Interim Management Statement

RNS Number : 7083E

Henderson High Income Trust PLC

14 May 2013

 



HENDERSON HIGH INCOME TRUST PLC

HENDERSON GLOBAL INVESTORS

14 MAY 2013

HENDERSON HIGH INCOME TRUST PLC

Interim Management Statement for the quarter ended 31 March 2013

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 gearing was increased early in the quarter, with the new borrowing invested into income yielding equities.  New holdings included Reed Elsevier, the media company, and pharmaceutical AstraZeneca.  Other existing holdings were increased, including contract caterer Compass Group and insurer Direct Line.  The portfolio exposure to insurers, both general insurers and life assurance companies was reduced, following strong performance of investments in this area held within the portfolio.  A focus on those companies capable of paying special dividends and growing their basic dividends has shown good reward during the reporting season, with many investments producing more income than last year. 

Gearing: gearing increased from 21.1% at 31 December 2012 to 25.2% at 31 March 2013. 

Dividends:  in respect of the year to 31 December 2012, a fourth interim dividend of 2.075p per ordinary share was paid on 31 January 2013 to holders registered on 21 December 2012.  As announced in our annual results, a first interim dividend for the year to 31 December 2013 of 2.075p per ordinary share was paid on 30 April 2013 to holders registered on 12 April 2013.

Share Price:  on 31 March 2013 the Company's shares were trading at a premium of 2.1% to the net asset value; on 31 December 2012 the shares were trading at a premium of 2.2% to the net asset value.

Share Capital:  during the quarter the Company issued 1,575,000 ordinary shares.  The number of shares in issue at 31 March 2013 was 98,255,744 ordinary shares of 5p each.

Bank Facility:  the Company has agreed a new £42m two year rolling multi-currency facility with Scotiabank from 31 March 2013.

There are no other material events or transactions to report.                                                  

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance to 31 March 2013

	3 months	1 year	3 years	5 years
Net Asset Value per ordinary share	13.32%	26.41%	50.13%	53.56%
Share Price	13.20%	27.09%	59.60%	74.86%
FTSE All-Share Index	6.85%	12.75%	23.40%	33.27%
Merrill Lynch Sterling Non Gilts Index	1.71%	3.19%	5.85%	8.32%
Benchmark †	8.56%	15.94%	29.25%	41.59%

Source:  Morningstar 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.  Prior to 31 December 2010 the benchmark was 75% of the FTSE All-Share Index and 25% of the FTA Government All Stocks Index. All the total returns in the above table reflect the performance of the new benchmark.

Financial Position

	at 31 March 2013	at 31 December 2012
Gross assets	£189m	£158m
Net asset value (income-inclusive)	153.3p	135.31p
Ordinary share price	156.5p	138.25p
Premium/(discount)	2.1%	2.2%
Gearing	25.2%	21.1%
Yield	5.3%	6.0%

THE PORTFOLIO

Top 10 Investments	% of portfolio			% of portfolio
at 31 March 2013			at 31 December 2012
Vodafone	4.57		Vodafone	4.90
British American Tobacco	3.98		British American Tobacco	4.19
GlaxoSmithKline	3.57		GlaxoSmithKline	3.69
BP	3.32		BP	3.65
National Grid	3.13		National Grid	3.42
Catlin	2.91		BT	3.37
Galliford Try	2.91		Catlin	3.35
HSBC	2.79		Galliford	2.81
BT	2.36		Standard Life	2.22
Imperial Tobacco	2.35		Jardine Lloyd Thomson	2.20
	---------			---------
Top 10 =	31.89%		Top 10 =	33.8%
	======			=====

Sector Breakdown	% at 31 March 2013	% at 31 December 2012
Financials	27.2	24.0
Telecommunications	9.6	10.6
Consumer Goods	12.4	10.4
Utilities	10.0	11.0
Industrials	9.5	11.1
Oil & Gas	6.4	6.8
Health Care	5.6	5.2
Consumer Services	7.9	6.6
Fixed Interest Technology	11.1 0.3	14.3 -

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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