Interim Management Statement

RNS Number : 2848Y

Henderson Diversified Income Ltd

28 February 2012

 



HENDERSON DIVERSIFIED INCOME LIMITED

28 FEBRUARY 2012

HENDERSON DIVERSIFIED INCOME LIMITED

Interim Management Statement

Review of the period from 1 November 2011 to 31 January 2012

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Dividends: a fourth interim dividend of 1.25p per ordinary share in respect of the year ended 31 October 2011, was paid on 30 December 2011 to holders registered on 9 December 2011.

A first interim dividend of 1.25p per ordinary share in respect of the year ended 31 October 2012, was declared on 28 February 2012 and will be paid on 30 March 2012 to holders registered on 9 March 2012.

Share Price:  Over the period the share price declined from 76.8p to 74.5p whilst the share price discount to net asset value widened from -1.8% to -4.9%.

Review: 

Over the three months to 31 January 2012, three month sterling LIBOR increased marginally to 1.08% from 0.99% whereas three month Euribor fell to 1.13% from 1.59% on the back of European rate cuts and support for the banking sector. In January, markets responded very well to the European Central Bank's (ECB's) longer-term refinancing operations (LTROs). Over €210bn of net new money was borrowed by European banks at 1% for three years in December and another unlimited tranche is due on 29 February. This support has materially reduced the systemic risk of a European bank funding crisis. Overall, we remain comfortable with the portfolio's current construction and will continue to pursue our core strategy of sensible carry trades, whilst using credit derivatives opportunistically.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 January 2012

	1 month	3 months	Since launch
Net Asset Value Total Return per ordinary share	4.17	1.76	10.00
Share Price Total Return per ordinary share	5.68	-1.24	4.44

The Fund was launched in July 2007

Source:   Datastream

Financial Position

	at 31 January 2012	at 31 October 2011
Net assets	£66m	£65m
Net asset value (cum income)	78.3p	78.2p
Ordinary share price	74.50p	76.8p
Discount	-4.9%	-1.8%
Gearing	4%	11%
Target Yield	3 month LIBOR + 1.25%*	3 month LIBOR + 1.25%*
Total Expense Ratio (Source: Henderson fact sheet)	1.54%	1.54%

*3 month £ LIBOR was 0.99% on 31 October 2011 and 1.08% on 31 January 2012

Dividends Paid/Declared in Financial Year to date

	Amount	Pay Date	Record Date
Fourth Interim	1.25p	30 December 2011	9 December 2011
First Interim	1.25p	30 March 2012	9 March 2012

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 Jan 2012	at 31 Oct 2011
Alliance Boots (secured loan 05/07/2015 term B2)	UK	2.8%	2.6%
ISS (secured loan 11% 15/06/2014 and FRN 30/06/2015 Second Lien)	Denmark	2.6%	2.3%
RBS Worldpay (secured loan 6/11 TLA and TLB1)	UK	2.5%	2.3%
Bausch & Lomb (secured term loan B)	USA	2.4%	2.3%
Infonxx (secured loan)	USA	2.2%	2.2%
Polyconcept (secured loan 6/11 Ext BR and CR)	France	2.2%	2.2%
Lavena (secured loan FRN 9/04/16 term C1 and 10/04/15 Term B1)	Germany	2.1%	2.1%
Towergate (secured loan FRN 04/08/17 term Loan B)	UK	2.1%	2.0%
Weetabix (secured loan FRN 30/06/15 loan D(X) and (Y))	UK	2.1%	1.9%
Springer (secured loan FRN 01/07/16 Term A1)	Germany	2.0%	2.0%

Sector Breakdown	% at 31 January 2012	% at 31 October 2011
Secured Loans	57.6	57.1
Investment Grade Bonds	18.0	18.3
High Yield Corporate Bonds	21.7	22.0
Equities	2.7	2.6

The objective of Henderson Diversified Income Limited is to provide Shareholders with a high level of income and capital growth over the long term.

The Company aims to deliver these objectives for Shareholders by investing selectively across the full spectrum of fixed income asset classes including, but not limited to, secured loans, asset-backed securities, investment grade corporate bonds, high yield corporate bonds, unrated bonds, gilts, preference and selective high yield equity shares, hybrid securities, convertible bonds and floating rate notes.

Further information on the Company, including an up to date NAV and share price information, can be found at http://www.hendersondiversifiedincome.com

For further information, please contact:

Jeremy Hamon Company Secretary Telephone: [phone]	James de Sausmarez Director Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

Henderson Diversified Income Limited has its registered office at Liberté House, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and it is regulated by the Jersey Financial Services Commission

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

- ENDS -

 

END

 

 

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