This trust invests in well known companies with an objective of providing income and capital growth. This trust may use gearing.
This company reminds me of Murray income.
Similar types of investments.
Although Henderson has some bonds.
Share price
Henderson down 10% over 5 years.
Murray income up 10% over 5 years
Dividend Henderson 5.6%
Dividend Murray 4.%
Murray 6% discount
Henderson 0.6% discount
Murray income total assets £1187 million
Henderson £272 million
Spread
Murray income 0.38%
Henderson 1.47%
Average dividend increases 5 years
Murray 1.36%
Henderson 1.69%
Gearing
Murray 10%
Henderson 22%
Fees
Herderson high income Ongoing 1.59% according to Hargreaves Lansdowne considerably less on AIC 0.84 (no performance fee)
Murray 0.71 on Hargreaves Lansdowne
0.41% on AIC
It should be noted perpetual income and growth merged with murray BUT kept its dividend reserve. Hence Murray’s dividend reserve must have taken a big hit as it increased the number of shares by 30%. Hence dividend increases in the future would be expected to be lower so they can rebuild there reserve.
I would personally go for Henderson high income because of the latter.
The downside is much greater due to gearing.
The upside is the much greater due to gearing!
The latter is probably the cause poorer share price gain. For the moment.
Murray clearly will be on the radar for wealth managers
Henderson will definitely not be.