Henderson Diversified In... Share Discussion Threads

[flyer61] 04/10/2023 10:01

Not relevant, as it will be on the NAV later on. Looks like about a 6% discount now and remember the NAV will have a 1 per cent discount applied at endex.

But where to next? This had become a big holding for me of late on the basis of the orientation of the fund.

Ideas on a postcard please :-)

[value hound] 04/10/2023 07:55

And last quoted NAV was 69.4p right?

[cwa1] 04/10/2023 07:25

Henderson Div IncTst - Proposed Combination with Henderson High Income

[neilyb675] 26/7/2023 11:18

nice cross ramp

[vacendak] 26/7/2023 10:29

HDIV is more like NCYF, MGCI, the kind of safe debt/bond funds that should work like the "higher rate savings accounts" of yesteryear.

These are meant to milk the investment and conserve value. They obviously have a tough life during a phase of rising interests where "the markets" believe we should be back to forever QE in a year or two.

I had been looking into HDIV a few years ago then opted for LWDB, nothing to do about bonds of course but regular high-ish divi yield at ludicrously low risk.

[cc2014] 26/7/2023 10:08

No. They are completely different animals

[neilyb675] 25/7/2023 17:59

I wonder (in reference to ADIGs RNS today) whether a combination of some sort would be worthwhile.

[neilyb675] 25/7/2023 17:58

At inception in 2007, the objective of the Company was to invest in a wide range of fixed income instruments including secured loans. This would allow the Fund Managers to take advantage of the credit cycle to increase the allocation to loans when interest rates rose, protecting investors against capital losses. It was also envisaged there would be opportunities for capital growth in periods of falling interest rates which would enhance total returns.



Quantitative easing and the persistence of negative real interest rates during the last decade were not envisaged at launch. As a consequence, returns from loans have looked relatively unattractive and the Fund Managers chose not to invest in loans because they felt a reasonable reward was not available for the risks taken. It is not clear whether this will change in the near future.



Of greater concern is the challenge to income in the future. We are very aware that shareholders are principally interested in the yield offered by the Company's shares. The sustainability of this yield, and the risks necessary to achieve it, are an area of increasing focus for the Board, especially as revenue reserves have diminished.



The Board are therefore concerned that the structure of the Company as originally envisaged does not allow the Fund Managers to preserve the real value of the capital of its shareholders, and feel that perhaps an alternative investment process could offer greater scope to provide a more consistent return to our shareholders. The Board have not reached any conclusions on these matters but will be considering options for the Company in the near term. We will report any recommendations to you as soon as we are able.



Outlook



As has been communicated before, the Fund Managers have a distinct view of the economic outlook. This has served the Company well in the past. As they describe in their report, they have positioned the portfolio to have longer duration and lower credit risk. This is consistent with their view of the global economy.



Their thesis is described in detail in the Fund Managers' report and I would urge shareholders to read it carefully. Such active management can result in significant deviation from the benchmark, hopefully positive but also, as we have seen, negative.



Angus Macpherson

Chairman

[vacendak] 20/6/2023 11:24

They are sending emails around trying to drum up some support.

"Steady and predictable income

Investors have been scrambling to find yield that can cushion their portfolios from high interest rates and elevated inflation. As such, some have been reaching for yield, ignoring the risk this entails. In an era where uncertainty and volatility are the new normal, we believe that sticking to the tried and tested is the best approach to a steady and reliable yield."

With the usual piccies and links to the website that cannot show on this post.

[cwa1] 23/5/2023 10:40

Henderson Diversified Income Trust plc (the "Company") has declared a fourth interim dividend of 1.10p per ordinary share, in respect of the year ending 30 April 2023, payable on 30 June 2023 to shareholders registered at the close of business on 2 June 2023. The Company's shares will go ex-dividend on 1 June 2023. This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account.

[boystown] 17/4/2023 21:35

CC2014, I also hold BIPS and AXI.

According to the aic.co.uk ... the discounts and yields on the others you mention are currently:

CVCG -3.15, 7.61%
NBMI -8.91, 8.93%
EJFI -34.63%, 8.88%

I'm out of my depth here, so would probably go for EJFI on a simplistic basis - but which do you think is the safest yield? I respect your FAR superior judgement here! :-)

[boystown] 12/4/2023 23:12

Divi reinvested today by HL. There may well be better places / higher yield, but as part of a balanced PF etc., I still think this isn't bad for a steady yielder.

[ingermarie] 02/2/2023 17:17

An interesting list. None were on my radar!

[cc2014] 02/2/2023 13:37

I hold BIPS, AXI, CVCG, NBMI and EJFI.

All different flavours, different types of risks

[mancman1] 02/2/2023 11:59

CC2104

Many thanks for that explanation. You have certainly made me pause before buying any, although it would have been a small purchase as part of a very diversified portfolio.

I have recently bought some BIPS, Invesco Bond Income, which trades at a slight premium.
Have you any thoughts on this?

[uapatel] 02/2/2023 09:13

CC2104,

Well put, I recently closed my position here and put the proceeds to top other investments. The switch to bonds plus the lack of dividend cover were my main reasons for bailing out.

[wllmherk] 02/2/2023 09:09

Always find your posts informative CC2014, what would be your preferred bond/debt funds?
I hold HDIV for the income as long as they keep paying the dividend I'm quite happy.

wllm :)

[cc2014] 02/2/2023 09:01

The citywire article above explains the dividend will not be covered for year to 30th April. Given they switched into bonds with lower coupons in year the dividend will be even more uncovered next year.

Given the yield is 6%, then the actual return will be lower. That's hard to work out but say somewhere between 5-5.5%, not alot more than the 4.5% I can get an a 5 year FSCS building society bond.

So, I would want capital appreciation in addition to the yield. This would require interest rates to fall faster or lower than markets expect which I have a view on but not a view I hold with any significant conviction.

Also, I'm not excited about the switch to more defensives bonds, or rather the timing of the switch. The fund manager seems to have sold them at poor prices to enable this switch. The idea is to sell high and buy low but they've sold low and bought low.

Or put another way the value of the underlying assets has risen post Truss, plus the 10% discount has closed. I think it's had it's fun and other bond/debt funds offer better value

[rcturner2] 02/2/2023 08:49

I own HDIV and it has its place in a well balanced portfolio.

It is never going to make a massive return but it pays a steady dividend from the underlying bonds and it does what it says on the tin.

[mancman1] 02/2/2023 08:29

CC2014

Intrigued by your post. I am thinking of buying some - have been increasing exposure to
bonds.

What is your thinking?

[cc2014] 01/2/2023 14:18

Sold out yesterday as better places to put my money.

[uapatel] 12/1/2023 12:18

Henderson Diversified goes defensive before ‘hard landing’

[cwa1] 22/11/2022 12:01

Henderson Diversified Income Trust plc (the "Company") has declared a second interim dividend of 1.10p per ordinary share, in respect of the year ending 30 April 2023, payable on 30 December 2022 to shareholders registered at the close of business on 2 December 2022. The Company's shares will go ex-dividend on 1 December 2022. This dividend is to be paid as an interest distribution for UK tax purposes from the Company's revenue account.

[superiorshares] 07/10/2022 20:06

Interest rates going to be going to at least 6 maybe 8 and beyond.
Hdiv will tank .
Low 40s beckons .

[cc2014] 29/9/2022 12:48

Yeah. I bought some below 58p yesterday.