Janus Henderson UK Equity Income & Growth A

Fund targets an income in excess of the FTSE All-Share Index yield and capital growth.

  • 540.30p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.70%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 4.90%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 11 December 2019, fund data last updated 18 October 2011

The fund aims to generate income in excess of the yield of the FTSE All-Share Index, with some prospects for capital appreciation, by investing in UK companies. James Henderson follows a value approach to investing and has a historic bias to towards mid and smaller companies versus the FTSE All-Share Index. The manager invests in companies with intrinsic value although this can be in terms of tangible assets or unrecognised future growth prospects, seeking dividend growth over a three year period.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched October, 1974
Size £244m
Yield 4.90%
Charging basis Capital
Dividends paid 28 Feb, 31 May, 31 Aug, 30 Nov

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.70%

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Investment process

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.

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.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.09%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 80.20%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

James Henderson

Henderson graduated in 1982 with an MA (Hons) in Economics from Cambridge University. He joined Binder Hamlyn as a trainee accountant in the same year but moved to Henderson Investors in 1983 as a trainee fund manager. He became an assistant investment manager in 1985 and took on his first managerial responsibilities in 1990 when he took over as manager of the Lowland Investment Trust. Henderson was made a Director in 2003 and now sits on the Global Equity Income team.

Track record

James Henderson has 8.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.09%. During the worst period of relative performance (from August 2007 - March 2009) there was a decline of 30% relative to the index. The worst absolute loss has been 57%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 80%.

Periods of worst performance

Absolute -57.00% (May 2007 - February 2009)
Relative -30.00% (August 2007 - March 2009)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2019

7.6076% Royal Dutch Shell
3.8469% Glaxosmithkline
3.3655% Ienergizer Ltd
3.2735% Prudential Plc
3.1863% Phoenix Group Hldgs
3.1858% Standard Chartered
3.1117% Bp
2.9841% Hsbc Hldgs
2.6387% Chesnara
2.4509% Rolls-Royce Hldgs Plc
Source: Trustnet

Sector breakdown

Oil & Gas Exploration & Production 11.00%
Life Insurance 10.00%
Aerospace & Defence 9.00%
Financial Services 8.00%
Banks 7.00%
Support Services 7.00%
Industrials 6.00%
Insurance 6.00%
Biotechnology/Medical 5.00%
Travel 4.00%

Portfolio

Targets 80-150 stocks and the fund will rarely hold more than 6% in a single stock. Can invest up to 5% of NAV in other collective investment schemes.

Constraints

Stock or sector bets are limited to +/- 10% FTSE All Share. Max 10% cash. Tracking error in the range 3-8%

Key Investor Information

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