Meet The Manager

Involved with investment trusts throughout his career, James investment style is driven by value in companies of all sizes, seeking out opportunities through a contrarian approach and focusing on medium to long term growth. James has also managed Henderson Opportunities Trust since January 2007.

Fund Manager's Commentary - April 2012 

Equity markets fell in April, as comments from some global central banks became more hawkish and concerns over the European debt crisis intensified. The UK officially fell back into recession, with gross domestic product (GDP) falling in two consecutive quarters – albeit by the smallest of margins, which may well be revised away over the coming months. The UK stock market has a very large component of overseas earnings and took the disappointment in its stride. UK equities were among the best performing globally, where the market remained a relative haven of tranquillity.

At the sector level, we expect to see strong results from capital goods, as orders continue to come through strongly and margins improve. Some of the cheapest stocks are smaller companies, where we look to make use of low valuations. These companies are also contributing in providing overseas returns. Increased industrial productivity within the UK has benefited British competitiveness overseas; we see strong growth prospects for these companies.

Despite the ongoing macroeconomic volatility, at the corporate level there continues to be margin progression and earnings growth, as companies remain proactive in taking out costs and allocating capital efficiently. Cash generation is solid, and some companies have been buying back their shares. All in all, we believe the outlook for UK equities is encouraging.