Interim Management Statement

RNS Number : 6740F

Henderson High Income Trust PLC

28 April 2011

 



HENDERSON HIGH INCOME TRUST PLC

HENDERSON GLOBAL INVESTORS

28 APRIL 2011

HENDERSON HIGH INCOME TRUST PLC

Interim Management Statement for the quarter ended 31 March 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:  during the quarter the level of bank borrowings was broadly flat and, with investments increasing in value, gearing fell to 27%.  We purchased Drax and Phoenix during the quarter and increased holdings in ITV and John Laing Infrastructure Fund.  Sales included AstraZeneca and Kingfisher.

Gearing: gearing reduced slightly from 28% (at 31 December 2010) to 27% (at 31 March 2011). 

Dividends:  in respect of the year to 31 December 2010, a third interim dividend of 2.075p per ordinary share was paid on 31 January 2011 to holders registered on 17 December 2010.  As announced in our annual results, the Company will not be paying a fourth interim dividend for the year to 31 December 2010, but has, instead, declared a first interim dividend for the year to 31 December 2011 of 2.075p per ordinary share to be paid on 28 April 2011 to holders registered on 8 April 2011.

Discount:  on 31 March 2011 the Company's shares were trading at a discount of 1.78% to the net asset value (on 31 December 2010 the shares were trading at a discount of 1.5% to net asset value).

Share Capital:  during the quarter 250,000 ordinary shares were issued for total proceeds of £322,500.  The number of shares in issue at 31 March 2011 was 89,210,744.

Bank facility:  the Company has agreed a new £41m one year rolling multi-currency facility with ING Bank NV from 31 March 2011 to replace the £35m facility which expired on that date.

Revised management agreement:  the Company has agreed a revised investment management agreement with Henderson Global Investors.  The main changes are:

a)      a new benchmark to be adopted from 1 January 2011 :  80% of the FTSE All-Share Index and 20% of the Merrill Lynch Sterling Non Gilts Index (total return);

b)      a reduction in the notice period from 12 months to six months; and

c)      a revised performance fee to be calculated over one financial year.

Full details of the changes were published on 21 March 2011 in the announcement of the Company's annual results and can also be found in the Company's annual report to 31 December 2010.

New custodian:  the Board has agreed to transfer custody services to HSBC Bank plc.

There are no other material events or transactions to report.                                                  

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 31 March 2011

	3 months	1 year	3 years	5 years
Net Asset Value per ordinary share	+3.7%	+11.2%	+13.4%	+6.0%
FTSE All-Share Index	+1.0%	+8.7%	+17.0%	+20.0%
Merrill Lynch Sterling Non Gilts Index	+1.0%	+5.3%	+20.6%	+21.1%
Benchmark †	+1.0%	+8.0%	+17.7%	+20.2%
High Income sector - size weighted average net asset value	+2.6%	+12.9%	+24.7%	+14.2%

Source:  Henderson Factsheet/Morningstar on behalf of AIC Information Services Limited 

† since 1 January 2011 the benchmark is 80% of the total return of the FTSE All-Share Index and 20% of the total return of the Merrill Lynch Sterling Non Gilts Index.

Financial Position

	at 31 March 2011	at 31 December 2010
Gross assets	£146m	£141m
Net asset value (income-inclusive)	129.3p	127.7p
Ordinary share price	127.0p	124.8p
Discount	1.78%	0.0%
Gearing	27%	28%
Yield	6.5%	6.65%
Total Expense Ratio	0.8%	1.0%

THE PORTFOLIO

Top 10 Investments	% of portfolio			% of portfolio
at 31 March 2011			at 31 December 2010
British American Tobacco	5.3		British American Tobacco	5.4
Vodafone	4.8		Vodafone	4.6
BP	4.0		BP	4.2
National Grid	3.2		HSBC	3.3
HSBC	3.2		GlaxoSmithKline	3.2
GlaxoSmithKline	3.0		National Grid	3.1
Jardine Lloyd Thompson	2.9		Catlin	2.8
Catlin	2.7		Jardine Lloyd Thompson	2.7
Royal Dutch Shell	2.3		Royal Dutch Shell	2.2
Aviva	2.2		Severn Trent	2.2
Top 10 =	33.6%			33.7%

Sector Breakdown	% at 31 March 2011	% at 31 December 2011
Financials	28.1	26.9
Utilities	13.4	12.3
Consumer Goods	10.2	10.5
Industrials	9.7	9.4
Telecommunications	8.6	7.6
Oil & Gas	6.9	7.0
Consumer Services	3.6	5.2
Health Care	3.0	5.1
Technology	0.0	0.0
Fixed Interest	16.5	16.0

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 Director and 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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