Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Ben Lofthouse, Citywire AA-rated manager of the Henderson International Income trust, believes nothing can stand in the way of consolidation in the tobacco sector.

It has been buoyed of late by M&A activity, but on the other hand Reynolds American - Lofthouse's top holding - was hit earlier this month by a £14 billion damages award.

Lofthouse argues that the amount - set by a 'maverick' court - is likely to be reduced on appeal and does not change the 'end game' of consolidation in the industry, which is delivering earnings growth while top-line revenues are declining.

Henderson International Income has returned 37.2% in net asset value terms over the past three years, compared with a 31.7% rise in the FTSE World index.

On his open-ended Henderson Global Equity Income fund, Lofthouse has generated 40.7% through the same period, a top-quartile performance in a sector where the average fund has produced 28.1%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter