Dividends and growth from all-overseas portfolio
Henderson International Income Trust PLC (L:HINT) is the only investment trust specifically targeting income by investing in companies outside the UK. Launched in 2011, it has provided year-on-year dividend growth and is also building a revenue reserve. While a structural underweight to the US and Japan (because these markets are low yielding) has dented relative performance in the period since launch, the trust has achieved its objective of providing capital and income returns at least equivalent to those available from the FTSE All Share. Manager Ben Lofthouse describes the trust as a “global best ideas” portfolio, with a flexible allocation between three main geographical areas of the Americas, Europe and Asia.
Investment strategy: Seeking dividends and growth
Manager Ben Lofthouse, a member of Henderson’s global equity income team, seeks to construct a portfolio of c 60 stocks, in three regional sub-portfolios (Americas, Europe and Asia), with a focus on finding undervalued companies that may contribute to capital growth, and well-managed, sustainably financed dividend payers with strong free cash flow yields. The portfolio aims to provide diversification for UK investors seeking overseas exposure, and targets a dividend yield at least equivalent to that available on UK equities.
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