Key takeaways:
- The primary objective of active management is to be effective in tailoring an investment portfolio to match a client’s specific goals and to achieve that goal in the most efficient manner.
- These key tenets of effectiveness and efficiency – coupled with deep fundamental research and sophisticated quantitative processes – form the cornerstone of our approach to construction diversified fixed income portfolios.
- The rigid and static nature of fixed income benchmark indices means they do not necessarily cater to a range of client objectives, making them a less-than-ideal starting point for many investors. To address those challenges, we set out to build a home base portfolio – or strategic asset allocation (SAA) – to serve as the new starting point.
Investors face a perpetual tradeoff in trying to achieve the highest possible returns with the least amount of risk. As active managers, we think the pursuit of the optimal balance between risk and return is vital to helping clients achieve their goals.
While it is seldom stated so bluntly, the objective of active management is to a) be effective in tailoring an investment portfolio to match a client’s specific goals, and b) achieve that goal in the most efficient manner.
These key tenets of effectiveness and efficiency – coupled with deep fundamental research and sophisticated quantitative processes – form the cornerstone of our approach to constructing diversified fixed income portfolios.
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Janus Henderson Investors makes no representation as to whether any illustration/example mentioned in this document is now or was ever held in any portfolio. Illustrations shown are for the limited purpose of highlighting specific elements of the research process. The examples are not intended to be a recommendation to buy or sell a security, or an indication of the holdings of any portfolio or an indication of performance for the subject company.