Henderson International Income Trust

LN: HINT

Market Cap£324m

Last Close 165.5p

Henderson International Income Trust (HINT) seeks to provide shareholders with a growing total annual dividend, as well as capital appreciation, by investing in a focused and internationally diversified portfolio of c 60–80 stocks that are either listed in, registered in, or whose principal business is in countries that are outside the UK. The portfolio will be made up of shares and fixed interest assets (maximum 25%) that are diversified by factors such as geography, industry and investment size.

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Investment summary

Henderson International Income Trust (HINT) offers UK-based investors a unique source of diversified income, by investing in a portfolio of non-UK shares. It is the only global equity investment trust to totally exclude the UK market, where dividend concentration is high compared to global markets (see chart below). HINT aims to deliver a growing annual dividend and capital appreciation. Manager Ben Lofthouse uses a value-driven approach, focused on companies with strong cash flow and the potential to grow earnings and distributions. Since inception, HINT has delivered steadily rising income and average annualised gains of 7.9% (share price basis). However, it has underperformed its benchmark, the MSCI World ex-UK index recently and longer term, due largely to the index being propelled by US technology giants, while HINT pursues greater geographical diversification and an income- and value-oriented approach. However, HINT is well positioned to benefit if the recent rotation into value stocks continues. The trust has outperformed the UK market since inception.