Multi-sector income

Driving your yield potential through our active multi-sector approach

Why now is the time to use a multi-sector approach for fixed income:

The investable fixed income universe is vast, spanning numerous sectors and industries, making portfolio construction complex.

A multi-sector approach offers several advantages:

Tangerine 1 icon Broad
Exposure

Enables exposure to the extensive fixed income market.

Tangerine 1 icon Risk
Management

Helps balance and diversify key risk factors.

Tangerine 1 icon Enhanced
Returns

Can improve both absolute and risk-adjusted returns long-term.

Considering these points, a multi-sector strategy can be a powerful tool for investors looking to navigate the intricate world of fixed income investing effectively.

The value of an investment and the income from it may go down as well as up and you may loose the amount originally invested.

Fixed Income return disparity

Performance among various fixed income indices is constantly changing. Therefore, it is difficult to accurately predict which sectors will do better than others from one year to the next. An active, multi-sector approach may help to achieve better outcomes over the long-term.

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10-year annualised
US Treasury
10.74%
US MBS
1.51%
US High Yield
17.13%
Euro Aggregate
14.62%
US ABS
1.77%
Emerging Markets Debt
15.04%
Euro Aggregate
13.41%
US High Yield
5.28%
US ABS
-4.30%
US High Yield
13.44%
High Yield
4.60%
US Investment Grade
7.46%
US ABS
1.25%
Emerging Markets Debt
10.15%
Emerging Markets Debt
10.26%
US CMBS
1.23%
US Investment Grade
14.54%
US Treasury
10.61%
US CMBS
-0.33%
US CMBS
-10.20%
Emerging Markets Debt
11.09%
Emerging Markets Debt
3.22%
Emerging Markets Debt
7.43%
Emerging Markets Debt
1.18%
US Investment Grade
6.11%
US High Yield
7.50%
US MBS
0.99%
US High Yield
14.32%
US Investment Grade
9.89%
US ABS
-0.34%
US High Yield
-11.19%
Euro Aggregate
10.95%
US Investment Grade
2.95%
US MBS
6.08%
US CMBS
1.13%
US CMBS
3.24%
Global Aggregate
7.39%
US Aggregate
0.01%
US Treasury
8.90%
Global Aggregate
9.20%
US Investment Grade
-1.04%
US MBS
-11.81%
US Investment Grade
8.52%
US CMBS
2.11%
US Aggregate
5.97%
US Treasury
0.91%
US Aggregate
2.65%
US Investment Grade
6.42%
US Treasury
0.00%
US Aggregate
8.72%
US Aggregate
7.51%
US MBS
-1.04%
US Aggregate
-13.01%
Global Aggregate
5.72%
US ABS
1.81%
US CMBS
4.33%
US Aggregate
0.55%
Global Aggregate
2.09%
US Aggregate
3.54%
Global Aggregate
-1.20%
US CMBS
8.02%
US High Yield
7.11%
US Aggregate
-1.54%
US Investment Grade
-15.76%
US ABS
5.54%
US Aggregate
1.81%
US High Yield
2.45%
US Investment Grade
-0.68%
US ABS
2.03%
US CMBS
3.36%
US High Yield
-2.08%
Global Aggregate
6.84%
US CMBS
6.76%
Emerging Markets Debt
-1.80%
Global Aggregate
-16.25%
US Aggregate
5.53%
US MBS
1.38%
US ABS
1.88%
Global Aggregate
-3.15%
US MBS
1.67%
US MBS
2.47%
US Investment Grade
-2.51%
US MBS
6.35%
Emerging Markets Debt
5.26%
US Treasury
-3.60%
US Treasury
-16.33%
US MBS
5.05%
US Treasury
1.34%
Global Aggregate
0.59%
US High Yield
-4.47%
Euro Aggregate
0.32%
US Treasury
2.14%
Emerging Markets Debt
-4.26%
US ABS
4.53%
US ABS
4.52%
Global Aggregate
-4.71%
Emerging Markets Debt
-17.78%
US CMBS
4.71%
Global Aggregate
0.38%
Euro Aggregate
-2.44%
Euro Aggregate
-9.33%
US Treasury
-0.16%
US ABS
1.55%
Euro Aggregate
-4.41%
Euro Aggregate
4.07%
US MBS
3.87%
Euro Aggregate
-9.71%
Euro Aggregate
-22.27%
US Treasury
3.21%
Euro Aggregate
-1.12%

Capital at risk. 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.

Source: Bloomberg, J.P. Morgan, Janus Henderson Investors, as of 31 December 2023. Sub-asset class returns as per corresponding Bloomberg, J.P. Morgan, and Morningstar indices.

I think our key advantage in the portfolio is we really are a multi-sector fund and we have dynamic sector allocation.”

John Lloyd, Lead, Multi Sector Credit Strategies, Portfolio Manager

Our strategy is designed to:

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Construct a portfolio of best ideas across all fixed income sectors

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Actively add alpha through dynamic sector allocation and bottom-up security selection

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Seek similar yield to high yield funds with significantly less risk by balancing interest rate and credit risk

An on-going success

Fixed income sector returns can vary drastically year to year. This variation shows that a dynamic approach matters.

The team’s ability to actively uncover best ideas across the fixed income sectors has led to a more optimal blend of risk and consistent outperformance over the benchmark.

Multi-Sector Income Fund (A2 shares)
outperformed the benchmark 31 of 37 periods, or

87%

of the monthly rolling

1-year periods, since inception

Multi-Sector Income Fund

For investors seeking a steady stream of high income with lower risk than a dedicated high-yield strategy.

Bridge at sunset with tangerine bar on one side

Capital at risk. Past performance does not predict future returns.

Morningstar, Janus Henderson Investors, as at 31/12/23. Note: Success rate is based on the 1-year rolling monthly returns since inception, 14/12/19. The percentage depicts the number of times the Multi-Sector Income Fund (A2, gross of fees) outperformed the Bloomberg U.S. Aggregate Bond Index.

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Seeks higher yield
and lower risk

Designed to generate approximately 80% of the yield of Bloomberg U.S. High Yield Index with significantly less volatility

Competitive returns

Past performance does not predict future returns

Since inception, the Multi-Sector Income strategy (based on the Multi-Sector Credit composite, gross, USD) has outperformed the Bloomberg U.S. Aggregate Bond Index on an annualised basis

Past performance does not predict future returns

Three founding
portfolio managers

The three portfolio managers have managed the fund since inception

For important information on past performance please see the strategy representative account

Why Janus Henderson for Fixed Income?

  • Utilises a forward-looking approach that looks beyond benchmarks to put investor objectives at its core
  • Collaborative teams that share and debate ideas globally but retain investment flexibility within a rigorous risk-management framework
  • A range of actively-managed solutions from core bonds to multi-sector that reflects four decades of addressing clients’ evolving financial needs
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