Janus Henderson Preference & Bond A

Targets an income yield of 1% over 10 year Gilts by investing in a combination of high and low quality bonds.

  • 53.90p Price (Inc)
  • - Price (Acc)
  • 4.00% 0.00% Initial charge
  • 1.25% Annual management charge
  • 1.41% Ongoing charges
  • 3.80% Yield

Prices as at 09 December 2019, fund data last updated 27 February 2012

This fund is mandated to deliver a high income from fixed income securities whilst at the same time attempting to provide greater capital preservation. To achieve this the manager benefits from a flexible mandate not dis-similar to his Henderson Strategic Bond Fund; this allows for a higher allocation to high yield bonds and the use of fixed income derivatives to protect the fund against rising interest rates. Distributable income is boosted by deducting charges from capital. Typically the fund will be 95% hedged to £.

Fund summary

Sector £ Strategic Bond
Structure OEIC
Launched October, 1978
Size £827m
Yield 3.80%
Charging basis Capital
Dividends paid 28 Feb, 31 May, 31 Aug, 30 Nov

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.41%

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Investment process

This fund aims to achieve a stable yield at low levels of volatility, whilst also being careful not to over expose the fund to default risk. To achieve this objective the manager benefits from a flexible mandate, not dis-similar to his Strategic Bond Fund. Allowable investments include government securities, corporate bonds, preference shares and other fixed interest securities. The manager will actively manage exposure to these asset classes and duration risk in order to protect capital and provide income, the mandate also provides for the use of derivative instruments to assist in this aim. The manager will draw on the asset allocation and strategy team to help form his views. Over the years the fund's allocation to preference shares has diminished as the size of this opportunity set has diminished whilst the fund has grown in size.

Manager research

Average monthly relative returns

  • 14/15 0.25%
  • 15/16 0.04%
  • 16/17 0.13%
  • 17/18 -0.05%
  • 18/19 0.32%

Bestinvest MRI

  • 3 years 0.13%
  • 5 years 0.14%
  • Career 0.00%
  • 3 years 99.40%
  • 5 years 100.00%
  • Career 79.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

John Pattullo / Jenna Barnard

Pattullo graduated in economics from St.Andrews University in 1993. He became a Chartered Accountant with Price Waterhouse Coopers and then joined Henderson as an analyst in 1997. He is now Henderson's head of UK retail fixed income. Pattullo is a member of the Institute of Chartered Accountants of Scotland and an Associate Member of the Society of Investment Professionals. Barnard graduated from Oxford University with a first class BA (Hons) in Politics, Philosophy and Economics. She worked for Orbitex Investments before joining Henderson as a credit analyst in 2002, becoming a credit portfolio manager in 2004. She is a CFA charterholder, and an affiliate member of UKSIP. Barnard is a Member of the Society of Technical Analysts having passed the STA Diploma exam.

Track record

John Pattullo / Jenna Barnard has 13.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -00%. During the worst period of relative performance (from June 2007 - March 2009) there was a decline of 22% relative to the index. The worst absolute loss has been 26%.

Periods of worst performance

Absolute -26.00% (May 2007 - March 2009)
Relative -22.00% (June 2007 - March 2009)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 August 2019

3.3% Australia Government Bond 3.25% 2025
2.7% Australia(Commonwealth Of) 3.75% Tb 21/04/37 Aud100 (Cdi)
2.4% Australia Government Bond 2.75% 2028
2% Hm Treasury United Kingdom Dmo 1.625% Treasury Gilt 22/10/28 Gbp0.01
1.8% Nationwide Building Society
1.7% Co-Operative Group 2011 7.50% 2026
1.6% Phoenix Group 6.625% 2025
1.6% Walmart Inc 3.7% Bds 26/06/28 Usd2000
1.5% United States Treasury Note 2.75% 2023
1.5% Commonwealth Government Bond
Source: Trustnet

Sector breakdown

Investment Grade Corporate Bonds 48.00%
High Yield Bond 30.00%
Government Bonds 13.00%
Money Market 6.00%
Preference Shares 2.00%
Debt 1.00%

Portfolio

Maximum exposures high yield : 40%, Convertibles : 20%, Preference shares : 20%, Emerging markets : 10%, Sovereign debt : 20%, Corporate bonds : 80%

Constraints

For high yield bond issues the maximum holding is 1.5% and for more aggressive issues 1%. The majority of holdings are positioned around the lower end of investment grade quality.

Key Investor Information

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