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.
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Past performance does not predict future returns. 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 article does not qualify as an investment recommendation.
Colin Fleury is Head of Secured Credit and co-manages the Multi-Asset Credit and Asset-Backed Securities strategies at Janus Henderson Investors. Prior to joining Henderson in 2007, Colin held secured credit portfolio management roles at Deutsche Bank AG and Abbey National Treasury Services plc. He also has secured debt structuring, underwriting, and advisory expertise from roles at Shell International, where he was a senior advisor on the M&A and financing team, and at Credit Suisse, where he was a vice president in the global project finance group. Colin’s early career also includes experience in secured UK real estate and SME corporate lending and spans multiple jurisdictions in Europe and worldwide.
Colin is an associate of the Chartered Institute of Bankers and a graduate of the Credit Suisse Corporate Finance and Capital Markets Programme. He has 37 years of financial industry experience.
David Milward is Head of Loans at Janus Henderson Investors and member of the Secured Credit Team, a position he has held since 2009. In this role, he is responsible for co-managing Janus Henderson’s European Loan and Multi-Asset Credit strategies. He joined Henderson in 2001 as an associate director of loans. Previously, he was an investment manager for Lloyds TSB Strategic Ventures and has worked in various corporate and institutional banking roles, including acquisition finance within Lloyds TSB.
David holds a BA degree (Hons) in biochemistry from Oxford University. He has qualified as an associate of the Association of Corporate Treasurers and as an associate of the Chartered Institute of Bankers. He has 34 years of financial industry experience.
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