Half-year results from Henderson Far East Income (HFEL ) demonstrate an early improvement in performance following the decision in November to relax its focus on high yields.

The £373m Asia Pacific trust – for which co-manager Sat Duhra is taking full responsibility once Mike Kerley, its lead manager for 17 years, retires in June – achieved an 8.2% total return in the six months to 29 February according to half-year results.

The increase in net asset value (NAV) beat the 5.1% return from the FTSE World Asia Pacific ex-Japan index, although it lagged the 10% return of the MSCI All Companies Asia Pacific ex-Japan High Dividend Yield index.

Over the past 12 months the NAV has risen 3.4%, somewhat of a turnaround from the 7% decline over three years and the weak 55.7% return over 10 years.

Shares in the 10%-yielder have responded with a 13% advance this year to stand on a 2% premium over asset value. They offer a high 11% dividend yield after the board declared two interim dividends of 6.1p per share, an increase of 1.7% on a year ago.

The investment gain follows a move by the board to adopt a more flexible, total return approach in which Duhra will seek growth as well as high income.

It also reflects the managers’ earlier decision to cut exposure to China, due to what Duhra said were ‘flagging economic growth and an ineffective response to key domestic structural issues’.

Following signs of stabilisation in the country’s property and better consumer and travel data the manager said he had ‘tentatively’ added back to his positions in China, saying they offered ‘compelling valuations’, although he was comfortable at remaining ‘underweight’ compared with his benchmark with a 14% allocation topped up with 11% in Hong Kong.

Duhra added Chinese gaming group NetEase to the portfolio due to its ‘outstanding pipeline of new games, an established reputation in the sector, and the prospect of increasing dividends’.

The best performing country over the six months was India, where 10% is invested, thanks to positive macroeconomic data, robust corporate results, and hopes for continued supportive economic policy after state elections.

Taiwan, where 14.4% was held at 31 March, also performed well thanks to its exposure to technology names, including TSMC and other artificial intelligence (AI) beneficiaries.

Duhra said the government’s corporate governance reforms in Korea, where he has 16.7% invested, were ‘very exciting’ and meant companies were demonstrating higher dividend growth.

‘We remain focused on opportunities arising from this reform with the purchase of insurers DB Insurance and Samsung Fire & Marine and the auto companies Hyundai Motor and Kia Corp,’ he said.

‘All of these companies have performed strongly following the government’s reform announcements.’