Income Investing Simplified

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.

Opportunities in an
“Uncurved” Yield Curve

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.

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Derisk 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.

INVESTMENT CONSIDERATION

VNLA

Short Duration Income ETF

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

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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.

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INVESTMENT CONSIDERATIONS

(JMUDX)

Multi-Sector Income Fund

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

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(HFADX)

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

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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.

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INVESTMENT CONSIDERATIONS

(HFQDX)

Global Equity Income

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

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