17th Jun 2016 08:14
LONDON (Alliance News) - Henderson Diversified Income Ltd, an investment trust which aims to generate a high level of income and capital growth for shareholders over the longer term by investing in secured loans, high yield corporate bonds and investment grade corporate bonds, on Friday said its performance beat its benchmark in the first half of its financial year.
In a statement, Henderson Diversified Income reported a net asset value total return of 2.4% compared to a total return from the benchmark of 1.3%.
The benchmark is the total return over three month sterling London interbank offered rate plus 2.00%.
"The global search for yield continues to be fuelled by negative interest rate policies now in Japan as well as Europe which means that returns will come from income with little prospect for any capital growth in the near term. An important risk is a possible Brexit but we see this in terms of price volatility rather than default risk and hence could also present income opportunities. As always our managers are looking to maintain the quality of the portfolio and will look to avoid any late-cycle pitfalls as we move closer to the end of the credit bear market," Chairman Paul Manduca said in a statement.
Shares in Henderson Diversified Income Ltd were up 0.2% at 89.14 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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