JANUS HENDERSON FUND MANAGEMENT UK
LIMITED
HENDERSON INTERNATIONAL INCOME TRUST
PLC
LEGAL ENTITY IDENTIFIER:
2138006N35XWGK2YUK38
HENDERSON INTERNATIONAL
INCOME TRUST PLC
Annual Financial Report for
the year ended 31 August 2024
This announcement contains regulated
information
INVESTMENT OBJECTIVE
The Company's investment objective
is to provide shareholders with a growing total annual dividend, as
well as capital appreciation.
HIGHLIGHTS FOR THE YEAR TO 31 AUGUST 2024
|
•
|
Dividends for the year increased by
3.2% to 7.71p per share. Your Company has been recognised as a
"next generation dividend hero" by the AIC.
|
|
•
|
The portfolio has delivered
attractive absolute growth this year: NAV total return of 10.4%
(debt at par) and 9.8% (debt at fair value).
|
|
•
|
Equity markets have performed well
over the period. The global economy has generally weathered higher
interest rates better than expected and all regions of the
portfolio generated positive returns.
|
PERFORMANCE TO/AT 31 AUGUST
|
|
2024
|
2023
|
|
Dividend in respect of the
year
|
7.71p1
|
7.47p
|
|
Dividend yield at the year
end2
|
4.7%
|
4.6%
|
|
Dividend growth
year-on-year
|
3.2%
|
3.0%
|
|
10-year compound dividend
growth
|
5.5%
|
5.8%
|
|
Dividend growth since launch to 31 August
2024
|
|
|
|
|
|
|
|
Total
dividend
(pence per
share)
|
|
|
20113
|
1.40
|
|
|
2012
|
4.00
|
|
|
2013
|
4.05
|
|
|
2014
|
4.25
|
|
|
2015
|
4.50
|
|
|
2016
|
4.65
|
|
|
2017
|
4.90
|
|
|
2018
|
5.30
|
|
|
2019
|
5.70
|
|
|
2020
|
6.00
|
|
|
2021
|
6.30
|
|
|
2022
|
7.25
|
|
|
2023
|
7.47
|
|
|
2024
|
7.71
|
|
|
|
|
| |
Your Company has been recognised by
the Association of Investment Companies as a "next generation
dividend hero", reflecting its record of having consistently grown
its dividend for at least 10 consecutive years.
|
Dividend yields at 31 August
|
2024
%
|
2023
%
|
|
Ordinary
shares2
|
4.7
|
4.6
|
|
Benchmark4
|
3.6
|
3.9
|
|
AIC Global Equity Income
sector5
|
3.4
|
3.6
|
|
Total return performance for year to 31
August
|
2024
%
|
2023
%
|
|
NAV6 (debt at par)
|
10.4
|
0.8
|
|
NAV6 (debt at fair value)
|
9.8
|
1.4
|
|
Share price7
|
6.5
|
(1.9)
|
|
Benchmark4
|
14.2
|
2.3
|
|
AIC Global Equity Income sector
(NAV)5
|
14.0
|
5.7
|
|
Performance to/at 31 August
|
2024
|
2023
|
|
NAV per share at year end (debt at
par)
|
185.8p
|
175.7p
|
|
Discount at year end (debt at
par)8
|
(11.7)%
|
(8.1)%
|
|
NAV per share at year end (debt at
fair value)8
|
188.0p
|
178.6p
|
|
Discount at year end (debt at fair
value)8
|
(12.8)%
|
(9.6)%
|
|
Share price at year end
|
164.0p
|
161.5p
|
|
NAV total return (debt at fair
value)6,8
|
9.8%
|
1.4%
|
|
Ongoing charge for
year8,9
|
0.77%
|
0.72%
|
|
Gearing at year
end8
|
4.7%
|
3.9%
|
1 Includes the fourth interim
dividend in respect of the year ended 31 August 2024 to be paid to
shareholders on 29 November 2024
2 Calculated based on the closing
share price at 31 August
3 Four-month period from launch on
28 April 2011 to 31 August 2011
4 MSCI ACWI (ex UK) High Dividend
Yield Index (sterling adjusted)
5 Excludes British & American
Investment Trust plc
6 Net asset value ("NAV") total
return (including dividends reinvested, net of fees)
7 The Company's share price total
return (assuming the reinvestment of all dividends excluding
dealing expenses). Since inception share price return - launch
price including discount (97.25p)
8 Alternative performance
measure
9 Calculated using the methodology
prescribed by the Association of Investment Companies
("AIC")
Source: Morningstar Direct, Janus Henderson
CHAIRMAN'S STATEMENT
After a few volatile years for
global equity markets, I am happy to be able to report that equity
markets appreciated over the year and delivered steady dividend
growth. This gain has occurred despite ongoing conflicts in some
parts of the world, numerous elections, and against a backdrop of
high interest rates and inflation, although both are now on a
declining trend.
It has been another year where there
has been a significant variation between the performance of
different regions and sectors which will be covered more fully in
the fund manager's report. The USA has continued to lead the way in
the developed world but there may be a degree of rotation now
occurring following the decision of the Chinese Government to
reflate its economy. Depending on the success of this change of
policy, emerging markets may benefit too.
The objective of your Company is to
provide shareholders with a growing total annual dividend, as well
as capital appreciation through a diversified portfolio of global
stocks outside of the UK. The Company has continued to deliver a
growing annual dividend as highlighted below with a total net asset
value ("NAV") return of 10.4% (with debt at par). Whilst attractive
in absolute terms, this has lagged the Company's benchmark total
return. In light of this, and given the prevailing discount at
which the Company's shares have traded, the board has spent some
time this year reviewing investment strategy and how this can be
enhanced to provide a better balance between income and capital
generation. The details of this review and its outcome are
discussed later in this statement, in addition to the customary
analysis of the earnings, dividends and performance of the
Company.
Earnings and dividends
We are pleased to announce a total
dividend increase from 7.47p to 7.71p per ordinary share for the
year to 31 August 2024, a rise of 3.2%. The total dividend for
the year consists of a first, second and third interim dividend of
1.92p per ordinary share, and a fourth interim dividend of 1.95p
which will be paid on 29 November 2024 to shareholders on the
register at 8 November 2024.
The Company's revenue returns were
7.5% lower year-on-year at £13.2m. This was due to a combination of
lower special dividends, the appreciation of sterling over the
period and a slightly lower dividend yield from the portfolio. This
has resulted in £1.9m being drawn from revenue reserves to cover
the dividend.
We continue to recognise the
importance of progressive dividend income to our shareholders and
we will employ the flexibility of the investment trust structure to
utilise both our strong revenue and capital reserves to support
dividend growth when necessary. The distributable reserves of the
Company are £97.6m at the year end. This provides a significant
cushion to support the continued growth of the dividend.
In line with our long-term objective
to provide shareholders with a growing total annual dividend, we
have increased the dividend each year since launch and we are very
pleased this achievement has now been recognised by the Association
of Investment Companies ("AIC"), naming us as a "next generation
dividend hero". This positive growth trend is demonstrated in the
graph in the table above.
Capital performance and markets
Our second objective is to provide
long-term capital appreciation. The portfolio has delivered
attractive absolute growth this year; the NAV total return per
ordinary share rose by 10.4% (debt at par) and by 9.8% (debt at
fair value). However, this underperformed the Company's performance
comparator, the MSCI ACWI (ex UK) High Dividend Yield Index
(sterling adjusted), which generated a 14.2% total return over the
same period.
The total return on the ordinary
share price was 6.5%, this figure includes total paid dividends of
7.68p per ordinary share, an increase of 3.7% on the previous
year.
A more detailed analysis of
performance, portfolio and positioning is provided in the fund
manager's report.
Investment strategy
Over the past few years, while the
Company has consistently achieved its income objective, the total
annual return has slowed when compared to earlier years, and has
lagged the performance comparator and the wider global equity
market. In recent years, there have been times when non-dividend
paying stocks have significantly outperformed high dividend paying
stocks. This outperformance is exemplified in the US market
in general versus global markets in 2021 and 2023.
During the year the board carried
out a review of the Company's investment strategy, in particular in
its ability to meet its objectives and taking into consideration
the desire of shareholders for both income and growth of capital.
It concluded, after considerable consultation with shareholders, to
make an enhancement to the Company's investment strategy. Dividends
from the portfolio will remain the primary contributor to the
Company's distributions, but when there are compelling
opportunities in stocks, regions or sectors that would otherwise be
excluded due to their yield, the board is willing to utilise
distributable reserves to supplement dividends paid to investors.
This will expand the potential universe of stocks in which the
investment team can invest. It will also allow the manager to be
more opportunistic and flexible through the cycle to deliver on the
objectives of your Company.
Your Company benefits from an
experienced investment team. The board is delighted to confirm the
appointment of Faizan Baig, who has worked closely with Ben
Lofthouse, as deputy fund manager.
Shareholders will see from the
annual report that the fund manager has been managing the portfolio
in line with the enhancements noted above. Further detail can be
found in the fund manager's report.
Gearing
Well-judged gearing can enhance
returns to shareholders. The board's current policy permits the
fund manager to gear up to 25% of net assets at the time of
drawdown. The fund manager has maintained total gearing well within
this limit, with gearing at the year end of 4.7% (31 August 2023:
3.9%). Borrowing limits for this purpose include implied gearing
using derivatives. The Company's senior unsecured notes (€30m at
2.43% due 2044) provide low-cost debt financing and have helped to
insulate shareholders from rising interest rates over the
period.
Liquidity and discount management
The Company's share price has traded
at a discount to NAV of between 6% to 14% over the period and was
11.7% (with debt at par) at 31 August 2024. The board continues to
monitor the Company's premium/discount to NAV and will consider
appropriate action if this moves and remains out of line with the
Company's peer group.
The factors that usually influence
the discount most are the performance of the Company and that of
world stock markets. Both of these are covered fully, later on in
the fund manager's review, and as noted above the board has taken
action to further enhance the investment strategy to improve
performance.
Two other factors have also been at
work, but these are more technical. There have been concerns over
current legislation that show the costs of managing an investment
trust to be much higher in theory than in reality and these
concerns have led the average discount of the UK investment trust
sector to rise markedly over the past 12 months. The government is
addressing this matter with recently published legislation, so we
hope it should become less of an issue in due course. Secondly,
with higher interest rates than in the recent past, bonds have
become a more attractive alternative to higher yielding investment
trusts where prices have weakened in response. When interest rates,
in due course, start to decline we would expect discounts to start
to narrow too.
As I wrote in my last report to
shareholders, there is a distinct limit to the board's ability to
influence and maintain the premium or discount of the Company's
share price to NAV over the short term. Further, your board
continues to believe that it is not in shareholders' interests to
have a specific share buy-back or issuance policy, but that we
should retain flexibility to consider share buy-backs and/or
issuance where appropriate (and actively do so). We shall therefore
continue with this policy but remain willing to take appropriate
action subject to market conditions.
Ongoing charge
The ongoing charge for the year to
31 August 2024, as calculated in accordance with the AIC
methodology, was 0.77% (2023: 0.72%). The slight rise in the
ongoing charge largely reflects an increase in administration costs
for the year. The spend on marketing and advertising was increased
(see the annual report for details) and total directors' fees were
also higher as there was a period last year when there were only
four directors on the board.
Environmental, Social and Governance
The board pays close attention to
the importance of Environmental, Social and Governance ("ESG")
matters and, together with the investment team, is conscious that
investors' interest in ESG matters will continue to grow. The fund
manager carefully considers ESG related risks and opportunities
when investing and managing the portfolio.
Board composition
Lucy Walker has indicated that, due
to the increasing demands of her other business commitments, she
will be retiring at the 2024 AGM and will not be standing for
re-appointment. I would like to take this opportunity to thank her
for the contribution she has made during her time on the board. On
the retirement of Mrs Walker, Mrs Parfrey will become the senior
independent director.
Two directors, myself and Aidan
Lisser, will reach nine years of service in 2025. In order to
provide an orderly succession, it is proposed that Mr Lisser will
retire following publication of the Company's half year results. It
is then my intention to retire at the conclusion of the 2025
AGM.
The board considers that a board of
five directors remains the optimal number for the Company. The
directors have commenced steps to recruit three new directors, with
recruitment to be staggered over the next 12 to 18 months. This
will allow the changing dynamics of the board to settle with each
new appointment and provide time to consider the desired background
and experience of the next director to ensure the board remains
balanced, with an appropriate spread of skills and
experience.
Annual general meeting
The thirteenth annual general
meeting ("AGM") of the Company will be held at 2.30pm on Tuesday,
10 December 2024 at the offices of Janus Henderson Investors, 201
Bishopsgate, London EC2M 3AE. The notice of meeting and details of
the resolutions to be proposed are set out in a separate document
which accompanies the annual report. Ben Lofthouse, our fund
manager, will give a presentation at the meeting.
As an alternative, I invite
shareholders to join by Zoom webinar and details of how to register
are set out in the notice of meeting. As is our normal practice,
there will be live voting for those physically present at the AGM.
However, due to technical restrictions, we cannot offer live voting
by Zoom. We therefore request all shareholders, particularly those
who cannot attend physically, to submit their votes by proxy to
ensure that their votes are included.
In addition to the routine business
to be considered at this year's AGM, the Company is also proposing
a resolution to shareholders to cancel the amount standing to the
credit of the Company's share premium account which, subject to the
confirmation of the Court, will be credited to a special
distributable reserve. Cancelling the amount standing to the credit
of the share premium account (which is a non-distributable reserve)
is a routine procedure that is undertaken by many investment trusts
and was last carried out by the Company in February 2013. The
cancellation of this reserve (as explained in more detail in the
notice of meeting) in order to create a distributable reserve is an
administrative matter which will provide the board with flexibility
to use such distributable reserve, should it wish to do so, in the
future.
Outlook
It seems rather trite to say that
there is a good deal of uncertainty in the world. This is always
the case, but perhaps all the more so than even a few years ago.
Elections, and currently wars in particular, often have a knock-on
effect on the price of crude oil. Higher oil prices dampen demand
and lower growth in consuming nations, which in turn impacts global
investment markets. If the war in the Middle East escalates further
this could therefore lead to a recession in the West.
On the other hand, inflation and
interest rates are falling globally and positive noises from the US
Federal Reserve are encouraging. The Chinese authorities have
decided to stimulate their domestic economy, which should in due
course be reflected in a stronger global economy.
If the world can avoid a full-scale
war in the Middle East, which is more driven by political than
economic considerations, then there seems to be a good chance that
falling interest rates will win the day and global stock markets
will continue to move ahead.
The implementation of the review of
the investment strategy, together with a lower interest rate
environment, should benefit the Company. Your Company remains in a
strong position to continue to grow the annual dividend and with a
more flexible investment approach we expect to see better capital
performance too.
Richard Hills
Chairman
30 October 2024
PORTFOLIO INFORMATION
Ten
largest investments at 31 August 2024
|
Rank 2024
|
Rank
2023
|
Company
|
Country
|
Sector
|
Market
value
£'000
|
% of
portfolio
|
Market value at time of
investment
£'000
|
Income
£'000
|
Yield1
%
|
|
1
|
2
|
Microsoft
|
US
|
Technology
|
14,820
|
3.9
|
1,356
|
117
|
0.8
|
|
2
|
1
|
Sanofi
|
France
|
Health care
|
13,785
|
3.6
|
11,269
|
521
|
3.8
|
|
3
|
10
|
Coca-Cola
|
US
|
Consumer staples
|
10,206
|
2.7
|
6,033
|
279
|
2.7
|
|
4
|
8
|
Novartis
|
Switzerland
|
Health care
|
9,315
|
2.5
|
5,799
|
339
|
3.6
|
|
5
|
6
|
nVent Electric
|
US
|
Industrials
|
9,040
|
2.4
|
4,555
|
112
|
1.2
|
|
6
|
14
|
Amundi
|
France
|
Financials
|
8,974
|
2.3
|
7,790
|
546
|
6.1
|
|
7
|
26
|
Qualcomm
|
US
|
Technology
|
8,864
|
2.3
|
6,260
|
116
|
1.3
|
|
8
|
29
|
Sony
|
Japan
|
Consumer discretionary
|
8,835
|
2.3
|
8,733
|
35
|
0.4
|
|
9
|
23
|
Deutsche Telekom
|
Germany
|
Telecommunications
|
8,744
|
2.3
|
6,245
|
266
|
3.0
|
|
10
|
-
|
American Tower
|
US
|
Real estate
|
8,639
|
2.3
|
8,497
|
-
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Top
10
|
|
|
|
101,222
|
26.6
|
66,538
|
2,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Dividend yields as at 31 August 2024 are based upon historic
dividends, including special dividends where known, and are not
representative of future yield
|
|
Geographic exposure at 31 August
As a percentage of the investment
portfolio
excluding cash
|
|
Sector exposure at 31 August
As a percentage of the investment
portfolio
excluding cash
|
|
|
2024
%
|
2023
%
|
|
|
2024
%
|
2023
%
|
|
US
|
36.8
|
34.8
|
|
Technology
|
19.6
|
8.4
|
|
France
|
11.9
|
9.4
|
|
Financials
|
17.5
|
18.7
|
|
Germany
|
7.5
|
4.9
|
|
Health care
|
13.9
|
17.9
|
|
Switzerland
|
6.9
|
11.3
|
|
Consumer discretionary
|
12.0
|
9.2
|
|
Japan
|
6.1
|
1.4
|
|
Industrials
|
8.7
|
10.0
|
|
Korea
|
4.0
|
3.3
|
|
Consumer staples
|
7.8
|
11.8
|
|
China
|
3.6
|
5.4
|
|
Telecommunications
|
7.1
|
9.7
|
|
Taiwan
|
3.2
|
1.0
|
|
Basic materials
|
4.3
|
4.3
|
|
Italy
|
3.0
|
2.2
|
|
Utilities
|
4.0
|
3.0
|
|
Australia
|
2.5
|
3.2
|
|
Real estate
|
3.6
|
3.1
|
|
India
|
2.4
|
0.9
|
|
Energy
|
1.5
|
3.9
|
|
Spain
|
1.9
|
1.8
|
|
|
100.0
|
100.0
|
|
Denmark
|
1.9
|
1.1
|
|
|
|
|
|
Indonesia
|
1.9
|
1.9
|
|
|
|
|
|
Hong Kong
|
1.4
|
4.9
|
|
|
|
|
|
Canada
|
1.4
|
1.5
|
|
|
|
|
|
Finland
|
1.3
|
0.9
|
|
|
|
|
|
Singapore
|
1.2
|
1.9
|
|
|
|
|
|
Sweden
|
1.1
|
2.6
|
|
|
|
|
|
Netherlands
|
-
|
2.7
|
|
|
|
|
|
Norway
|
-
|
1.1
|
|
|
|
|
|
Brazil
|
-
|
1.8
|
|
|
|
|
|
|
100.0
|
100.0
|
|
|
|
|
Source: Janus Henderson
Investment portfolio as at 31 August 2024
|
Company
|
Country
|
Market
value
£'000
|
% of
portfolio
|
|
Basic materials
|
|
|
|
|
Arkema
|
France
|
5,427
|
1.4
|
|
UPM-Kymmene
|
Finland
|
4,783
|
1.3
|
|
Air Products &
Chemicals
|
US
|
4,256
|
1.1
|
|
Pilbara Minerals
|
Australia
|
1,841
|
0.5
|
|
|
|
16,307
|
4.3
|
|
|
|
|
|
|
Consumer discretionary
|
|
|
|
|
Sony
|
Japan
|
8,835
|
2.3
|
|
Home Depot
|
US
|
8,305
|
2.2
|
|
Compagnie Financière
Richemont
|
Switzerland
|
6,041
|
1.6
|
|
Aptiv
|
US
|
5,400
|
1.4
|
|
Midea
|
China
|
4,517
|
1.2
|
|
Hyundai
|
Korea
|
4,280
|
1.1
|
|
Samsonite
|
Hong Kong
|
3,146
|
0.8
|
|
Anta Sports
|
China
|
2,600
|
0.7
|
|
Astra International
|
Indonesia
|
2,506
|
0.7
|
|
|
|
45,630
|
12.0
|
|
|
|
|
|
|
Consumer staples
|
|
|
|
|
Coca-Cola
|
US
|
10,206
|
2.7
|
|
Pepsico
|
US
|
7,201
|
1.9
|
|
Pernod-Ricard
|
France
|
7,116
|
1.8
|
|
Nestlé
|
Switzerland
|
5,374
|
1.4
|
|
|
|
29,897
|
7.8
|
|
|
|
|
|
|
Energy
|
|
|
|
|
TotalEnergies
|
France
|
5,603
|
1.5
|
|
|
|
5,603
|
1.5
|
|
|
|
|
|
|
Financials
|
|
|
|
|
Amundi
|
France
|
8,974
|
2.3
|
|
CME
|
US
|
7,132
|
1.9
|
|
Swiss Re
|
Switzerland
|
5,554
|
1.4
|
|
Travelers Companies
|
US
|
5,299
|
1.4
|
|
Dai-ichi Life
|
Japan
|
5,177
|
1.4
|
|
AXA
|
France
|
5,078
|
1.3
|
|
Macquarie
|
Australia
|
4,956
|
1.3
|
|
Bank Mandiri
|
Indonesia
|
4,620
|
1.2
|
|
OCBC Bank
|
Singapore
|
4,460
|
1.2
|
|
Resona
|
Japan
|
4,287
|
1.1
|
|
HDFC Bank
|
India
|
4,166
|
1.1
|
|
Samsung Fire & Marine
Insurance
|
Korea
|
3,718
|
1.0
|
|
BFF Bank
|
Italy
|
3,454
|
0.9
|
|
|
|
66,875
|
17.5
|
|
|
|
|
|
|
Health care
|
|
|
|
|
Sanofi
|
France
|
13,785
|
3.6
|
|
Novartis
|
Switzerland
|
9,315
|
2.5
|
|
Novo Nordisk
|
Denmark
|
7,405
|
1.9
|
|
Merck & Co
|
US
|
7,020
|
1.8
|
|
Medtronic
|
US
|
6,149
|
1.6
|
|
Johnson &
Johnson
|
US
|
4,902
|
1.3
|
|
Bristol-Myers Squibb
|
US
|
4,447
|
1.2
|
|
|
|
53,023
|
13.9
|
|
|
|
|
|
|
Industrials
|
|
|
|
|
nVent Electric
|
US
|
9,040
|
2.4
|
|
Honeywell International
|
US
|
7,165
|
1.9
|
|
Daimler Truck
|
Germany
|
7,049
|
1.8
|
|
Siemens
|
Germany
|
6,403
|
1.7
|
|
Nari Technology
Co
|
China
|
3,386
|
0.9
|
|
|
|
33,043
|
8.7
|
|
|
|
|
|
|
Real estate
|
|
|
|
|
American Tower
|
US
|
8,639
|
2.3
|
|
Goodman
|
Australia
|
2,785
|
0.7
|
|
Swire Properties
|
Hong Kong
|
2,379
|
0.6
|
|
|
|
13,803
|
3.6
|
|
|
|
|
|
|
Technology
|
|
|
|
|
Microsoft
|
US
|
14,820
|
3.9
|
|
Qualcomm
|
US
|
8,864
|
2.3
|
|
Taiwan Semiconductor
Manufacturing
|
Taiwan
|
8,531
|
2.2
|
|
Samsung
|
Korea
|
7,376
|
1.9
|
|
Oracle
|
US
|
6,693
|
1.8
|
|
Infineon Technologies
|
Germany
|
6,433
|
1.7
|
|
TE Connectivity
|
US
|
5,312
|
1.4
|
|
Tokyo Electron
|
Japan
|
5,011
|
1.3
|
|
Infosys Technologies
|
India
|
4,737
|
1.3
|
|
Hon Hai Precision
|
Taiwan
|
3,742
|
1.0
|
|
Lenovo
|
China
|
3,171
|
0.8
|
|
|
|
74,690
|
19.6
|
|
|
|
|
|
|
Telecommunications
|
|
|
|
|
Deutsche
Telekom
|
Germany
|
8,744
|
2.3
|
|
Telus
|
Canada
|
5,340
|
1.4
|
|
Cisco Systems
|
US
|
4,533
|
1.2
|
|
Verizon Communications
|
US
|
4,324
|
1.1
|
|
Tele2
|
Sweden
|
4,155
|
1.1
|
|
|
|
27,096
|
7.1
|
|
|
|
|
|
|
Utilities
|
|
|
|
|
Enel
|
Italy
|
7,953
|
2.1
|
|
Iberdrola
|
Spain
|
7,248
|
1.9
|
|
|
|
15,201
|
4.0
|
|
|
|
|
|
|
Total investments
|
|
381,168
|
100.0
|
FUND MANAGER'S REPORT
This report contains a summary of
the trends in equity markets around the world and the drivers of
their returns, the performance of the Company's portfolio over the
period, and the positioning and outlook going forward. This year
the investment team has also been working with the board on
measures to improve the total return of the Company going forward.
This report discusses the enhancements made to the investment
process which have been designed to achieve this.
Market commentary
Equity markets have performed well
over the period under review. At the start of the year, investors
were concerned about inflation and the need for high interest rates
to bring this under control. After a period of abnormally high
inflation for much of 2022 and 2023, inflation has shown signs of
moderating in recent months. As the year has progressed investors
have become more confident that central banks do not need to raise
rates but should be able to reduce them in the event of an economic
slowdown. Early in the year equity markets started to rally in
anticipation of a better economic environment because of the
hoped-for cuts. During that period cyclical stocks outperformed
defensive ones.
Interest rates have started to fall
in some economies (for example, Switzerland, Canada, Sweden).
However, as the chart in the annual report shows, they have hardly
moved from their peaks in many other major developed economies.
Both equity and bond markets remain very sensitive to inflation
trends. Expectations for the number of potential interest rate cuts
have varied significantly over the last few months, resulting in
increased market volatility towards the end of the year. During
this period more defensive sectors, such as utilities and
telecommunications, outperformed while cyclical and technology
stocks sold off.
Despite the lack of immediate
interest rate cuts, the global economy has generally weathered
higher interest rates better than expected. Although one area of
the world that has continued to struggle economically has been
China. The Chinese economy has continued to grow but ongoing
concerns remain around the property market and weak consumer
sentiment. These concerns have weighed on commodity and emerging
markets as a result. As shown in the chart in the annual report,
the US market has significantly outperformed this year, followed by
the other developed markets, while the Asia Pacific region has
lagged.
Whilst the equity market rally has
become more broadly based as the year has progressed, it has still
been led by a relatively small number of low or zero yielding mega
cap technology stocks at the forefront of generative Artificial
Intelligence ("AI") innovation. These have become known as the
'Magnificent Seven' (Nvidia, Microsoft, Meta, Amazon, Alphabet,
Apple and Tesla). The extent to which these companies are
generating actual revenues from AI varies. Nvidia and Microsoft are
already reporting revenues from AI, for the others the
opportunities are more speculative. The chart in the annual report
shows that these large companies have had a disproportionately
large impact in driving the market upwards compared to the average
company, as represented by the relative underperformance of an
equal weighted S&P Index.
Technology stocks and other
companies associated with AI across all industries have been a
significant contributor to the difference in returns. Value has
continued to underperform growth as a factor, but over the year the
market has started to show some signs of broadening out.
Performance review
The Company's portfolio has
appreciated in value over the year. The portfolio produced a total
return of 9.8% in NAV per ordinary share over the period (debt at
fair value), and the dividend has been increased again. Whilst we
are pleased to report the dividend growth and capital appreciation,
the performance was behind that of the MSCI ACWI (ex UK) High
Dividend Yield Index. Given the dual objectives of the Company of
generating income growth and capital appreciation, we will discuss
the two elements of returns separately below.
Income trends and
performance
The Company's investment process
focuses on companies with strong cash flow generation and the
potential to grow. They are often leaders in their respective
industries, with established competitive advantages. In a higher
interest rate environment these characteristics are increasingly
important because they allow companies to continue to invest in
their businesses and pay dividends despite higher financing costs.
The investment team also ensures that the portfolio is spread by
sector and region to diversify risks.
The dividend growth of the portfolio
has been good, reflecting the earnings growth of the underlying
holdings. Local currency dividend growth from the top ten holdings
averaged 6.5% during the period, while the weighted average of the
portfolio was over 10%, coming from a wide range of sectors and
regions. The technology sector is not well known for paying
dividends but it is the sector that is seeing the fastest dividend
growth and that is reflected in the portfolio's holdings. Microsoft
has been a consistent dividend grower for many years and its 10%
increase this year continued that trend. Other companies like
Oracle and Taiwan Semiconductor Manufacturing also increased their
dividends by over 10% reflecting their confidence in future
earnings growth. A notable development this year has been the
significant increase in dividend and buyback announcements coming
from Korean and Japanese companies. The governments of these
countries have implemented programmes to improve shareholder
returns, which includes encouraging companies to pay out more in
dividends. Portfolio holdings such as Hyundai, Samsung Fire &
Marine Insurance, Dai-ichi Life and Sony all increased their
dividends by over 10% during the year.
The underlying dividend growth from
the portfolio's holdings has been good but the income return for
the period is lower than last year (£14.9m in 2024 compared to
£16.6m in 2023). One of the reasons for this is that there have
been fewer special dividends from companies. In recent years the
portfolio has benefited from approximately £1m of special dividends
annually. These payments have come largely from companies that
paused payments during the Covid period but have since paid catch
up payments, in particular many financial services companies. These
payments have not been repeated this year. The other reason for the
fall in income is that more opportunities have presented themselves
in some lower yielding areas of the market and the team is using
the flexibility of the investment structure to hold some lower
yielding stocks with more capital upside potential.
Currency has also had a slight
negative impact on dividend income. Over the year, sterling
appreciated 3.7% against the US dollar and 1.7% against the euro.
In a global portfolio, currencies often move in different and
uncorrelated directions thus cancelling each other out to a degree.
Note 17.1.2 of the financial statements provides some analysis of
the portfolio's foreign currency sensitivity.
Capital trends and
performance
The Company produced a net asset
value total return of 9.8% (debt at fair value), which was 4.4%
behind the MSCI ACWI (ex UK) High Dividend Yield Index. An
estimated attribution of the portfolio's performance between asset
allocation and stock selection is given below, which also includes
the impact of other factors to explain the movement of the NAV over
the year.
Estimated performance attribution (relative to the MSCI ACWI
(ex UK) High Dividend Yield Index)
|
|
%
|
|
Stock selection
|
-3.2
|
|
Asset allocation
|
-0.1
|
|
Gearing
|
-0.3
|
|
Expenses
|
-0.8
|
|
Total
|
-4.4
|
Against the benchmark the main
detractor was stock selection. Asset allocation was neutral, and
the positive impact of gearing in a rising market was reduced by
the fair value increase of the debt due to falling interest rate
expectations. Each of these components of return are discussed
below.
The average exposures and total
returns for each region are detailed below.
Portfolio exposures and returns by region
|
|
Average
exposure
%
|
Total
return
%
|
|
Europe (ex UK)
|
34.3
|
+13.9
|
|
North America
|
42.4
|
+7.1
|
|
Asia Pacific (ex Japan)
|
20.8
|
+13.9
|
|
Japan
|
2.6
|
+20.3
|
After the last few years of market
volatility it is good to see that all regions generated positive
returns. The turnaround in the performance of the Asia Pacific (ex
Japan) portfolio has been notable since the exposure was changed
early in the financial year to gain more exposure to structural
growth and reduce exposure to the domestic Chinese economy. The
returns for the region improved from 3.3% at the half year to 13.9%
at the year end. The European returns came from a broad range of
stocks and sectors, ranging from financials to utilities. The
return from the North American holdings, however, is disappointing.
The portfolio returned 7.1% while the benchmark stocks in the
region returned 14.8%. The portfolio was impacted by some of the
market volatility late in the year when technology stocks sold off
and defensive sectors such as tobacco and utilities rallied. There
were some stock specific reasons for the underperformance (the
largest stock contributors to performance are shown and discussed
below) and the focus on higher yielding stocks has not aided
performance over the period or the last few years. In response to
the underperformance the investment team has made changes in the
portfolio over the year to improve the balance between income
delivery and capital growth by using the investment trust structure
more fully. Details of these changes are set out in the investment
strategy section of this report.
The table below highlights the most
significant stock contributors and detractors to performance over
the year measured by contribution to absolute
return.
|
|
%
|
|
Taiwan Semiconductor
Manufacturing
|
+0.90
|
|
Tele2
|
+0.68
|
|
Microsoft
|
+0.50
|
|
Chevron*
|
+0.46
|
|
Pfizer*
|
+0.45
|
|
|
|
|
Pernod Ricard
|
-0.48
|
|
Samsonite International
|
-0.50
|
|
Bristol-Myers Squibb
|
-0.58
|
|
Air Products and
Chemicals
|
-0.58
|
|
Roche
|
-0.65
|
Source: Janus Henderson. Based on Total Effect
Relative to MSCI ACWI (ex UK) High Dividend Yield Index, as at 31
August 2024.
*Not owned, but positive for
performance by not owning
Technology, financial services and
communications (telecoms) were the strongest performing sectors,
all generating over 20% returns.
Technology stocks represent 19.6% of
the portfolio and have provided the greatest absolute and relative
performance over the period. Many of the holdings are lower
yielding dividend growers, rather than high dividend payers. The
exposure of the portfolio was increased throughout the year. The
largest position, Microsoft, a longstanding holding, has emerged as
one of the leaders in AI by virtue of its investment in OpenAI, the
creator of ChatGPT, and its leading positions in cloud computing
and business software. Semiconductor companies Qualcomm and Taiwan
Semiconductor Manufacturing were also significant positive
contributors to performance because of accelerating demand for
semiconductors. AI activity is starting to broaden out from demand
for semiconductor chips to computing infrastructure investment. A
wide range of companies are starting to see customer orders
increasing, from the likes of database provider Oracle to server
manufacturer Hon Hai Precision and Indian IT services provider
Infosys Technologies, which all performed strongly as a result. Not
all technology stocks have participated in the rally yet. Portfolio
companies Samsung, which is one of the world's largest computer
memory design and manufacturers, Infineon Technology, a leading
analogue semiconductor company, and Cisco Systems and Lenovo,
computer hardware manufacturers, were negative contributors to
performance. Whilst they are seeing some AI-related sales they are
not yet significant enough to offset weakness elsewhere in their
businesses. We believe this will change over time and that they are
undervalued on that basis.
Technology stocks have not been the
only good performers. The portfolio's second largest sector
exposure is the financial sector (17.5% of the portfolio) and it
was one of the best performers over the period. It is one of the
higher yielding sectors and one that we have considered was
significantly undervalued for some years. Many companies in the
sector benefit from higher interest rates, and higher rates coupled
with low credit losses are driving strong profit growth across much
of the sector. Fund management company Amundi performed strongly
due to the recovery in asset values. The portfolio's insurance
companies benefited from rising insurance premiums and improving
profitability. US insurer Travelers Companies was one of the top
performers and the positions in AXA, Zurich and Swiss Re also
performed well. Asian insurers Dai-ichi Life and Samsung Fire &
Marine Insurance rose due to the previously mentioned focus on
improving shareholder returns in Japan and South Korea.
The communications and utility
sectors have ended up being great performers this year. This was
driven partly by interest rates peaking and by a growing
acknowledgement that the utility sector is likely to see a higher
growth rate in the future due to the heavy investment needed to
transform the way energy is generated and consumed
globally.
Whilst there has been much to
celebrate in the portfolio over the year, the underperformance of
some stocks held it back. In general, the portfolio has been overly
exposed across all the regions to companies with Chinese revenues.
The country has not seen the recovery from the easing of Covid
lockdown that the rest of the world experienced and which we had
expected. As a result we repositioned the Asia Pacific portfolio
significantly in the first half of the year. Insurer AIA and
retailer Li-Ning were sold. Anta Sports, Pernod-Ricard and
Samsonite were retained as we believed that their valuations did
not reflect their longer-term growth potential. It is worth noting
that some of the Chinese holdings have performed well, such as Nari
Technology and Midea, and the others have seen a recovery post year
end on the stimulus announcements.
Another common theme that has
detracted from returns over the period has been our investments in
companies that are going through transformations and that are
increasing investments to accelerate future earnings growth.
Examples of this include US companies Air Products & Chemicals,
pharmaceutical company Bristol-Myers Squibb and car parts supplier
Aptiv. These companies have raised their investment budgets to
invest in new technologies and maintain their competitive
positions. They are attractively valued compared to their peers and
in our view their improving earnings growth is not reflected in
their share prices but the market has not yet been willing to give
them credit for this improvement. Industrial gases company Air
Products & Chemicals, for example, is investing heavily in low
carbon hydrogen projects (known as green and blue hydrogen
technologies) but the projects will not be ready for a few years
and the market would like to see evidence of demand before
rewarding the company for investment. It has signed some contracts
for green hydrogen recently, which has seen some of the
underperformance reversed. In these cases we have learned a lesson
about being too early to invest.
The performance from the health care
industry has been mixed in recent years. There is a great deal of
innovation in the sector and in some cases cheap valuations, but
the stocks are very sensitive to drug pipeline news. Novartis and
Novo Nordisk have outperformed significantly due to positive drug
trials, but Roche and Bristol-Myers Squibb have underperformed on
the back of disappointing trial data. We have sold Roche and
maintained the holding in Bristol-Myers Squibb.
Portfolio positioning
Stock selection is driven by a
combination of the attractiveness of the company (leading
competitive positioning, positive supply/demand outlook, good cash
flow generation, long-term sustainability of business model) and
the potential for total return gains to shareholders.
The single largest change in the
portfolio during the year was the increase in the technology sector
exposure from 8.4% to 19.6%. This was discussed earlier in the
report and in the case study on technology innovation. This
increase was funded from a range of stocks and sectors that have
less upside potential. We have found that some companies in the
portfolio that benefited from competitors' supply chain problems
during Covid are starting to see their pricing power erode.
Positions sold on this basis included stocks in the energy sector,
where increased supply is meeting lower than expected demand, and
stocks in the consumer staples sector, including the sales of
Mondelez and Ambev.
The financial sector exposure was
gradually reduced during the year. Initially, a large exposure had
been held in the belief that the market was overly pessimistic on
the outlook for companies' profits, and that it would benefit from
higher interest rates. In some cases, such as ING, this has
happened and the position has been sold.
The Asia portfolio was significantly
changed to reduce the exposure to the domestic Chinese economy and
to increase the exposure to companies that can benefit from
structural global growth. These areas include technology
innovation, infrastructure capital spending, and decarbonisation
efforts. Positions purchased included Nari Technology, Midea and
Infosys Technologies. These were funded via sales including SK
Telekom, HKT Trust and HKT Ltd and China Yongda
Automobiles.
Some economically sensitive stocks
were sold in areas where we are not seeing demand recovering as
expected, despite depressed activity levels. Notably, auto exposure
has been reduced by selling Mercedes and BMW, and machine tool
manufacturer Sandvik.
The largest individual stock changes
are shown below:
|
Purchases
|
%
|
|
American Tower
|
+2.3
|
|
Home Depot
|
+2.2
|
|
Oracle
|
+1.8
|
|
Infineon Technologies
|
+1.7
|
|
Siemens
|
+1.7
|
|
|
|
|
Sales
|
%
|
|
Roche
|
-3.0
|
|
Zurich Insurance
|
-2.6
|
|
Mondelez
|
-2.2
|
|
ING
|
-1.8
|
|
Ambev
|
-1.7
|
Case study - accessing
technological innovation
Some technologists describe
technological innovation as happening in waves. The advent of
generative AI has been described as the 4th wave of
computing, coming after the 3rd wave which was 'Mobile
Cloud'. Advancing semiconductor technology over the past three
decades has enabled these breakthroughs. It fits with a general
theme we have seen over the last five years, which is that the
implementation of digital technology and cloud computing adoption
has broadened out from what was initially consumer focused (digital
streaming of TV, music, advertising) to be more industry focused.
This digital implementation can take many different forms: higher
levels of driver-aids in cars, perhaps ending in self-driving
capabilities, digital 'twins' in industry where sensors monitor a
machine and create a digital version of it for engineers to monitor
in real time. To drive it all, enormous data centres are required
with enhanced cooling systems, needing more electricity, connectors
and equipment. These trends have been in place for a while, but the
advent of generative AI has turbo-charged them.
The portfolio has invested in
companies that will see higher growth rates because of the spending
needed to create the infrastructure to facilitate this
technological innovation. Microsoft needs no introduction as a
brand, but it is one of the largest cloud operators in the world
and is offering businesses an increasingly AI-driven range of
software to enhance productivity. The investment team has taken
advantage of the post Covid slump in some areas of technology
spending to add to the companies that will help facilitate this
4th wave. Oracle, for example, is a world leader in
databases and it is seeing increased demand because the first step
to using AI effectively is to have easy access to a businesses'
data. Siemens is an engineering company but it is also the leader
in a number of the world's industrial software categories. nVent
and TE Connectivity provide some of the crucial cabling,
connectivity and cooling systems for datacentres, cars and
industry. These are just some of the businesses in the portfolio
that are gaining sales from the new wave of technical
innovation.
Impact of
gearing
We have not used gearing much this
year having been cautious that the sharp rise in interest rates
could cause either an economic slow-down or problems for indebted
companies and consumers. Such outcomes might give rise to
opportunities to invest at more attractive prices. The fact that
interest rates are higher also means that the Company earns
interest on its cash, which offsets the cost of debt. We did see
some market volatility towards the end of the financial year and
have used that to add to existing holdings using
gearing.
Since the Company has long-term
debt, we provide both a fair value and par value return (see note
17.4 in the annual report for details). The fair value of the debt
reflects a theoretical market price which reflects interest rate
expectations. The reduction in interest rate expectations during
the period has increased the fair value of the debt by £1,076,000,
reducing the fair value net asset value return of the Company by
0.6%. The par value of the debt is only changed by currency
movements and has fallen by £424,000 over the year, as a result of
sterling strengthening slightly against the euro.
Investment strategy
Since inception, the Company has
offered investors a yield that was significantly higher than global
equity markets and a dividend that has grown consistently over
time. Higher income stocks are often value stocks (lower valuation
than the market combined with higher dividend yields), and although
value investing has worked for long periods in the past, this
investment style has been out of favour in recent years, as
illustrated by the chart in the annual report.
A focus on dividend and value has at
times made it hard to gain exposure to exciting new growth areas,
or be opportunistic in times of market dislocation. The investment
team has a record of successfully identifying and investing in
companies that have grown in value considerably. The top performers
since launch have, for example, included Microsoft, Taiwan
Semiconductor Manufacturing and obesity drug creator Novo Nordisk.
The board and manager have reviewed the investment strategy and
concluded that additional flexibility to invest in these types of
opportunities when they are attractively priced can contribute to
the overall total return. The Company will continue to offer
investors the income they desire but when appropriate will use more
of the flexibility provided by the investment trust structure to
distribute dividends from distributable reserves to generate higher
total returns for investors.
The investment team has started to
implement this investment strategy. We restructured the existing
exposure to the Asia Pacific holdings in October last year to focus
more on structural growth beneficiaries. This has had a positive
impact; the Asian portfolio return improved from 3.3% return in the
first half of the year to 13.9% despite ongoing Chinese market
weakness. In the US the increased flexibility has been used to
continue to own some lower yielding stocks such as Microsoft, but
also to add others like Oracle which has helped to improve
performance.
Whilst the market rotation
experienced recently has impacted short-term sentiment we feel
confident that the increased flexibility now being employed will
help improve total returns over time. Exposure to slower growing
sectors that were primarily held for income, including
telecommunications and energy, were reduced to fund these
changes.
Outlook
Now that global inflation appears to
be under control, central banks have proceeded to ease monetary
policy around the world. This year real wage growth has been
positive and while wages continue to rise, this should provide
support to the consumer and aid the global economy in 2025. Since
the end of the period under review the US Federal Reserve has cut
interest rates by 0.5% (a larger cut than their normal 0.25%) and
the Chinese government has announced a number of stimulus measures
in an effort to contain the severe property market downturn and
provide support to the broader economy. If China succeeds in
turning around its domestic consumption growth, it could be an
additional positive for equity markets.
Long-term structural trends such as
technological innovation, decarbonisation and supply-chain security
are driving an increase in capital spending across a range of
industries. While risks persist, in the form of a weakening
employment picture and geopolitical tensions, the health of the
global economy at this stage looks better than it has over the past
year.
We are confident that the companies
held in the portfolio have the ability to benefit from the
long-term structural trends and to navigate the current conditions
well, aided by their strong balance sheets and cash generating
abilities. Shareholder returns being announced in terms of both
dividends and share buybacks remain positive which suggests that
management teams share our confidence in the long-term outlooks for
their companies.
Ben Lofthouse
Fund Manager
30 October 2024
INVESTMENT POLICY
The Company will invest in a focused
and internationally diversified portfolio of 50-80 companies that
are either listed in, registered in, or whose principal business is
in countries that are outside the UK and will be made up of shares
(equity securities) and fixed interest asset classes that are
diversified by factors such as geography, industry and investment
size. A maximum of 25% of gross assets may be invested in fixed
interest securities. The Company does not hold investments in
unlisted companies unless it is through subsequent delisting of an
existing investment.
Investment in any single company
(including any derivative instruments) will not, in gross terms,
exceed 5% of net assets at the time of investment and no more than
15% of gross assets may be invested in other listed investment
companies (including investment trusts) or collective investment
schemes. No more than 10% of gross assets may be invested in
companies that themselves invest more than 15% of their gross
assets in UK listed investment companies or collective investment
schemes.
The Company may use financial
instruments known as derivatives for the purpose of efficient
portfolio management, for investment purposes or to generate
additional income while maintaining a level of risk consistent with
the risk profile of the Company. The Company may hedge exposure to
foreign currencies up to a maximum of 20% of gross assets and may
generate up to a maximum of 20% of gross income through investment
in traded options.
The Company can borrow to make
additional investments with the aim of achieving a return that is
greater than the cost of borrowing. The Company's articles of
association allow borrowings up to 100% of net asset value. In
normal circumstances, the manager may only utilise gearing up to
25% of net assets at the time of drawdown or investment (as
appropriate) in accordance with the board's policy and for these
purposes 'gearing' includes implied gearing through the use of
derivatives.
PRINCIPAL RISKS AND UNCERTAINTIES
The board, with the assistance of
Janus Henderson, has carried out a robust assessment of the
principal risks and uncertainties, including emerging risks, facing
the Company, including those that would threaten its business
model, future performance, solvency or liquidity and
reputation.
The board regularly considers the
principal and emerging risks facing your Company and has drawn up a
matrix of risks. The board has also put in place a schedule of
investment limits and restrictions, appropriate to your Company's
investment objective and policy. The principal risks which have
been identified and the steps taken by the board to mitigate these
are set out in the table below. The principal financial risks are
detailed in note 17 to the financial statements in the annual
report.
The risk register has been updated
during the year to reflect increasing risk arising from the
continued consolidation of the investment trust sector, together
with reflecting the lower interest rate and inflationary
environment. The risk arising from artificial intelligence ("AI")
has been added as an emerging risk.
|
Risk
|
Trend
|
Mitigation
|
|
Geopolitical risks
Geopolitical risks, including
ongoing political uncertainty, are causing economic volatility.
Supply chains, energy supply and consequential price increases are
among the risks. These could affect the valuation of your Company's
portfolio and dividend income.
|
↑
|
The fund manager monitors political
and economic issues and is active in the review of geographic and
sector allocations. At each board meeting, the allocation of the
assets across the geographic markets and the sector relative
weightings are discussed with the fund manager, with a focus on the
current market context. The risk is spread through holding a
diverse portfolio.
|
|
Investment activity and performance risks
An inappropriate investment strategy
(for example, in terms of asset allocation or the level of gearing)
may result in underperformance against your Company's benchmark
index and the companies in its peer group.
Interest rates remaining higher for
longer than expected could materially affect the performance of
stocks with high levels of gearing. This could impact their
cashflows and ability to pay dividends, and thus affect the
performance of the Company's portfolio.
|
↔
|
The board monitors investment
performance at each board meeting, including performance relative
to the benchmark. It also regularly reviews the extent of its
borrowings, when in use.
The fund manager actively monitors
the level of gearing in the stocks across the portfolio and adjusts
exposure where necessary. This is discussed on a regular basis with
the board.
|
|
Portfolio and market price risks
Although your Company invests almost
entirely in securities that are listed on recognised markets, share
prices may move rapidly. The companies in which investments are
made may underperform or fail entirely with a potential impact on
their share price and/or dividend yield. A fall in the market value
of your Company's portfolio would have an adverse effect on
shareholders' funds.
Most of your Company's assets,
liabilities, income and expenses are denominated in currencies
other than sterling (the Company's functional currency and
presentational currency). As a result, movements in exchange rates
may affect the sterling value of those items.
|
↔
|
The manager seeks to maintain a
diversified portfolio to mitigate against this risk. The board
regularly reviews the portfolio, activities and
performance.
The fund manager monitors your
Company's exposure to foreign currencies daily and reports to the
board at each meeting. The fund manager measures the risk to the
Company of the foreign currency exposure by considering the effect
on the Company's net asset value and total return of a movement in
the exchange rates to which your Company's assets, liabilities,
income and expenses are exposed.
The board has set an investment
limit on currency hedging to a maximum of 20% of gross assets to
mitigate against this risk.
|
|
Tax
and regulatory risks
A breach of section 1158/9 of the
Corporation Tax Act 2010 could lead to a loss of investment trust
status, resulting in capital gains realised within the portfolio
being subject to corporation tax. A breach of the UK Listing Rules
could result in suspension of your Company's shares, while a breach
of the Companies Act could lead to criminal proceedings, or
financial or reputational damage.
|
↔
|
The manager has been contracted to
provide investment, company secretarial, administration and
accounting services through suitably qualified professionals. The
board receives internal control reports produced by Janus Henderson
on a quarterly basis, which confirm legal and regulatory
compliance.
|
|
Operational and cyber risks
Disruption to, or failure of, Janus
Henderson's accounting, dealing or payment systems or the
custodian's records could prevent the accurate reporting and
monitoring of the Company's financial position. Your Company is
also exposed to the operational and/or cyber risk that one or more
of its service providers may not provide the required level of
service in the event of a cyber attack.
|
↑
|
The board monitors the services
provided by the manager and its other third-party suppliers and
receives reports on the key elements in place to provide effective
internal controls. The board also receives assurances from the
manager's chief information security officer that the manager
maintains robust cyber and information security policies, processes
and procedures. The manager maintains a robust firewall to mitigate
any such attacks.
The board also monitors the
principal business risks faced by your Company which are recorded
in a risk map which is reviewed regularly. Systems are in operation
to safeguard the Company's assets and shareholders' investments, to
maintain proper accounting records and to ensure that financial
information used within the business, or published, is
reliable.
|
|
Consolidation of the wealth management
industry
Continued consolidation of the
wealth management industry may result in a narrower customer base
and the increasing importance of being on the 'buy
list'.
|
↑
|
A key focus is on performance and to
ensure that your Company meets buy list requirements of
institutional investors. The manager makes use of PR and marketing
in order to reach individual buyers. The board is enhancing your
Company's marketing strategy to ensure the growing needs of
individual self-directed investors are met to help stimulate
ongoing demand for your Company's shares.
|
|
Consolidation of the investment trust sector
Consolidation of the investment
trust sector leading to a greater average size of investment trusts
becoming the norm.
|
↑
|
The board regularly reviews the
market to identify and participate in consolidation opportunities
and looks to the manager to provide performance to improve the
Company's chances for growth.
|
Emerging risks
In addition to the principal risks
facing your Company, the board also regularly considers potential
emerging risks, which are defined as potential trends, sudden
events or changing risks which are characterised by a high degree
of uncertainty in terms of the probability of them happening and
the possible effects on the Company. Should an emerging risk become
sufficiently clear, it may be moved to a significant
risk.
The board has identified the
following as potential emerging risks:
|
Emerging risk
|
Mitigation
|
|
Unfavourable regulatory changes,
including tax changes and the possible imposition of a wealth
tax.
|
The board and the manager monitor
potential changes on an ongoing basis.
|
|
The development of artificial
intelligence may result in a change to operational models for
portfolio companies, which may impact the valuation of the
portfolio.
|
The board and fund manager keep
abreast of developments that could affect the portfolio. The
portfolio is diversified by both geography and sector. The fund
manager actively reviews this allocation and the underlying
companies, making changes as necessary.
|
VIABILITY AND GOING CONCERN
The AIC Code of Corporate Governance includes a
requirement for the board to assess the future prospects for your
Company, and to report on the assessment within the annual report.
The board considers that certain characteristics of your Company's
business model and strategy are relevant to this assessment:
|
•
|
the board looks to ensure that your Company seeks to
deliver long-term performance;
|
|
•
|
the Company's investment objective, strategy and
policy, which are subject to regular board monitoring, mean that
your Company is invested mainly in readily realisable listed
securities and that the level of borrowings is restricted;
|
|
•
|
your Company is a closed-end investment company and
therefore does not suffer from the liquidity issues arising from
unexpected redemptions; and
|
|
•
|
the Company has an ongoing charge of
0.77% (2023: 0.72%).
|
Also relevant were a number of aspects of your
Company's operational agreements:
|
•
|
your Company retains title to all assets held by the
custodian under the terms of the formal agreement with the
depositary;
|
|
•
|
long-term borrowing is in place, being the 2.43%
senior unsecured notes 2044, which are also subject to a formal
agreement, including financial covenants with which your Company
has complied in full during the period since issuance. The value of
long-term borrowing is relatively small in comparison to the value
of net assets, being 6.9% at 31 August 2024 (2023: 7.4%);
|
|
•
|
revenue and expenditure forecasts are reviewed by the
directors at each board meeting; and
|
|
•
|
cash is held with an approved bank.
|
In addition, the directors carried
out a robust assessment of the principal risks and uncertainties
which could threaten your Company's business model, including
future performance, liquidity or solvency and reputation and
considered emerging risks that could have a future impact on your
Company.
The principal risks identified as
relevant to the viability assessment were those relating to
investment activity and performance, portfolio and market price
risks. The board took into account the liquidity of your Company's
portfolio, the existence of the long-term fixed rate borrowings,
the effects of any significant future falls in investment values
and income receipts on the ability to repay and re-negotiate
borrowings, grow dividend payments and retain investors and the
potential need for share buy-backs in order to maintain a narrow
share price discount.
The directors assess viability over
three-year rolling periods, taking account of foreseeable severe
but plausible scenarios. The scenarios considered by the directors
in coming to this conclusion included the heightened macroeconomic
uncertainties, the potential impact on income and your Company's
ability to meet its investment objective, and the impact on loan
covenants. The directors do not believe that they will have a
long-term impact on the viability of your Company and its ability
to continue in operation, notwithstanding the short-term
uncertainty that these events have caused in the markets and
specific short-term issues, such as to energy, supply chain
disruption, inflation and labour shortages.
The directors believe that a rolling
three-year period best balances your Company's long-term objective,
its financial flexibility and scope with the difficulty in
forecasting economic conditions affecting your Company and its
shareholders.
The directors recognise that there
is a continuation vote that is due to take place at the 2026 AGM.
The directors currently believe that your Company will continue to
exist for the foreseeable future and at least for the period of
assessment.
Based on their assessment, and in
the context of your Company's business model, strategy and
operational arrangements set out above, the directors have a
reasonable expectation that your Company will be able to continue
in operation and meet its liabilities as they fall due over the
three-year period to 31 August 2027.
The directors consider your Company
has adequate resources to continue in operational existence for at
least twelve months from the date of approval of the financial
statements and that it is appropriate to adopt the going concern
basis of accounting in preparing the financial statements (see
below for further details).
BORROWINGS
Your Company's short-term gearing
facility allows borrowing of up to £30m in sterling and other
currencies by way of an overdraft facility with HSBC Bank plc.
Under this facility the Company borrowed in both sterling and euros
in the year under review. There were no amounts drawn down under
this facility at 31 August 2024.
On 30 April 2019, your Company issued €30m fixed rate
25-year senior unsecured notes at an annualised coupon of 2.43%.
This long-term fixed rate euro denominated financing was obtained
at a price that the board considered attractive. The senior
unsecured notes are expected to enhance long-term investment
performance.
Within the terms of the senior unsecured notes are
clauses that would be enacted in certain scenarios should the notes
be prepaid by the Company before maturity. These clauses could
impact the total amount repayable. The directors have assessed
these and have concluded that these clauses are highly unlikely to
occur.
The level of gearing at 31 August 2024 was 4.7% of
net asset value (2023: 3.9%).
RELATED PARTY TRANSACTIONS
The Company's transactions with
related parties in the year were with the directors and the
manager. There have been no material transactions between the
Company and its directors during the year. The only amounts paid to
directors were in respect of expenses and remuneration for which
there were no outstanding amounts payable at the year
end.
In relation to the provision of
services by the manager (other than fees payable by the Company in
the ordinary course of business and the provision of marketing
services) there have been no material transactions with the manager
affecting the financial position or performance of the Company
during the year under review. More details on transactions with the
manager, including amounts outstanding at the year end, are given
in note 22 of the annual report.
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the directors, who are
listed below, confirms that, to the best of their
knowledge:
|
•
|
the Company's financial statements,
which have been prepared in accordance with UK Accounting
Standards, give a true and fair view of the assets, liabilities,
financial position and return of the Company; and
|
|
•
|
the annual report and financial
statements include a fair review of the development and performance
of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it
faces.
|
On behalf of the board
Richard Hills
Chairman
30 October
2024
INCOME STATEMENT
|
|
|
Year ended 31 August
2024
|
Year
ended 31 August 2023
|
|
Notes
|
|
Revenue
return
£'000
|
Capital
return
£'000
|
Total
£'000
|
Revenue
return
£'000
|
Capital
return
£'000
|
Total
£'000
|
|
|
Gains/(losses) from investments
held at fair value through profit or loss
|
-
|
23,078
|
23,078
|
-
|
(8,984)
|
(8,984)
|
|
3
|
Income from investments held at
fair value through profit or loss
|
14,942
|
-
|
14,942
|
16,641
|
-
|
16,641
|
|
|
Gain/(loss) on foreign
exchange
|
-
|
621
|
621
|
-
|
(84)
|
(84)
|
|
4
|
Other income
|
836
|
23
|
859
|
894
|
-
|
894
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue and capital gains/(losses)
|
15,778
|
23,722
|
39,500
|
17,535
|
(9,068)
|
8,467
|
|
5
|
Management fee
|
(520)
|
(1,558)
|
(2,078)
|
(500)
|
(1,502)
|
(2,002)
|
|
|
Other administrative
expenses
|
(744)
|
-
|
(744)
|
(609)
|
-
|
(609)
|
|
|
|
|
|
|
|
|
|
|
|
Net return before finance costs and taxation
|
14,514
|
22,164
|
36,678
|
16,426
|
(10,570)
|
5,856
|
|
|
Finance costs
|
(158)
|
(475)
|
(633)
|
(162)
|
(488)
|
(650)
|
|
|
|
|
|
|
|
|
|
|
|
Net return before taxation
|
14,356
|
21,689
|
36,045
|
16,264
|
(11,058)
|
5,206
|
|
|
Taxation on net return
|
(1,184)
|
-
|
(1,184)
|
(2,020)
|
-
|
(2,020)
|
|
|
|
|
|
|
|
|
|
|
|
Net return after taxation
|
13,172
|
21,689
|
34,861
|
14,244
|
(11,058)
|
3,186
|
|
|
|
|
|
|
|
|
|
|
6
|
Return per ordinary share
|
6.72p
|
11.07p
|
17.79p
|
7.27p
|
(5.64p)
|
1.63p
|
The total column of this statement
represents the Income Statement of the Company. The revenue return
and capital return columns are supplementary to this and are
prepared under guidance published by the Association of Investment
Companies.
All revenue and capital items
derive from continuing operations. The Company had no recognised
gains or losses other than those disclosed in the Income
Statement.
STATEMENT OF CHANGES IN EQUITY
|
Notes
|
Year ended
31
August 2024
|
Called up
share capital
£'000
|
Share
premium
account
£'000
|
Special
reserve
£'000
|
Other
capital
reserves
£'000
|
Revenue
reserve
£'000
|
Total
£'000
|
|
|
At 31 August 2023
|
1,960
|
194,550
|
45,732
|
94,919
|
7,209
|
344,370
|
|
|
Net return for the year
|
-
|
-
|
-
|
21,689
|
13,172
|
34,861
|
|
7
|
Dividends paid
|
-
|
-
|
-
|
-
|
(15,051)
|
(15,051)
|
|
|
|
|
|
|
|
|
|
|
|
At
31 August 2024
|
1,960
|
194,550
|
45,732
|
116,608
|
5,330
|
364,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
Year ended
31 August 2023
|
Called
up
share
capital £'000
|
Share
premium
account
£'000
|
Special
reserve
£'000
|
Other
capital
reserves
£'000
|
Revenue
reserve
£'000
|
Total
£'000
|
|
|
At 31 August 2022
|
1,960
|
194,550
|
45,732
|
105,977
|
7,468
|
355,687
|
|
|
Net return for the year
|
-
|
-
|
-
|
(11,058)
|
14,244
|
3,186
|
|
7
|
Dividends paid
|
-
|
-
|
-
|
-
|
(14,503)
|
(14,503)
|
|
|
|
|
|
|
|
|
|
|
|
At 31 August 2023
|
1,960
|
194,550
|
45,732
|
94,919
|
7,209
|
344,370
|
|
|
|
|
|
|
|
|
|
STATEMENT OF FINANCIAL POSITION
|
Notes
|
|
At
31
August
2024
£'000
|
At
31
August
2023
£'000
|
|
|
Fixed asset investments held at fair value through profit or
loss
|
381,168
|
357,671
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Investment held at fair value
through profit or loss
|
10,011
|
-
|
|
|
Debtors
|
3,570
|
3,588
|
|
|
Cash at bank and in hand
|
9,708
|
18,028
|
|
|
|
23,289
|
21,616
|
|
|
|
|
|
|
|
Creditors: amounts falling due
within one year
|
(15,159)
|
(9,375)
|
|
|
|
|
|
|
|
Net current
assets
|
8,130
|
12,241
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
389,298
|
369,912
|
|
|
Creditors: amounts falling due after
more than one year
|
(25,118)
|
(25,542)
|
|
|
|
|
|
|
|
Total net assets
|
364,180
|
344,370
|
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
9
|
Called up share capital
|
1,960
|
1,960
|
|
10
|
Share premium account
|
194,550
|
194,550
|
|
|
Special reserve
|
45,732
|
45,732
|
|
|
Other capital reserves
|
116,608
|
94,919
|
|
|
Revenue reserve
|
5,330
|
7,209
|
|
|
|
|
|
|
|
Total shareholders' funds
|
364,180
|
344,370
|
|
|
|
|
|
|
8
|
Net
asset value per ordinary share
|
185.8p
|
175.7p
|
STATEMENT OF CASH FLOWS
|
|
Year
ended
31
August
2024
£'000
|
Year
ended
31
August
2023
£'000
|
|
Cash flows from operating activities
|
|
|
|
Net return before
taxation
|
36,045
|
5,206
|
|
Add back: finance costs
|
633
|
650
|
|
(Gains)/losses on investments held
at fair value through profit or loss
|
(23,078)
|
8,984
|
|
(Gains)/losses on foreign
exchange
|
(621)
|
84
|
|
Withholding tax on dividends
deducted at source
|
(1,575)
|
(2,432)
|
|
Taxation recovered
|
92
|
56
|
|
Decrease/(increase) in
debtors
|
313
|
(189)
|
|
Decrease in creditors
|
(468)
|
(104)
|
|
|
|
|
|
Net
cash inflow from operating activities
|
11,341
|
12,255
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
Purchase of investments
|
(156,275)
|
(105,273)
|
|
Sale of investments
|
162,106
|
119,914
|
|
Purchase of current asset
investments
|
(10,011)
|
-
|
|
Proceeds from capital
dividends
|
9
|
2
|
|
|
|
|
|
Net
cash inflow from investing activities
|
(4,171)
|
14,643
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
Equity dividends paid (net of refund
of unclaimed distributions and reclaimed distributions)
|
(15,051)
|
(14,503)
|
|
Interest paid
|
(631)
|
(644)
|
|
|
|
|
|
Net
cash outflow from financing activities
|
(15,682)
|
(15,147)
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents
|
(8,512)
|
11,751
|
|
Cash at bank and in hand at start of
year
|
18,028
|
6,590
|
|
Effect of foreign exchange
rates
|
192
|
(313)
|
|
|
|
|
|
Cash at bank and in hand at end of year
|
9,708
|
18,028
|
|
|
|
|
|
Comprising:
|
|
|
|
Cash at bank and in hand
|
9,708
|
18,028
|
|
|
|
|
|
|
9,708
|
18,028
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
Basis of accounting
The Company is a registered
investment company as defined in section 833 of the Companies Act
2006 and is incorporated in the United Kingdom. It operates in the
United Kingdom and is registered at 201 Bishopsgate, London EC2M
3AE.
The financial statements have been
prepared in accordance with the Companies Act 2006, FRS 102, the
Financial Reporting Standard applicable in the UK and Republic of
Ireland, and with the Statement of Recommended Practice: Financial
Statements of Investment Trust Companies and Venture Capital Trusts
(the "SORP") issued in July 2022 by the Association of Investment
Companies.
The principal accounting policies
applied in the presentation of these financial statements are set
out in the annual report.
Following the issue of the senior
unsecured notes on 30 April 2019 it was determined that the Company
would adopt the recognition and measurement provisions of IFRS 9
(Financial Instruments), as permitted by sections 11 and 12 of FRS
102. This was determined to better reflect the directors'
assessment of the carrying value of the senior unsecured notes and
has no impact on the carrying value of the Company's financial
assets.
The financial statements are
prepared under the historical cost basis except for the measurement
at fair value of investments.
The preparation of the Company's
financial statements on occasion requires the directors to make
judgements, estimates and assumptions that affect the reported
amounts in the primary financial statements and the accompanying
disclosures. These assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amounts
of assets or liabilities affected in current and future periods,
depending on circumstances. The directors have considered the
accounting treatment of the senior unsecured notes as set out in
accounting policy 1 i) in the annual report to be an area of
judgement, in particular with reference to clauses that would be
enacted should the notes be prepaid before maturity and concluded
the adoption of IFRS 9 described above is the most appropriate and
complies with accounting standards. The decision to allocate
special dividends as income or capital is a judgement but not
deemed to be material.
The directors do not believe that
any accounting judgements or estimates have been applied to this
set of financial statements that have a significant risk of causing
a material adjustment to the carrying amount of assets and
liabilities within the next financial year.
2. Going concern
The Company's articles of
association require that at every third annual general meeting of
the Company an ordinary resolution be put to shareholders asking
them to approve the continuation of the Company. An ordinary
resolution to this effect was passed by the shareholders at the
annual general meeting held on 12 December 2023. The assets of the
Company consist of securities that are readily realisable and,
accordingly, the directors believe that the Company has adequate
resources to continue in operational existence for at least twelve
months from the date of approval of the financial statements.
Having assessed these factors, the principal risks, as well as
considering the heightened macroeconomic uncertainties and other
matters discussed in connection with the viability statement, the
board has determined that it is appropriate for the financial
statements to be prepared on a going concern basis.
3. Income from investments held at fair
value through profit or loss
|
|
2024
£'000
|
2023
£'000
|
|
Dividend income
|
14,942
|
16,641
|
|
|
|
|
|
|
14,942
|
16,641
|
4. Other income
|
|
2024
£'000
|
2023
£'000
|
|
Bank interest
|
468
|
318
|
|
Interest on liquidity
fund
|
101
|
-
|
|
Option premium income
|
264
|
576
|
|
Other income
|
3
|
-
|
|
|
|
|
|
|
836
|
894
|
5. Management fee
|
|
2024
|
2023
|
|
|
Revenue return
£'000
|
Capital return
£'000
|
Total
£'000
|
Revenue
return
£'000
|
Capital
return
£'000
|
Total
£'000
|
|
Management fee
|
520
|
1,558
|
2,078
|
500
|
1,502
|
2,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
A summary of the terms of the
management agreement is given in the strategic report in the annual
report.
6. Return per ordinary
share
|
|
2024
|
2023
|
|
|
£'000
|
pence
|
£'000
|
pence
|
|
Revenue return
|
13,172
|
6.72
|
14,244
|
7.27
|
|
Capital return
|
21,689
|
11.07
|
(11,058)
|
(5.64)
|
|
|
|
|
|
|
|
Total return
|
34,861
|
17.79
|
3,186
|
1.63
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares
|
195,978,716
|
195,978,716
|
7. Dividends paid on ordinary shares for the year
to 31 August
|
Dividends on ordinary shares
|
Ex-dividend
date
|
Record date
|
Payment
date
|
2024
£'000
|
2023
£'000
|
|
4th interim dividend -
1.92p
|
9 November
2023
|
10
November 2023
|
30
November 2023
|
3,763
|
-
|
|
1st interim dividend -
1.92p
|
1 February
2024
|
2 February
2024
|
29
February 2024
|
3,763
|
-
|
|
2nd interim dividend -
1.92p
|
9 May
2024
|
10 May
2024
|
31 May
2024
|
3,763
|
-
|
|
3rd interim dividend -
1.92p
|
25 July
2024
|
26 July
2024
|
30 August
2024
|
3,762
|
-
|
|
4th interim dividend -
1.85p
|
3 November
2022
|
4 November
2022
|
30
November 2022
|
-
|
3,626
|
|
1st interim dividend -
1.85p
|
2 February
2023
|
3 February
2023
|
28
February 2023
|
-
|
3,626
|
|
2nd interim dividend -
1.85p
|
11 May
2023
|
12 May
2023
|
31 May
2023
|
-
|
3,625
|
|
3rd interim dividend -
1.85p
|
27 July
2023
|
28 July
2023
|
31 August
2023
|
-
|
3,626
|
|
|
|
|
|
|
|
|
|
|
|
|
15,051
|
14,503
|
A fourth interim dividend in respect
of the year ended 31 August 2024 of 1.95p per share has been
declared and will be paid to shareholders on 29 November 2024 with
record date 8 November 2024. The Company's shares will go
ex-dividend on 7 November 2024.
The total dividends payable in
respect of the financial year which form the basis of section 1158
of the Corporation Tax Act 2010 are set out below. At the point of
declaring each dividend, the directors consider the revenue earned
during the financial period to date as well as the distributable
reserves brought forward, out of which total amount the dividend is
to be paid.
|
|
2024
£'000
|
2023
£'000
|
|
Revenue available for distribution
by way of dividend for the year
|
13,172
|
14,244
|
|
Interim dividends of 5.76p paid
(2023: 5.55p)
|
(11,288)
|
(10,877)
|
|
Fourth interim dividend for the year
ended 31 August 2024 of 1.95p (based
on 195,978,716 ordinary shares in issue as at 29 October 2024) (2023:
1.92p)
|
(3,822)
|
(3,763)
|
|
|
|
|
|
Transfer from revenue
reserve1
|
(1,938)
|
(396)
|
1 The deficit of £1,938,000 (2023: deficit of £396,000) has been
transferred from the revenue reserve
8. Net asset value per ordinary
share
The net asset value per ordinary
share and the net assets attributable to ordinary shares at the end
of the year were as follows:
|
|
2024
|
2023
|
|
Net assets attributable
(£'000)
|
364,180
|
344,370
|
|
Number of ordinary shares in
issue
|
195,978,716
|
195,978,716
|
|
Net assets per ordinary share
(pence)
|
185.8
|
175.7
|
The movements during the year of the
assets attributable to the ordinary shares were as
follows:
|
|
2024
£'000
|
2023
£'000
|
|
Net assets at start of the
year
|
344,370
|
355,687
|
|
Total net return after
taxation
|
34,861
|
3,186
|
|
Dividends paid on ordinary shares in
the period
|
(15,051)
|
(14,503)
|
|
|
|
|
|
Total net assets attributable to the ordinary shares at 31
August
|
364,180
|
344,370
|
9. Called up share capital
|
Ordinary shares 1p each
|
Number of
shares
|
Number of shares entitled to
dividend
|
£'000
|
|
At
31 August 2024
|
195,978,716
|
195,978,716
|
1,960
|
|
|
|
|
|
|
At 31 August 2023
|
195,978,716
|
195,978,716
|
1,960
|
No shares were issued or bought back
during the year (2023: same).
10. Share premium account
|
|
2024
£'000
|
2023
£'000
|
|
At the start of the year
|
194,550
|
194,550
|
|
|
|
|
|
At
31 August
|
194,550
|
194,550
|
11. 2024 financial information
The figures and financial
information for the year ended 31 August 2024 are extracted from
the Company's annual financial statements for that year and do not
constitute statutory financial statements for that year. The
Company's annual financial statements for the year ended 31 August
2024 have been audited but have not yet been delivered to the
Registrar of Companies. The auditors' report on the 2024 financial
statements was unqualified and did not contain any statements under
sections 498(2) and 498(3) of the Companies Act 2006.
12. 2023 financial information
The figures and financial
information for the year ended 31 August 2023 are extracted from
financial statements for that year and do not constitute statutory
financial statements for that year. Those financial statements have
been delivered to the Registrar of Companies and included the
report of the auditors which was unqualified and did not contain
any statements under sections 498(2) or 498(3) of the Companies Act
2006.
13. Annual report and financial
statements
The annual report and financial
statements for the year ended 31 August 2024 will be posted to
shareholders in early November 2024 and will be available on the
Company's website www.hendersoninternationalincometrust.com.
Copies will be
available in hard copy format from the Company's registered office,
201 Bishopsgate, London EC2M 3AE.
14. Annual general meeting
The annual general meeting will be
held on Tuesday, 10 December 2024 at 2.30pm at the offices of Janus
Henderson Investors, 201 Bishopsgate, London EC2M 3AE, or
alternatively, shareholders can join the meeting via Zoom webinar.
The notice of the annual general meeting will be posted to
shareholders with the annual report and financial
statements.
15. General information
|
Company Status
Henderson International Income Trust
plc is a UK domiciled investment trust company.
|
|
SEDOL/ISIN number: ordinary
shares: B3PHCS8/GB00B3PHCS86
London Stock Exchange (TIDM) Code:
HINT
|
|
Global Intermediary Identification
Number (GIIN): WRGF5X.99999.SL.826
|
|
Legal Entity Identifier (LEI):
2138006N35XWGK2YUK38
|
|
Company Registration Number:
7549407
|
|
|
|
Registered Office
|
|
201 Bishopsgate, London EC2M
3AE
|
|
Directors and Secretary
|
|
The directors of the Company are
Richard Hills (chairman), Jo Parfrey (audit committee chair), Lucy
Walker (senior independent director), Mai Fenton and Aidan
Lisser.
|
|
The corporate secretary is Janus
Henderson Secretarial Services UK Limited, represented by Sally
Porter, ACG.
|
|
|
|
Website
|
|
Details of the Company's share price
and net asset value, together with general information about the
Company, monthly factsheets and data, copies of announcements,
reports and details of general meetings can be found at
www.hendersoninternationalincometrust.com.
|
For more information please
contact:
|
Ben Lofthouse
Fund Manager
Henderson International Income Trust
plc
Telephone: 020 7818 5187
|
|
|
Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 4458
|
Harriet Hall
PR Director, Investment
Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
|
Neither the contents of the
Company's website nor the contents of any website accessible from
hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this
announcement.
