Bestinvest says
In June 2011 Henderson Investors announced that James Gledhill, who launched the fund had left the company. His replacements, John Pattullo and Jenna Barnard, currently manage the three star rated Preference and Bond and Strategic Bond funds. We therefore maintained our two star (hold) rating on the fund given Pattullo and Barnard’s experience managing similar mandates. However, we would not be surprised to see some rationalization of the Henderson retail fixed income fund range going forward given the overlap in objectives on some mandates currently on offer.
This is a blended high yield / investment grade bond fund that enables the manager to pursue an active allocation policy between the two asset classes to maximise returns or protect capital. Although there are no formal constraints asset allocations will normally be within about 10% of a 55/45 high yield / investment grade split. The high yield portion of the fund is not expected to exceed 70% of asset value.
The asset allocation is formally reviewed on a monthly basis by senior members of the fixed interest team. The fund structure is initially approached from a top down perspective (global economic prospects), to form a view on the high versus low quality bond split, duration (risk) and sector allocation. General analysis will cover inflation, interest rates, supply and demand to the market, relative valuations across different markets, rating agencies' credit ratings and structural changes in industries. The top down analysis is then combined with the selection of individual bonds identified to benefit from the trends identified in the big picture analysis. The fund is not benchmark driven by sector or name, but minimal diversification requirements will apply. Credit derivatives (both single name and index) and equity futures are also used from time to time to aid in the management of the fund's market exposure. Additionally all non Sterling currency exposure is hedged.