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
Name
Henderson International Income Trust
Manager
Janus Henderson Investors Ltd
Type
Closed Ended Investment Company
ISIN
GB00B3PHCS86
Sector
Global Equity Income
Launched
28/04/2011
OCF
0.84 %
Risk Rating
3
3 Year Sharpe
0.34
3 Year Alpha
0.78
Yield
3.7 %
Benchmark
MSCI World Ex UK GR USD
Fund Size
£ 246.67 million
NAV
134
Gearing
110
Discount Premium
0
The Company seeks to provide Shareholders with a growing total annual dividend, as well as capital appreciation from a focused and internationally diversified portfolio of securities outside the UK. The portfolio is expected to be diversified by factors such as geography, industry sub-sector and investment size. The Company will not invest in issuers whose securities are, at the time of investment, listed only in the UK. The portfolio will be made up of interests in 50-80, with no single investment accounting for more than 5% of NA at the time of investment.
Holding %
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 %
Region %
United States 31.52 %
Eurozone 30.97 %
Europe - ex Euro 13.15 %
Asia - Developed 9.20 %
Asia - Emerging 7.64 %
Sector %
Financial Services 19.57 %
Technology 14.21 %
Healthcare 13.24 %
Consumer Defensive 10.89 %
Communication Services 10.25 %
Energy 7.39 %
Industrials 6.56 %
Basic materials 6.36 %
Name
Janus Henderson Investors Ltd
Address
EC2M 3AE, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Ben Lofthouse
Joined 04/15/2011

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.

Data provided by Morningstar.

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