Pattullo: This year has seen 'one of the nastiest pain trades ever'

‘One of the nastiest pain trades ever’

Henderson's head of retail fixed income explains why investment grade bonds offer a contrarian buying opportunity, which assets he is avoiding, and why rates could stay low for another year.

At a time when even fixed income managers are approaching the asset class with caution, Henderson’s head of retail fixed income John Pattullo remains relatively unfazed. This outlook has helped the flagship £1.2bn Henderson Strategic Bond fund outperform over the past 12 months, a period in which fixed income strength surprised many observers once again. The fund, which Pattullo co-manages with Jenna Barnard, returned 9.4% in the 12 months to 22 August, compared with a 7.7% rise for the IMA £ Strategic Bond sector. Returns are also strong on a three-year view: the fund has delivered 2...