Henderson Global Trust – Searching for change

Marten and Co publishes its first initiation of coverage note on Henderson Global Trust

The company underwent a voluntary winding-up and rollover into Henderson International Income Trust and or The Bankers Investment Trust. Both companies are managed by Janus Henderson Investors.

Henderson Global Trust was one of the smaller members of the AIC’s global sector, which gave its manager the option to look further down the market cap scale. Its more moderate size hadn’t inflated overall costs. The trust, which paid quarterly dividends, offered one of the highest yields in its peer group, whilst trading at a discount approaching 10%. In this review, we discuss that 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 sought 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 comprised between 50 and 80 stocks with 80% ordinarily invested in the top 30 to 40 holdings. HGL could borrow money with a view to enhancing returns although it was expected that this would be used conservatively.

You can access  Janus Henderson’s investment trust website here

Henderson Global Trust – Searching for change : HINT, BNKR