Henderson High Income Trust plc: Full-Year Results
David Smith, Portfolio Manager of Henderson High Income Trust plc, discusses the full-year results for 2022, including the key drivers of performance, areas where he is finding opportunities, the role of bonds in the portfolio, and the outlook for dividends over the coming months.
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Key takeaways:
- The Company’s net asset value returned -1.9% on a total return basis, outperforming the benchmark’s fall of -3.3%. The overweight to equities versus bonds relative to the benchmark contributed positively to performance, as did the outperformance of individual stocks within the bond portfolio
- The Board declared a dividend of 10.15p per share for 2022, representing a 2.0% increase over the payment in 2021. This marks the 10th consecutive year of dividend growth for the Company.
- Despite the economic uncertainty, the UK equity market remains attractively valued and the focus remains on finding good quality businesses at compelling valuations that can pay and grow attractive dividends
Related insights
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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Important information
Please read the following important information regarding funds related to this article.
- If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
- Some of the investments in this portfolio are in smaller company shares. They may be more difficult to buy and sell, and their share prices may fluctuate more than those of larger companies.
- This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
- Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
- The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
- Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
- The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
- The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
- All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.
Specific risks
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- The Company’s net asset value returned -1.9% on a total return basis, outperforming the benchmark’s fall of -3.3%. The overweight to equities versus bonds relative to the benchmark contributed positively to performance, as did the outperformance of individual stocks within the bond portfolio
- The Board declared a dividend of 10.15p per share for 2022, representing a 2.0% increase over the payment in 2021. This marks the 10th consecutive year of dividend growth for the Company.
- Despite the economic uncertainty, the UK equity market remains attractively valued and the focus remains on finding good quality businesses at compelling valuations that can pay and grow attractive dividends