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Henderson Multi-Manager Going for growth. Bill McQuaker September 2007 . Multi-manager survey 2007. IFA Selection Criteria for Multi-manager Products (1: Most Important, 5: Least Important). IFA Selection Criteria for Multi-manager Products (Weighted Score).
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Henderson Multi-Manager Going for growth Bill McQuaker September 2007
Multi-manager survey 2007 IFA Selection Criteria for Multi-manager Products (1: Most Important, 5: Least Important) IFA Selection Criteria for Multi-manager Products (Weighted Score) Source: Henderson Global Investors
The team • Portfolios co-managed by Bill McQuaker & Katy Gladstone • Overall shape of the portfolio determined by Bill • Fund selection headed by Katy • Both functions characterised by rigorous analysis and peer group review Bill McQuaker Co-Head of Multi-Manager Investments Katy Gladstone Co-Head of Multi-Manager Investments Genevieve Stevens Trainee Helen Dunnett Fund Analyst Chris Forgan Fund Analyst
Investment philosophy • Can exploit a broad range of investment opportunities • Utilise full range of skills in the team • Create robust, diversified portfolios • Top down and bottom up: aim to perform in all weathers • Decisions based on robust analytical procedures • Risk and benchmark aware • Seek to control costs • Believe in developing excellent relationships with excellent managers
Asset allocation • View asset allocation in the broadest terms – it is the process by which we set the overall shape of the portfolio • Asset allocation should add robustness and return • Blend & trend lies at the heart of what we do
Manager selection • Some have it – and some don’t! • We aim to create portfolios that get us excited! • Separating the wheat from the chaff is both science and art • We aim to know everything there is to know about a manager and the funds they run
The Independent Portfolios Source: Henderson Global Investors as at 31 May 2007
Independent Portfolio performance Since change of manager: 1 July 2005 – 31 July 2007 Source: Morningstar
Global Total Cash Yield and 12 Month Forward Equity Market Returns 1985 – 2007 % Total Yield % 12 Month Forward Equity Return Total Cash Yield 12 Month Forward Returns (LHS)
Policy usually works Source: UBS
Insiders are bullish Source: Vickers, Morgan Stanley Research Source: Muzea Insider Consulting Services, LLC
Global markets - a time for growth • Global equities remain reasonably valued • It’s a paradox - slower growth environment favours growth companies • Growth style has been out of favour for a long time • Holdings in technology and environmental markets are potentially well placed to exploit this theme Source: Datastream, MSCI AC World value and growth indices relative to overall index performance for 10 years to 31.05.07
Large cap may also shine • Large cap companies are cheap • Relative growth rates may improve as pace of economic expansion slows a bit • Higher volatility favours large cap stocks • Managers re-risked in low vol 2004 - 2008 may see managers de-risk. Source: Datastream, MSCI AC World value and growth indices relative to overall index performance for 10 years to 31.05.07
Long equity/short bonds/long cash Prefer strategic bond funds over sovereign bond funds Long Europe Long Japan Short UK Short sterling Long financials Long technology Long ‘green investments’ Long growth Long large cap Long yen/long dollar JP Morgan Emerging Markets Alpha Artemis Strategic Bond/Henderson Strategic Bond Invesco Leveraged High Yield Impax Environmental Markets/Jupiter Green Henderson Asian Dividend Income Resolution Cartesian UK Opportunities Invesco Perpetual UK Aggressive Schroder Income Maximiser Mackintosh High Income Henderson Secured Loans/M&G European Loans Morant Wright Japan Portfolio positioning Asset allocation positions Interesting funds
Henderson Multi-Manager Going for growth Bill McQuaker September 2007
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