Tactical Income Fund

A tactical approach to fixed interest investment.


Opportunity

Shelter from the interest rate storm

While interest rates are low by historic standards, a small rise in rates will have a material impact on sector returns.

Knowing when and what proportion of the defensive part of your portfolio to allocate to cash, floating rate credit, fixed interest, higher yielding securities (or a combination) is not a simple process.

We believe a defensive strategy with the flexibility to manage interest rate risk and the ability to seek to protect investors’ capital during periods of rising interest rates, is vital in this environment.

Capability

A ‘one-stop-shop’ for fixed interest exposure

The Janus Henderson Tactical Income Fund enables investors to diversify their fixed interest exposure with the ease of investing in only one product.

Designed to make tactical decisions between cash, longer duration fixed interest, risk-free and non-government debt, as well as higher yielding securities, the Fund will allocate holdings based on the Australian Fixed Interest Team’s outlook of the interest rate and credit cycles.

The Fund is designed to meet the needs of investors who seek:

  • an integrated solution to defensive asset allocation;
  • a defensive portfolio with a focus on capital preservation; and
  • performance in challenging market conditions.



The Fund seeks to manage the following key investment decisions:

  • Interest rate risk - when should an investor hold longer dated fixed rate assets (e.g. government bonds) or hold shorter dated floating rate assets (e.g. hold bills)?
  • Sector allocation - what is the right proportion of government guaranteed assets and when is the reward in non-government securities enough to adequately compensate the investor for the additional risk?
  • Security selection - which non-government issuers are stable or improving in credit quality? From these issuers, which securities offer an appropriate return for the underlying risk?




With interest rates likely to trend higher in the coming years, active management of interest rate risk is paramount."

Jay Sivapalan, Co-Head of Australian Fixed Interest

Our competitive advantage

With a proven track record of superior risk-adjusted returns through various market cycles, the Team’s investment approach incorporates:

  • Active management - we believe that markets are inefficient and can from time to time deviate from ‘fair value’. This can occur for a variety of reasons including market participants placing an undue emphasis on short term influences when pricing long term assets. We aim to exploit these mis-pricing opportunities through active management;
  • A strategic view - we believe markets can be irrational in the short term. However by focusing our research efforts on the medium term, we can identify under or over valuation of interest rates, and undervalued sectors and securities;
  • Diversified strategies - we prefer to employ multiple investment strategies in portfolios to enable us to diversify risk; and
  • Capital preservation - we understand the role fixed interest plays in portfolios, so we focus on identifying stable to improving credit quality issuers, before any consideration of price.

The Fund

How to invest


Alternatively, speak to a financial planner.



Fund facts

APIR codeIOF0145AU
ASX mFundJHI02
Inception date16 June 2009
BenchmarkBloomberg AusBond Bank Bill Index and Bloomberg AusBond Composite 0+ Yr Index (equally weighted)
Risk profileLow - Medium
Minimum initial investment$25,000
Management fee0.45% p.a.
Buy/Sell spread0.00% / 0.00%
Unit pricing frequencyDaily
Income distributionQuarterly (if any)

Researcher ratings

    

(For adviser use only)



Platform availability

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mFund



The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned August 2018) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines.

The Lonsec Rating (assigned October 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Janus Henderson Investors product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings.

Meet the team

Glenn Feben

Glenn Feben is Co-Head of Australian Fixed Interest and a Fund Manager at Janus Henderson Investors, having joined the business in 2015 as part of the acquisition of Perennial Fixed Interest Partners Ltd. Prior to Janus Henderson, Glenn was head of fixed interest at Perennial Investment Partners, a role he’d held since 1999, following a 12 year period with IOOF as a fixed interest portfolio manager. Before joining IOOF, Glenn was a senior dealer in government securities with P.P. Discount and held roles with the Commercial Bank of Australia and Chase AMP Bank/AMP Corporation, where he specialised in fixed interest trading and sales. Glenn graduated from the University of Melbourne with a B.Com and diploma of financial planning. He has 35 years of financial industry experience.

Jay Sivapalan

Jay Sivapalan is Co-Head of Australian Fixed Interest at Janus Henderson Investors, a position he has held since 2018. He is also a Portfolio Manager and manages the flagship Australian Tactical Income Fund and other Australian Fixed Interest strategies. His responsibilities include formulating interest rate and sector strategies employed within the portfolios and working closely with key fixed interest clients. Jay joined Henderson in 2015 as part of the acquisition of Perennial Fixed Interest, where most recently he was partner and senior portfolio manager. He came to Perennial in 2001, initially heading the quantitative area within the Perennial group before transitioning to the Australian fixed interest team in 2004. Prior to this, he was employed at Mercer, where he performed actuarial consulting work for superannuation clients. Before that, he worked at AXA in an actuarial role. Jay earned a BCom degree in actuarial and finance from the University of Melbourne. He holds the Chartered Financial Analyst designation and has 20 years of financial industry experience.

Noel Murphy

Noel Murphy is a Portfolio Manager on the credit team at Janus Henderson Investors, a position he has held since joining Henderson in 2015 as part of the acquisition of Perennial Fixed Interest Partners Ltd. Prior to that, he was a director and shareholder in Perennial’s Australian fixed interest business. His responsibilities covered the firm’s credit strategy and the portfolio management of non- government debt, hybrid/debt equity securities and alternative investments. Before joining Perennial, Noel was head of fixed interest at ANZ Funds Management where he managed credit and interest rate based portfolios across Australia, New Zealand and the world. Noel has a bachelor’s degree in accounting from Monash University and has 23 years of financial industry experience.

Shan Kwee

Shan Kwee was appointed as Credit Strategist/Portfolio Manager within the Janus Henderson Australian Fixed Interest Team in January 2018. Shan's focus is primarily on the effective management of non-government securities and related derivative instruments in credit specific and diversified fixed interest portfolios/funds. With over 14 years’ investment experience, Shan joined Janus Henderson from Omega Global Investors where he was Head of Portfolio Management since 2016 and Portfolio Manager for six years. Prior to Omega, Shan spent seven years at Vanguard Investments Australia as Assistant Portfolio Manager (Fixed Interest) and Investments Associate (Fixed Interest). Shan holds a BCom/BITSystems, majoring in Finance and Systems Analysis from the University of Melbourne. Shan is also a CFA Charter holder.

Ashey Kopczynki

Ashley Kopczynski is a Credit Analyst within the Australian Fixed Interest Team at Janus Henderson Investors. He has held this position since he joined Henderson in 2015, following Henderson’s acquisition of Perennial Fixed Interest. While at Perennial Investment Partners Ashley was a credit analyst in the fixed interest team since mid-2008 having previously worked as a quantitative analyst. Prior to joining Perennial in 2007, he spent 5 years in the corporate superannuation industry at Plum Financial Services, where he was most recently a business development analyst. Ashley completed undergraduate studies in psychology and business law at Swinburne University of Technology. He earned a Graduate Diploma in Applied Finance and Investment at Financial Services Institute of Australasia (FINSIA). He holds the Chartered Financial Analyst designation, is a member of the Melbourne CFA society and has 16 years of financial industry experience.

Taf Mugwagwa

Taf Mugwagwa is an Assistant Portfolio Manager in the Australian fixed interest team at Janus Henderson Investors, a position he has held since 2018. Taf joined Henderson in 2015 as part of the acquisition of Perennial Fixed Interest, initially as a dealer and fixed interest analyst. Prior to commencing at Henderson, he was an analyst at Perennial Fixed Income, responsible for monitoring and executing trading across the portfolios and providing analytical support to the portfolio managers. He has also previously worked as an investment analyst at Australia Unity providing analytical, implementation and dealing support to the portfolio managers responsible for the cash, fixed interest and diversified portfolios. He began his analyst career in 2007 working as a property analyst for Atchison Consultants. Taf holds a bachelor of business (economics and finance) and a PhD in finance (Thesis: Option Trading Strategies: Australian Evidence) from RMIT University. He has 10 years of financial industry experience.

Frank Uhlenbruch

Frank Uhlenbruch is an Investment Strategist on the Australian fixed interest team at Janus Henderson Investors, a position he has held since joining Henderson in 2015. Frank is responsible for providing the macroeconomic and valuation framework for the fixed interest process. Prior to Henderson, he was with Perennial Investment Partners as investment strategist and portfolio manager for Perennial’s balanced and capital stable funds. He was also a member of the fixed interest team and director of Perennial Fixed Interest Partners Ltd. He worked at IOOF from 1995 to 1999, initially as senior economist and then as investment strategist. Frank earned a B Com and G Dip in applied finance from Melbourne University and has 33 years of financial industry experience.
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