Highlights

  • NAV total return rose 12.7%, close to benchmark indices’ performance.
  • Annual dividend increased 1.2% to 24.90p, marking 18 consecutive years of growth.
  • Company issued 17.6M shares, raising GBP 39.1M for further investment.

Henderson Far East Income Limited (NZX:HFL) announced its financial results for the year ended 31 August 2025, reporting a net asset value (NAV) total return of 12.7%, compared with the FTSE World Asia Pacific ex Japan Index return of 14.1% and the MSCI AC Asia Pacific ex Japan High Dividend Yield Index at 13.9%. The share price total return for the same period stood at 13.6%, reflecting improved capital growth performance.

The capital return per ordinary share turned positive at 1.42p, reversing the prior year’s loss of 3.68p. The company’s dividend yield remained strong at 10.8%, maintaining a notable premium compared to peers in the Asia Pacific equity income sector.

Dividend Growth Continues

For the financial year, the company declared four interim dividends totaling 24.90p per share, a 1.2% increase from the previous year. This marks the 18th consecutive year of dividend growth. The dividend was largely covered by portfolio revenues, requiring a reserve contribution of GBP 1.5M.

Management cited that improving corporate dividend growth across the Asia Pacific region supports confidence in sustaining long-term income growth.

Share Issuance and Market Position

During the year, Henderson Far East Income traded at a premium, making it the only constituent in its sector to do so throughout the period. The company issued 17.6M new shares at a premium to NAV, raising GBP 39.1M. Post year-end, an additional 6.3M shares were issued for GBP 15.6M.

The board also confirmed ongoing refreshment plans, with Julia Chapman retiring and Carole Ferguson appointed as Senior Independent Director. Steven Wilderspin joined the board in June 2025 as a non-executive director.

Market Environment and Portfolio Adjustments

The fund managers reported that portfolio performance benefited from exposure to North Asian markets, particularly China, South Korea, and Taiwan, which showed strong rebounds in technology and financial sectors. High-yield holdings such as China Hongqiao, China CITIC Bank, and China Construction Bank contributed positively.

Conversely, Indian and energy sector holdings underperformed, prompting strategic reallocations. The company reduced positions in Australia and India to increase exposure to China, South Korea, and Hong Kong.

Positive Regional Outlook

The company noted a constructive outlook for Asia Pacific equities, supported by technological advancements, growing financial inclusion, and ongoing corporate reforms. It also announced that future reporting will benchmark performance against the MSCI AC Asia Pacific ex Japan Index, reflecting a more balanced growth and income strategy.

Share Performance of HFL

HFL was trading at NZD 5.7200 per share as of 12 November 2025 at the time of writing.