Henderson Global to merge with Henderson International Income


#1

Originally published at: http://whichinvestmenttrust.com/henderson-global-to-merge-with-henderson-international-income/
The Board of the trust have decided to throw in the towel, and wind the trust up with the option of rolling over in to in a choice of two trusts, but the biggest surprise is that it is happening at all, because Boards rarely vote to exterminate themselves. The Board of Henderson Global Trust…


#2

I don’t think that it is a surprise at all. On the contrary, it is a natural destination for any IT that employs active discount control when that IT is out of favour, whether due to the sector/assets themselves being out of favour, or from manager underperformance. Sell assets in order to buy back shares for long enough and this is what you get.

At the opposite end, you have Personal Assets which has substantially increased the amount of assets under management over the years in order to top the trust from going to a big premium. As a consequence, the investment mandate concerning the dividend has had to change because this became unviable. If mandates are having to be changed in order to facilitate discount control then something just ain’t right.

Discount control might have been seen as the solution as to how to make ITs more ‘retail-investor friendly’, but some trusts are going to rue the day that such a thing came into being, especially as it is now seen as ‘necessary’. Keep an eye on events at JPMorgan Senior Secure Loan Fund.


#3

I am astounded that they have chosen this action and unlike the analysts quoted I don’t think it is a good idea at all.

£150 million isn’t exactly small, and the new manager hasn’t been given a chance to turn this around. Two years just isn’t long enough. I think what he has been doing with this trust is very interesting and I think it would do well in time if it were to be given another 12 months or so.

I am mostly not a big fan discount control policies either @arkwelder, though I do think they suit some, Personal Assets investors being an example.


#4

yes I agree with you there @mammon. I don’t have shares in Henderson Global but it was one I was watching. I liked the manger too, Woulter (or something like that), and his change investing.

I think this would have well if given more of a chance.

He spoke at the seminar that WhichIT and Henderson put on last year and he was really good.