Henderson launches income trust

Henderson Global Investors has launched the Henderson International Income Trust (HINT), with a strategy to invest exclusively outside the UK.

Ben Lofthouse, currently a member of Henderson’s value and income team, has been appointed as manager. He will work with Bill McQuaker, head of multi-manager investment, to determine top-down asset allocation.

Henderson says the trust will be unique, as it will be the only investment trust in the global growth and income sub-sector to invest exclusively outside of the UK, and is pitching the trust at investors looking to diversify their income portfolios.

The trust, which is to be listed on the London Stock Exchange, is designed to generate high and rising dividend levels, as well as capital appreciation in the long term.

Stock selection will combine top down asset allocation with bottom up with ‘best ideas’ contributed by Henderson’s specialist regional managers; Ben Lofthouse (continental Europe), Anthony Gifford (North and South America equities), Mike Kerley (Asia Pacific, including Australasian equities). If allocated, John Pattullo’s retail fixed interest team will select fixed interest securities, including secured loans.

Initially the trust will be invested completely in equities. In some market conditions, there will be some allocation to fixed income securities.

Dividends will look to pay gross dividend at the initial rate of 4p per annum, per share. With a starting yield of 4% paid quarterly and a target to growing the dividend by 5% to 10% per year. Underlying holdings will be designed to support the dividend yield of the company, with no need for permanent levels of gearing.

Asset allocation ranges are as follows: North and South America 10% to 50%, Asia Pacific including Australasia 10% to 50%, Continental Europe 10% to 50%, fixed interest including secured loans 0% to 25%.

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