Download The Henderson Global Equity Income Fund is designed to generate

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 £92.0bn, more than
1000 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 £2.7bn** (9th February 2016). 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 31 December 2015
**Source: Henderson Global Investors at 9 February 2016
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 aiming to protect or potentially grow 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 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 £10.2bn (at 31 December 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 re-evaluate 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
Alex Crooke
Andrew Jones
Ben Lofthouse
Chris Burvill
Job Curtis
James Henderson
Laura Foll
David Smith
Jane Shoemake
Charlotte Greville
Faizan Baig
Hamish Robertson
Head of Global Equity Income
Fund Manager
Fund Manager
Director, UK Equities
Director, Global Equity Income
Divisional Director, UK Investment
Fund Manager
Fund Manager
Investment Director
Desk assistant
Analyst
Analyst
Source: Henderson Global Investors, at 31 December 2015
No. of years’ industry
experience
25
20
17
34
31
33
6
13
21
4
8
9
Years at firm
21
10
10
4
28
31
6
13
10
4
0.4
0.5
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
3.5
3.7
A Inc
I Inc
* 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 midmarket share price, at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions.
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 31 Mar 16.
70
60
Henderson Global Equity Income
Fund A Inc (62.2%)
IA Global Equity Income (48.2%)
50
40
30
20
10
0
May-12
Dec-12
Jul-13
Feb-14
Sep-14
Apr-15
Nov-15
Source: At 31 March 2016. © 2016 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
A Inc % change
1.6
14.5
26.1
I Inc % change
2.5
16.5
29.5
Sector % change
-0.9
11.4
18.4
Quartile ranking
1st
2nd
1st
Source: At 31 March 2016. © 2016 Morningstar. All Rights Reserved, nav-nav, UK sterling, net income reinvested.
Discrete year performance
31/03/2015 to 31/03/2016
31/03/2014 to 31/03/2015
28/03/2013 to 31/03/2014
30/02/2012 to 28/03/2013
31/03/2011 to 30/03/2012
A Inc % change
1.6
12.7
10.2
n/a
n/a
I Inc % change
2.5
13.7
11.2
n/a
n/a
Source: At 31 March 2016. © 2016 Morningstar. All Rights Reserved, nav-nav, UK sterling, net income reinvested. Discrete performance data may change due to final
dividend information being received after quarter end. † 1st quartile means the fund is ranked in the top 25% of funds in its sector.
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.