Launched in May 2012, with €280m external investment, the fund targets a positive return, over a rolling three year period, through income and capital gains through investment in a broad range of global fixed income asset classes and associated instruments.
A Luxembourg domiciled Ucits structured part of the Henderson Horizon Sicav range, the company said its long-term aim is to deliver a higher total return than a traditional actively managed investment grade bond portfolio with similar volatility.
It is managed by Henderson’s fixed income investment strategy group (ISG), which is chaired by chief investment officer, David Jacob. Ideas for the fund will be generated from over 50 investment specialists across the full range of fixed income markets allowing the ISG to isolate the most attractive risk-adjusted opportunities.
“The Total Return Bond Fund offers an excellent alternative to traditional, benchmark oriented bond funds where low yields present a risk to future returns. Bond yields are at historic low levels having been in a declining trend over a number of decades,” said Jacob.
“This has supercharged the returns from traditional benchmark driven government and corporate bond portfolios in recent years, but going forward, a more flexible approach is required to capture the best returns from fixed income markets. The fixed income team at Henderson combines unconstrained idea generation with disciplined and effective risk management, essential for producing strong returns in volatile markets.”
The fund will invest in global fixed income markets including government bonds in developed and emerging markets; corporate bonds (including investment grade and high yield), secured credit (loans and asset backed securities) and cash. It uses Ucits ‘sophisticated’ investment powers, which enable the fund to include derivative instruments for efficient portfolio management as well as to reduce risk and enhance portfolio returns.
