Europe is home to a diverse range of often mis-priced companies. This creates opportunities for a disciplined dividend-focused value approach that removes sentiment from its process. The fund is constructed with a focus on firms that on aggregate typically have: higher dividend yield; a lower valuation; and a high return on capital relative to their market peers. Many of these companies are globally diversified, while headquartered in Europe.
On a relative basis (using long-term metrics) when compared to other global assets, the dividend yield on European equities currently looks competitive when compared with government bonds, high-quality corporate bonds or equities in other developed regions.
With an improving macro-economic backdrop there is further potential for long-term investment growth in this region, particularly for income-seeking investors.
The fund is managed by the highly-experienced European equities specialist, Nick Sheridan. Nick has over 25 years’ industry experience during which he has developed his disciplined stock-selection process. Nick joined Henderson following its acquisition of New Star.
Nick is supported by Henderson’s broad Pan European Equity team, a group of 19 experienced investment professionals who leverage each other’s capabilities and ideas, with each member playing a role in identifying new opportunities. The team has a focused approach that allows it to maximise the effort spent on research in areas where it can add the most value. Cross pollination of ideas is encouraged, although ultimate responsibility for investment decisions rests directly with each fund manager.