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:
 |
Broad Exposure |
Enables exposure to the extensive fixed income market.
 |
Risk Management |
Helps balance and diversify key risk factors.
 |
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.
Our strategy is designed to:
Construct a portfolio of best ideas across all fixed income sectors
Actively add alpha through dynamic sector allocation and bottom-up security selection
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 the best ideas across fixed income sectors has led to a more optimal blend of risk and consistent outperformance over the benchmark, achieving this 93% of the time.
Multi-Sector Income Fund (A2 shares)
outperformed the benchmark 40 of 43 periods, or
| 93% | 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.
Capital at risk. Past performance does not predict future returns.
Morningstar, Janus Henderson Investors, as at 30/06/24. 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.
Our competitive edge
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 fund page.
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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