Henderson outlines changes to UK Equity Income fund

Henderson Global Investors has announced changes to its UK Equity Income fund run by James Henderson.

The group will remove the requirement of the fund to provide income in excess of the yield of the FTSE All-Share index and instead aim to provide dividend income with prospects for both income and capital growth appreciation.

The group said it was changing the investment objective from January 13 next year as well as changing the name to Henderson UK Equity Income & Growth.

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“James Henderson has been managing the Henderson UK Equity Income fund since January 1 2005, the group said.

“Over that time he has always sought to deliver income with prospects for capital growth. He has never seen the two as mutually exclusive and believes that long-term dividend growth can only be achieved by investing in companies with growing earnings because these will support dividend payments in the long run,” the company said.

“We believe that by removing the explicit aim of providing an income in excess of the FTSE All-Share yield, the fund manager can exercise greater discretion in holding companies and not be forced to sell assets that he believes offer strong potential.”

The fund has delivered a top quartile return in five-, three- and one-year periods, according to FE Analytics.

Yield produced by Henderson UK Equity Income fund
YearFund year-end yield (June) (%)FTSE All-Share yield
June 30 20113.23.0
June 30 20123.63.7
June 30 20133.73.5
3-year average3.53.4
Source: Henderson/Thomson Reuters