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Henderson looks to financials

Henderson Global Investors is adding the Horizon global financials fund to its Luxemburg Sicav range.

The company says it has launched this fund to make use of its experience in the sector, which it believes has excellent prospects. It believes the financial services sector will continue to grow as an ageing worldwide population with rising incomes increasingly rely on companies in the sector to look after their savings.

The fund will be a concentrated portfolio of 20-40 stocks that comprise fund manager Martin Kinsler’s best ideas within the sector.It will be benchmarked against the MSCI World Financials (total return) Index, targeting returns of 3 per cent above this index on a rolling three-year basis.

Kinsler, who joined Henderson from Aegon Asset Management in 2004, has eight years’ experience as a financials analyst and fund manager,. He will be supported by Vincent Martinez, who has moved across from Henderson’s credit team, where he was a financials analyst.

Kinsler and Martinez will construct the portfolio, which will have limited turnover, according to a long term view. They believe the impact of the credit crunch on the financials sector, which prompted an indiscriminate sell-off, has brought about good investment opportunities

Many financial companies are very healthy, with sound balance sheets and strong cash generation, but became caught up in the sell off and are now undervalued. While the bad news may already be priced into financials stocks with good long-term prospects, some advisers may feel that the extent of the credit crunch is still unclear. These may adopt a wait and see approach before dipping their toes into a specialist fund rather than a general fund that invests in this sector alongside a range of other industries.

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