Henderson Global Investors has launched two credit-focused bond funds covering global and emerging markets, Citywire Global can exclusively reveal.
The two Luxembourg-domiciled funds were formally launched to investors today (November 5).
The Henderson Horizon Global Corporate Bond fund will be overseen by James Briggs, who has worked as a portfolio manager overseeing institutional profiles since 2010.
In the new fund, Briggs will call upon Henderson’s credit desks in the UK and the newly-established unit in the United States to uncover global investment opportunities.
He aims to invest primarily in investment grade corporate bonds while outperforming its assigned benchmark, the Barclays Global Aggregate Corporate Bond index.
Commenting on the launch, Briggs said: ‘The combination of conviction-led investing with a blend of macroeconomic analysis and fundamental security selection can allow the fund to exploit disparities in markets around the globe.’
EM credit expansion
Meanwhile, Steve Drew (pictured), who joined as head of emerging market credit from Thames River Capital in April, will oversee the Henderson Horizon Emerging Market Corporate Bond fund.
Speaking to Citywire Global, Drew said the fund will invest between 70-80% in investment grade credit, while the remainder will be drawn from the high yield market.
It will invest in 64 different markets, which will cover Latin America, Central and Eastern Europe, Middle East, African and Asian bonds.
‘Emerging market corporates are a definite growth area and currently growing at 20% per annum, which is almost four times the rate at which developed markets are currently growing,’ Drew said.
‘Historically, fixed income strategies have been predominantly focused on government bonds but if we were to add in emerging market corporates, of around 30% of the portfolio, you would see an evident increase in returns while volatility would actually be reduced.’
Commenting on areas of potential investment, Drew said he would likely be underweight Argentina and Peru, while holding overweight positions in Colombia, Mexico, China and India.
This new fund will be benchmarked against the JP Morgan Corporate Emerging Market Bond Index Broad Diversified.
This has seen Drew add former Thames River colleague Hervé Biancotto as an assistant portfolio manager, portfolio analyst Aurelie Randolph and Jennifer James, who will serve as head of corporate research for emerging market credit.
Both of the newly-launched funds will be registered for sale in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Luxembourg, Italy, Malta, Netherlands, Norway, Spain, Sweden, Switzerland the UK.