Bestinvest says
James Henderson follows a value approach to investing and is prepared to invest across the whole market cap spectrum. He has built a successful track record over his career, although his contrarian approach to investment has meant that the fund has been volatile. There have also been prolonged periods when the manager’s style has been out of favour and hence the fund has underperformed during such periods. The open-ended Henderson UK Equity Income fund is similar to the London-listed closed-ended Lowland Investment Company (LSE:LWI) run by the same manager.
This fund is an income and growth fund that aims to identify undervalued companies that offer good prospects for growth and dividends through bottom up stock selection and risk controls. The stock universe from which ideas are generated includes more than 900 names from the FTSE All Share Index and AiM. These ideas are generated through both external research and internal analysis conducted primarily by Henderson’s Value & Income Team as well as Henderson’s Fixed Income and Equity teams. Although internal analysis includes quantitative screening and valuation analysis, centered on assessing potential dividend growth, the most significant determinants are qualitative analysis and company meetings. In general, the portfolio is a blend of large cap, high yielding stocks with recovery and turnaround plays from the under-researched small and mid cap sectors of the UK markets.