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Henderson International Income Trust - Reliable and rising income despite tough times

Henderson International Income Trust (HINT) offers UK-based investors a unique source of diversified income, by investing in a portfolio of non-UK shares. It is the only global equity investment trust to totally exclude the UK market, where dividend concentration is high compared to global markets (see chart below). HINT aims to deliver a growing annual dividend and capital appreciation. Manager Ben Lofthouse uses a value-driven approach, focused on companies with strong cash flow and the potential to grow earnings and distributions. Since inception, HINT has delivered steadily rising income and average annualised gains of 7.9% (share price basis). However, it has underperformed its benchmark, the MSCI World ex-UK index recently and longer term, due largely to the index being propelled by US technology giants, while HINT pursues greater geographical diversification and an income- and value-oriented approach. However, HINT is well positioned to benefit if the recent rotation into value stocks continues. The trust has outperformed the UK market since inception.