The firm said its Core Solutions fund range will be managed by the multi-asset team, headed by Bill McQuaker, and target specific risk parameters, provided by risk profiling provider Distribution Technology (DT).
The range will initially launch with two funds. The Henderson Core 3 Income Fund will target a DT3 low risk category, and the Henderson Core 5 Income Fund will target a DT5 low medium risk category.
As the Core Solutions funds are risk-targeted, rather than risk rated, they are designed to remain within their specified risk bands over a medium- to long-term time horizon, according to Henderson.
The multi-asset team will augment the yield on the funds by drawing on income generating investment expertise from across the rest of Henderson’s investment business, and will use some direct and synthetic investments to keep costs low and provide diversification.
The funds do not have specific income targets or specific benchmarks but will be managed to deliver a competitive level of income. Estimations based on current market conditions would give a yield of 4% for the Henderson Core 3 Income Fund and 5% for the Henderson Core 5 Income Fund. Income distributions on the funds will be paid monthly, starting in November.
"The intention with these funds is to provide advisers access to a range of lower cost income-generating funds, safe in the knowledge that their clients will remain within defined risk parameters over the medium to long term. They complement our existing unconstrained multi-manager range, providing additional investor choice for those who prefer lower cost risk-targeted portfolios," said McQuaker