Henderson Int Income - Final Results




Net asset value ('NAV') per share at year end



Net assets



Dividend in respect of year1



Dividend yield for the year2



Ongoing charge for year



Gearing at year end



Share price at year end



Shares in issue at year end




The Company's investment objective is to provide shareholders with a growing total annual dividend, as well as capital appreciation.


The Company will invest in a focused and internationally diversified portfolio of 50-80 companies that are either listed in, registered in, or whose principal business is in countries that are outside the UK and will be made up of shares (equity securities) and fixed interest asset classes that are diversified by factors such as geography, industry and investment size. A maximum of 25% of gross assets may be invested in fixed interest securities. The Company does not hold investments in unlisted companies unless it is through subsequent delisting of a listed security.

Investment in any single company (including any derivative instruments) will not, in gross terms, exceed 5% of net assets at the time of investment and no more than 15% of gross assets may be invested in other listed investment companies (including investment trusts) or collective investment schemes. No more than 10% of gross assets may be invested in companies that themselves invest more than 15% of their gross assets in UK listed investment companies or collective investment schemes.


Performance and markets

The net asset value ('NAV') per ordinary share (on a total return basis) has increased by 5.9%. The return on the ordinary share price (on the same basis) was 5.6%. These returns compare to a total return of 13.4% for the MSCI World (ex UK) Index (sterling adjusted).

The global economy has continued its steady growth over the period, which is driving good dividend growth and capital returns from the portfolio.

The impact of rising interest rates in the US does not appear to have slowed economic growth and sentiment has been buoyed by significant cuts in US corporate tax rates.

Global economic growth has strengthened, and political events continue to play a significant part in equity markets' performance. The second half of the Company's year has seen a sharp divergence between the relative performance of the US equity market and the rest of the world. The list of political events is long, ranging from a new Italian political coalition, through to emerging market crises in Argentina and Turkey. The newest challenge to the status quo is the US President's determination to change the terms upon which the US trades with the rest of the world.  Whilst the Company has achieved both capital and income growth over the last twelve months, this uncertainty has impacted the performance of the Company relative to its benchmark as a result of the Company's significant weights in higher yielding non-US equities.

Currency can have an impact on the Company's performance as it reports in sterling but has no sterling assets. In the first half of the year sterling strength was a drag on total return, but subsequent weakness neutralised the impact over the financial year.


It is not an easy environment for investors. Interest rates remain low in most major developed economies, and whilst current economic data suggests continuing, albeit moderate, economic growth, Brexit and political developments both close to home and further afield threaten major changes to trading relationships and economic alliances. However, the Company has a very flexible mandate, allowing it to change sector, geographic and even asset exposure in response to changes in the environment. Unused capacity in the current level of gearing provides the potential to take advantage of any opportunities that present themselves as a result of political uncertainty. In the meantime, we judge that well positioned, cash generating, companies with good dividend yields will remain attractive to investors seeking growing income streams and the potential for capital growth.

Simon Jeffreys


29 October 2018