Questioning the Managers - Henderson Alternative Strategies Trust

28/11/2017

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James and Ian discuss ‘dry powder’ cash sitting on the sidelines in private equity, the importance of fees in selecting funds, new investments, and the Trust’s upcoming continuation vote.
 
Glossary:
- Dry powder cash – reserve cash waiting to be invested
- Private equity – shares of privately held businesses
- Value investing – seeking out firms the fund manager fundamentally thinks are undervalued
- Commoditised investment vehicle – those that are undifferentiated from one another, such as passive tracker funds
- Passive investment management – where no active investment decisions are taken
- Top down – the wider economic environment as supposed to the individual stocks
- Macro-economic – the wider economic environment
- Bottom up – economics regarding the individual firms
- ‘toppy’ – when valuations in markets appear high relative to history
- Illiquid – when an asset is difficult to buy and sell
- NAV – net asset value, which is the total value of assets divided by the number of shares, net of fees
- Total return – investment returns including both income and capital growth

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.

The information in this article does not qualify as an investment recommendation.


Important information

Please read the following important information regarding funds related to this article.

Henderson Alternative Strategies Trust plc

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser.

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.

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.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Investment Funds Limited (reg. no. 2678531), AlphaGen Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), (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. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Specific risks

  • The portfolio may hold up to 60 stocks. If one of these investments declines in value, this can reduce the portfolio's value more than if it held a larger number of investments
  • Where the Company invests in assets which ae denominated in currencies other than the base currency then the currency exchange rate movements may cause the value of investments to fall as well as rise
  • This portfolio could have a significant exposure to Emerging Markets, which tend to be less stable than more established markets and can be affected by local political and economic conditions, reliability of trading systems, buying and selling practices and financial reporting standards
  • In certain circumstances the investment manager may not be able to sell investments he owns in the Company's portfolio. This could have a negative impact on the overall performance of the Company

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Important message

Fund name changes

Please note that from the 15 December 2017 funds previously named Janus or Henderson have been renamed Janus Henderson. This change aligns our product names with our name, Janus Henderson Investors, following the merger of Janus Capital and Henderson Global Investors in May 2017.

This name change does not impact on the management of the underlying funds and investors and advisers are not required to take any action. This does not affect Janus Henderson’s range of investment trusts.