Pattullo seeks lower risk

low yield on high risk preference stock key for Henderson Preference and bond fund manager

Preference share holdings in the £351.7m Henderson Preference and Bond fund have been moved into bank preference shares due to excessively low yields in other areas of the market. The fund has a weighting of around 72% in bonds, primarily BBB and BBB+ credits dominated by household names such as Daily Mail, Pearson, HSBC, Rentokil and Imperial Tobacco. Of the remainder, 10% is in convertible bonds and 14% preference shares, which are offering substantial yields in comparison to gilts. John Pattullo, manager of the fund, said: 'The preference share market is really dominated by retai...