Annual Overview from QuotedData

Henderson High Income Trust PLC

12 September 2023

 

Henderson High Income - Annual overview from QuotedData

12^th September 2023

There's value in value

Thanks to the combination of both high-yielding stocks and debt within its portfolio, Henderson High Income (HHI) gives its manager, David Smith, the toolkit he needs to navigate the higher inflationary environment that has dictated the fortunes of the UK stock market. David has greater ability to find investments with sufficient income payments to keep up with rising prices.

David believes that despite the recent macroeconomic uncertainty, the current market outlook could be supportive for HHI's portfolio of companies which trade on comparatively lower valuations. History suggests that the combination of high inflation and a resilient UK economy may be a boon for the UK market and value stocks.

David has taken a cautious approach to asset allocation, increasing HHI's allocation to fixed income, which is generally viewed as lower risk than equities. He is confident that HHI's underlying revenues will be sufficient to support its income growth. We note that with a dividend yield of more than 6% and the potential for near-term net asset value (NAV) uplifts, HHI stacks up favourably when compared with many of the higher-yielding assets that the higher-interest-rate regime has produced, such as cash deposits and government bonds.

Full Research:

https://quoteddata.com/research/henderson-high-income-theres-value-in-value-qd/

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NB: Marten & Co was paid to produce this note on Henderson High Income Trust Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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