Henderson High Income Investment Trust (HHI) appears to have been a beneficiary of the recovery in the UK’s fortunes
By Jayna Rana December 3, 2021
Investors have benefited from Henderson High Income Investment Trust (HHI)’s strong long and short-term performance
The UK market has been making a comeback since the start of the year, after years of uncertainty, volatility and being unloved. The MSCI United Kingdom is up by 17.5 per cent year-to-date, a welcome turnaround after a loss of 13.2 per cent over 2020.
Meanwhile, income is back on the agenda with Link Group’s latest UK Dividend Monitor revealing UK dividends soared beyond expectations yet again in Q3, recovering nearly 90 per cent year on year, driven by an “unprecedented” boom in the mining sector and a rebound in the oil industry.
Henderson High Income Investment Trust (HHI) appears to have been a beneficiary of the recovery in the UK’s fortunes and investors have benefited from its strong long and short-term performance and highly attractive yield of 5.91 per cent.
The manager, David Smith, believes there is plenty more upside to come in the form of further economic recovery, company takeover activity and more stable dividends.
He remains broadly positive on equity markets and says good global economic growth next year, as economies return to normal, should drive solid corporate earnings growth.
“That is so long as inflationary pressures don’t choke off demand and central banks don’t move too aggressively in terms of rate hikes.”
He adds: “Over the past 12 months cyclical sectors have outperformed, driven by superior earnings growth as companies have recovered from the pandemic. From here it feels like outperformance is likely to be more of a balance between cyclicals and more stable businesses that pay an attractive dividend.”
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