Investment Trust Analyst: Henderson International Income to issue new shares and scale up


#1

Originally published at: https://whichinvestmenttrust.com/investmenttrust-analyst-henderson-international-income-to-issue-new-shares-and-scale-up/

It had a sub-scale launch back in 2011, but its record of delivering a growing dividend away from the concentrated UK stock market to income starved investors has seen it flourish. Fast Facts Invests globally in equities and bonds Focuses on companies paying growing dividends but that are unloved by the market Delivered 12% compounded…


#2

Thanks, I’m a little bit clearer now about this. I’ve got to tell you, that prospectus Henderson have issued is not at all easy to comprehend. They should have issued a guide to that wasn’t written in clingon.

Still not sure if I will buy new shares though. I have a bit of cash doing nothing, not sure if I will put more in to HINT of elsewhere yet, though I would like to see it grow a little bit bigger.

I like the concept behind HINT, but the performance since I’ve owned it hasn’t shot the lights out, though they make a good point in the article about value investing being out of fashion.

It has delivered on the dividend front though, and kept growing the NAV too so they’re doing something right.


#3

I’ve just browsed the prospectus, they certainly don’t make it easy to understand. I’m sure they would offer reasons such as regulation, compliance, but I bet it doesn’t state anywhere in legislation that these documents need to be so bloody incomprehensible to read and understand.


#4

I would have expected the discount to widen when it’s issuing new shares but it’s miniscule, less than 1%.

I’m wondering if some shareholders are buying in the market rather than doing this C share thing.

It’s interesting in the video below the manager of the fund talks about dividend growth being led by the USA but he’s cut his US holdings and increased more in Europe, which hasn’t done so well because of all the elections. I’m thinking this might be a smart move though, Europe ain’t no basket case, shouldn’t be that much cheaper than American surely?


#5

Sounds like the video was filmed in February, and he still had 43% in America then @matts but that’s down to 34% according to the latest factsheet, still quite a lot.

American stocks are expensive so moving some of the portfolio across to Europe sounds like a good idea to me. Despite all the Daily Mail anti Europe nonsense, Europe is doing okay.


#6

I think Henderson International income is a good idea but I don’t think it’s totally proved itself yet. There’s loads of income funds, and if you read the article the manager Ben (something) has written on here, he makes a good case for investing overseas for income. The UK market is shockingly concentrated, so just by owing different income trusts, doesn’t diversify you if they all own the same things, in different orders.

If I needed an income I’d consider it, but as someone who invests in income funds, well, mainly trusts really, I want income and growth to compound over time. I don’t think this trust has demonstrated it’s got it completely right yet. I think it’s just too soon to tell, though I do like its premise, and it is showing some promise.