HENDERSON FAR EAST INCOME LD

Fund Information / Factsheet • Apr 23, 2025

HENDERSON FAR EAST INCOME LIMITED (HFEL) ISIN: JE00B1GXH751

Factsheet - at 31 March 2025

Marketing Communication

Share price performance (total return)

Price (rebased) NAV (cum income)

Dividend history

Performance over (%)	6m	1y	3y	5y	10y
Share price (Total return)	-3.1	7.6	-1.8	20.5	33.9
NAV (Total return)	-2.7	1.2	-6.1	18.2	33.4

All performance, cumulative growth and annual growth data is sourced from Morningstar.

Source: at 31/03/25. © 2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.

Commentary at a glance

Contributors/detractors China Hongqiao Group was the key positive contributor to performance. Taiwan Semiconductor Manufacturing Company was a key detractor.

Outlook

We are observing significant opportunities to accumulate quality companies that have been growing their earnings and increasing their dividends across many of our markets.

See full commentary on page 3.

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Company overview

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.

Highlights

A portfolio of value orientated Asia Pacific equities with a focus on cash flow generation from companies with the ability to sustain and grow dividends.

Company information

NAV (cum income)	209.1p
NAV (ex income)	203.0p
Share price	214.5p
Discount(-)/premium(+)	2.6%
Yield	11.5%
Net gearing	3%
Net cash	-
Total assets Net assets	£391m £356m
Market capitalisation	£365m
Total voting rights	170,224,679
Total number of holdings	73
Ongoing charges

(year end 31 Aug 2024) 1.08%

Benchmark -

Source: BNP Paribas for holdings information and Morningstar for all other data. Differences in calculation may occur due to the methodology used.

Please note that the total voting rights in the Company do not include shares held in Treasury.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to the glossary for the definition of share price total return.

How to invest

Go to www.janushenderson.com/howtoinvest

Find out more Go to www.hendersonfareastincome.com

HENDERSON FAR EAST INCOME LIMITED (HFEL) ISIN: JE00B1GXH751

Factsheet - at 31 March 2025

Marketing Communication

Top 10 holdings	(%)
China Construction Bank	3.6
Oversea-Chinese Banking	3.5
Brilliance China Automotive	3.3
China CITIC Bank	3.3
Macquarie Korea Infrastructure Fund	3.0
DB Insurance	2.9
Taiwan Semiconductor Manufacturing	2.8
United Overseas Bank	2.7
First Pacific	2.7
MediaTek	2.7

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Geographical focus (%) China 24.7% South Korea 16.0% Australia 15.8% Taiwan 11.2% Hong Kong 10.6% India 7.7% Singapore 7.2% Indonesia 4.9% Japan 1.9%

The above geographical breakdown may not add up to 100% as this only shows the top 10.

The above sector breakdown may not add up to 100% due to rounding.

10 year total return of £1,000

All performance, cumulative growth and annual growth data is sourced from Morningstar. Share price total return is calculated using mid-market share price with dividends reinvested.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to the glossary for the definition of share price total return.

Key information

HFEL
AIC Asia Pacific Equity Income
-
Conventional (Ords)
2006
31-Aug
May, August, November, February
0.75% of net assets pa
No
(See Annual Report & Key Information Document for more information)
Asia Pacific ex Japan
Sat Duhra 2019

-4 -2 0 2 4 6

Premium/(discount) of share price to NAV at fair value (%)

Go to www.janushenderson.com/howtoinvest

Customer services 0800 832 832

Factsheet - at 31 March 2025

Marketing Communication

Fund Manager commentary Investment environment

Asian equities fell in March given investor concerns about US economic growth and trade tariffs.

Chinese equities performed negatively in sterling terms, but rose in US dollar terms due to foreign exchange fluctuations. Sentiment towards China was bolstered by continued excitement about artificial intelligence (AI) and promises of further government stimulus. However, consumer price rises turned negative for the first time since early 2024, intensifying deflationary pressures. There was a sell-off in technology shares later in the month, amid waning investor enthusiasm and the threat of delisting from US stock exchanges, while worries about rising trade tensions with the US unsettled investors.

Indian equities rebounded strongly as investors took advantage of reduced share price valuations following months of declines, with the country's central bank increasing liquidity in the banking system in an effort to ease borrowing conditions and bolster the economy.

In Taiwan, equities slumped as US tariff threats and anxiety about the economic outlook rattled the market. South Korean stocks also declined, although some favourable economic news – retail sales rebounded in February and inflation slowed in the same month – provided some respite.

In Singapore, equities dropped in sterling terms and increased in US dollar terms, with the benchmark FTSE Straits Times Index hitting another record high given that it is considered more defensive amid the global volatility.

By sector, the information technology (IT) sector was the weakest, dragged down by weakness in Chinese and Taiwanese large-cap technology stocks, while materials performed the best in March.

Portfolio review

The holdings in Taiwan Semiconductor Manufacturing Company (TSMC) and Brilliance China Automotive detracted from performance. TSMC was a key detractor as investors continued to be nervous about elevated valuations in the technology sector following the release of low-cost AI models such as DeepSeek. Shares in Brilliance China weakened after its full-year earnings declined significantly.

Conversely, leading positive contributors were China Hongqiao Group and GAIL. Shares in aluminium producer Hongqiao rose after 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. The company has been improving shareholder returns through its extensive share buybacks and high dividend pay-out ratio. The share price of GAIL, India's largest natural gas distributor, rose after speculation that the company might benefit from the proposed changes to the natural gas pipeline tariff regulations by the Petroleum and Natural Gas Regulatory Board.

During the month, we initiated a new position in stateowned Industrial Bank of Korea. We find the bank attractive as its 'Value-Up Plan' has led to a progressive dividend policy. Elsewhere, we exited the position in China Resources Land following recent outperformance.

Manager outlook

While souring global trade relations and challenges faced by China have been dominating headlines, there are still numerous bright spots, with India, Indonesia, Taiwan and South Korea providing strong exposure to growth themes in the region. Companies in these countries are also demonstrating evidence of dividend growth. Areas such as Indonesian banks, firms exposed to South Korean corporate reform and Taiwanese technology firms are providing high and growing dividends. If the recent stimulus measures in China manage to spur industrial and consumption activity, we think this, along with interest rate cuts in 2025, may provide a boost to Asian markets.

The economic growth differential between Asia and the rest of the world remains wide and valuations continue to be attractive in our view. As a result, we are observing significant opportunities to accumulate quality companies that have been growing their earnings and increasing their dividends across many of our markets. The outlook for dividends in the region remains robust as positive free cash flow generation alongside the strength of balance sheets – with record cash being held by corporates – provides a strong backdrop across a number of sectors and markets across the region.

HENDERSON FAR EAST INCOME LIMITED (HFEL) ISIN: JE00B1GXH751

Factsheet - at 31 March 2025

Marketing Communication

Glossary

Discount/Premium

The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

Gearing

The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.

Leverage

The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.

Market capitalisation

Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.

Net Asset Value (NAV)

The total value of a Company's assets less its liabilities.

NAV (Cum Income)

The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV (Ex Income)

The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV total return

The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Net assets

Total assets minus any liabilities such as bank loans or creditors.

Net cash

A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.

Net gearing

A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.

Ongoing charges

The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

Share price

Closing mid-market share price at month end.

Share price total return

The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.

Total assets

Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.

Yield

Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.

For a full list of terms please visit: https://www.janushenderson.com/en-gb/investor/glossary/

Factsheet - at 31 March 2025

Marketing Communication

Source for fund ratings/awards

Overall Morningstar Rating™ is shown for an investment company achieving a rating of 4 or 5.

Company specific risks

• This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
• Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
• The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
• Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
• The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
• If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
• The Company has significant exposure to Emerging Markets, which tend to be less stable than more established markets. These markets can be affected by local political and economic conditions as well as variances in the reliability of trading systems, buying and selling practices, and financial reporting standards.
• The portfolio allows the manager to use options for efficient portfolio management. Options can be volatile and may result in a capital loss.
• Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
• The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
• All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority), Tabula Investment Management Limited (reg. no. 11286661 at 10 Norwich Street, London, United Kingdom, EC4A 1BD and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 78, Avenue de la Liberté, L-1930 Luxembourg, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).

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Henderson Far East Income Limited is a Jersey fund, registered at IFC-1 The, Esplanade, St Helier JE1 4BP, Jersey, and is regulated by the Jersey Financial Services Commission