Absolute Return Income
Navigating through volatile markets
IN ABSOLUTE RETURN FIXED INCOME STRATEGIES?
Emphasis on positive returns
Free from benchmark constraints, the focus is on positive risk-adjusted returns over cash across various market cycles
Lower interest rate risk
The ability to go long or short duration to mitigate interest rate risk
Access to a wider range of return sources and risk management focus means returns can be less dependent on the overall direction of the markets
Capital preservation focus
- Conservative risk approach with low volatility target <1.5% p.a.
- Use of derivatives to implement defensive positioning and manage downside risk
- Focus on generating a steady income stream through investing in shorter maturity investment grade securities
Uncorrelated sources of return
- Wider investment opportunity set ensures returns are globally diversified
- Low correlation historically to traditional equity and fixed income assets
Meet the experts
Nick Maroutsos is Co-Head of Global Bonds at Janus Henderson Investors, a position he has held since 2018. He is also a Portfolio Manager responsible for co-managing the Absolute Return Income strategy and Short Duration Income ETF.
Nick Maroutsos is Co-Head of Global Bonds at Janus Henderson Investors, a position he has held since 2018. He is also a Portfolio Manager responsible for co-managing the Absolute Return Income strategy and Short Duration Income ETF. Additionally, Nick is a founder and Managing Director of Kapstream Capital. Prior to forming Kapstream in 2006, he was with PIMCO from 1999 to 2005. From 2002 to 2005, Nick was vice president at PIMCO in Australia, where he worked with key clients and managed the development and launch of new strategies for the Australian market. From 2001 to 2003, he was a senior portfolio analyst on the global trading team managing the global fixed income portfolios and firm-wide global strategies. This entailed analysing fixed income markets, the strategic implementation of all global portfolios, and portfolio construction. Nick joined PIMCO’s Newport Beach, California, office in 1999. He is a sought-after expert on the global bond market and is a key speaker at industry forums and conferences. He and his colleagues have received numerous industry accolades and recognition. Nick received a bachelor of arts degree in economics from the University of California – San Diego and an MBA from the University of California – Los Angeles, Anderson School of Management. He has 20 years of financial industry experience.
Jason England is a Global Bonds Portfolio Manager at Janus Henderson Investors responsible for co-managing the Absolute Return Income strategy and Short Duration Income ETF.
Prior to joining Janus in 2017, Jason was with PIMCO, most recently as senior vice president and portfolio manager for core sector fund separate account portfolios. While there from 1994 to 2015, he was involved with launching their first hedge fund, exchange-traded fund, and global multi-asset product portfolios as well as management of numerous fixed income and asset allocation portfolios. Jason received both a bachelor’s degree in business administration and finance and his MBA from the University of Southern California, Marshall School of Business. He has 24 years of financial industry experience.
Daniel Siluk is a Global Bonds Portfolio Manager at Janus Henderson Investors responsible for co-managing the Absolute Return Income strategy and Short Duration Income ETF.
Daniel came to Janus when it acquired Kapstream in 2015. Prior to joining Kapstream in 2009, he served as manager of investment analytics at Challenger, a position he held from 2007 to 2009. While there, he provided attribution and risk metrics for the firm’s internal funds management business as well as their boutique partnerships, which included Kapstream. Before Challenger, he spent four years in London, where he implemented and tested attribution and risk systems for Insight Investment, the funds management arm of Halifax Bank of Scotland, and Northern Trust. Daniel received a bachelor of applied finance degree from Macquarie University. He has 16 years of financial industry experience.
Discover our strategy by hearing directly from the Portfolio Managers.
Features of an active Absolute Return approach
Without benchmark constraints, the strategy is free to invest across global fixed income markets, giving the portfolio managers the latitude to:
- Fully express their high-conviction views
- Avoid areas of the market where they see greater downside risk
- Make what they believe to be the best investment decisions on behalf of investors
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them. Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. The information in this video does not qualify as an investment recommendation.
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Navigating a smooth course
March 21 2019, 2:00pm UK time / 3:00pm CET European time | 40 mins
Markets have been volatile over the past year as deteriorating economic data, trade tensions and shifting central bank rhetoric have caused asset prices and yields to fluctuate. Following the launch of two new funds that pursue the Janus Henderson Absolute Return Income strategy, portfolio manager Nick Maroutsos looks at how investors can navigate this environment and chart a potentially less volatile path with their fixed income investments. Areas covered include:
- An assessment of the macroeconomic environment for fixed income
- Exploiting differences in monetary policy regimes globally
- Techniques to generate income and manage volatility
Smooth operator – seeking a less volatile path in fixed income
November 27 2018, 9:00am UK time / 10:00am CET European time | 60 mins
The gradual removal of monetary policy accommodation by central banks is removing a price-insensitive buyer from the market and leading to reduced liquidity. Tighter monetary policy is also pushing up shorter-dated bond yields and leading to a reassessment of value on the yield curve. In this webcast, Nick Maroutsos looks at how investors can navigate the new environment for fixed income and chart a potentially less volatile path with their investments.