Henderson's ex-UK Income trust to shun bonds at launch

The Henderson International Income trust will be invested entirely in equities at launch to exploit the higher dividends on offer and the potential for growth.

Up to 25% of the portfolio can be invested in fixed interest but manager Ben Lofthouse says he expected none of it would be used at launch in April. Instead, the trust’s heaviest exposure will be to North and South American equities. “We find we can generate better dividends from high-quality companies through their equities rather than those offered by their bonds,” Lofthouse says. The group expects global growth to continue to recover, and this also supports a strategy of investing in equities over bonds. “Equities are more attractive for us based on the assumption the global eco...