At launch Henderson International Income Trust (HINT) is the only investment trust in its sector comprised entirely of non-UK investments. If you already hold UK equities either by holding shares directly or in other collective investments, HINT will provide international diversification to your income stream. It targets an initial yield of 4% from a focused portfolio of 40-60 stocks. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.

Henderson International Income Trust plc seeks to provide a high and rising level of dividends as well as capital appreciation over the long term from a focused and internationally diversified portfolio of securities outside the UK.

• The Trust delivers diversification of income away from the UK and as such is the only international income investment trust in the Global Growth and Income sub-sector comprised entirely of non-UK securities.
• HINT utilises a team approach where specialist income managers in different geographical regions are brought together under the Lead Manager Ben Lofthouse.
• Therefore not only is exposure to the world's fastest growing economies provided, but also exposure to companies which are forecast to grow their dividends quickly.

• This portfolio may hold only 40-60 stocks. If one of these investments declines in value, this can reduce the portfolio's value more than if it held a larger number of investments.
• Most of the investments in this portfolio are not made in Sterling, so exchange rates could affect the value of and income from your investment.
• Global portfolios include a small weighting to Emerging Markets, usually less than 10%, which tend to be less stable than more established markets and can be affected by local political and economic conditions, reliability of trading systems, buying and selling practices and financial reporting standards. Full details of risks.

Global equity markets rose during May. In the US, encouraging housing and consumer confidence data was partially offset by uncertainties surrounding the timing of quantitative easing being withdrawn by the Federal Reserve. In Asia, Japanese equities fell during May as confidence waned in the ability of the new Prime Minister, Shinzo Abe, to end deflation via monetary easing and implement the necessary structural reforms.

Amongst the top performers during the month was Microsoft, following growing confidence in the sustainability of revenues and cash generation for the business. Also one of the top performers was Deutsche Post, the global mail and logistics provider, which reported better-than-expected results in its domestic mail business, which benefited from strong growth in parcel volumes. One of the weaker performers was French media and telecommunications conglomerate Vivendi, following news that their stake in Activision Blizzard, a games developer, would not be bought back by Activision at this time.

The position in Verizon Communications, the US mobile and fixed line operator, was sold following significant outperformance, and the proceeds were reinvested in Canadian telecoms company BCE. The position in Telefonica Deutschland, the German mobile operator, was sold in order to invest in better opportunities for earnings and dividend growth elsewhere.

Ben Lofthouse
May 2013