares |
56,836 |
42,680 |
|
Capital proft attributable to ordinary shares |
48,178 |
2,432 |
|
|
---------- |
---------- |
|
Profit attributable to ordinary shares |
105,014 |
45,112 |
|
|
====== |
====== |
|
|
|
|
|
Weighted average number of ordinary shares in issue during the year |
201,800,071 |
170,875,254 |
|
|
|
|
|
|
2026 Pence |
2025 Pence |
|
|
|
|
|
Revenue earnings per ordinary share |
28.16 |
24.98 |
|
Capital earnings per ordinary share |
23.88 |
1.42 |
|
|
-------- |
--------- |
|
Total earnings per ordinary share |
52.04 |
26.40 |
|
|
===== |
====== |
|
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.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
The total dividends payable in respect of the financial year which form the basis of section 1158 of the Corporation Tax Act 2010 are set out below: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
2026 £’000 |
2025 £’000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenue available for distribution by way of dividend for the year |
56,836 |
42,680 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
First interim dividend of 6.25p (2025: 6.20p) paid 27 February 2026 (28 February 2025) |
(12,270) |
(10,401) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Second interim dividend of 6.25p (2025: 6.20p) paid 29 May 2026 (30 May 2025) |
(12,955) |
(10,714) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Third interim dividend of 6.30p (2025: 6.25p) paid 28 August 2026 (29 August 2025) |
(14,389) |
(11,331) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Fourth interim dividend for the year ended 31 August 2026 of 6.30p (2025: 6.205p) (based on 241,044,679 shares in issue at 30 October 2026) (2025: 188,414,679) |
(15,186)
------------ |
(11,776)
---------- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Undistributed revenue/(transfer from revenue reserve) for section 1158 purposes |
2,036 |
(1,542) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
====== |
====== | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7. Net asset value per share The basic net asset value per ordinary share and the net asset value attributable to ordinary shareholders at the year end calculated in accordance with the articles of association were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
2026 |
2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Net asset value per share pence |
Net asset value attributable £'000 |
Net asset value per share pence |
Net asset value attributable £'000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Ordinary shares |
253.13 |
591,886 |
223.32 |
407,659 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The basic net asset value per ordinary share is based on 233,829,679 (2025: 182,544,679) 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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2026 £’000 |
2025 £’000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Net assets attributable to ordinary shares at beginning of year |
407,659 |
366,104 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Total net profit after taxation |
105,014 |
45,112 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dividends paid |
(51,390) |
(42,701) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Issue of ordinary shares net of issue costs |
130,603 |
39,144 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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591,886 |
407,659 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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8. Stated share capital |
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2026 |
2025 | |||
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Authorised |
Number of shares issued and fully paid |
£’000 |
Number of shares issued and fully paid |
£’000 | |
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Opening balance at 1 September |
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Ordinary shares of no par value |
Unlimited |
182,544,679 |
311,852 |
164,937,179 |
272,708 | |
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Issued during the year |
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51,285,000 |
130,898 |
17,607,500 |
39,252 | |
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Share issue costs |
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- |
(295) |
- |
(108) | |
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Closing balance at 31 August |
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----------------- 233,829,679 ========== |
------------ 442,455 ======= |
----------------- 182,544,679 ========= |
------------ 311,852 ======= | |
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The holders of ordinary shares are entitled to all the capital growth in the Company and all the income from the Company that 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 51,285,000 (2025: 17,607,500) shares for the proceeds of £130,603,000 (2025: £39,144,000) net of costs. No shares were repurchased for treasury in the year (2025: same).
9. Subsequent events On 20 October 2026, the Company announced the fourth interim dividend of 6.30p per ordinary share in respect of the year ended 31 August 2026. The dividend will be paid on 27 November 2026 to shareholders on the register at 30 October 2026 (the record date). The shares traded ex-dividend on 29 October 2026.
As at 9 November 2026, being the latest practicable date prior to the publication of this report, a further 9,425,000 ordinary shares have been issued.
10. Going concern The directors have determined that it is appropriate to prepare the financial statements on a going concern basis and have concluded that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. In coming to this conclusion, the directors have considered the nature of the portfolio, being that the securities held are readily realisable, the size and covenants of the Company’s bank loan and the strength of its distributable reserves. As part of their usual assessment of risks facing the Company, the directors considered the macroeconomic 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 2027.
11. Financial information for 2025 and 2026 The figures and financial information for the years ended 31 August 2026 and 31 August 2025 are compiled from an extract of the financial statements and do not constitute statutory accounts. These financial statements included the auditor’s report which was unqualified.
12. Annual Report 2026 The Company's annual report and financial statements for the year ended 31 August 2026 includes the Notice of Annual General Meeting. The annual report is being published in hard copy format and will be posted to shareholders in November 2026. An electronic copy will shortly be available to view and download from the Company's website: www.hendersonfareastincome.com. Hard copies are available on request from the corporate secretary at ITSecretariat@janushenderson.com.
The fund manager discusses the financial results in a video available at www.hendersonfareastincome.com
The annual report, including the Notice of Annual General Meeting and the form of proxy, will shortly be uploaded to the Financial Conduct Authority's National Storage Mechanism and will be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
13. Annual General Meeting (‘AGM’) The AGM will be held on 19 January 2027 at 12.30 pm. The Board invites shareholders to attend the meeting at 201 Bishopsgate, London EC2M 3AE, or via video conference if preferable. Only shareholders present in person or by proxy will be able to participate in the vote. The fund manager will present his review of the year and thoughts on the future and will be pleased to answer your questions, as will the Board.
Instructions on attending the meeting in person or virtually, and details of resolutions to be put to the AGM, are included in the Notice of AGM in the annual report and are available at www.hendersonfareastincome.com.
14. General Information Company Status The Company was incorporated in Jersey in 2006, number 95064, and is a closed-end investment company. The Company is regulated by the Jersey Financial Services Commission under the Collective Investment Funds (Jersey) Law 1998. It is listed on the London and New Zealand stock exchanges and became UK tax resident with effect from 1 September 2018.
SEDOL/ISIN: B1GXH75/JE00B1GXH751 London Stock Exchange (TIDM) code: HFEL New Zealand Stock Exchange code: HFL Global Intermediary Identification Number (GIIN): NTTIYP.99999.SL.832 Legal Entity Identifier (LEI): 2138008DIQREOD38O596
Directors and Secretary The directors of the Company are Ronald Gould (Chairman), Carole Ferguson (Senior Independent Director), Steven Wilderspin (Chairman of the Audit Committee), Timothy Clissold and Susan Rippingall. The Corporate Secretary is Janus Henderson Secretarial Services UK Limited. The registered office is IFC1, The Esplanade, St Helier, Jersey JF1 4BP. The Company’s principal place of business is 201 Bishopsgate, London EC2M 3AE.
Website Details of the Company’s share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonfareastincome.com
For further information please contact: |
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Sat Duhra Fund Manager Janus Henderson Investors Telephone: 020 7818 5919
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Dan Howe Head of Investment Trusts Janus Henderson Investors Telephone: 020 7818 4458 |
Harriet Hall PR Manager Janus Henderson Investors Telephone: 020 7818 2919 |
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Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement. | |
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