This fund is so
ble
you’re less likely to find
yourself in the wrong place.
Henderson Strategic Bond Fund
Investment grade corporate bonds rallied sharply in 2009 which
was great news for fixed income investors. With government debt
and new gilt issuance at record levels however, we believe the
potential knock-on risk to investment grade corporate bonds is
significant. Industry sales seem to reflect this view as investors
havestartedtomoveawayfromtheIMAcorporatebondsector
towards funds with more flexible mandates. The Henderson
Strategic Bond Fund is one such fund.
Fund managers John Pattullo and Jenna Barnard use the wider
remit of the IMA strategic bond sector to target opportunities
across the full spectrum of the fixed income market. This flexibility,
combined with the fund’s UCITS III powers, allow for active
management of the fund’s duration and credit risk. A fund’s
duration measures its sensitivity to changes in interest rates and
is currently a risk which, we believe, many investors are in danger
of underestimating. The fund’s duration is currently 2.3 years* with
a current distribution yield and underlying yield of 6.7% and 5.0%
respectively**.
After last year’s dramatic recovery in fixed income markets, returns
arelikelytobehardertocomebyduring2010.Inthisenvironment
we believe that the extra flexibility and fund management expertise
offered by the Henderson Strategic Bond Fund continue to
make it an attractive core holding for long-term investors.
Quartile
ranking †
1 yr 2 yrs 3 yrs 4 yrs 5 yrs
1 1 1 1 1
well as rise. High yield bonds carry a greater risk of capital loss through potential default compared to investment grade bonds. Henderson New Star is the name under which Henderson Global
no.1795354), New Star Asset Management Limited (reg no. 3984658) and New Star Investment Funds Limited (reg no. 4033107) (each incorporated and registered in England and Wales with registered
monitored. † Source: Morningstar at 30 November 2009, based on cumulative performance, mid-mid, net income reinvested, GBP. *Source: Cafit and desk clarifications at 30 November 2009. **Source:
mid market share price of the fund at the date shown. The Underlying Yield reflects the annualised income net of expenses of the fund (calculated in accordance with relevant accounting standards) as a
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