The Henderson High Yield Bond fund aims to achieve a high-income yield combined with the potential for modest long-term capital growth. The fund invests in Corporate Bonds, both investment grade and high yield. It is suitable for investors willing to take a moderate level of investment risk, similar to that of an equity managed fund.

James Gledhill has managed this fund since 2002, he has over 15 years investment experience, and is regarded as one of the UK's leading credit specialists. Henderson acquired New Star in April following their announcement in January and Gledhill will continue to manage the fund.

The fund invests in both "Investment Grade" bonds, those rated AAA - BBB by Standard and Poor's, and in "High Yield" Bonds rated BB-B. Gledhill seeks to avoid excessive risk through an optimal combination of the two bond classes. The combination will be approximately 45% Investment Grade and 55% High Yield, as this is the mix Gledhill has calculated to maximize the potential return without taking an undue level of risk.

The fund will usually have exposure to at least ten economic sectors, although unfavoured sectors will be held at a zero weighting. At the individual bond level, the credit position of each issue is a key driver of security selection, together with its sensitivity to anticipated changes in macro economic conditions. The current bond class allocation is shown above.

Performance figures for the fund are given in the table below, together with the current yield. Please bear in mind that past performance is not a guide to the future, the value of the investments and any income from them can go down as well as up and you may not get back the amount of money you invested.