Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter