Nick Sheridan, manager of the fund, commented: “European equity markets offer competitive dividend yields, especially when compared to other global assets. Negative sentiment remains built into European share prices. The investment strategy I use in the existing [Henderson Horizon] Euroland fund can be applied to identify high yielding European companies that are priced below their intrinsic value.
“When compared to other global assets, the dividend yield on European equities looks competitive. According to the Henderson Global Dividend Index, European dividends have grown 11.2% since 2009.”
Eliminate noise
The fund will be managed using a methodology that is designed to eliminate market noise and identify stocks that offer the biggest discount to fair value, creating the potential for above average total return.
Sheridan has access to five equity analysts within the European equities team and works closely with the other European equity fund managers at Henderson.
European opportunities
Steven de Vries, head of European retail sales, added: “We are launching this fund to meet the needs of our clients. In a low yield world, our clients are still looking for income. Europe continues to present opportunities to investors, as the valuations of European equities remain competitive. Given Nick’s established performance and the income investment opportunities in Europe, we feel it is a good time to build out our dividend products with a regional focus across Europe.”
