Ben Lofthouse, Portfolio Manager of Henderson International Income Trust, talks about the Trust’s performance during the first half of the year, allocations towards tech and health care, and looks at what history teaches us about investing in a volatile market environment.

Key takeaways:

• Diversification was the key to navigating the volatile market environment that characterised the first half of 2022. Three key themes have dominated investor sentiment: inflation (less transitory than expected), the cost-of-living crisis, and the impact of the war in Ukraine on energy prices.
• Earnings estimates have been stronger-than-expected as some companies are not yet seeing consumers’ struggle. Meanwhile, energy companies have benefitted from higher energy and gas prices whilst financial firms have benefitted from higher interest rates.
• History tells us that in periods of uncertainty, it’s time in the market that matters, not timing the market. Also, investors tend to overestimate their ability to spot trends and, therefore, overinvest in that trend. It’s crucial to maintain a long-term view and to remain diversified.

Catch up on previous episodes of Trust Radio