Henderson Emerging Markets Fund · PDF fileCao Dewang Chairman of Fuyao Glass ... Fuyao Glass is 2.76%, Shoprite is 2.91% and Antofagasta is 1.0% of the Fund . 14 Henderson Emerging

Henderson Emerging

Markets Fund HEMAX, HEMCX, HEMIX

December 31, 2016

1

Past and present

• Henderson Global Investors has been managing

client investments since 1934, beginning with the

assets of its visionary founder, Alexander Henderson

• By 1887, the expansive nature of his investments

required a more formal management of the family’s

assets

• The Henderson Administration was created following

Henderson’s death on March 13, 1934, leading

eventually to the renaming of the organization as

Henderson Global Investors

An influential legacy

We are not named after a fund manager, an executive or our office location. We are named after our

first client, which reminds us our business is about our clients, not ourselves.

Alexander Henderson, Founder

Investing involves risk including the possible loss of principal. For information on risks specific to

the Henderson Emerging Markets Fund please see slide 19.

2

Henderson Global Investors

• Approximately 1,000 employees

• Located in 16 countries

• 237 investment professionals based in

London, Edinburgh, Singapore, Melbourne,

Sydney, Philadelphia, Chicago, Milwaukee

Combining local knowledge with worldwide reach

Source: Henderson Global Investors, as of 3/31/16

Note: Totals may not add up to 100 due to rounding

$131.1bn AUM by capability

Global Equities

32%

European Equities

20% Global Fixed

Income 29%

Alternatives 14%

Multi-Asset 5%

3

Discover the Henderson Difference

For nearly 15 years Henderson has offered differentiated strategies to US clients

based on unique investment processes and global market perspectives.

We call it The Henderson Difference

• Differentiated products

• An opportunistic approach

• Global perspective with local insight

What sets us apart?

4

Henderson Emerging Markets Fund

Investment Characteristics

Performance

goal

To outperform the broad

global equity market across

an economic cycle

Typical no. of holdings 40-80

Benchmark MSCI Emerging Markets

Peer Group Morningstar Diversified

Emerging Markets

I class

Morningstar star rating

A class Morningstar star

rating

Overview

• An Emerging Markets fund with the ability

to invest in frontier and undesignated

markets

• High conviction, stock picking portfolio

managers utilizing fundamental analysis to

create portfolios of reasonably valued,

high quality companies

• Sector and geographic weightings are

driven by the bottom-up stock selection

process

• The Fund utilizes a long term, five year

time horizon

As of 12/31/2016. Overall Morningstar Rating TM based on risk-adjusted returns for Class I and A shares among 606 Diversified Emerging

Markets funds for the three five, and ten year periods. Morningstar Ratings are based on risk-adjusted returns. The overall Morningstar

Rating for the Fund is derived from a weighted average of the performance figures associated with its three and five year Morningstar

ratings.

5


Portfolio Management

Glen Finegan, co-portfolio manager and Head of Global Emerging Markets Equities Glen joined Henderson in 2015 after almost 14 years at First State Investments. At First State, as a Senior Portfolio Manager, Glen managed

$3bn as a lead manager while he managed a further $10bn as a co-portfolio manager. Prior to joining First State in 2001, Glen spent 3 years

working in the oil and gas industry as a geophysicist and has an MSc in Oceanography and a BEng in Civil Engineering from the University of

Southampton.

Glen began managing the Fund in March 2015, implementing a different strategy to that employed by the Fund’s previous management.

Michael Cahoon, CFA, co-portfolio manager Michael Cahoon joined Henderson in 2015. Michael started his career at Ashmore Group as an Equity Research Associate for frontier Africa. He then

progressed to an Associate Analyst and later an Analyst on the Frontier team covering Africa and global metals and mining. Michael holds a Bachelor

of Business Administration (Honours) in Finance and Operations Management with a dual concentration in Legal Studies. Michael is a CFA

charterholder.

Michael was named co-portfolio manager in 2016.

6

Both teams benefit from interaction with Henderson’s significant global investment resource

GEM insights

Global insights

Global Emerging Markets

Glen Finegan (15, 1)

Nicholas Cowley (18, 11)

Michael Cahoon (5, 1)

Stephen Deane (6, 1)

Global Growth

Ian Warmerdam (19, 14)

Ronan Kelleher (5, 5)

Gordon Mackay* (19, <1)

Sharon Davidson

Research Assistant

Eva Donaldson

Assistant

Global Emerging Markets team

Global research effort: blurring boundaries between emerging and developed market

opportunities means neither should be analyzed in isolation


Note: Numbers in brackets refer to (years investment experience, years with firm)

*Gordon Mackay joined the Global Growth team on 9/26/16

7

Global Emerging Markets


Notes: Totals may not add up due to rounding. Internal mandates include an Emerging Markets sleeve of Henderson International Opportunities Fund (US Mutual) and an

Emerging Markets sleeve of The Bankers Investment Trust PLC.

Total EM assets $1,052m

Emerging Markets All Cap Pooled Strategies $616m

Henderson Emerging Markets Opportunities Fund (UK OEIC) $370m

Henderson Gartmore Emerging Markets Fund (SICAV) $99m

Henderson Emerging Markets Fund (US Mutual) $62m

Henderson Gartmore Latin America Fund (SICAV) $61m

Henderson Global Emerging Markets Equity Fund (Australian Unit Trust) $23m

Emerging Markets Institutional/Internal mandates $436m

Assets under management

8


• Bottom up

• Don’t follow the index

• Long term

• Quality companies

• Strict valuation discipline

• Invest with an absolute rather than relative return mind set

Investment Philosophy

9


1. Opportunity set

• Company meetings

• Research visits

• Endorsements • Competitors

• Customers

• Suppliers

2. Quality analysis

• Management

• Franchise

• Financials

3. Portfolio construction

• Valuation

• Growth

Universe: expanding Watch list: c.250 Portfolio: GEM 40 – 80

Investment Process

10

MSCI

Developed

World

countries

The universe is expanding

All emerging markets companies

MSCI

Emerging

Markets

countries

MSCI

Frontier

Markets

countries

Henderson

Non

Classified

We are identifying an increasing

number of developed world listed

companies with greater than 50%

economic exposure to emerging

markets countries

1. Opportunity set – we follow an ‘all emerging markets’ approach

Bottom up ideas generated in

countries not yet included in any

of the MSCI DM, EM, or Frontier

indices eg Costa Rica, Zimbabwe

11

Franchise

Price makers over price takers

Barriers to entry

Resilience in previous downturns

Financials Conservative attitude to debt – quantity & denomination

Cash flow over accounting profits

A high caliber watch list

Management/

Controlling

shareholders

Good governance record and alignment with minorities

Track record of delivery over the long term

Conservative approach to risk

Awareness of non financial risks (social/environmental/taxation etc)

2. Quality analysis – what we look for

12

Balancing the equation

3. Portfolio construction

Watchlist:

c.250

Growth

Valuation

Earnings/cash flow to beat inflation

over the economic cycle

Prefer predictable over cyclical growth

Absolute rather than relative

Financial & non-financial metrics

Set five year target review prices

POSITION SIZING

Starting: 1%

Established: 1-3%

High conviction: 3-7%

Portfolio:

GEM 40 – 80

13

Backing people & track records

Source: 1 http://forbesindia.com/printcontent/20732

2 http://www.forbes.com/profile/cho-tak-wong/gallery/7

3 http://www.thelondoneveningpost.com/business/african-countries-with-high-consumption-growth-potential/whitey-basson/

4 http://www.quinenco.cl/esp/directores.html

3 4

1

Deepak Parekh

Chairman of HDFC India’s leading housing

finance company

Whitey Basson

CEO of Shoprite Holdings South African listed retailer with

large Sub-Saharan operations

Jean-Paul Luksic

Chairman of Antofagasta Family controlled Chilean copper

miner with an excellent track record

Our process seeks to identify individuals behind businesses with long track records of integrity and financial

delivery – examples of people we are backing include:

Cao Dewang

Chairman of Fuyao Glass Leading Chinese auto glass

manufacturer expanding into the

US and Europe

2

Note: as of 12/31/16 HDFC is 2.69%, Fuyao Glass is 2.76%, Shoprite is 2.91% and Antofagasta is 1.0% of the Fund

14


Portfolio guidelines

Single country exposure Max: 25%

Single sector exposure Max: 40%

Holding size

Starting: 1%

Established 1-3%

High Conviction: 3-7%

Liquidity factors also considered

Number of holdings Min: 40

Max: 80

Cash position Max: 10

Currency hedging No

Derivatives No

Portfolio construction

15


A differentiated portfolio

1Data from Henderson. 2Data from Morningstar as of 12/31/16 and subject to change. The Morningstar Diversified Emerging Markets category is compiled by Morningstar,

Inc., a provider of independent investment research and information. The intent of the chart is to show how the Emerging Markets Fund differs from Morningstar's Foreign

Large Blend category as it relates to top 10 holdings. For example, as shown in the illustration, for the period ended 12/31/16, Cia Cervecerias Unidas was a top 10 holding for

the Fund yet 0.0% of those Funds comprising the Diversified Emerging Markets category held Cia Cervecerias Unidas in their top 10 holdings. The holdings in the Fund are

subject to change at any time.

% of

Fund

Henderson Emerging Markets

Fund1 Top 10 Holdings

Percent held in Morningstar

Category

funds’ top 10

Most Common Top 10 Holdings in

Morningstar category2

%

3.3% Standard Bank Group South Africa 0.4% Taiwan Semiconductor

Manufacturing Taiwan 63.9%

3.3% Tiger Brands South Africa 0.0% Samsung Electronics Korea 58.6%

3.0% Uni-President Enterprises Taiwan 1.6% Tencent Holdings China 52.9%

3.0% Cia Cervecerias Unidas Chile 0.0% China Mobile China 38.5%

2.9% Shoprite South Africa 0.4% Alibaba China 29.1%

2.8% Newcrest Mining Australia 0.0% Naspers South Africa 28.7%

2.8% Fuyao Glass Industry Group China 0.4% China Construction Bank China 22.1%

2.8% Standard Foods Taiwan 0.0% Sberbank of Russia Russia 17.2%

2.7% Housing Development

Finance India 9.8% AIA Group Hong Kong 15.6%

2.6% Mahle-Metal Leve Brazil 0.0% Industrial And Commercial

Bank Of China China 15.2%

16


Benchmark: MSCI Emerging Markets Index

Note: Sectors may not sum to 100 due to rounding

References made to individual securities should not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase the security

Henderson Emerging Markets Strategy

Positioning: top 10 holdings and sectors

Security % of

Fund

% of

index

Standard Bank Group 3.3 0.3

Tiger Brands 3.3 0.1

Uni-President Enterprises 3.1 0.2

Cia Cervecerias Unidas 3.0 0.0

Shoprite 2.9 0.1

Newcrest Mining 2.8 0.0

Fuyao Glass Industry Group 2.8 0.0

Standard Foods 2.8 0.0

Housing Development Finance 2.7 0.8

Mahle-Metal Leve 2.6 0.0

Weight of top 10 holdings 29.3 1.5

Weight of top 20 holdings 51.0 2.2

Sector % of

Fund

% of

index

Consumer Staples

31.3

7.2

Financials

17.2

24.4

Consumer Discretionary

10.1

10.3

Materials

9.6

7.4

Utilities

8.0

2.9

Industrials

7.9

5.8

Information Technology

7.8

23.3

Telecommunication Services

4.5

5.9

Health Care

2.6

2.5

Energy

1.1

7.9

17

Henderson Emerging Markets Strategy

Positioning: regional and country exposure


Benchmark: MSCI Emerging Markets Index

Notes: Totals may not equate to 100 due to rounding

Regional exposure Country exposure

% US, 1.1%

LatAm, 25.8%

EMEA, 26.5%

Asia Pacific, 42.1%

Cash, 4.5%

0

5

10

15

20

25

30

So

uth

Afr

ica

Chile

India

Bra

zil

Ta

iwan

Chin

a

United K

ingdom

Th

aila

nd

So

uth

Kore

a

Au

str

alia

Me

xic

o

Neth

erla

nds

Hong K

on

g

Po

lan

d

Nig

eria

Cze

ch R

epublic

Germ

any

United S

tate

s

Ph

ilippin

es

Indonesia

Eg

ypt

Ma

laysia

Tu

rkey

Colo

mb

ia

Gre

ece

Hungary

Pe

ru

Qata

r

Russia

n F

edera

tio

n

United A

rab…

Fund %

BM %

18


Performance

1Inception date: 12/31/10. Please note: the Fund’s management and strategy changed in March 2015. ©2016 Morningstar, Inc. All Rights Reserved. The information herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not

warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past

performance is no guarantee of future results.

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or

higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when

redeemed, may be worth more or less than original cost. For the most recent month-end performance, please call 1.866.443.6337

or visit the Fund’s website at henderson.com. Performance results with sales charges reflect the deduction of the maximum front-

end sales charge of 5.75%. Performance presented at Net Asset Value (NAV) which does not include these sales charges would

be lower if these charges were reflected. As stated in the current prospectus, the Fund’s annual operating expense ratio is 1.80%.

However, the Fund’s adviser has agreed to contractually waive a portion of its fees and/or reimburse expenses such that total

operating expenses do not exceed 1.80% which is in effect until 7/31/2020 Performance results reflect expense subsidies and voluntary waivers in effect during the periods shown. Absent these waivers, results would have been less favorable. Returns greater than one year are annualized and include the reinvestment of dividends and capital gains.

Past performance is not a guarantee of future results. One cannot invest directly in an index or average.

as of

December 31, 2016

3

months

1

year

3

years

5

years

Since

inception*

HEMAX at NAV -4.93% 9.69% -1.70% 3.33% -1.99%

HEMAX w/ sales charge -10.36% 3.39% -3.50% 2.12% -2.95%

MSCI Emerging Markets Index -4.08% 11.60% -2.19% 1.64% -1.96%

Morningstar Diversified Emerging

Markets Average -5.32% 8.17% -3.24% 1.26% -2.56%

19

Investment team


Global research effort: blurring boundaries between emerging and developed market opportunities means neither

should be analysed in isolation

Glen Finegan, Head of Emerging Markets Equities – 15 years investment experience Glen Finegan joined Henderson in 2015 as Head of Emerging Markets Equities. Most recently, Glen was a senior portfolio manager at First State

Stewart (formerly First State Investments) covering global emerging market all capitalisation equity strategies. He managed US$3bn as lead manager

and was co-lead managing US$10bn of assets. While at First State, Glen was based in Edinburgh between 2001 and 2011, and in October 2011 he

relocated to Singapore. Before joining First State Stewart in 2001, Glen spent three years working as a geophysicist within the oil and gas industry.

Glen has both an MSc in Oceanography and a BEng (Hons) in Civil Engineering from the University of Southampton.

Nick Cowley, Portfolio Manager – 18 years investment experience Nick Cowley joined Henderson in 2004 as a fund manager for North American equities. He is now fund manager of the Latin America sub-portfolios for

a number of funds. His career began at Chiswell Associates as a trainee fund manager for overseas equities before progressing to become a fund

manager for US Equities. Nick graduated from Brunel University with a MSc in Business Finance and graduated from York University with a honours

degree in Computer Science and Mathematics. He also holds the Institute of Investment Management & Research qualification.

Michael Cahoon, Portfolio Manager – 5 years investment experience Michael Cahoon joined Henderson in 2015 as an Emerging Markets Equities Analyst. Michael started his career at Ashmore Group as an Equity

Research Associate for frontier Africa. He then progressed to an Associate Analyst and later an Analyst on the Frontier team covering Africa and

global metals and mining. Whilst at Ashmore, Michael gained a deep understanding on the African investment opportunity set and assisted in the

management of an $800m Pan-African equity fund, excluding South Africa. Michael holds a Bachelor of Business Administration (Honours) in Finance

and Operations Management with a dual concentration in Legal Studies. He is a CFA charterholder.

Ian Warmerdam, Director of Global Growth Investment – 19 years investment experience* Ian Warmerdam is Director of Henderson Global Growth Equities. He and his team manage global growth funds and growth sleeves of larger global

equity portfolios. He has been a Director at Henderson since 2007. Ian joined Henderson in 2001 and has 19 years’ industry experience. Prior to joining

Henderson he worked at both Scottish Widows and Scottish Life where his career began as a US equities investment analyst. Ian has an MSc in

investment analysis from the University of Stirling. He is an Associate Member of the Society of Investment Professionals (ASIP) and also has a BSc.

Stephen Deane, Portfolio Manager – 6 years investment experience Stephen Deane joined Henderson in 2016 as Co-Manager of Emerging Markets Equities. Prior to this, Stephen worked for Stewart Investors (formerly

First State Investments) covering global equities. He started as an Investment Analyst before becoming co-manager on the team’s global funds with

$3bn under management. Stephen also contributed research and investment ideas to the Asian and Emerging Markets teams which worked closely

together. Prior to joining the industry, Stephen was Chief Technology Officer for Digital Barriers after beginning his career at Accenture. Stephen has a

Bachelor of Arts in Psychology from Trinity College, Dublin and an Executive MBA from INSEAD, Paris.

20

Sharon Davidson, Research Assistant Sharon Davidson joined Henderson in 2014 as a Research Assistant for the Global Technology and Global Growth teams with the addition of the Global

Emerging Markets team in January 2015. Prior to joining Henderson, Sharon worked at Ignis Asset Management for a number of years. She started her

time there as an Executive Assistant for the North American Equities and Real Estate teams whilst later becoming a Desk Assistant for the Far East,

Emerging Markets and North American Equities teams. Sharon started her career at Argyll Property Asset Manager Ltd as a Personal Assistant before

moving to Talisker Properties Ltd/Andleigh Properties Ltd as an Office Manager/Personal Assistant. Sharon holds the Business Management

Certificate.

Investment team (cont’d)

Eva Donaldson, Assistant Eva Donaldson joined Henderson in 2014 on a temporary basis. She took up a permanent position as a Secretary for the Global Growth and Global

Technology teams in March 2015. Eva started her career at Austin Estates as a Managers Assistant before moving to County Hotel Woodford where

she was a Front of Office Manager and later a Sales & Revenue Manager. She went on to become a Front of House Manager for the Raglan Hotel in

London for a number of years. Prior to joining Henderson Eva worked as a Reception/Administration & Viewings Co-ordinator for Dunpark (Edinburgh)

Ltd. Eva has a Level 2 certificate in ESOL Skills for Life from Trinity College London. She studied International Relations and Political Science at Vilnius

University in Lithuania and Geography at Vilnius Pedagogical University in Lithuania.


Ronan Kelleher, Portfolio Manager – 5 years investment experience Ronan Kelleher is a portfolio manager focused on the Global Growth strategy at Henderson. In January 2015, Ronan was appointed co-manager of an

offshore global growth equities fund. He joined Henderson in January 2011, initially working as a fund manager assistant before becoming an

investment analyst in 2012 and an associate fund manager in 2015. Ronan is a generalist equities analyst for the Global Growth strategy, having

previously covered IT Hardware stocks and Initial Public Offerings (IPOs) for the Technology team. Prior to working at Henderson, he worked at SIG in

Dublin, Ireland as an operations associate. Ronan holds an MSc in Finance and Investment from the University of Edinburgh and a BSc (Hons) in

Finance from University College Cork in Ireland. Ronan is a CFA charterholder and holds the Investment Management Certificate (IMC).

21

Henderson emerging markets

Risk control – understand intended risk; avoid unintended risk

Qualitative

Quantitative

Proprietary screens developed by the in-house risk team

Riskmetrics

Style Analysis

Independent Portfolios are regularly reviewed by Henderson’s independent risk team

Sector and country maximum exposure limits ensure a

diversified portfolio

No minimum exposure requirements

22

Henderson Global Investors 737 North Michigan Avenue

Suite 1700

Chicago, IL 60611

Tel: 866 443 6337

Reference

International and emerging markets investing involves certain risks and increased volatility not associated with investing solely in the US. These risks include currency

fluctuations, economic or financial instability, lack of timely or reliable financial information or unfavorable political or legal developments. The Fund may invest in

securities issued by smaller companies which typically involves greater risk than investing in larger companies. Also, the Fund may invest in limited geographic areas

and/or sectors which may result in greater market volatility. In addition the Fund may invest in derivatives. Derivatives involve special risks different from, and

potentially greater than, the risks associated with investing directly in securities and may result in greater losses. The Fund may be subject to frequent trading which

may result in a turnover rate of 100% or more.

The MSCI Emerging Markets Index is a free float adjusted market capitalization index that is designed to measure emerging market equities. One cannot invest in

an index. For each fund with at least a three-year history Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (includes the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counter as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) For the period ended 12/31/16, the Henderson Emerging Markets Fund was rated against 606 and 425 Diversified Emerging Markets funds for 3 and 5 year periods respectively. With respect to these Diversified Emerging Markets funds, the Fund received a Morningstar Rating of 4 stars for the three year period and 4 stars for the five year period for Class A. The Fund received a Morningstar Rating of 4 stars for the three year period and 4 stars for the five year period for Class I.

The views in this presentation are those of Henderson Global Investors as of the date of this presentation and may not reflect Henderson’s views any time thereafter. These views

are intended to assist the audience in understanding Henderson’s investment methodology and do not constitute investment advice. “Henderson Global Investors” and “Henderson”

are the names under which various subsidiaries of Henderson Group plc, a UK limited company, provide investment products and services.

One should consider the investment objectives, risks, fees and expenses of any mutual fund carefully before investing. This and other important information is available in the Fund’s prospectus available at henderson.com or by contacting your financial adviser. Please read it carefully before investing

The distributor of the Henderson Global Funds is Foreside Fund Services, LLC, which is not an affiliate of Henderson Global Investors.

(1/17) HGF-80073-17

Not FDIC Insured, Not Bank Guaranteed, and May Lose Money

Documents

Henderson Emerging Markets Fund · PDF fileCao Dewang Chairman of Fuyao Glass ... Fuyao Glass is 2.76%, Shoprite is 2.91% and Antofagasta is 1.0% of the Fund . 14 Henderson Emerging