-

Janus Henderson Global Equity Income Fund

14 July 2021

4 minute read

Investment world legend has it that the physics genius, Albert Einstein, once described the mathematical rule of ‘compounding’ – a vital ingredient for successful, long-term saving and investing – as the ‘eighth wonder of the world’. Here, we talk about a fund that aims to harness its power.

Who's it for? All investors

There are a few basic rules to investing. Buy low, sell high. Don’t take too much risk. Diversify. Pay attention to fees. Don’t follow the crowd. Never invest in anything you don’t understand. Don’t time the market. The list goes on and on. But there is one ‘secret’ to investing, that is not as well known – compounding.

Compounding

The dictionary definition of the word ‘compound’ is to make something (bad) worse or something (good) better. For example, ‘The farmer’s problem is compounded by the bad weather.’ And it’s the same when it comes to investing.

Let’s say (for illustration purposes) you invest £10,000 and that investment returns 5% in its first year. That will result in a rise in value of £500.

Let’s assume the investment returns another 5%, in the second year. Not only will your initial £10,000 have risen in value by 5% but the £500 gain will also return 5%. This means your total return in year two will be £525. This compounding, of making returns on your returns, gets bigger and bigger the longer you invest for. This is why Albert Einstein reportedly once said “compound interest is the eighth wonder of the world.”

Janus Henderson Global Equity Income Fund

The concept of compounding lies at the heart of the Janus Henderson Global Equity Income Fund. The fund managers believe that it is possible to outperform the wider market by focusing on companies that pay out above-average dividends. By managing a portfolio of such companies, and ensuring the dividends are growing, investors should expect the majority of returns to come from those dividend payments.

Whilst investors requiring income from their investments can have the fund’s dividends paid out to them, the potential to outperform the market comes from the ability to reinvest those dividends year after year – ‘compounding’. This makes the fund suitable for investors looking for growth as well.

A global approach

Janus Henderson has a very strong and established team managing global income since 2006. As part of a large global company, the team are able to make use of the research and insight from the other fund managers and analysts across the firm. This helps them identify the best investment opportunities across multiple geographical regions. We believe these resources and experience of the team are key to successfully managing a global equity income fund.

In addition to the Janus Henderson Global Equity Income Fund, there are more funds on the Barclays Funds List which invest in companies that pay dividends. Find out more information on these funds

Correct at the time of publishing.

To diversify your investment, you may like to consider our own Barclays Ready-made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified solution for investors. Ready-made Investments are not the only funds that we offer and they won’t be appropriate for everyone.

Past performance of the fund and its manager are not a reliable indicator of their future performance.

We don’t offer personal investment advice so if you’re unsure you should seek that independently.

Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.

These are our current opinions but the future, as ever, is uncertain and outcomes may differ.

Plan & Invest is a service which creates and manages a personalised Investment Plan just for you. Whether your long-term goal is your child’s university education, retirement or just building a nest egg, all you have to do is tell us a bit about yourself and then, if your application is successful and you’re ready to invest, let our experts select and manage your investments (minimum investment is £5000).

Read the Assessment of Value report [PDF, 3.2MB] for funds run by Barclays.

You may also be interested in

The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and their effects on you will depend on your individual circumstances.

Investment Account

A fully flexible way to invest

A flexible, straightforward account with no limits on the amount you can invest.

 ""

Investment ISA

An easy way to start investing

We offer two ways to invest using an Investment ISA (also known as a stocks and shares ISA). Choose your own investments with Smart Investor, or let us make the decisions for you with Plan & Invest. Either way, invest up to £20,000 per year and any returns you make are tax-free1.

Start investing to make the most of those special times to come by using your new 2021-22 ISA allowance in an Investment ISA today. The sooner you begin, the sooner you could grow your money, tax efficiently.

 ""

Plan & Invest

Our experts will manage your investments for you. We will develop a personalised Investment Plan tailored to you but our experts then make all the buy and sell decisions. Invest from £5,000 in cash and/or an ISA transfer2 today.