Meet The Manager

Alex first started his investment career in 1990, after leaving Manchester University with a degree in Astrophysics. His first role was as an investment analyst covering US companies before moving to join Henderson in 1994 and cover UK stocks.  Alex's value-based investment style developed by managing a variety of income orientated funds and he took on the management of Henderson High Income in 1997. Since 2003 Alex has also successfully managed The Bankers Investment Trust PLC.

Fund Manager's Commentary - April 2012 

April was another month that saw equity markets fall in value, albeit only marginally in the UK. The backdrop was a negative first quarter gross domestic product (GDP) number, indicating that the economy contracted over the period as both construction and gas production came in softer than expected. Economic activity was also weak in mainland Europe which, combined with a continued emphasis on austerity, led investors towards the defensive sectors of the market. Our view is that there is unlikely to be much change to this ‘stop-start’ progress of economic activity for the remainder of the year, which will likely favour sectors such as utilities, food, and beverages. The companies in these sectors do not exhibit high levels of growth, but their earnings are reliable and they are generous dividend payers. We feel that investors will increasingly seek investments that will not disappoint expectations for profit growth, and if these can be purchased on reasonable valuations then there will be potential for capital growth.

The bond market experienced a solid month, reflecting investor caution and an understanding that interest rates must remain lower for some time to aid recovery. A lack of new issuance is also helping to push up prices and lower yields. We have been broadening the bond portfolio beyond the UK, purchasing some euro-denominated bonds from cable TV operators including Ziggo in the Netherlands and Kabel Deutschland in Germany. The resulting euro exposure has been reduced by the action of backing these purchases with euro borrowings.

Overall, income from dividends is holding up well and, given Henderson High Income's defensive mix of equities and bonds, we believe the trust can potentially deliver further returns over the coming year.