Important Information
This document is solely for the use of professionals and is not for general public distribution.
About Henderson
Why Henderson
Henderson Global Investors is a global asset manager focused on delivering excellent investment
performance and service to our clients.
When Henderson was founded in 1934, the company was not named after a fund manager, an executive or
an office location – rather, it was named after its first client. 80 years of continuous service have nurtured a
trusting relationship with clients – and the group continues to serve the Henderson family to this day.
Henderson is now an independent asset manager with assets under management of more than £82.1bn,
more than 900 employees and offices in 19 cities around the world*. It is dual-listed on the London Stock
Exchange and the Australian Securities Exchange, is a member of the ASX 100 and FTSE 250 indices, and
has a market capitalisation of £3.0bn (28th July 2015). Henderson’s clients range from global institutions to
personal investors in a variety of domestic markets worldwide.
Yet, the company still holds true to its founding principle - to provide excellent investment performance and
service to clients. With investment expertise across every asset class, Henderson offers clients access to all
major markets around the globe, with core capabilities in Global Equities, European Equities, Global Fixed
Income, Multi-Asset and Alternatives.
*Source:
Henderson Global Investors at 30 June 2015
Heritage
In 1934 the world was recovering from the Wall Street Crash and the Great Depression. It was also the year
that Henderson was incorporated to serve the estate of Alexander Henderson, following his death on 17
March. Alexander Henderson was a stockbroker and a Member of Parliament involved in financing
numerous large infrastructure projects, most notably railways. These ranged from the Great Northern
Railway in Britain, to the Central Argentine Railway and the Central Uruguay Railway. A visionary and a man
of principle, he was in many ways a pioneer in global investing and was created the first Lord Faringdon in
1916.
On Alexander Henderson’s death in 1934, William Brabner, a long-term business partner, created
Henderson Administration - Henderson Global Investors as the group is known today - to handle the family’s
assets. Henderson is proud to be named after our first client.
Important Information
This document is solely for the use of professionals and is not for general public distribution.
Why Global Equity Income
Ageing populations mean there is a growing demand for income but with rates of return on cash close to
record lows, and fixed income markets appearing to be facing challenging conditions, investors are looking
elsewhere for yield. Investments that are able to generate a steady income stream while protecting or
potentially growing capital values are in strong demand globally.
Benefits of an allocation to global equity income
1. A broadening universe
At a corporate level an ever increasing number of companies recognise the benefits of attracting investors by
being able to demonstrate a strong and growing dividend policy. In 2014, dividends paid by the world’s listed
companies exceeded the $1trillion mark*. This broadening universe provides an attractive opportunity set for
a global equity income team with experience across world markets.
*Source: Henderson Global Dividend Index, Edition 5
2. Long-term outperformance
Studies indicate that dividends generate a significant proportion of the total returns from equities over time.
The combination of reinvested income along with capital growth has led to long-term outperformance of
higher dividend paying companies compared to the wider equity market.
Reasons for this outperformance include:
 A focus on cashflow is required in order for dividends to be sustained; dividends are therefore a strong
indicator of the underlying health of the business.
 Higher yielding shares by their nature tend to be more contrarian and out of favour thus offering
revaluation opportunities.
 Maintaining a healthy dividend stream imposes a disciplined approach on a company’s management team
and can improve decision making.
3. Risk reduction – diversification benefits
As more companies globally pay dividends, the opportunity to diversify increases. Some markets suffer from
a high level of dividend concentration and as a result equity income strategies focused on single regions may
become overly reliant on a low number of high yielding companies that dominate the market.
For example, the top 20 dividend-paying companies in Germany account for over 80% of the market’s
income. By broadening the scope for income and investing globally, the contribution from the top 20 income
paying firms within the MSCI World Index is reduced to around 20%. A global remit also maximises the
opportunities at a sector level. For example, there are more higher yielding technology companies in the US
or Asia than there are in Europe.
Please consider before investing:
 Past performance is not a guide to future performance and the fund may not achieve its investment
objective.
 The value of an investment and the income from it can fall as well as rise and you may not get back the
amount you originally invested.
 As a category shares are, in general, more volatile than either bonds or money market instruments.
 Fluctuations in exchange rates may cause the value of your investment to rise or fall.
 Please read the Key Investor Information Document and Fund Prospectus if considering and investing.
Important Information
This document is solely for the use of professionals and is not for general public distribution.
Henderson for Global Equity Income
The Henderson Global Equity Income fund is designed to generate a growing income stream and attractive
total returns over the long term. It is actively managed and aims to outperform through the cycle based on a
dividend seeking, valuation-driven approach. The team employs a proven bottom-up stock picking process
and the fund typically holds between 50-80 stocks.
Key features of the fund:
Generate income and capital growth:
The managers focus on companies generating strong and growing levels of cash flow. Valuation analysis is
used extensively to identify opportunities offering a blend of dividend and capital growth potential.
Provide diversification benefits:
A global remit offers increased potential for capital growth and income diversification with access to a
broader range of companies and regions than a single country strategy, where income may be overly
concentrated in a limited number of high-yielding companies.
Adapt to changing market conditions:
A flexible approach allows the fund to exploit value and income opportunities from different markets as they
arise, while at the same time avoiding areas of the market carrying unwanted levels of risk.
Breadth of expertise:
Henderson’s highly experienced Global Equity Income team has a strong dividend investing heritage
spanning more than 20 years.
Important Information
This document is solely for the use of professionals and is not for general public distribution.
Henderson Global Equity Income team
Summary
Andrew Jones and Ben Lofthouse, lead fund managers with 20 and 17 years’ investment experience
respectively, manage the fund as part of the Henderson Global Equity Income team. The team, which is
headed up by Alex Crooke, who has 25 years’ investment experience, manages £9.8bn (at 30 September
2015). The team is made up of 12 investment professionals, with an average industry experience of 18
years, and includes managers with a range of global specialisms.
Investment philosophy
The team strongly believes that, over the long term, dividend paying stocks which exhibit consistent dividend
growth will significantly outperform the broader market. There are four key reasons why the team believes
dividends are important.
 Cashflow – companies cannot sustain dividends without sufficient cashflow. Cashflow is harder to
manipulate than earnings and provides a better indication of a company’s actual return/value.
 Contrarian investing – higher yielding stocks tend to be undervalued as either they have disappointed the
market, resulting in a falling share price/rising yield, or they are mature, low growth businesses.
Consequently, investors undervalue or underestimate the ability of these companies to grow cashflow
and dividends.
 Company management discipline – An emphasis on dividend yields helps company management to
focus on the use of capital.
 Investor discipline – a focus on dividend yields provides a clear valuation discipline for fund managers.
When the dividend yield of a stock moves to a discount to the market, it forces the fund managers to reevaluate the investment.
Key profile: Andrew Jones
Andrew has managed the Henderson Global Equity Income OEIC Fund with Ben Lofthouse since May 2012.
He joined Henderson in 2005 from Invesco Asset Management where he spent 10 years as a UK Equities
fund manager. Andrew graduated from Queens’ College, Cambridge, with a BA (Hons) in Economics and
holds the Securities Institute Diploma.
Key profile: Ben Lofthouse
Ben manages the Henderson Global Equity Income OEIC Fund, and has managed the Henderson
International Income Trust plc since April 2011. He joined Henderson in 2004 having previously trained as a
Chartered Accountant with PricewaterhouseCoopers. Ben graduated from Exeter University with a BA
(Hons) in Business Economics. He is also a CFA Charterholder.
Name
Title
No. of years’ industry
Years at firm
experience
Alex Crooke
Head of Global Equity Income
25
21
Andrew Jones
Fund Manager
20
9
Ben Lofthouse
Fund Manager
17
10
Chris Burvill
Director, UK Equities
34
4
Job Curtis
Director, Global Equity Income
31
28
James Henderson
Divisional Director, UK Investment
33
30
Laura Foll
Fund Manager
6
5
David Smith
Fund Manager
13
13
Jane Shoemake
Investment Director
21
9
Charlotte Greville
Desk assistant
3
4
Faizan Baig
Analyst
8
0
Hamish Robertson
Analyst
9
0
Source:
Henderson Global Investors, at 30 June 2015
Important Information
This document is solely for the use of professionals and is not for general public distribution.
Henderson Global Equity Income – facts and figures
Fund aim
To achieve an income in excess of that of the MSCI World Index with the potential for long-term capital
growth.
Latest yield* (%)
Historical
3.6
3.7
A Inc
I Inc
* Yields are shown net except for bond funds which are shown gross. Yield is net of charges and net of tax and is not guaranteed. The Historical Yield
reflects distributions declared over the past 12 months as a percentage of the mid-market share price, as at the date shown. It does not include any
preliminary charge and investors may be subject to tax on their distributions. Fund size at 12pm on last business day of month.
Fund management
Andrew Jones and Ben Lofthouse
Launch date
22nd February 2002 (A Inc)
25th February 2002 (I Inc)
Past performance
Percentage growth, 31 May 12 to 30 Sept 15.
70
60
Henderson Global Equity Income
Fund A Inc (45.8%)
IA Global Equity Income (34.3%)
50
40
30
20
10
0
May-12
Oct-12
Mar-13
Aug-13
Jan-14
Jun-14
Nov-14
Apr-15
Sep-15
Source:
At 30 September 2015. © 2015 Morningstar. All Rights Reserved, nav-nav, UK sterling, net income reinvested.
Past performance is not a guide to future performance. The value of an investment and the income for it can fall as well as rise and you may not
get back the amount originally invested
Important Information
This document is solely for the use of professionals and is not for general public distribution.
Cumulative performance
1 year
2 years
3 years
Source:
I Inc % change
2.5
11.5
36.1
Sector % change
-2.3
6.2
24.1
Quartile ranking
2nd
2nd
1st
At 30 September 2015. © 2015 Morningstar. All Rights Reserved, nav-nav, UK sterling, net income reinvested.
Discrete year performance
30/09/2014 to 30/09/2015
30/09/2013 to 30/09/2014
28/09/2012 to 30/09/2013
30/09/2011 to 28/09/2012
30/09/2010 to 30/09/2011
Source:
A Inc % change
1.6
9.5
32.4
A Inc % change
1.6
7.8
20.9
n/a
n/a
I Inc % change
2.5
8.8
22.1
n/a
n/a
At 30 September 2015. © 2015 Morningstar. All Rights Reserved, nav-nav, UK sterling, net income reinvested.
Ratings
This document is intended solely for the use of professionals, defined as Eligible Counterparties or Professional Clients,
and is not for general public distribution.
Past performance is not a guide to future performance. The value of an investment and the income from it can fall as
well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an
investor’s particular circumstances and may change if those circumstances or the law change.
If you invest through a third party provider you are advised to consult them directly as charges, performance and
terms and conditions may differ materially.
Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to
sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment.
Any investment application will be made solely on the basis of the information contained in the Prospectus (including
all relevant covering documents), which will contain investment restrictions. This document is intended as a summary
only and potential investors must read the prospectus, and where relevant, the key investor information document
before investing.
Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson
Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112), Henderson
Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354),
AlphaGen Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), Gartmore
Investment Limited (reg. no. 1508030), (each incorporated and registered in England and Wales with registered office
at 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Conduct Authority to provide
investment products and services.