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HENDERSON EUROPEAN ABSOLUTE RETURN A - Fund overview

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Overview of HENDERSON EUROPEAN ABSOLUTE RETURN A

The aim of the fund is to produce a positive return, regardless of market conditions, by investing in companies based in Europe (including the UK) or which conduct a significant proportion of their business there. As well as direct equity exposure the manager also invests using derivatives. These enable him to take 'short' positions in stocks that he expects to underperform as well as 'long' positions in stocks that appear undervalued.
Investors should be aware that Absolute Return funds do not guarantee a positive return and you could get back less than you invested, as with any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products, which can carry additional risks which may not be immediately apparent.

Standard Initial Charge

5.00% 0.00%

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Fund summary

Sector  Absolute Return
Product type  OEIC
Launched  January, 2009
Size  £7m
Yield 0.0%
Charging basis  Income
Dividends paid  Acc units only
Bid price 109.48p

Fund Charges

Standard Initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Total expense ratio 1.74%
Reduction in yield (10yr) 1.74%

Bestinvest says


This fund was designed to give retail investors access to a strategy similar to that of a hedge fund run by star fund manager Roger Guy. We downgraded the fund to a one star (sell) rating following the departure of Guy from Gartmore in late 2010.

Portfolio

henderson european absolute return a asset allocation illustration
Allocation Proportion
Equity
High yield bonds
Quality bonds
Property
Commodities
Hedge 100%
Fund cash
henderson european absolute return a equity geographic illustration
Allocation Proportion
UK 25%
Europe 75%
Nth America
Japan
Pacific
Other Equity
henderson european absolute return a equity capitalisation illustration
Allocation Proportion
Large Caps 80%
Mid Caps 15%
Small Caps 5%

Investment process


The fund aims to provide a long-term positive return, whether equity markets go up or down, by investing in European (including the UK) company shares. Derivatives will be used to help the fund achieve its objective. Long positions may be held through a combination of direct investment and/or derivative instruments. Short positions will be held through derivative positions, primarily equity swaps and futures.
The portfolio is selected through a bottom-up process and comprises:
- Strategic positions (around 60%). These will be in companies where the manager believes earnings have been materially over or under-estimated by the market. They are typically held for 3-6 months with an expected upside of at least 20%.
- Tactical positions (around 40%). These will be in companies where the manager believes there is a specific catalyst for a rerating of the share price, such as a change in management or a new product launch. They are normally held for days or weeks.
Currency exposure is typically hedged into sterling.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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