The retirement was announced in the Henderson Far East Income (HFEL) trust's results for the year ended 31 August 2023, which were released today (30 November).
Kerley, who has managed the trust since January 2007, will be replaced as lead manager by Sat Duhra, who has been a co-manager on the trust since June 2019.
"The board has full confidence in Sat's ability to manage the portfolio going forward, and he has been part of a long-standing succession plan," the trust said.
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HFEL's returns have fallen below the benchmark in recent years, with share price falling 10.9% and net asset value dropping 9% over the last five years, compared to 25.4% growth in the MSCI AC Asia Pacific ex Japan High Dividend Yield index, according to its results.
The NAV has declined significantly over the last year, falling from £435.6m to £362m. Meanwhile, the trust reported a net loss of £56.2m over the last year, compared to a net profit of £8m for the year before.
The trust's board said it had been working closely will the managers to "address our capital performance challenges and devise an effective path forward", with Kerley's retirement being a "part of this process".
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Kerley joined Janus Henderson in 2004, having previously been a director of Asia Pacific Equities at F&C Asset Management and a fund manager at Invesco Asset Management for 18 years.
He was a manager on three other funds, the Bankers investment trust, the Janus Henderson Horizon Asian Dividend Income fund and the Janus Henderson Asian Dividend Income Unit trust. Duhra is also manager on the latter two of the funds.
Investment Week contacted Janus Henderson for clarification of its plans regarding the management on Kerley's three other portfolios mentioned above.
Kerley started managing Bankers last year, when he was made deputy to Alex Crooke. He previously managed the Janus Henderson Pacific and Janus Henderson Asia Pacific Capital Growth funds.
"Mike has played a critical role in the company's historical development and the board would like to thank him for his many contributions over the years and wish him well in all his future endeavours," the trust added.