Henderson International Income Trust

Buying good companies at attractive valuations

24 January 2024

Henderson International Income Trust (HINT) is meeting its long-term objectives to provide both rising income and capital appreciation. It adopted a more generous dividend policy in 2021 and its 4.7% dividend yield is the highest among its peers. HINT has also delivered average annualised gains of 8.4% in NAV terms over the 10 years ended December 2023. However, the manager’s cautious, balanced stance, which favours value and defensive names and underweights the US, has underperformed recently due to the AI-driven rally in a handful of tech stocks and the improvement in the United States’ economic outlook, which has benefited cyclical names. However, HINT’s manager is using what he believes to be unjustifiably low valuations to add good companies with the capacity to grow dividends, at attractive prices. This includes businesses exposed to structural trends such as decarbonisation and the rapid spread of technology. He expects such acquisitions to outperform as the market comes to fully appreciate their merits. MORE »

Reliable and rising income despite tough times

1 February 2021

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. MORE »

Rising overseas income and solid total returns

9 September 2020

Henderson International Income Trust (HINT) aims to provide UK-based investors with a unique, diversified source of income by investing in overseas markets. It is the only global equity income investment trust to totally exclude the UK market, which has high dividend concentration compared to global markets (see chart below). The manager, Ben Lofthouse, adopts a value-driven approach that targets fundamentally good businesses, with high barriers to entry, sustainable cash flows, solid growth prospects and scope to deliver rising returns over time. The manager has recently purchased some (mainly) investment-grade bonds to further diversify HINT’s income sources. The trust has an established track record of rising income delivery and solid total returns over the longer term. It has also outperformed the UK market since inception. MORE »

Overseas income fund with attractive total returns

20 January 2020

Henderson International Income Trust (HINT) was launched in 2011 with the aim of enabling UK-based investors to diversify their sources of income by investing overseas. As shown in the chart below, the UK market suffers a high degree of dividend concentration, with the top 10 dividend payers accounting for 55% of total UK dividends in 2018 compared with 9% for the top 10 payers globally. Since launch, HINT’s investors have enjoyed total returns of c 10% a year, supported by well-covered dividends that have grown at a compound annual rate of 5.2%. While manager Ben Lofthouse’s value-oriented investment approach has been somewhat at odds with growth- and momentum-driven markets recently, he is finding plenty of attractive investment opportunities. MORE »

New growth plans for overseas income specialist

21 May 2019

Henderson International Income Trust (HINT) has been proposed as the default rollover vehicle in the forthcoming planned liquidation of the Establishment Investment Trust, further cementing its position as a trust with a commitment to achieving the benefits of scale (its assets have grown sevenfold since launch in 2011). It has also recently locked in €30m of long-term borrowing with a low interest rate of 2.43%, which may allow the manager, Ben Lofthouse, to be more adventurous with gearing in his search for income and growth from sustainably financed non-UK companies trading at unwarranted discounts. HINT’s NAV has recovered well from the Q418 market sell-off, and the shares currently yield 3.4%. MORE »

One-stop shop for ex-UK equity income

27 July 2018

Henderson International Income Trust (HINT) invests in companies outside the UK, in order to provide a source of income diversification for investors who may already have sufficient exposure to the domestic market. It is the only fund in the AIC Global Equity Income sector with a specifically ex-UK remit. Relative performance has dipped recently, largely as a result of HINT’s structural underweight to the US, which dominates the MSCI World ex-UK index. However, manager Ben Lofthouse is finding attractive opportunities in less favoured markets such as those in Europe, which could benefit from the asymmetry between their attractive fundamentals and poor investor perceptions. The portfolio is broadly diversified by geography and sector, with a mix of high-yielding stocks and those with superior dividend growth potential. HINT currently yields c 3%. MORE »

Value and income from focused ex-UK specialist

30 November 2017

Henderson International Income Trust (HINT) is the only global equity income investment trust offering a portfolio invested wholly outside the UK. Its aim is to provide a focused yet diversified selection of overseas companies offering attractive, sustainable yields and the potential for both dividend growth and capital appreciation. Manager Ben Lofthouse has recently increased the cyclical bias of the portfolio, seeing attractively valued opportunities in areas such as financial and consumer stocks. The trust is structurally underweight the US versus its MSCI World ex-UK benchmark, with the manager finding better growth and value dynamics elsewhere. Strong recent share price and NAV performance has been achieved with very low gearing and the trust currently yields 3.0%. MORE »

Growing income from all-overseas portfolio

10 May 2017

Henderson International Income Trust (HINT) seeks to provide investors with more diversified sources of income, by investing exclusively outside the UK. Managed by Ben Lofthouse, the trust received a significant boost to its assets in 2016 when it was selected as a rollover vehicle for Henderson Global Trust (HGL). Demand has remained strong, and HINT has recently raised a further £21.5m through a ‘C’ share issue, with the new shares listed on 8 May. The manager focuses on well-managed companies with strong competitive positions and sustainable dividends in order to secure income and long-term capital growth. Absolute performance has been favourable, with annualised NAV and share price total returns of 10%+ since launch in 2011. MORE »

Ex-UK income specialist boosted by rollover

21 June 2016

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. MORE »

Dividends and growth from all-overseas portfolio

16 December 2015

Henderson International Income Trust (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. MORE »

A 'best ideas' portfolio for ex-UK income

21 April 2015

Henderson International Income Trust (HINT) invests outside the UK to provide investors (who may already have sufficient UK exposure) with a high and growing dividend income as well as the potential for capital growth. With 60 stocks drawn from three broad regions – Europe, Asia Pacific and the Americas – its manager describes it as a “global best ideas portfolio”, drawing on the long experience of the firm’s global equity income team. A relatively new trust, launched in April 2011, HINT is the only member of its Global Equity Income sector to exclude the UK, and has outperformed all but one of its peers over one and three years. MORE »

Quarterly income, 4.4% yield with global exposure

9 December 2011

Henderson International Income Trust (HINT), launched in April 2011, is the only investment trust in the Global Growth and Income sector to invest exclusively in securities that are listed outside the UK. While it is too early to conduct a detailed analysis of HINT’s performance, our analysis concludes that it has, on a total return basis, effectively kept pace with Global Ex-UK benchmarks and generated a revenue return of 2.5p per share. To date it has paid dividends totalling 1.4p. We believe it is on target to pay at least a further 4.0p by the end of November 2012, putting it on a prospective yield of 4.4%. In a historical context equities look cheap, relative to bonds, and interest rates seem destined to remain low. Furthermore, the manager believes that there are good prospects for international (ex-UK) dividend growth. MORE »