I have always been an admirer of Henderson's fixed-interest team. Its preference & bond fund is the only fund in its sector rated AAA by Standard & Poor's. It is run by Ian Dickson, who is celebrating 20 successful years managing the fund.
Henderson's other fixed-interest funds are also excellent and it has just recruited Patrick Harrington to manage its UK equity Income fund. He spent 10 years managing M&G's Charifund, which is second in its sector over the past five years and first over the past year.
Henderson has also launched a managed high-income Isa which is estimated to yield 7.5 per cent. This is a fund of funds investing in its fixed-interest funds and in its UK equity income fund.
The biggest holding in the initial portfolio is likely to be Henderson's European high-yield bond fund (36 per cent), which should give investors currency gains as well as a high yield and capital appreciation.
The portfolio will also include the preference & bond fund (34 per cent), corporate bond fund (16 per cent) – a more conservatively managed fund – and UK equity income fund (12 per cent).
In this low interest rate environment, this product is ideal for elderly and conservative clients looking for a relatively high income with the likelihood of some capital appreciation.
I believe this Isa is really well thought-out and, under the management of John Sharman, who is responsible for asset allocation and currency strategy at Henderson Global Investors, should prove to be a winner.
This product, along with Henderson's European and technology trusts, should put it near the top of IFAs' recommendations lists.