Henderson Global Trust is one of the smaller members of the AIC’s global sector, which gives its manager the option to look further down the market cap scale. Its more moderate size hasn’t inflated overall costs. The trust, which pays quarterly dividends, offers one of the highest yields in its peer group, whilst trading at a discount approaching 10%. An improvement in relative and absolute performance, which could come from running with lower cash balances, a higher allocation to the US and / or additional returns generated by identifying underappreciated change, could help support a narrower discount.
Henderson Global Trust seeks to provide long-term capital growth from a concentrated portfolio of international equities (primarily medium and large cap) with a secondary objective to increase dividends over the longer term. The portfolio typically comprises between 50 and 80 stocks with 80% ordinarily invested in the top 30 to 40 holdings. HGL can borrow money with a view to enhancing returns although it is expected that this will be used conservatively.