Henderson International Income Trust (LON:HINT) is the only global equity income investment trust offering a portfolio invested wholly outside the UK. Its aim is to provide a focused yet diversified selection of overseas companies offering attractive, sustainable yields and the potential for both dividend growth and capital appreciation. Manager Ben Lofthouse has recently increased the cyclical bias of the portfolio, seeing attractively valued opportunities in areas such as financial and consumer stocks. The trust is structurally underweight the US versus its MSCI World ex-UK benchmark, with the manager finding better growth and value dynamics elsewhere. Strong recent share price and NAV performance has been achieved with very low gearing and the trust currently yields 3.0%.
Investment strategy: International income and growth
HINT’s portfolio of c 70 stocks from outside the UK is selected by Ben Lofthouse, with input from regional specialists in Janus Henderson Investors’ global equity income team. Lofthouse seeks stocks with dividend yields above 2% and the potential for sustainable dividend growth, underpinned by free cash flow generation; strong competitive positions and attractive valuations. The wholly ex-UK portfolio is organised into three regions – North and South America; Europe, Middle East and Africa; and Asia Pacific, including Japan and Australasia, with broadly one-third of holdings coming from each region.
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