Multi-sector income

Seeks a steady stream of high income

Why now?

Market leadership among various fixed income sectors 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.

Recently, the multi-sector approach has provided better absolute returns: the Morningstar multi-sector bond category returned 2.26% annualized for the 10-year period ending December 2022 versus the U.S. Agg’s return of 1.06%.*

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.
*Morningstar 2022

Fixed Income return disparity

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 10-year annualized
High Yield
7.44%
IG Corporates
7.46%
MBS
1.51%
High Yield
17.13%
High Yield
7.50%
Cash / 1m CD
2.00%
IG Corporates
14.54%
IG Corporates
9.89%
High Yield
5.28%
Cash / 1m CD
2.12%
High Yield
4.03%
IG CLOs
3.07%
MBS
6.08%
IG CLOs
1.38%
Multisector bond
7.34%
IG Corporates
6.42%
ABS
1.77%
High Yield
14.32%
Treasuries
8.00%
Multisector bond
2.85%
IG CLOs
0.44%
IG CLOs
2.50%
Multisector bond
2.24%
U.S. Aggregate
5.97%
ABS
1.25%
IG Corporates
6.11%
Multisector bond
6.18%
IG CLOs
1.29%
Multisector bond
10.01%
U.S. Aggregate
7.51%
IG CLOs
1.82%
ABS
-4.30%
Multisector bond
2.26%
CMBS
0.18%
Treasuries
5.05%
CMBS
0.94%
IG CLOs
4.32%
U.S. Aggregate
3.54%
CMBS
1.01%
U.S. Aggregate
8.72%
High Yield
7.11%
Cash / 1m CD
0.11%
Multisector bond
-9.75%
IG Corporates
1.96%
Cash / 1m CD
0.13%
CMBS
4.21%
Treasuries
0.84%
CMBS
3.50%
CMBS
3.51%
MBS
0.99%
CMBS
8.27%
CMBS
7.61%
ABS
-0.34%
CMBS
-10.94%
CMBS
1.61%
ABS
-0.27%
Multisector bond
3.72%
U.S. Aggregate
0.55%
U.S. Aggregate
2.65%
IG CLOs
3.40%
Treasuries
0.86%
Treasuries
6.86%
Multisector bond
4.84%
CMBS
-0.90%
High Yield
-11.19%
ABS
1.23%
MBS
-1.41%
High Yield
2.45%
Cash / 1m CD
0.22%
ABS
2.03%
MBS
2.47%
U.S. Aggregate
0.01%
MBS
6.35%
ABS
4.52%
IG Corporates
-1.04%
MBS
-11.81%
U.S. Aggregate
1.06%
IG Corporates
-1.53%
ABS
1.88%
IG Corporates
-0.68%
MBS
1.67%
Treasuries
2.31%
Multisector bond
-1.29%
IG CLOs
5.23%
MBS
3.87%
MBS
-1.04%
Treasuries
-12.46%
Cash/ 1m CD
0.86%
U.S. Aggregate
-2.02%
IG CLOs
1.52%
Multisector bond
-1.82%
Treasuries
1.04%
ABS
1.55%
High Yield
-2.08%
ABS
4.53%
IG CLOs
2.94%
U.S. Aggregate
-1.54%
U.S. Aggregate
-13.01%
MBS
0.74%
Treasuries
-2.75%
Cash / 1m CD
0.10%
High Yield
-4.47%
Cash / 1m CD
0.55%
Cash / 1m CD
1.11%
IG Corporates
-2.51%
Cash / 1m CD
2.21%
Cash / 1m CD
0.48%
Treasuries
-2.32%
IG Corporates
-15.76%
Treasuries
0.58%

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 2022. Sub-asset class returns as per corresponding Bloomberg, J.P. Morgan, and Morningstar indices.

Our competitive edge

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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

An on-going success

The highly experienced investment team has a track record of outperforming index and peers over various rolling periods, since the inception of the portfolio in 2019.

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.

Success rates
Monthly rolling returns, since inception:

 vs. benchmark  vs. peer group average

1 year

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3 year

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Average excess performance

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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.

Source: Morningstar, Janus Henderson Investors, as of 30/09/23. Note: Success Rate is based on the 1-, and 3-year rolling monthly returns since inception, 14/12/19. The chart depicts the percentage of time the Multi-Sector Income Fund (A2 shares, gross of fees) outperformed the Bloomberg U.S. Aggregate Bond index and the EAA Flexible Bond USD peer group median. Average excess performance represents, on average, how much the fund outperformed during periods of outperformance, or underperformed during periods of underperformance.

Our strategy is designed to:

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Seek to create a portfolio of best ideas across all fixed income sectors

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More optimal blend of credit and interest rate risk than the Aggregate Bond Index

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Navigates the space between a traditional core bond fund and single-sector constrained high yield fund

View our Multi-Sector Income Fund

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

Ripple in pond

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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Insights

Busting the bias against US securitized

John Kerschner shares his U.S. securitized outlook, pointing out the biases that he believes keep some investors out of the asset class.

Multi-sector fixed income: 5 essential charts to ring in the new year

John Lloyd presents a compelling outlook for U.S. multi-sector fixed income, citing the end of rate hikes, cooling inflation, and attractive yields.

5 reasons to add securitized assets to fixed income portfolios

Securitized sectors might play a key role for bond investors amid a higher interest rate environment.