Henderson adds protection to Managed Distribution

The managers of the Henderson Managed Distribution fund have added put options and a short equity index future into the portfolio on expectations of near-term pressure for stock markets.

Run by John Pattullo, Jenna Barnard and Trevor Green, the £343.3m portfolio has only recently been given the powers to use derivatives for investment purposes. With the FTSE last week rising to a four-month high of about 5,500, the managers are looking to provide investors with some protection should the equity markets move lower once again. Henderson Managed Distribution, which was formerly under the New Star brand, is split between fixed income and equities. It is allowed to hold a maximum of 40% in equities. While the managers are cautious on the near-term prospects for equity m...