Multi-asset credit (MAC) strategies have gained significant traction in the institutional investment landscape over the last decade. Investors choose MAC strategies for a reliable and diversified source of income away from return seeking assets and/or traditional fixed income asset classes such as corporate and government bonds.
There are many types of MAC strategies with a range of different objectives; however, with the continued hunt for income and given the risks of rising interest rates, an allocation to a strategy with a focus on income, low interest rate exposure and proven resilience through market downturns, will prove to be key.
With an emphasis on senior, secured investments and income, the Janus Henderson Multi-Asset Credit strategy is well suited to investors seeking a dependable source of yield. In addition, due to its low duration nature the strategy can sit alongside liability driven investment (LDI) programmes and has been used by clients concerned with rising rates.
Recent research has shown1 that once normalised for structural differences, illiquid direct lending strategies have produced little difference in returns versus the more liquid high yield and secured loans markets. Our MAC strategy provides access to the alternative credit markets but in a liquid (monthly dealing) approach.
This document explores Janus Henderson’s differentiated approach to MAC investing.
1 JP Morgan, High Yield Talking Points; Decomposing European Direct Lending Returns, 3 November 2021.