Overview

Separately Managed Account Portfolios


Henderson's SMA Portfolios allow investors to reap the benefits of a professionally managed portfolio while maintaining the flexibility to manage their own tax implications and set customized investment parameters.

To construct the Portfolios, Portfolio Manager Manraj Sekhon begins with the same, focused investment process used for international equity portfolios managed for large institutional clients.

We employ a fundamental bottom-up approach, working with our regional specialists and global economists to develop a focused list of equities. Henderson seeks quality companies, which offer above average prospects for earnings growth, but are available at a discount relative to the competition. We describe our style as growth at a reasonable price.

Ultimately, we create Portfolios with typically 40 of our best stock ideas, drawing on Henderson's extensive investment resources from around the globe.

International ADR Portfolio

This Portfolio seeks to achieve long-term capital appreciation primarily through investment in the American Depository Receipts of non-US companies. The Portfolio employs a process that combines a bottom-up approach to individual security selection. Security selection will be based upon an analysis of a company's valuations relative to earnings forecasts or other valuation criteria, earnings growth prospects of a company, the quality of a company's management and the unique competitive advantages of a company.

International Equity Portfolio

This Portfolio seeks to achieve long-term capital appreciation primarily through investment in the American Depository Receipts (ADRs) of non-US companies. In addition, where ADRs are not available, the Portfolio will invest in Foreign Shares (F-Shares). The Portfolio employs a process that combines a bottom-up approach to individual security selection. Security selection will be based upon an analysis of a company's valuations relative to earnings forecasts or other valuation criteria, earnings growth prospects of a company, the quality of a company's management and the unique competitive advantages of a company.


The International ADR and International Equity Portfolios are managed by Henderson Global Investors (North America) Inc. ("HGINA") and subadvised by Henderson Investment Management Limited ("HIML"). From 1/1/95 to 6/30/03, the International ADR Portfolio was advised by J. & W. Seligman & Co. Incorporated and subadvised by HIML. HIML has been responsible for selecting securities for the International ADR portfolio since its inception. The International Equity Portfolio was created on January 1, 2008 with the purpose of allowing for the inclusion of F-shares. Returns prior to January 1, 2008 are those of the International ADR Portfolio.

For the entire period, the International ADR composite, created 1/1/95 is valued quarterly and portfolio returns are weighted by using beginning-of-quarter market values. Composite results include reinvestment of dividends and interest. Results for the full historical period are time-weighted. The composite consists of International ADR wrap fee program accounts managed on a discretionary basis. The composite does not include accounts with investment restrictions. Performance for the most recent calendar quarter reflects the performance of a model portfolio and is subject to change. Model performance does not reflect the results and costs of actual trading, nor does it take into account adjustments to the model as a result of client restrictions and other factors. Performance for all prior periods reflects the actual performance of the composite. The composite includes only accounts for which Henderson has adequate records for the period prior to 6/30/03. The composite excludes accounts of wrap sponsor programs that were not active at 6/30/03. Performance results are derived in part from information provided by each wrap program sponsor and there may be differences in performance due the calculation methodologies used by the sponsors. For some periods, performance for certain accounts may be derived from settlement date information.

*Monthly performance reflects the approximate performance of the model portfolio upon which the management of actual wrap accounts is based. Model performance does not reflect the results and costs of actual trading, nor does it take into account adjustments to the model as a result of client restrictions and other factors. Actual results of each wrap account may have been materially different from results shown herein because of differences in transaction and related costs, the inception date of the accounts, differences in investment objectives and guidelines, and other factors. Gross of fee returns are presented before the deduction of any wrap fees. Net of fee returns reflect the deduction of actual wrap fees. Net of fee model performance for the most recent calendar quarter assumes a maximum 3.00% annual wrap fee.

The MSCI EAFE Index tracks the stocks of approximately 1,000 international companies in Europe, Australasia and the Far East. The MSCI EAFE Growth Index is composed of a sample of international companies in Europe, Australasia and the Far East with higher price-to-book ratios. The MSCI EAFE Value Index is composed of a sample of international companies in Europe, Australasia and the Far East with lower price-to-book ratios you cannot invest directly in an index and index returns do not reflect any management fees or trading costs. Volatility of the portfolio may differ significantly from the volatility of the indices.

Past performance is not indicative of future results. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. The securities and transactions discussed do not represent an account’s entire portfolio or transaction history and in the aggregate may represent only a small percentage of an account’s portfolio holdings and transactions. The opinions expressed herein are those of Henderson Global Investors and are subject to change without notice. It should not be assumed that any of the securities, transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

International securities involve special risks, which may include currency risk, political instability and risk associated with varying accounting standards and increased volatility related to the relatively smaller size and lesser liquidity of less-developed markets. International investing may not be for everyone. Individual client portfolios may differ based on variations in security purchase price, date, and individual client restrictions.

Use of this site constitutes agreement with our Terms of Use|. All material copyright 2008 Henderson Global Investors (North America) Inc. All rights reserved. Unauthorized reproduction or distribution prohibited.

Privacy Notice|

© 2008, Henderson Global Investors