Henderson High Income Trust is designed for investors seeking high income derived mainly from UK companies. This may particularly suit the retired, or those approaching retirement age.

Henderson High Income Trust plc invests in well-known UK companies with good yield prospects. It aims for sustainable high income with prospects for long-term growth. It invests in a diversified portfolio combining both larger and smaller companies, with fixed interest securities.

• The Trust delivers a yield, currently in excess of 5%, significantly higher than normally available through UK equities (Source: Morningstar as at 28/03/2013).
• It invests in well known and smaller UK companies with good yield records or prospects.
• The Trust was launched in 1989 at 100p – total dividends paid since launch are 165.9p representing an average annual dividend yield of 7.6%. Please remember that past performance is not a guide to future performance.
• It carries a low Ongoing Charge* of 0.85% (Annual Report and Accounts 2012).

*The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

• If a fund is a specialist country-specific or geographic regional fund, the investment carries greater risk than a more internationally diversified portfolio.
• Some of the investments in this portfolio are in smaller companies shares. They may be more difficult to buy and sell and their share price may fluctuate more than that of larger companies. Full details of risks.

After a strong first quarter, equity markets saw some volatility during April but the FTSE All-Share Index managed to gain 0.6% over the month, its eleventh consecutive month of positive returns.  Despite disappointing economic data out of China and the US initially weighing on share prices, the prospects of continued central banks’ actions to support growth helped equity markets to new highs.

The mining sector continued its underperformance in April, led lower by weak commodity prices. The trust’s absence of holdings in the sector benefited relative performance. Elsewhere, utilities outperformed during the month, hence, the Trust’s holdings in Severn Trent and National Grid contributed positively to Trust returns. National Grid was buoyed by announcing their intention to grow the dividend at least in-line with inflation for the foreseeable future. Standard Life also aided performance in April after the company announced a strong start to the year in terms of trading.  Meanwhile, the position in Reed Elsevier detracted from returns as investors sought to take profits after a period of outperformance.

The Trust has continued its good performance in April in terms of capital growth. Although equities have now performed particularly strongly year-to-date they still offer value on a yield basis relative to bonds and their long term average.

Alex Crooke
April 2013