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Henderson Diversified Income Trust – Soft landing likely…

…but caution is required. The managers of Henderson Diversified Income (HDIV) stuck to their guns in the face of a consensus view of rising interest rates and inflation. This stance, and their focus on high-quality credits, has been rewarded in 2019, as central banks around the world have cut interest rates to tackle a slowing economy and investors fear a global recession. HDIV is the top-performing fund in the debt – loans and 

Bonds are characterised as paying a fixed rate of interest (coupon) for a set period of time and then returning the initial loan amount.

Bonds appear all along the risk spectrum from government bonds issued by developed economies to large highly rated companies, emerging markets governments and companies through to high yielding lowly rated companies. It is not correct to see all bonds as "low risk".

">bonds sector, but perversely, is trading at a smaller premium than some of its competitors.