Henderson High Income Trust Outperforms Benchmark In 2017

26th Mar 2018 17:43

LONDON (Alliance News) - Henderson High Income Trust PLC said Monday that it outperformed its benchmark in 2017 due to strong returns from its investments in the second half of the year.

The company's portfolio in 2017 delivered a total return on net assets of 13.4%, with debt at fair value, compared to the total annual return of 11.4% from the company's benchmark - a composite of 80% of the FTSE All-Share Index and 20% of the ICE BofAML Sterling Non-Gilts Index.

The company's net asset value per share stood at 195.65 pence per share at the end of 2017, up from 181.30p in 2016.

Despite the portfolio benefiting from positions in financials and multinational companies, the performance of certain domestic cyclical stocks hindered returns, the company said.

"On the positive side, the company's holdings in Intermediate Capital, Jupiter Fund Management and Victrex aided performance. On the negative side, the Company's positions in BT Group and ITV detracted from returns," the company said.

"While I remain broadly positive on equities given the robust global economic outlook, I recognise we are closer to the end of the current cycle than the beginning. Risks to current equity market levels could come from any global growth disappointment or higher, more permanent, inflation causing aggressive tightening of monetary policies by central banks," Portfolio manager David Smith said.

Shares in the investment trust closed at 168.00 pence on Monday, unchanged.

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