James Carthew: Is it time for Henderson High Income to shine?
It is the last trust standing in the UK Equity and Bond Income sector, offering investors the only entry point to a distinctive strategy.
Ongoing consolidation within the investment trust sector has left some sub-sectors with very few constituents, and in some cases, just one. The UK Equity and Bond Income sector is one of these areas, where the £341m Henderson High Income (HHI) trust sits alone – and has done so for some time.
It has a relatively small global bond portfolio that sits alongside a portfolio of predominantly UK equities. For some reason, the trust does not publish the split between the two on its factsheets, but the latest interim report to June said the recent split had tended to be 90:10 in favour of equities.
The manager has chosen to underweight the allocation to bonds relative to its benchmark, which is 80% the All-Share index and 20% the ICE Bank of America Sterling Non-Gilts index.
The bond portfolio is…. read more here