Henderson High Income Trust Regulatory News (HHI)

Henderson High Income Trust - Update from QuotedData

14th December 2023

Improving outlook on a double discount

Henderson High Income (HHI) has recently announced that Henderson Diversified Income will be merged into it, subject to shareholder approval, which will add advantages of scale to HHI in the coming months, such as enhanced liquidity and the possibility of lower charges.

For the new HHI shareholders, the timing of this merger may be fortuitous, as HHI's manager David Smith believes that a number of key risks facing the UK equity market are reducing: it is likely to avoid a material recession, inflationary pressures have diminished, and political risk should fall away as the next government seems likely to be more centrist.

David's bullishness has led him to rotate HHI into unloved UK mid cap companies, while also increasing HHI's bond exposure to take advantage of higher returns on offer. The combination of the valuation discount on UK stocks with HHI's current share price to net asset value (NAV) discount of 8.4% (which is below its three-year average) offers an attractive entry point based on its apparent undervaluation.

Full Research:

https://quoteddata.com/research/henderson-high-income-improving-outlook-double-discount-qd/ This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.

NB: Marten & Co was paid to produce this note on Henderson High Income Trust and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

QUOTEDDATA50 Gresham Street | London EC2V 7AYTel: +44 (0) 20 3691 9430

www.quoteddata.com | research@quoteddata.com | www.martenandco.com