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LONDON (Alliance News) - Henderson International Income Trust PLC on Monday said the return on its diluted net asset value per share was 2.1% on a total return basis in the year ended August 31, while the return on its share price was 12.2% on the same basis, with the figures measuring up against a 5.0% total return in the MSCI World (ex UK) Index (sterling adjusted).
Its diluted NAV per share was 115.6 pence at the end of August, down from 117.5p at the same stage the prior year. The share price moved to 118.75p from 109.80p in the same time period.
Chairman Christopher Jonas said economic growth in developed economies remains stable and interest rates remain at very low levels.
"Major countries are more aligned politically on policies to deal with the remainder of the 2007 induced recession, even if the rise in strongly left or right wing groupings within them presents a new challenge. Public debate about whether or when central banks should raise interest rates discloses a general belief in growth continuing for the near term, even if this growth may be patchy. Against this background, we judge that well positioned, cash generating companies with good dividend yields will remain attractive to investors looking for growing income streams and the potential for capital growth," Jonas said in a statement.
The chairman said the trust's portfolio is spread globally and excludes UK listed stocks.
"Our managers have built a good reputation for selection between both markets and sectors. In order to balance risks in the portfolio, your board and our managers pay a lot of attention to limiting the downside while seeking out growth opportunities. Risk management measures include keeping a close eye on sterling movements, monitoring domestic market movements in different countries, reviewing gearing policy, and an investment process that builds a safety margin into stock pricing decisions," Jonas said.
"In the relatively short life of the company there have been several periods during which equity markets have corrected. On each occasion our portfolio had already been positioned defensively and from the disruption new investment opportunities have presented themselves. The company has a manager with a growing reputation; we have a flexible mandate for geographical and sector allocations, and the ability to use leverage to enhance return when judged to be prudent," the chairman said.
Shares in the trust were up 0.1% at 120.71p on Monday shortly after midday in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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