Henderson International Income Trust
Global Equity Income
Rated Fund 2018-20. Targets UK-like dividend yields further afield
Henderson International Income is a strong choice for income-seekers looking for diversification. The investment trust does not invest in the UK and has actively underweighted the strongly performing US market on valuation grounds since 2016. At the end of 2019 the trust had just 31% in the US, compared with the MSCI World ex UK index’s 67%.
This positioning makes it liable to lag its benchmark when the US is doing well – as has been the case since the financial crisis. However, the fund’s bias towards unloved areas of the market puts it in a good position if the shoots of a revival in value stocks blossom this year.
The trust was highly commended in the Best Global Income Trust category of Money Observer’s 2017 trust awards. It targets a similar yield to UK equity income trusts. This makes it interesting for investors who prefer to source UK levels of income elsewhere. It is on a reasonable 3.5% yield and pays income quarterly.
The trust is run by Ben Lofthouse. It offers well-diversified exposure, as none of its three regional portfolios (North America, Europe and the Far East) account for more than half of investments. Lofthouse aims to create a core savings product that does not drift too far geographically. He manages the US and European sections of the portfolio with the support of Janus Henderson’s global equity income team.
Shares in the trust tend not to stray far from net asset value. They have ranged between +5% and -4% over the past three years.
Narrative and ratings content all as of 01 January 2020.See all Money Observer rated funds
|Microsoft Corp||3.70 %|
|Nestle SA||3.30 %|
|Novartis AG||2.92 %|
|Coca-Cola Co||2.62 %|
|Roche Holding AG Dividend Right Cert.||2.51 %|
|Sanofi SA||2.49 %|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||2.40 %|
|Chevron Corp||2.27 %|
|Basf SE||2.20 %|
|Verizon Communications Inc||2.16 %|
|United States||31.52 %|
|Europe - ex Euro||13.15 %|
|Asia - Developed||9.20 %|
|Asia - Emerging||7.64 %|
|Financial Services||19.57 %|
|Consumer Defensive||10.89 %|
|Communication Services||10.25 %|
|Basic materials||6.36 %|
Ben Lofthouse is Head of Global Equity Income at Janus Henderson Investors, a position he has held since 2018. Prior to this, Ben was a director and has been part of the Global Equity Income Team since joining Henderson in 2004. Additionally, he is a Portfolio Manager for the Global Equity Income and Global Dividend & Income strategies and has managed a range of equity income mandates since 2008. Prior to Henderson, Ben worked as an accountant at PricewaterhouseCoopers, where he started his career in 1998. Ben graduated with a BA degree (Hons) in business economics from Exeter University. He is an associate of the Institute of Chartered Accountants in England and Wales (CA) and holds the Chartered Financial Analyst designation.
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