The Henderson Multi-Manager Absolute Return fund has added exposure to the US in a play on the housing recovery taking hold in the world’s largest economy.
Two of the new holdings started during May in the £169.6m portfolio, which is managed by the Henderson multi-asset team, are being used to access US housing – Daniel Ivascyn’s Pimco GIS Income fund, which is part of a wider £2.8bn strategy, and the team-managed £735.6m Goldman Sachs US Real Estate fund.
Pimco GIS Income is a diversified bond that has a high allocation to US mortgage-backed securities, with 43 per cent of the portfolio currently invested in this space.
Goldman Sachs US Real Estate is a “more explicit play on US housing” as it invests in a blend of residential mortgage-backed securities and housing related bonds and equities. The bonds and equities are issued by companies such as housebuilders, building materials suppliers, mortgage banks and real estate investment trusts.
Hargreaves Lansdown investment analyst Richard Troue says: “US housebuilding and mortgage lending has been a recovering trend recently so if that turns out to be sustainable, this could be a timely move towards that theme. But there is still uncertainty over the tapering of QE, which could cause volatility in that area.”
During May, the fund also added to its existing position in Marcus Langlands Pearse and Ainslie McLennan’s £928.5m Henderson UK Property fund. Henderson head of multi-asset Bill McQuaker only started investing in property funds recently, having avoided them since the crisis.
This move, along with the addition of the Goldman Sachs fund, has taken the Henderson Multi-Manager Absolute Return fund’s direct property allocation to 6.5 per cent.