The Henderson SICAV Fund Range - Henderson Global Investors

Fixed Income
Henderson is a highly respected manager of global fixed income
assets, with a reputation for product innovation. We manage pooled
and segregated fixed income portfolios for a variety of retail and
institutional clients. We employ 59 fixed income investment
professionals † in London who manage over €23.6 billion* in global
fixed income products.
Unconstrained thinking, focused investment
In recent years, we have seen clients’ needs move away from relative returns and towards absolute return and
liability-driven approaches that demand a greater focus on risk-adjusted returns. To meet this demand, we have
structured our fixed income teams and investment processes to identify and capture the maximum number of
uncorrelated return opportunities for our clients. We then combine our best investment ideas to provide fixed
income investment approaches that range from core products targeting alpha of 50 basis points to long-short
strategies targeting 1,000 basis points.
Alpha teams target ideas
We have drawn together expertise from our institutional, retail, structured product and hedge fund capabilities
to create six Alpha teams, who are charged with creating as many good investment ideas as possible. Each
Alpha team is required to produce alpha of 200 basis points while aiming to achieve high information ratios.
The Alpha teams cover interest rates, economics, currencies, credit, secured loans and emerging market debt.
Together, they manage long-short alpha portfolios, the performance of which drives a significant component of
the team members’ compensation.
Product teams create portfolios
Our Product teams are responsible for constructing clients’ portfolios by identifying the best way of
implementing the maximum number of Alpha team approaches permitted by our clients’ investment guidelines.
We seek to maximise portfolio returns and efficiency through the levels of risk we apply.
We use risk budgeting – applied through leading risk management systems and common sense – at the total
portfolio level and sub-portfolio levels, to determine the risk we expect each source of alpha to contribute to
the overall portfolio.
Raising the debate
Working within our fixed income structure raises the creative debate in generating uncorrelated
investment ideas that we can apply to our clients’ portfolios. However, we never lose sight of
the fact that great investment ideas are just that – ideas. Our investment processes are
designed to deliver results through transparency, accountability and clear links between
investment performance and compensation. For our clients, the
result is superior use of risk, coupled with a strong focus on
sustainability and long-term strategic thinking that will, over time,
bring a succession of new return sources to their portfolios.
*Source: Henderson Global Investors at 30 June 2009
†Source: Henderson Global Investors at 31 July 2009