Henderson Rowe Launches New Fund

by Gill Montia

Story link: Henderson Rowe Launches New Fund

Henderson Rowe, the investment manager, is to launching a new fund on 18th June, which will be based on the firm’s Dogs of the FTSE 100 strategy, which invests solely into the 15 stocks with the highest prospective yields in the FTSE 100 Index. Companies in this category include Lloyds TSB, Vodafone and Shell.

Typically, the stocks included in the Dogs portfolio will be out of favour, having generally underperformed in recent times, with investors feeling overly pessimistic about their prospects as a result. They will also have a large capitalisation. All the stocks will be in the FTSE 100 where capitalisation is generally over £3 billion. They are therefore likely to be able to withstand difficult trading conditions or being part of a weak sector. As such, they can be seen as long term survivors. Finally, the stocks selected will have the highest yields in the FTSE 100. Dogs stocks’ yields will be selected on the basis of being above those of 85% of the FTSE 100.

Those wishing to invest in the fund can do so with a minimum of £3,000. Charges are set at 5% initial and 1.5% annually.