To provide a high and rising level of dividends as well as capital appreciation over the long-term from a focused and internationally diversified portfolio of securities outside the UK.
ABOUT THIS TRUST
In 2011, Henderson International Income Trust was launched to provide an investment solution for investors seeking attractive income and capital growth opportunities in a low interest rate environment.
The Company invests in one of the best global income ideas, well diversified by sector and region outside the UK, generated by the Janus Henderson Global Equity Income team. Global diversification helps mitigate political and economic risks and provides exposure to additional opportunities. The portfolio is split into three regions, North America, Europe and Asia Pacific, with none representing more than 50% of assets and no individual stock over 5% of the portfolio at the time of investment.
As well as the ability to borrow up to 25% of net assets to enhance returns, the mandate includes the ability to own up to 25% in fixed interest assets to enhance income generation and diversification.
DIVERSIFIER FOR UK INCOME-DRIVEN INVESTORS
The ex-UK aspect of the portfolio allows investors to be confident of true stock specific diversification as many UK investors’ income portfolios are often overweight the UK FTSE dividend payers. The dividends paid by UK companies (represented below by the FTSE 100) are highly reliant on a small number of companies. The same is not the case for a global index or for the HINT portfolio.
Source: Link Group UK Dividend Monitor for the year to December 2020. HINT dividend contribution for the one year period to 31 August 2021.
Source: Refinitiv Datastream (August 2021), Morningstar Direct (August 2021), Figures rebased to 100 as at August 2012.
HINT has an established track record since inception of a growing total annual dividend as well as capital appreciation:
- The dividend has grown from 1p per quarter to 1.80p per quarter since launch (as at 31 August 2021). This is at a greater rate than inflation. The long-term sustainability of dividends is enhanced by the Company’s ability to smooth distributions through the cycle using its reserves.
- The capital value of the Company has increased from 100p at launch to 181.7p as at 31 August 2021