Edison issues research review on Henderson International Income Trust
OREANDA-NEWS. Henderson International Income Trust (HINT) seeks a high and growing income as well as capital growth potential; it is unusual in that it invests exclusively outside the UK. The trust has produced annualised total returns (NAV and share price) of 8-9% since launch in 2011 and is comfortably ahead of most peers over one, three and five years. Following the rollover of stablemate Henderson Global Trust (HGL) in April 2016, HINT has doubled its asset base, which should widen its appeal to some investor groups, as well as reducing the impact of fixed costs. Manager Ben Lofthouse currently favours European companies over those in the Americas and Asia, with continental stocks making up almost half the portfolio at 31 May.
HINT's shares are trading at a 2.7% premium to cum-income NAV. This could be seen as a resumption of 'normal service' (the average premium since launch is 0.8%) following a period earlier in 2016 when the discount widened to an all-time high of 9.2% (at 1 March). This should be seen in the context of generally wider discounts on investment trusts in Q116, reflecting investor risk aversion amid market volatility. Since the completion of the HGL rollover on 26 April, the discount to cum-income NAV has averaged 1.7% (ex-income average of 0.5%).
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