25th Jul 2019 18:18
(Alliance News) - Henderson High Income Trust PLC on Thursday said it beat its benchmark in the first half of its financial year through "good stock selection.
The company's total return on net assets for the six months to June 30 was 16%, comfortably above the 12% return of its benchmark - a composite made up of 80% of the FTSE All-Share Index and 20% of the ICE BofAML Sterling Non-Gilts Index, rebalanced annually.
"This outperformance was driven by good stock selection in both the equity and fixed interest investments of the portfolio and by gearing," said Chair Margaret Littlejohns.
Net asset value per share rose in its most recent year to 179.7 pence from 159.5p.
The company has declared a third interim dividend of 2.475p per share, up from 2.425p per share for its first and second interim dividends.
Littlejohns said: "The UK equity market is likely to remain volatile until greater certainty emerges in both Brexit negotiations and trade relations between the US and China. However, for long term investors seeking a relatively high income stream, these circumstances also provide good opportunities to invest in financially sound companies with sustainable cash generative businesses that may be overlooked by others. The company will continue to build a well-diversified portfolio of such investments to create for its shareholders regular and reliable income with the potential for capital growth in the long term."
The company also noted that 21% of votes at its annual general meeting were cast against the re-election of Director Anthony Newhouse, as one large shareholder had voted against it, but said it will not take action in this case.
"The board has already begun to execute its plan to refresh itself over the coming years, so that a younger board (both in age and tenure) will be in place, with five new directors joining between 2016 and 2021. The board has deliberately phased the introduction of new directors over this five-year time frame to ensure that the required mix of skills, experience and corporate knowledge is retained during this process and beyond. This succession plan complies with the AIC code and the board believes this plan continues to achieve a sensible balance between continuity and reinvigoration and is in the best interests of the company and its stakeholders," said Henderson High Income.
Shares in Henderson High Income closed down 0.6% at 169.00p on Thursday.
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Henderson High Income Trust