Henderson Diversified Income is still on the right path as it announces a fee cut


Originally published at: http://whichinvestmenttrust.com/henderson-diversified-income-is-still-on-the-right-path-as-it-announces-a-fee-cut/
It’s one of the biggest dividend payers, and not it’s following investment trust peers in reducing fees, as the income focused trust also seeks to increase its borrowing limits. Henderson Diversified Income (LON:HDIV) is reducing its management fees, with the Board of what is one of the most flexible fixed interest or bond products, seeking…


If it is sustainable that is an impressive yield. I wonder if they are taking much more risk to achieve it?

It’s not a fund you hear much about. I don’t know why it is but there doesn’t seem to be many bond investment trust funds.

This Youtube video of the HDIV manager John Patulo is pretty good. For a Bond manager he almost speaks English…


I am very attracted to this trust too @mikemoore for the dividend income. I am looking for income for my retirement in a few months time and I think this would be a good option as part of a group of different investment funds.

He comes across to me as quite trustworthy. Maybe it’s his Scottish accent, but I think it is more than that.


I think this is a cracking little fund that doesn’t get enough attention. I much prefer this to Strategic Bond funds, though I still hold M&G, this is my preferred holding in that grouping or category.


It would be nice if it wasn’t following the practice of charging the greater part of its management fee to capital, this flattering the income return figure. The charge against capital was just over £0.9 m compared with dividends paid of £5.7m. i.e. a material sum.


Good point, though I remember asking a question about that at an investment fair a couple of years ago @mickbeaman and I was told that you can get your returns either from growth or income but either way it is coming out of the same pop. I had to think that over a little bit but eventually I agreed with them.

I think it is a bit the same with charging fees to income or to capital, I’ll pay it no matter how it’s charged and charging it to both increases the income. Also it seems to have become common in the past couple of years, maybe because everyone is chasing a dividend.