Pursue Income

Three Strategies Seeking to Enhance Risk-Adjusted Yield in Your Investors’ Portfolios

The Janus Henderson Portfolio Construction and Strategy (PCS) team is dedicated to helping our clients navigate new challenges. In our "Income Investing Simplified report", we identify three primary areas of focus for investors looking to enhance their portfolio’s risk-adjusted yield in today’s markets: the flattened yield curve, dynamic credit and global equity income.

Core Fixed Income

Put Cash to Work

Today’s flattened yield curve is a boon to investors with cash savings accounts. Less risky, shorter-term Treasuries offer similar yields as riskier longer-term Treasuries.

Income-Investing_ShortTerm1
Income-Investing_ShortTerm2

De-risk Traditional Core Bonds, Keep the Yield

With the vast majority of advisor core fixed income allocated to intermediate duration, short duration is a compelling diversification opportunity because it can reduce portfolio interest rate risk without a meaningful yield reduction.

Go Global for Traditional Core Bond Diversification

The U.S. bias present in the majority of core fixed income allocations leaves room for diversification to other developed world yield curves. Developed world bonds can help diversify U.S.-specific duration with relatively similar risk.

Income-Investing_New-DWB
Income-Investing_New-MBS

Diversify Traditional Core Bonds with Agency Mortgages

Given that the vast majority of advisor core fixed income allocations are in intermediate duration, mortgage-backed securities offer diversification within the sub-asset classes of traditional fixed income. Agency mortgages can be used by investors willing to take on a little bit more risk than offered by Treasuries, providing potential for more yield than the government debt without the credit risk that goes alongside corporate bonds.

INVESTMENT CONSIDERATION

VNLA

Short Duration Income ETF

Our Cash PLUS ETF – A capital preservation and income-focused ETF that seeks returns above cash

Learn More

(HFAIX)

Developed World Bond Fund

Investing across a wide range of fixed income securities, the Fund seeks income and total return while actively managing duration and credit exposure

Learn More

(JMBS)

Mortgage-Backed Securities ETF

Seeking above-market total returns by modeling inefficiencies in borrower behavior

Learn More

Dynamic Credit:
Low Risk in High Yield

Dynamic Credit: Lower Risk in High Yield

While we believe there are ample opportunities in higher-yielding, equity-like fixed income markets, we also believe that investors must employ discretion when using these higher-octane fixed income strategies within their portfolios.

Delegating to dynamic, multisector credit strategies creates the potential to maintain exposure to higher yields in credit markets while potentially de-risking single sector risk.

Income-Investing_GlobalHigh

INVESTMENT CONSIDERATIONS

(JMUIX)

Multi-Sector Income Fund

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

Learn More

The Equity Income Blind Spot

The Equity Income Blind Spot

Given large concentrations in U.S. equities, some investors might not recognize the significant income potential in overseas equities. Depending on risk tolerance, it’s convenient for many income investors to seek opportunities to reallocate equities globally, where yields can commonly be double or triple that of U.S. equities.

Income-Investing_DynamicFixed

INVESTMENT CONSIDERATIONS

(JMUIX)

Global Equity Income

A high-conviction strategy that targets high, dependable income from high-yielding, high-quality global equities

Learn More