Bill McQuaker and his team of fund managers and analysts run a range of multi-manager portfolios at Henderson. The Income & Growth and Distribution Funds are two of Henderson's longest running multi-manager portfolios. Both funds aim to provide long-term capital growth and some income generation by investing across global equity and fixed interest markets. No more than 60% will be invested in shares at any one time. The key difference between the two is the Distribution Fund targets a higher income yield.
The manager's primary aim is to ensure any gains earned on the portfolio are not lost in falling markets. Over the past 10 years, both the Henderson Income & Growth and Henderson Distribution Funds have outperformed the peer group in rising markets and performed broadly in line with peers in falling markets. Overall performance has been strong with both funds returning just over 88% over the past ten years in comparison to 54%* for the peer group. Please remember past performance is not a guide to future returns.
Percentage growth of the Henderson Multi-Manager Income & Growth and Distribution Funds over 10 years
Past performance is not a guide to future returns. Source Lipper IM * to 02/01/2015.
|Annual percentage growth|
| Jan 10 -
| Jan 11 -
| Jan 12 -
| Jan 13 -
| Jan 14 -
|Henderson MM Distribution||11.6%||-5.31%||7.51%||11.23%||4.28%|
|Henderson MM Income & Growth||11.33%||-5.88%||7.18%||11.47%||4%|
|IMA Mixed Investment 20-60% Shares||8.79%||-1.96%||8.14%||8.68%||4.81%|
Bill McQuaker is upbeat on the prospects for Europe and has been increasing exposure to companies in the EU at the expense of UK equities, which he feels have become expensive. He feels investors are overly bearish on the outlook for Europe, presenting an opportunity to purchase stocks at reduced prices. The manager believes austerity is in the past for Europe and he expects bond buying to commence this year as the European Central Bank finally embraces this unconventional policy. This is likely to lead to a weakening euro which could benefit businesses exporting outside of the euro zone.
He is currently cautious on corporate and government bonds. He feels there are very few bonds which currently offer good value and so as an alternative has initiated a position in the Henderson Diversified Alternatives Fund which invests in commodities, unlisted stocks and property, and sits alongside the funds' commercial property position.
Multi-manager funds offer investors a convenient way to achieve diversification across a number of funds, with a professional fund manager dictating which markets and funds to invest in. Bill McQuaker and his co-managers are an experienced team who have delivered good returns for investors since they began managing this fund in June 2005. We believe these funds remain a reasonable choice as core income holdings. That said it should be remembered that capital and income will fluctuate in value and are not guaranteed.
Please note the charges for both funds can be taken from capital, which can increase the yield but reduce the potential for capital growth.