Interim Management Statement

RNS Number : 7213R

Henderson High Income Trust PLC

08 November 2011

 



HENDERSON HIGH INCOME TRUST PLC

HENDERSON GLOBAL INVESTORS

8 NOVEMBER 2011

HENDERSON HIGH INCOME TRUST PLC

Interim Management Statement for the quarter ended 30 September 2011

REVIEW OF THE PERIOD

Objective:   the objective of Henderson High Income Trust plc is to invest in a prudently diversified selection of both well-known and smaller companies to provide investors with a high dividend income stream whilst also maintaining the prospect of capital growth.

Portfolio:  The portfolio was not immune to the fall in share prices over the summer months, but has performed better than the FTSE All-Share Index over the period. Dividends being declared by companies continue to exceed analysts' expectations and our largest sectors such as insurance and utilities have been growing distributions. In addition, there have been a number of special dividends declared, including the 4p special dividend from Vodafone which will increase the Trust's income for the year. During the period we have reduced exposure to tobacco stocks as valuations are now high and used funds from sales to increase holdings of telecoms such as BT and Kcom. The proceeds from the Northumbrian Water takeover have now been received and the current market volatility will offer up good opportunities to reinvest the cash before the year end.

Gearing: During the quarter gearing increased from 28% (at 30 June 2011) to 37% (at 30 September 2011).

Dividends: In respect of the year to 31 December 2011, a first interim dividend of 2.075p per ordinary share was paid on 28 April 2011 to holders registered on 8 April 2011.  A second interim dividend of 2.075p per ordinary share was declared on 28 April 2011 for payment on 29 July 2011 to holders registered on 1 July 2011.  A third interim dividend of 2.075p per ordinary share was declared on 28 July 2011 for payment on 31 October 2011. 

Discount:  The share price premium to net asset value narrowed over the quarter from 2.8% to 1.5%.

Share Capital:  On 16 August 2011 the Company issued a further 500,000 new ordinary shares.  The number of shares in issue at 30 September 2011 was 89,710,744 ordinary shares of 5p each.  The Company has no shares remaining in treasury.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 30 September 2011

	3 months	1 year*	3 years*	5 years*
Net Asset Value per ordinary share	-11.9	0.8	20.7	-3.2
Share Price	-14.2	2.5	31.6	-3.4
FTSE All-Share Index	-13.5	-4.4	19.2	4.0
Merrill Lynch Sterling Non Gilts Index	1.7	2.1	28.5	23.7
Benchmark †	-10.5	-4.8	31.8	8.4

Source:  Fundamental Data Ltd on behalf of AIC Information Services Limited 

† the benchmark is a composite of 80% of the FTSE All-Share Index and 20% of the Merrill Lynch Sterling Non Gilts Index.

*The Benchmark prior to 31 December 2010 was FTSE All-Share Index 75% and FTSE All-Stocks Index 25%.

Financial Position

	at 30 September 2011	at 30 June 2011
Net assets	£102.0m	£118.9 m
Net asset value	113.8p	133.3p
Ordinary share price	115.5p	137.0p
Premium	1.5%	2.8%
Gearing	37%	28%
Yield	7.2%	6.1%

THE PORTFOLIO

Top 10 Investments

At 30 September 2011	% of portfolio		At 30 June 2011	% of portfolio
British American Tobacco	6.0		British American Tobacco	5.5
Vodafone	5.3		Vodafone	4.2
National Grid	3.5		BP	3.8
BP	3.5		GlaxoSmithKline	3.2
GlaxoSmithKline	3.4		National Grid	3.1
Northumbrian Water	3.0		HSBC	2.9
BT	2.9		Catlin	2.8
Catlin	2.8		Jardine Lloyd Thompson	2.7
Jardine Lloyd Thompson	2.8		Northumbrian Water	2.5
HSBC	2.6		BT	2.3
	------			------
Top 10	35.8		Top 10	33.0
	====			====

Sector Breakdown	% at 30 September 2011	% at 30 June 2011
Financials	26.3	26.7
Utilities	14.6	14.3
Fixed Interest	13.8	16.1
Consumer Goods	11.9	10.4
Telecommunications	9.9	8.4
Industrials	8.6	10.8
Oil & Gas	6.1	6.0
Consumer Services	4.4	4.1
Health Care	3.4	3.2
Basic Materials	1.0	-
	--------	--------
	100.00	100.00
	=====	=====

The Manager is Henderson Global Investors Limited.   Further information on the Company, including an up to date NAV and share price information, can be found at www.hendersonhighincome.com

For further information, please contact:

Alex Crooke Portfolio Manager Henderson High Income Trust plc Telephone: [phone]

James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]

Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

- ENDS -

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.

 

END

 

 

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