As the price falls so the yield rises, now around 6%.

CHAIRMAN’S STATEMENT


Performance.
2025 was a positive year of investment performance for Henderson High Income Trust . The Company’s Net Asset Value (NAV) total return was +20.4% which was broadly in line with the benchmark return of +20.6%. The
share price total return was a little higher at +22.6% as the discount at which the share price traded to underlying NAV narrowed a little during the year, ending the period at 5.7%.
The UK equity market was one of the best performing markets globally in 2025, helped by attractive valuations and corporate activity, although smaller and medium sized companies struggled somewhat versus larger stocks.
This strong market backdrop helped underpin equity returns despite a year characterised by ongoing volatility in financial markets, a pattern established since the arrival of President Trump in the White House. The threat of
tariffs on US trading partners and geopolitical turmoil, offset more positively by the easing of inflation provided a volatile mix but the efforts of global policy makers to start to reduce interest rates helped support equity markets
particularly. Strong ongoing corporate profitability stood in sharp contrast to pressure on government finances, especially in the UK where the corporate sector has been in the firing line of increased taxation to help fund
higher public spending.
Overall, during 2025 the Company’s investment performance was broadly in line with the benchmark return.


Gearing and asset allocation.

Wth the portfolio continuing to favour equities over bonds, were positive relative
influences but this was offset by a negative contribution from equity stock selection in the second half of the year.


Dividends


The Company’s investment objective remains the same, to provide investors with a high dividend income stream while also maintaining the prospect of capital growth. In 2025 company dividends continued to be healthy with
quoted companies delivering good levels of ongoing profitability in spite of the uncertain economic backdrop. It was again pleasing to see that the Company’s overall earnings during the year were sufficient to cover the full year dividend enabling a small amount to be added to revenue reserves.
During 2025 the Board recommended the payment of dividends totalling 10.9 pence per share, an increase of 2.8% over the payment in 2024. This was the 13th consecutive year of dividend growth from the Company.

The Board focuses carefully throughout the year on the revenue projections provided by the Fund Manager and itremains confident that the Company will be able to continue to generate a high level of income for shareholders.