Henderson

STRATEGIC BOND FUND

Fund facts at 31 January 2017

Fund aim Fund manager profile
To provide a return by investing in Jenna Barnard is Co-Head of Strategic Fixed Income, co-managing a number of funds alongside John Pattullo. Jenna joined
higher yielding assets including Henderson in 2002 as a credit analyst and progressed to Credit Portfolio Manager in 2004. Prior to joining Henderson, Jenna
high yield bonds, investment grade
worked as an investment analyst with Orbitex Investments. Jenna holds a first class BA (Hons) degree in Politics, Philosophy
bonds, government bonds,
preference shares and other bonds. & Economics from Oxford University. She is a CFA charterholder, and an affiliate member of UKSIP. Jenna is a Member of
The Fund may also invest in the Society of Technical Analysts having passed the STA Diploma exam.
equities. John Pattullo is the Co-Head of Strategic Fixed Income at Henderson. With more than 20 years of experience investing in
the credit markets, John co-manages a number of funds with Jenna Barnard. Prior to joining Henderson in 1997, John spent
Launch date four years as a chartered accountant at PricewaterhouseCoopers. John has an MA (Hons) in Economics from the University
A Inc - 31 January 1995 of St Andrews. He is a member of the Institute of Chartered Accountants of Scotland and an Associate Member of the Society
I Inc - 22 October 1999 of Investment Professionals.
Investment Association sector The month-end duration of the fund was 5.3 years*
IA Strategic Bond *Duration measures the sensitivity of a bond fund to interest rate changes; the larger the figure, the more sensitive the bond fund to a movement
in interest rates.
Fund size To obtain monthly commentary from our fund manager please visit our website on: www.henderson.com.
1.68bn
Yields (%) Distribution Underlying Top 10 holdings (%) Sector breakdown (%) Credit rating breakdown (%)
A Inc 4.5 3.2 Australia Government Bond 1.75% 2020 2.9 High Yield Non-Financial Corporate AAA 6.7
I Inc 4.6 4.0 Australia Government Bond 3.25% 2018 2.0 Bonds 30.5 A 3.1
Ratings Altice US Finance I 5.50% 2026 1.5 Investment Grade Non-Financial BBB 30.4
Wachovia Capital Trust III 5.5698% 2049 1.5 Corporate Bonds 19.1 BB 32.1
Morningstar rating - QQQQ Barclays Bank 6.278% 2049 1.4 Investment Grade Financial B 9.6
Type of shares HBOS Sterling Finance Jersey 7.881% 2049 1.3 Corporate Bonds 15.4 CCC & Below 2.7
Accumulation and Income Daily Mail & General Trust 5.75% 2018 1.3 High Yield Financial Corporate Not rated 1.3
BUPA Finance 6.125% 2049 1.3 Bonds 13.5 Secured Loans 7.9
XD dates Virgin Media Secured Finance 6.25% 2029 1.2 Loans 7.9
01-Jul, 01-Oct, 01-Jan, 01-Apr HSBC Bank Capital Funding Sterling 1 5.844% Government Bonds 5.9
2049 1.2 Preference Shares* 1.2 Cash and Derivatives 6.2
Dividend pay dates Total number of holdings 182 Asset or Mortgage Backed 0.4
30-Aug, 30-Nov, 28-Feb, 30-May *Includes Nationwide CCDS (core capital
Minimum investments deferred share).
A Inc 1,000 Cash includes the present value of FX
I Inc 3,000,000 contracts.

Charges (%) Initial Ongoing

A Inc 4.00 1.41 Performance Cumulative A Inc I Acc I Inc Sector Quartile
I Inc Nil 0.69 performance % change % change % change % change ranking
Percentage growth, 25 Nov 03 to 31 Jan 17.
Annual
A Inc 1.25 160 1 year 4.9 5.6 5.7 7.5 4th
I Inc 0.60
100% of Annual Management 2 years 3.6 5.1 5.1 4.7 3rd
120
Charge is taken from capital. 3 years 11.1 13.5 13.5 12.3 3rd

SEDOLS Net Gross 80 4 years 16.4 19.7 19.7 16.6 3rd

A Inc 0749529 B03TP42 5 years 33.3 38.1 38.0 29.1 2nd
I Acc 0753382 B03TP53 40
I Inc 0750208 B03TP64 Source: at 31 Jan 17. 2017 Morningstar. All Rights Reserved, nav-nav, UK
sterling, net income reinvested.
Derivatives breakdown (%) 0
Credit default swap long risk 0.2
Credit default swap short risk -2.6 Discrete year A Inc I Acc I Inc
-40
Credit default swap net risk -2.4 Nov Nov Nov Jan performance % change % change % change
Net interest rate futures 5.6 03 08 13 17
31/12/2015 to 30/12/2016 3.7 4.4 4.4
Henderson Strategic Bond A Inc (103.2%)
Henderson Strategic Bond I Inc (122.0%) 31/12/2014 to 31/12/2015 1.5 2.3 2.3
IA Strategic Bond (81.6%)
31/12/2013 to 31/12/2014 6.0 6.8 6.7
Source: at 31 Jan 17. 2017 Morningstar. All Rights Reserved,
nav-nav, UK sterling, net income reinvested. 31/12/2012 to 31/12/2013 3.9 4.6 4.6

John Pattullo and Jenna Barnard took over management of this fund on 25
30/12/2011 to 31/12/2012 17.7 18.5 18.5
November 2003. Source: at 30 Dec 16. 2017 Morningstar. All Rights Reserved, nav-nav, UK
sterling, net income reinvested.
Past performance is not a guide to future performance.
Discrete performance data may change due to final dividend information
The value of an investment and the income from it can fall
being received after quarter end. 1st quartile means the fund is ranked in
as well as rise and you may not get back the amount
the top 25% of funds in its sector.
originally invested.
 Henderson

STRATEGIC BOND FUND

(continued)

General risks
The value of the funds and the income from them is not guaranteed and may fall as well as rise. You may get back less
than you originally invested.
Past performance is not a guide to future performance.
You should note that your tax treatment in relation to any investments held outside an ISA will depend on your individual
circumstances and may be subject to change in the future. Governments may change the tax rules which affect you or the
funds in which you have invested.
What are the risks specific to this fund?
Fund manager The fund may use investment techniques, including some that involve derivatives, to obtain or amplify its exposure to various
John Pattullo investments, and may also use these techniques for efficient portfolio management or to manage risks. Certain derivatives
could behave unexpectedly or could expose the fund to losses that are significantly greater than the cost of the derivative.
With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments.
Where long term interest rates rise, the capital value of shares/units is likely to fall, and vice versa. In addition to the interest
rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its
obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is
usually higher with bonds classified as sub-investment grade. These may produce a higher level of income but at a higher
risk than investments in investment grade bonds. In turn, this may have an adverse impact on funds that invest in such
bonds.
If a fund is a specialist country-specific or geographical region fund, the investment carries greater risk than a fund diversified
across more countries.
If a funds management charge is taken from its capital, then this may allow more income to be paid, however, it may also
Fund manager restrict capital growth or even result in capital erosion over time.
Jenna Barnard This fund is designed to be used only as one component in several in a diversified investment portfolio. Investors should
consider carefully the proportion of their portfolio invested into this fund.

Important information
Yields are shown net except for bond funds which are shown gross. The Distribution Yield reflects the amounts that may be expected to be distributed over the next 12
months as a percentage of the mid-market share price of the fund at the date shown. The Underlying Yield reflects the annualised income net of expenses of the fund
(calculated in accordance with relevant accounting standards) as a percentage of the mid-market share price of the fund at the date shown. The Distribution and Underlying
Yields are based on a snapshot of the portfolio on that day. The yields do not include any preliminary charge and investors may be subject to tax on distributions. The
Distribution Yield may be higher than the Underlying Yield. This is because the fund may distribute coupon income and a portion of the funds income is charged to capital.
This has the effect of increasing the distributions for the year and constraining the fund's capital performance to an equivalent extent. All credit, country and sector breakdowns
relate to end of day trading positions. Fund size at 12pm on last business day of month.
Please note: due to rounding the figures in the holdings breakdowns may not add up to 100%. Unless otherwise indicated all figures sourced from Morningstar, Datastream,
BNP Paribas and Henderson Global Investors. Please note the views, opinions and forecasts expressed in this document are based on Henderson's research, analysis and
house views at the time of publication. Third party data is believed to be reliable, but its completeness and accuracy is not guaranteed. Please read all scheme documents
before investing. Before entering into an investment agreement in respect of an investment referred to in this document, you should consult your own professional and/or
investment adviser. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions
and reliefs depend upon an investors particular circumstances and may change if those circumstances or the law change. If you invest through a third party provider you
are advised to consult them directly as charges, performance and terms and conditions may differ materially than those shown on this document. Nothing in this document
is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the
sale or purchase of any investment. Any investment application will be made solely on the basis of the information contained in the Prospectus (including all relevant covering
documents), which will contain investment restrictions. This document is intended as a summary only and potential investors must read the prospectus, and where relevant,
the key investor information document before investing. Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson
Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson
Investment Management Limited (reg. no. 1795354), AlphaGen Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), Gartmore
Investment Limited (reg. no. 1508030), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE) are
authorised and regulated by the Financial Conduct Authority to provide investment products and services.

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www.henderson.com