Henderson seeks to allow wider derivative use in managed fund

Henderson plans to change the investment policy of its £296.7m Managed Distribution fund to allow wider use of derivatives.

The fund – formerly under the New Star brand – can currently hold derivatives for efficient portfolio management, but the group plans to alter the fund to permit the managers to use the instruments for investment purposes, subject to unitholder approval. Managed by John Pattullo, Jenna Barnard and Trevor Green, Managed Distribution is split between 60% fixed income and 40% equities. If approved, Pattullo and Barnard will be able to utilise larger positions in derivate instruments which have generated strong returns for the pair’s Strategic Bond and Preference & Bond funds – such as th...