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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%.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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