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Investing in UK and overseas corporate bonds, the investment philosophy is to add value through active allocation across fixed income asset classes in addition to security selection. It has a flexible mandate regarding sources of this return (income or capital) and the instruments it can use. This includes the use of derivatives to enhance returns or protect capital. Whilst there are no formal benchmarks for risk control purposes, the fund is measured for performance against the IA strategic bond sector.
Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.
|Sector||£ Strategic Bond|
|Dividends paid||28 Feb, 31 May, 31 Aug, 30 Nov|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.60%|
|Ongoing charges figure||0.69%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
One of the more flexible strategic bond mandates. It can invest in some loans, take negative duration positions and will position itself more aggressively in credit if the manager sees fit. Portfolio focus is generally pan european. The fund is currently carrying a reasonable amount of credit sensitivity.
|High yield bonds||35|
The Strategic Bond Fund’s investment philosophy is based on adding value through active allocation across the fixed income asset classes in addition to individual stock selection. It has a flexible mandate in terms of the source of this return (income or capital) and the potential instruments in which it can invest. This includes the use of fixed income derivative instruments to enhance returns or protect capital. The fund is a sophisticated UCIT 3 product, consequently at any one time the fund's gross exposure to cash securities and credit instruments may exceed 100%. The management team will draw on the views of in house strategy team and fixed income teams to develop portfolio ideas. The fund is widely diversified, holding up to 200 bonds.
|Fund data updated on||21/06/19|
|High yield bonds||35|
As at: 31/05/2019
4.3% Australia(Commonwealth Of) 3.75% Tb 21/04/37 Aud100 (Cdi)
4% Australia Government Bond 2.75% 2028
3.9% Canadian Government Bond 2.00% 2028
3% United States Treasury Note 2.75% 2023
2.9% Australia(Commonwealth Of) 2.25% Tb 21/05/28 Aud100 (Cdi)
2.3% Alphabet Inc 1.998% Bds 15/08/26 Usd2000
2.2% Canada(Govt Of) 1.75% Bds 01/03/23 Cad1 H490
2.1% Amazon.com Inc 3.15% Bds 22/08/27 Usd1000
1.7% Canadian Government Bond 0.50% 2022
1.5% Microsoft Corp 3.3% Bds 06/02/27 Usd2000
Investments may include pan European and US high yield, preference and convertible shares, sovereign and corporate bonds. There is no minimum exposure to any one security class. The fund may carry unhedged currency positions, typical max 5% of NAV. Duration is actively managed and may at times be negative.
Maximum exposures: Corporate bonds : 80%, High yield : 100%, Emerging debt : 30%, Sovereign debt : 20%
|Average monthly relative returns||Bestinvest MRI|
|14/15||15/16||16/17||17/18||18/19||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
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.
John Pattullo / Jenna Barnard has 13.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. 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% (May 2007 - March 2009)|
|Relative||-22% (June 2007 - March 2009)|
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.