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.
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and consumer confidence data was partially offset by uncertainties surrounding the timing of quantitative easing being withdrawn by the Federal Reserve.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.