Janus Henderson Sterling Bond

Invests mainly in sterling denominated investment grade corporate bonds.

  • 67.80p Price (Inc)
  • 237.70p Price (Acc)
  • 4.25% 0.00% Initial charge
  • 1.10% Annual management charge
  • 1.27% Ongoing charges
  • 1.60% Yield

Prices as at 10 December 2019, fund data last updated 24 November 2011

The fund's aim is to achieve a high and stable income from investing principally in sterling denominated fixed interest securities including preference shares, concentrating on investment grade (high quality) corporate bonds. The managers consider this a core bond fund and therefore an additional objective is for low levels of volatility, which means not taking big positions relative to the benchmark index in terms of sectors, whilst also being careful not to over expose the fund to individual bond default risk.

Fund summary

Sector £ Corporate Bond
Structure UNIT TRUST
Launched April, 1988
Size £385m
Yield 1.60%
Charging basis Income
Dividends paid 15 Mar, 15 Jun, 15 Sep, 15 Dec

Charges

Standard initial charge 4.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.10%
Ongoing charges figure 1.27%

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Investment process

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.

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 rated alternatives.

Manager research

Average monthly relative returns

  • 14/15 -0.13%
  • 15/16 -0.11%
  • 16/17 -0.02%
  • 17/18 0.02%
  • 18/19 -0.07%

Bestinvest MRI

  • 3 years -0.02%
  • 5 years -0.06%
  • Career 0.16%
  • 3 years 77.90%
  • 5 years 46.40%
  • Career 99.50%

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

Stephen Thariyan / Philip Payne

Thariyan is Head of Credit and in charge of the 18-strong credit alpha team of portfolio managers and credit analysts at Henderson. Prior to joining Henderson Global Investors, he was a portfolio manager at Rogge responsible for investing in corporate bonds and credit derivatives globally. He was previously a director and senior analyst at NatWest Markets’ credit rating and research unit, where he led teams of sector analysts in credit research. Payne began his career at Henderson Global Investors in 2000. He progressed to fund manager in 2003 and is the manager of the Henderson All Stocks Credit and Long Dated Credit Funds. He is a CFA charter holder.

Track record

Stephen Thariyan / Philip Payne has 10.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.16%. During the worst period of relative performance (from December 2011 - July 2016) there was a decline of 9% relative to the index. The worst absolute loss has been 7%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -7.00% (January 2015 - February 2016)
Relative -9.00% (December 2011 - July 2016)

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% Hm Treasury United Kingdom Dmo 1.5% Gilt 22/07/47 Gbp1
1.4% Hm Treasury United Kingdom Dmo 4.5% Gilt 7/12/42 Gbp
1.4% Walmart Inc 5.75% Bds 19/12/2030 Gbp1000
1.2% Heathrow Funding 6.75% 2026
1% Bank Of America Corp 2.3% Snr Nts 25/07/25 Gbp100000
1% Wells Fargo Bank Na 5.25% 2023
.9% Hsbc Bank Capital Funding Sterling 1 5.844% 2167
.9% Scottish Widows 5.50% 2023
.8% Hm Treasury United Kingdom Dmo 1.75% Gilt 07/09/37 Gbp0.01
.8% Hm Treasury United Kingdom Dmo 4.75% Gilt 07/12/38 Gbp
Source: Trustnet

Sector breakdown

Financials 34.00%
Utilities 17.00%
Telecommunications 7.00%
Government Bonds 7.00%
Industrials 7.00%
Consumer Goods 7.00%
Mortgage & Secured Bonds 6.00%
Consumer Services 5.00%
Money Market 3.00%
Futures 3.00%

Portfolio

There will generally be around 100 holdings within the portfolio, diversified across at least 10 sectors. The average credit rating for the fund is at least A.

Constraints

The maximum exposure to any one bond issuer is 2%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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