Questioning the Manager: Henderson Diversified Income Trust

21/08/2017

Download


John explains recent central bank thinking, the switch in the market’s investment focus, the unusual economic cycle, and income expectations in the portfolio.
 
 
Definitions-
Hawkish – when a central bank tends towards tighter monetary policy used to slow the economy, for example raising interest rates.
Cyclicals – cyclical companies are those with revenues connected to the wider economic cycle and therefore prone to fluctuation as the economy goes through periods of expansion and contraction.
Credit cycle – the expansion and contraction in access to credit over time.
Emerging markets – an economy progressing from being less developed to a more advance economy, usually characterised by high rates of economic growth.
Reflation – The movement of an economy towards expansion following a period of contraction, usually driven by governmental policy.
Core inflation – the long-term trend in the general price of goods which will exclude more volatile items such as oil and food.
Economic cycle – the natural fluctuation of the economy between periods of expansion and contraction.

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.


Important information

Please read the following important information regarding funds related to this article.

Henderson Diversified Income Trust plc

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change.

Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment.

Henderson Diversified Income Limited is a Jersey fund, registered at Liberté, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), AlphaGen Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), Gartmore Investment Limited (reg. no. 1508030), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Conduct Authority to provide investment products and services. Telephone calls may be recorded and monitored.

Specific risks

  • If a fund is a specialist country-specific or geographic regional fund, the investment carries greater risk than a more internationally diversified portfolio
  • Higher yieldings bonds are issued by companies that may have greater difficulty in repaying their financial obligations. High yield bonds are not traded as frequently as government bonds and therefore may be more difficult to trade in distressed markets

Risk rating

Share

Important message