Henderson High Income Trust PLC Fund Data

The FTSE All-Share Index rose 2.8% as the prospect of a peace deal in the Middle East supported investor sentiment. However, uncertainty about the ceasefire pressured equities towards the end of the month, while investors also worried about the conflict's economic impact and the possibility of tighter monetary policy. On the final day of April, the Bank of England (BoE) left interest rates on hold at 3.75%, although it said it could shift to rate hikes should high energy prices persist. Heightened geopolitical tensions started to feed through to economic data. Annual inflation increased to 3.3% in March from 3.0% in February, consumer confidence hit the weakest level in two and a half years, and business confidence sank to the lowest point since 2020. Sterling strengthened against the US dollar in April, largely due to dollar weakness. The larger company FTSE 100 Index rose 2.3% during the month, underperforming the mid-cap FTSE 250 Index which rose 6.6%. The best-performing sectors included financials, technology and real estate, while energy and healthcare sectors lagged. The equity holdings in Texas Instruments, Standard Life (previously Pheonix) and ICG all contributed to performance. Semiconductor manufacturer Texas Instruments reported robust trading during the month, benefiting from a recovery in industrial end markets and continued strong demand from the build-out of data centres in the US. Standard Life announced the acquisition of Aegon UK, which increases the company's exposure to the structurally growing UK workplace pensions market and may support cash generation. Shares in alternative asset manager ICG rebounded from a weak March as concerns around its private lending to software businesses eased given its minimal exposure. Equity holdings in the consumer staples sector, specifically Imperial Brands and Reckitt Benckiser, detracted. Imperial Brands announced a mixed trading statement, with modest market share losses in its five main countries. Reckitt Benckiser also reported slightly disappointing trading with a mild cold and flu season impacting sales in its health division. During the month we initiated a new holding in Coats, the global leading manufacturer of threads for the apparel and footwear industries. Given the shift towards sustainable products and high-performance materials, we think the company could continue to take market share. The valuation was attractive to us given the strong margins and cash generation. We also switched our preference in the house-building sector, selling Taylor Wimpey and buying Persimmon given we think the latter has better control of its cost base and greater exposure to more affordable homes. The fragile ceasefire and effective closure of the Strait of Hormuz is likely to keep the oil price elevated. This could result in higher inflation and slower economic growth. Central banks have now paused the interest-rate cutting cycle and have warned that inflationary pressure could see rate hikes. However, we think it is worth remembering that UK consumers, businesses and the banking system remain in relatively strong financial health, which has supported the UK economy through periods of energy price volatility in recent years. In addition, share price valuations in the UK still appear attractive to us compared to other regions. We maintain a balanced approach, holding what we see as more resilient businesses as well as cyclical companies that we consider to be attractively valued.

The FTSE All-Share Index rose 2.8% as the prospect of a peace deal in the Middle East supported investor sentiment. However, uncertainty about the ceasefire pressured equities towards the end of the month, while investors also worried about the conflict's economic impact and the possibility of tighter monetary policy. On the final day of April, the Bank of England (BoE) left interest rates on hold at 3.75%, although it said it could shift to rate hikes should high energy prices persist. Heightened geopolitical tensions started to feed through to economic data. Annual inflation increased to 3.3% in March from 3.0% in February, consumer confidence hit the weakest level in two and a half years, and business confidence sank to the lowest point since 2020. Sterling strengthened against the US dollar in April, largely due to dollar weakness. The larger company FTSE 100 Index rose 2.3% during the month, underperforming the mid-cap FTSE 250 Index which rose 6.6%. The best-performing sectors included financials, technology and real estate, while energy and healthcare sectors lagged. The equity holdings in Texas Instruments, Standard Life (previously Pheonix) and ICG all contributed to performance. Semiconductor manufacturer Texas Instruments reported robust trading during the month, benefiting from a recovery in industrial end markets and continued strong demand from the build-out of data centres in the US. Standard Life announced the acquisition of Aegon UK, which increases the company's exposure to the structurally growing UK workplace pensions market and may support cash generation. Shares in alternative asset manager ICG rebounded from a weak March as concerns around its private lending to software businesses eased given its minimal exposure. Equity holdings in the consumer staples sector, specifically Imperial Brands and Reckitt Benckiser, detracted. Imperial Brands announced a mixed trading statement, with modest market share losses in its five main countries. Reckitt Benckiser also reported slightly disappointing trading with a mild cold and flu season impacting sales in its health division. During the month we initiated a new holding in Coats, the global leading manufacturer of threads for the apparel and footwear industries. Given the shift towards sustainable products and high-performance materials, we think the company could continue to take market share. The valuation was attractive to us given the strong margins and cash generation. We also switched our preference in the house-building sector, selling Taylor Wimpey and buying Persimmon given we think the latter has better control of its cost base and greater exposure to more affordable homes. The fragile ceasefire and effective closure of the Strait of Hormuz is likely to keep the oil price elevated. This could result in higher inflation and slower economic growth. Central banks have now paused the interest-rate cutting cycle and have warned that inflationary pressure could see rate hikes. However, we think it is worth remembering that UK consumers, businesses and the banking system remain in relatively strong financial health, which has supported the UK economy through periods of energy price volatility in recent years. In addition, share price valuations in the UK still appear attractive to us compared to other regions. We maintain a balanced approach, holding what we see as more resilient businesses as well as cyclical companies that we consider to be attractively valued.