Bestinvest says
This fund is now considered as Henderson’s core retail corporate bond option having joined their bond fund range following Henderson's purchase of New Star in April 2009. This fund is not currently rated by Bestinvest and we suggest investors seeking core corporate bond exposure should use one of our recommended alternatives.
The majority of the fund is invested principally in investment grade corporate bonds, although up to 10% of the fund may be held in gilts (UK government bonds) for defensive or liquidity reasons. To enhance yield the fund may also invest in preference shares.
The managers' focus is principally at the underlying credit level (i.e. a company's ability to pay its debt interest) so the focus is on higher rated companies with strong balance sheets and earnings stability. The managers are supported by an in house credit team of around 15 analysts in addition to specialist teams focusing on Asset Backed Securities and Loans. Analysts are organised on a sectorial basis covering High Yield and Investment Grade names.