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Henderson International Income Trust (HINT)

Closed-end funds and OEICs
richfool
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Henderson International Income Trust (HINT)

#349700

Postby richfool » October 21st, 2020, 10:58 pm

I am pondering whether to continue to hold HINT, as its capital performance is quite poor, albeit slightly better than that of MYI (which I sold last year).

In the same global growth & income sector, I already hold JGGI and SAIN, both of which have superior capital performance. I do like the top ten holdings of HINT., but it's not delivering the performance of the other two. The dividend yield is a bit higher with HINT at 3.99%, but that isn't of significant importance to me.

To compare performance:
https://citywire.co.uk/wealth_manager/i ... ePeriod=12

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

JGGI - JP Morgan Global Growth & Income trust.
SAIN - Scottish American IT

JohnW
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Re: Henderson International Income Trust (HINT)

#349740

Postby JohnW » October 22nd, 2020, 8:33 am

It compares its performance with a growth index I think, and no mention of ‘income’ in the MSCI world ex-uk index; so perhaps a fund which follows that index might be more suitable for you, as its returns shouldn't disappoint as you'll get exactly what's going. It would cost you about a quarter in fees compared to HINT by using a Vanguard fund, if I read it correctly.
But perhaps check your notes or reflect on why you purchased this initially, see if the same considerations apply, and if so perhaps you ought stick with it. Chopping and changing chasing performance doesn’t seem to me to be a winning strategy.

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Re: Henderson International Income Trust (HINT)

#349763

Postby baldchap » October 22nd, 2020, 9:37 am

I too have a small holding (4%) which I am thinking of rolling into my larger holdings of SAIN or JGGI.

It's one saving grace is that it does not invest in the UK, as I find the other 'globals' still show too much home bias.

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Re: Henderson International Income Trust (HINT)

#349768

Postby senanque » October 22nd, 2020, 9:52 am

I have about 5% in my portfolio and, as a retiree, I'm happy to hold and possibly increase. I see it as complimentary to MYI which is more focussed on developing markets.

HINT's dividend is higher than JGGI and SAIN and its record of dividend growth is better than SAIN's as well. JGGI of course funds its dividends from capital, something I was not too keen on, but am beginning to warm to as a way of accessing growthier stocks and still getting a decent quarterly payout.

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Re: Henderson International Income Trust (HINT)

#350018

Postby richfool » October 23rd, 2020, 9:45 am

senanque wrote:I have about 5% in my portfolio and, as a retiree, I'm happy to hold and possibly increase. I see it as complimentary to MYI which is more focussed on developing markets.

HINT's dividend is higher than JGGI and SAIN and its record of dividend growth is better than SAIN's as well. JGGI of course funds its dividends from capital, something I was not too keen on, but am beginning to warm to as a way of accessing growthier stocks and still getting a decent quarterly payout.

Thanks for your thoughts JohnW, Baldchap and Senanque.

I note HINT's SP is still dropping away. I appreciate that with a diversified portfolio one can't expect all the holdings to be on an upward trend at the same time. That's partly why we diversify. Though HINT doesn't seem to be performing in the same way/as well as its peers in the same sector (JGGI, SAIN or STS). I could understand the difference in performance if I was looking at MYI, as MYI holds fixed interest and has a deliberately lower exposure to the USA. SAIN I appreciate has some different holdings, not least in UK property.

Senanque, point taken re the dividend yield.

Baldchap, yes, I too had considered offloading HINT and merging the proceeds into JGGI and SAIN, though JGGI is my largest holding currently and I didn't want to put too many eggs into that one basket. Similarly I have as large a holding of SAIN as I would wish. I had even considered selling HINT and re-directing some of the proceeds into the UK, probably MUT, as I am currently underweight the UK (along with many other investors) and I anticipate an upswing once we get Brexit trade deals and Covid out of the way. Also because UK trust prices are depressed, dividend yields are quite good (MUT 4.6%).

That said, I will probably stick with HINT for the time being, (if only because I can't find a suitable alternative) and continue to watch developments over the next 6 months or so.

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Re: Henderson International Income Trust (HINT)

#350131

Postby Avantegarde » October 23rd, 2020, 4:22 pm

I had HINT in my portfolio for about five years, then dumped it two years ago. Why? Its total return had been worse than that of a cheaper global index tracker. I had been sacrificing share price growth for a higher yield. But as I was only ever reinvesting the dividends this was, in the end, of no advantage whatsoever. I'm glad I sold.

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Re: Henderson International Income Trust (HINT)

#350140

Postby Arborbridge » October 23rd, 2020, 4:50 pm

It isn't long ago that I bought HINT and VHYL to give me some global income - both holdings are regarded as "experimental" at the moment, so this thread gives me an interesting POV from others.

I shall hang on or add over the next years before deciding what to do. These days, I prefer fairly big chunky holdings and these smaller "experimental" holdings of mine can be a nuisance - not big enough to make a difference, whether they turn out good or bad. However, I am ever averse to going "all in" until I see some comparative results.

VHYL is doubly experimental as I am still not sure about ETFs (I've had several, and they have all been chopped after a few years) and prefer a company setup.

Arb.

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Re: Henderson International Income Trust (HINT)

#350243

Postby richfool » October 24th, 2020, 10:01 am

baldchap wrote:I too have a small holding (4%) which I am thinking of rolling into my larger holdings of SAIN or JGGI.

It's one saving grace is that it does not invest in the UK, as I find the other 'globals' still show too much home bias.

richfool wrote: In my travels (search), I did come across AGT (AVI Global Trust) (in the global growth sector), which holds Oakley Capital (a 7% stake), along with Pershing Square Holdings, Softbank Group, Kinnevik, Third Point Offshore and Sony in its top ten holdings. (33% in Japan). I believe it targets value investments. Yield: 2.38%. Discount: 10.61%

OllyDrod wrote: Its former name may be more familiar - British Empire Trust (BTEM). It's got a value focus and a global remit, but in recent years has made a bit of a speciality of buying into cash-rich Japanese firms and lobbying their boards to make better use of capital, divest themselves of legacy assets/subsidiaries, improve corporate governance, etc. Quite an interesting IT. Have held for years - been a good performer.
- OllyDrod

In the event, I sold half my holding of HINT and took a piece of AGT (AVI Global trust). I decided I liked the exposure to Japan and it holds a few private equity and hedge funds, as mentioned above. It gives me some exposure to areas I wouldn't be brave enough to venture into directly.
(I note CGT has holdings in Japan ETF (VJPN) and Pershing Square Holdings).

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Re: Henderson International Income Trust (HINT)

#355401

Postby richfool » November 10th, 2020, 11:33 pm

Copied and pasted from the "Income IT holdings comments on Covid" thread:
posting.php?mode=quote&f=54&p=351731

mike wrote:Henderson International (HINT) released their final results to 31 August yesterday, and some interesting points above the generics we have seen before

https://www.investegate.co.uk/henderson-int-income--hint-/rns/annual-financial-report/202010281629175257D/

On HINT itself
In the half year report, we noted the fact that some of the companies held in the portfolio had been asked by their respective governments or regulators to delay or moderate their dividends until the impact of the current pandemic was clearer. We also indicated that the board intended to utilise the Company's revenue reserves to smooth any temporary shortfall between the Company's distributions and portfolio income. Whilst the majority of the portfolio's holdings have paid dividends, a number have reduced or withheld dividends and it has been necessary to use a relatively moderate amount of the reserves to support dividend payments this year (£917,000 of the £8,081,000 at the start of the year). Earnings have been retained every year since launch for a rainy day, so it is appropriate that they are used now in these unprecedented times.

We continue to recognise the importance of dividend income to our shareholders and will continue to use reserves to complement the income generated by the portfolio. The current revenue reserves would provide several years of dividend support based on 2020 results.


And on specific constituent holdings which can carry accross to other ITs
Dividend cuts were a headline topic in 2020, but the trends varied significantly across regions and sectors [...]. Of the top ten holdings, nine increased dividends and one company (ABB) paid the same as last year. The most significant increases came from technology companies Taiwan Semiconductor Manufacturing and Microsoft, which announced 25% and 10% quarterly increases respectively. Increases were not limited to technology companies: Nestlé announced a 10% increase and Novartis 3.5%. These examples highlight the fact that not all companies have been impacted in the same way by the pandemic. Some divisions of companies are benefiting from new trends, such as the move towards remote working and higher levels of food consumption at home. The utility companies and telecommunication companies owned in the portfolio will see much less of a direct impact than industrial and oil and gas sectors.

The biggest negative impact on portfolio income has come from the financial sector. Several holdings had announced dividends but were forced by their regulators to cancel them before they were due to be paid. Where dividend cuts have occurred, we are in communication with the companies to determine the drivers and the potential duration of the cuts. Insurance company AXA did pay a dividend, although at a lower rate than first announced. It was one of the few French financial companies to be allowed to pay. The portfolio owns three financial companies which have not been allowed to pay, but continue to accrue their 2019 dividends and are hopeful that they will be allowed to pay them in 2021.


Taiwan Semiconductor Manufacturing with its 25% increase seems to be held in many trusts that cover the Asia-Pacific area, and it is the largest constituent holding in MYI at 5.2%; HFEL 5.1%; SOI 10.1%; AAIF 9.8% (all from latest factsheets). This should auger well for these dividends although China/Taiwan tensions are a possible downside to TSMC. The final, and much larger, dividend for Schroder Oriental's (SOI) year ending 31 August is due for announcement any day now.

And for holders of HINT, the annual dividend is confirmed at the previously indicated 6.0p with the 4th interim of 1.5p, ex-div 5 Nov, paid 30 Nov
https://www.investegate.co.uk/henderson-int-income--hint-/rns/dividend-declaration/202010281150355001D/


I do like the holdings of HINT very much and the dividend is fine, - it even holds Pfizer, Novartis and Sanofi in the pharma space, as well as MS, TSMC and Nestle, but I really wish it had better capital performance compared to its peers. I keep getting tempted by JGGI, SAIN, or even MWY or MNP in the global growth sector.

Top 10 holdings (%)
Microsoft 4.8
Nestlé 4.1
Taiwan Semiconductor Manufacturing 3.4
Verizon Communications 2.7
Novartis 2.7
ABB 2.6
Sanofi 2.5
Coca-Cola 2.3
Pfizer 2.3
Samsung Electronics 2.2%

https://citywire.co.uk/wealth_manager/i ... ePeriod=12

https://citywire.co.uk/wealth_manager/i ... ePeriod=12


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