John Pattullo, Co-Portfolio Manager of the Henderson Diversified Income Trust, provides an update on the Trust, highlighting performance over past year, areas where he is finding opportunities within the bond market, the current inflation debate, and provides an outlook for the coming months.

Key takeaways

  • Our commitment to “sensible income” means that we will stick to the knitting and continue to focus on better quality, higher yielding, less cyclical businesses which have sustainable revenues in the post COVID era.
  • As economies have reopened, it is not surprising that inflation has ticked higher, what has been surprising, however, is the severity of global supply chain issues, bottlenecks, and shortages in the labour market.
  • The outlook for the coming months remains uncertain due to a number of factors: credit spreads remain tight; inflation remains high, and central banks have begun reducing stimulus.