26th Jan 2015 13:54
LONDON (Alliance News) - Henderson Diversified Income Ltd Monday said it expects to at least maintain its dividend in the year ahead, as the closed-ended investment company reported a rise in net asset value over the course of its last financial year and increased its dividend.
In a statement, Henderson Diversified Income said its NAV per share rose to 88.82 pence at the end of October 31, 2014, compared with 87.92 pence at the end of the previous financial year. It increased its dividend for the year to 5.10 pence from 5.05 pence.
In the absence of a change in interest rates, the company plans to continue with 1.25p per quarter dividend payments for the financial year ended October 31, 2015.
"Looking forward, the market backdrop remains familiar with low economic growth, low inflation and little likelihood of any increase in interest rates in the short term. That said, the continuing low default environment has meant that credit has performed well," the company's statement said.
"Going forward the majority of return is expected to be driven by income. Against that we must reconcile ourselves to the occasional spike in volatility. Our policy of actively asset allocating between fixed rate bonds and floating rate loans is proving to be beneficial and we anticipate at least maintaining the level of dividend in the year ahead," according to the statement.
Henderson Diversified Income shares were flat at 92.54 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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