Interim Management Statement

RNS Number : 1607Q

Henderson Diversified Income Ltd

27 August 2014

 



HENDERSON DIVERSIFIED INCOME LIMITED

27 AUGUST 2014

HENDERSON DIVERSIFIED INCOME LIMITED

Interim Management Statement

Review of the period from 1 May 2014 to 31 July 2014

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Dividends: A second interim dividend of 1.25p per ordinary share in respect of the year ended 31 October 2014, was declared on 27 May 2014 and was paid on 30 June 2014 to holders registered on 6 June 2014.

Share Price:  Over the period the share price increased from 92.00p to 92.75p, whilst the premium moved from 2.90% to 3.75%.

Review: 

Credit markets have become more volatile over the quarter with the recent sell-off in high yield markets. This modest weakness has occurred in an environment of strength in government bonds and fresh all-time highs for the S&P 500 Index of US equities so would suggest a healthy correction rather than something more significant and will lead to more attractive yields being available for bond investors. The low default risk environment remains very supportive and revenue streams are underpinned by the high allocation to fixed rate bonds. We remain very selective in our participation in the European secured loan market given the tightening of spreads.

Share Issues: During the period 7,900,000 shares were issued in 12 tranches. The proceeds of these issues, net of commission, was £7,266,729.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 July 2014 (Cum income)

	1 month %	3 months %	3 years %
Share Price Total Return per ordinary share	0.00	2.17	31.34
Net Asset Value Total Return per ordinary share	(0.37)	1.39	28.38

The Fund was launched in July 2007

Source:   Morningstar Funddata

Financial Position

	at 31 July 2014	at 30 April 2014
Net assets	£122.6m	£115.6m
Net asset value (cum income)	89.4p	89.4p
Ordinary share price (mid market)	92.75p	92.00p
Premium	+3.75%	+2.90%
Total net gearing  (financial and synthetic)	21.11%	22.66%
Target Yield	3 month LIBOR + 1.25%*	3 month LIBOR + 1.25%*
Ongoing Charge (Source: Henderson fact sheet)	1.40%	1.40%

*3 month £ LIBOR was 0.55963% on 31 July 2014 and 0.52706% on 30 April 2014

Dividends Paid/Declared in Financial Year to date

	Amount	Pay Date	Record Date
Fourth Interim	1.30p	31 December 2013	6 December 2013
First Interim	1.25p	21 March 2014	7 February 2014
Second Interim	1.25p	30 June 2014	6 June 2014

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 July 2014	at 30 April 2014
Lloyds Group	UK	2.5%	2.0%
Nationwide	UK	1.8%	1.6%
Scottish Widows	UK	1.7%	1.4%
Wind	Italy	1.7%	1.4%
Arqiva	UK	1.7%	1.8%
Gala	UK	1.6%	1.7%
AA	UK	1.6%	1.7%
Legal & General Group	UK	1.5%	0.6%
Alliance Boots	UK	1.5%	1.6%
SAM Finance	Spain	1.5%	1.6%

Sector Breakdown	% at 31 July 2014	% at 30 April 2014
High Yield Corporate Bonds	47.9	40.0
Secured Loans	35.8	43.7
Investment Grade Bonds	9.5	9.4
Equities	5.6	5.7
Derivatives (CDS)	1.2	1.2

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 BNP Paribas Securities Services S.C.A., Jersey Branch Company Secretary 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]

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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