Take the HINT and diversify your income by going global says Henderson’s Lofthouse


#1

Originally published at: http://whichinvestmenttrust.com/take-the-hint-and-diversify-your-income-by-going-global-says-hendersons-lofthouse/

The UK has famously has a high dividend paying culture, but much of the income is concentrated in a small number of companies, Henderson International Income offers global income, and is a beneficiary of a post-Brexit boon due to the fall in Sterling. Fast Facts Invests in global equities and bonds Focuses on companies paying…


#2

I wouldn’t buy this on a premium but I think I’ll keep an eye on it for when it comes down a bit. They should keep issuing more shares, because after all it isn’t fair on people who want to invest but don’t want to get caught out buying on a temporary premium.

I sometimes think that investment trusts don’t care enough about controlling their premiums.


#3

They make a really good point about the dividends in the UK coming from so few companies. A fried on mine is a bit of a whiz with Morningstar software. He put my portfolio through them just over a year ago, I invest in a lot of income trusts and funds at the time, and I was shocked at just how much of I owned of the same big companies like BP, Shell, Barclays etc via several different funds/trusts.

I sold out of a lot of my investments since then. I have a small holding in HINT, and although the value overall hasn’t grown much, the dividend is good, and that’s what i want it for. I’d like to add to it now I’m more comfortable with it but like @andytheinvestor I don’t want to buy it on a premium.

Another I’d recommend you have a look at from the Henderson stable too is Henderson Diversified income. It’s a bond fund but it’s a little bit cleverer than a normal bond fund because it can invest in an inflation protected bond most bond funds cant invest in or are restricted from investing in. You can find out more about it here: http://whichinvestmenttrust.com/diversified-income-henderson/


#4

Yeah I am aware of Henderson Diversified Income @steve , it is an interesting little trust, though hard to get your head around, they tend to speak gobbledygook. I watched the video with the young guy, he was a bit easier to understand the the older Scottish manager.

I hold five Henderson trusts already, so I think I subconsciously thought maybe that’s enough from one company but the 5.3% dividend even on a 3% premium looks pretty enticing.


#5

50% of all US jobs could disappear as a result of technology, according to that young fund manager in the video - that’s a scary prospect!

…on to HINT, I don’t the performance is good enough here. The income is ok but not amazing, you can better elsewhere, and it’s not been a great performance at the share price lever.

I would like to see his value style actually working. It could be he’s all talk, saying he’s a value manager, when in fact he’s a momentum manager. The jury is out for me on this one.


#6

I think the Henderson Diversified fund manager is actually quite hot, I don’t usually fancy fund managers :kiss:


#7

Originally published at: http://whichinvestmenttrust.com/henderson-international-income-considering-issuing-new-shares/

The trust grew substantially last year as a result of a merger which has improved its attractiveness to investors looking for alternative sources of income away from the concentrated UK stock market. Henderson International Income portfolio by geography Henderson International Income (LON:HINT) is considering issuing new shares via a C-share issue, which is an additional…


#8

Unfortunately, this trust hasn’t provided anything extra over an etf (taking Vanguard high dividend yield as an example) and has under-performed markedly when I compare on my charting software, by about 10% since 2014. It is up to active managers to outperform passive if they want to stay in business. Surely. It makes it difficult sometimes to make the arguments as to why I should go with active…


#9

I have a holding in HINT for the dividend @archelaus so I am interested in your comment about them performing less well than an EFT.

I don’t actually own any ETFs though I agree that I would want HINT to do better than an ETF. The only question that is popping up in my mind is over what timescale are you referring to?

I ask this because my worry about ETF’s, and I am not an expert on this, is, I have read that an issue with them is that you’re buying yesterday’s winners, and if the market is changing you might lose out big time. So, for me at least the timescale is key. I’m investing until I retire in 2025 (or maybe later).


#10

Hi, first things first I’m certainly no expert and am sure there are pluses and minuses from both approaches. My performance comparison is from 2014 to now and I simply placed the ETF on a chart of HINT using a website like investing.com which allows you to make performance comparisons (TradingView also allows it). There’s not much in it and if you juggle the starting dates sometimes HINT comes out on top and it pays a marginally better dividend. I suppose for the buy and hold investor the extra cost on purchase (stamp duty) that is not incurred with the ETF doesn’t really matter. I guess my point is that I believe that all the hype from the IT world about how much better they are they should be beating the passive every time by a considerable margin. After all, isn’t that what we are paying them for? I guess, there is something of the trader in me and I don’t think I could hold through a substantial bear market. In that light I can see how an ETF might suit me perhaps better than an IT due to the lower costs if I want to buy and sell it. For example, I would pay 6 pounds with my broker to buy Vanguard High Dividend on a 40000 pound purchase while the stamp duty on the IT for the same amount would be 200 quid plus the 6 pound commission. It is a consideration surely. If the government abolished this unjust (imo) tax I am sure I would consider IT’s in a much more favorable light as I don’t like paying any tax I don’t have to. Sorry to be so long-winded!


#11

I have just sold my holding in HINT after a total return of 32% since purchase.

I tend to agree with @archelaus, that performance has been ok but no better than ETFs out there. I’ve compared against GBDV and MINV.

Even looking at the last few HINT reports shows a consistent underperformance against the benchmark, since launch HINT achieved 91.2% vs benchmark 112.9% (at the last half year report).

I think I would prefer a more active distinctive approach like Murray International (MYI) combined with a low cost ETF like GBDV/MINV.

The trust approach of growing assets and then reducing the ongoing charge has been good - but I’m just not convinced on the performance.

Given the current small discount and generally high global stock markets I don’t think its a good time to buy at the moment.


#12

Hi. I don’t know when you bought your HINT but I would like to posit that most of many peoples gains, particularly since 2014, have been due almost solely to the decline in GBP and the fact that investment trusts like this one are invested in mostly non-UK assets The same applies to the ETF’s too). The Pound has declined about 30% since 2014 and any foreign assets especially if priced in USD) have provided protection against this while not really offering any real gains except of course the dividend. Still, a 32% percent gain is better than a kick in the teeth!!


#13

I certainly agree with that @archelaus, I’d take a 32% gain any day before my teeth are kicked in!

I own HINT too but I’m a bit more relaxed about the performance than you and @scjim. Have you read the new article on it (link below).

They make a good point about its value style having been out of fashion the past few years, and, perhaps, coming in to fashion now. There’s no certainty of course.

What I value with HINT is it has kept growing its dividend and the NAV, even whilst value investing hasn’t been in vogue.