**Summary of Henderson High Income Trust PLC Half-Year Report (10 September 2025)**
**Overview**
Henderson High Income Trust PLC, a UK-domiciled investment trust, released its unaudited half-year report for the period ended 30 June 2025. The trust aims to provide investors with a high dividend income stream and capital growth through a diversified portfolio of well-known and smaller companies.
**Key Financial Highlights**
**Net Asset Value (NAV) Total Return**11.9% (vs. benchmark 8.0%).
**Share Price Total Return**14.4% (including dividends reinvested).
**NAV per Share**190.0p (up from 174.7p at 31 December 2024).
**Mid-market Price per Share**180.3p (up from 162.5p).
**Net Assets**£327.2 million (up from £303.2 million).
**Dividend Yield**6.0% (vs. 6.5% at year-end 2024).
**Gearing**18.2% (down from 21.0% at year-end 2024).
**Performance**
The trust outperformed its benchmark (80% FTSE All-Share Index and 20% ICE BofA Sterling Non-Gilts Index) with a NAV total return of 11.9% compared to the benchmarks 8.0%. The share price total return was even higher at 14.4%, driven by a reduction in the discount to NAV.
**Portfolio Allocation**
**Equities**: ~90% of assetswith a focus on financials (31.3%)consumer staples (21.6%)and industrials (9.2%).
**Fixed Interest**~10% of assets, primarily in preference shares and other fixed interest investments.
**Dividends**
Interim dividends of 2.675p per share were paid in April and July 2025.
A third interim dividend of 2.775p per share is scheduled for October 2025.
The Board remains confident in maintaining high income returns for shareholders.
**Market Conditions**
The first half of 2025 saw positive returns in financial markets, supported by easing inflation, lower interest rates, and robust corporate results. UK equities benefited from historically low valuations and strong company results.
**Portfolio Activity**
New holdings were established in BNP Paribas and AXA, both in the financials sector.
Sales included SSE, Mobico, and Sabre Insurance due to concerns over returns, balance sheet risks, and margin normalization.
Gearing was modestly reduced to 18.2% due to geopolitical and economic uncertainties.
**Outlook**
The trust remains focused on delivering high income and long-term capital growth. Key risks include ongoing tariff negotiations, monetary policy shifts, and geopolitical conflicts. The UK equity market is seen as attractively valued relative to global markets, with a significant portion of UK company profits derived from overseas activities.
**Principal Risks**
The trust identified climate change, investment, market/financial, operational (including cyber and pandemic risks), and tax/legal/regulatory risks as key areas of focus.
**Conclusion**
Henderson High Income Trust PLC delivered strong performance in the first half of 2025, outperforming its benchmark and maintaining its focus on high income and capital growth. The trust remains well-positioned to navigate market uncertainties while continuing to prioritize shareholder returns.