Henderson Launches Jersey-Based Fund

by Phillip Morton, Investors Offshore.com

08 June 2007

Henderson Global Investors is to launch a new Jersey-based closed-ended fund which will offer a diversified portfolio of predominantly UK and European fixed income assets.

The new vehicle, called the Henderson Diversified Income Limited, will be listed on the London Stock Exchange and will target an initial minimum annual yield of 7% based on the offer price of 100p. It expects to deliver an ongoing dividend yield of at least 1.25% above the three month London Interbank Offered rate (LIBOR), while achieving long term capital growth and preserving capital over all periods.

Henderson said that investors in the fund should benefit from access to a highly diversified portfolio and Henderson’s capabilities in the secured loans market. Investors should also enjoy returns that are not greatly correlated to equity markets.

The fund intends to invest mainly - but not exclusively - in secured loans, asset-backed securities, high yield corporate bonds and investment grade bonds. A small proportion of the fund will also be placed in derivative instruments with the intention of protecting and enhancing the company’s income and total return.

The portfolio will be managed jointly by John Pattullo and Jenna Barnard, while Julian Green will be responsible for investment into secured loans.

James de Sausmarez, head of investment trusts at Henderson, commented: “Income remains a dominant requirement for many investors and Henderson Diversified Income Limited will provide investors with a welcome means of diversifying their portfolios away from equities and into the specialist fixed income assets that are not accessible to the average investor."

"With a structure that aims to deliver a yield that is consistently 1.25 per cent over 3 month LIBOR, investors will benefit from protection against rising interest rates," he added.

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