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Managing Interest Rate Risk in a Rising Rate Environment Flexible Bond Fund A: JDFAX

C: JFICX

I: JFLEX

N: JDFNX

R: JDFRX

S: JADFX

T: JAFIX

The role of active fixed income as a potentially defensive, liquid and transparent portfolio anchor remains steadfast – despite evolving interest rate risks in the marketplace. The Flexible Bond Fund seeks to serve as a dynamic core, long-term holding that emphasizes risk-adjusted returns with a focus on capital preservation.

Interest Rate Sensitivity Despite a move up in rates, the yield on the Bloomberg Barclays U.S. Aggregate Bond Index is near its 25-year low. In addition, the duration of the index has extended to all-time highs. As a result, passive investors are finding themselves with heightened sensitivity to rising rates. At Janus Henderson, we believe an actively managed fixed income strategy that has the flexibility to adjust duration and overweight corporate credit, may achieve relative outperformance in a rising-rate market.

Flexible Bond Fund Has Historically Navigated Interest Rate Risk 10-Year Treasury Yields (December 31, 1992 - December 31, 2016)

Rising Rate Time Periods

10/1/93 11/30/94

10/1/98 1/31/00

10-Year Treasury Yield Change

+2.57%

+2.37%

Flexible Bond Fund - I Shares

-0.83%

Bloomberg Barclays U.S. Aggregate Bond Index

7/1/05 6/30/06

Dec-16

Dec-14

Dec-12

Dec-10

Dec-08

Dec-06

Dec-04

Dec-02

Dec-00

Dec-98

Dec-96

Dec-94

10 9 8 7 6 5 4 3 2 1 0 Dec-92

10-Year Treasury Yield (%)

INVESTMENT IDEA

3Q17 Fixed Income

1/1/09 12/31/09

7/24/12 12/31/13

+1.09%

+1.63%

+1.65%

0.80%

-0.87%

12.61%

1.17%

-3.03%

-0.61%

-0.81%

5.93%

-1.13%

Morningstar Intermediate-Term Bond Category Average

-3.89%

-1.11%

-0.88%

13.47%

0.33%

Difference (Flexible Bond Fund vs. Index)

+2.20%

+1.41%

-0.06%

+6.68%

+2.30%

Source: Morningstar, Inc.

Past performance is no guarantee of future results. Please see reverse side for important disclosures and standardized performance.

Continued on back page.

Flexible Bond Fund Three Portfolio Tools to Navigate Rising Interest Rates 1. Flexible Duration The Flexible Bond Fund’s duration is not restricted by prospectus. This provides the flexibility to manage interest rate risk by actively reducing our portfolio duration.

2. Overweight Corporate Credit Given the strength of U.S. corporate balance sheets and the historical outperformance of corporate bonds over Treasury securities in a rising rate environment, we believe that some of the best total and risk-adjusted return opportunities over the long-term will be in the corporate credit markets.

3. Careful Corporate Credit Selection We believe that careful security selection, the ability to tune out the noise and find companies whose management teams are fundamentally improving balance sheets and credit profiles, is vital in this environment. In our view, the best investment opportunities are with companies whose prudent management practices over the past few years have led to continued balance sheet deleveraging and increased cash flow.

Performance (%) as of 9/30/17

3Q17

1 yr

3 yr

5 yr

10 yr

Since Inception (7/7/87)

Class I Shares

0.86

0.66

2.39

2.34

5.31

6.69

Bloomberg Barclays U.S. Aggregate Bond Index

0.85

0.07

2.71

2.06

4.27

6.40

Expense Ratios (%): Gross 0.56; Net 0.56. Net expense ratios reflect the expense waiver, if any, contractually agreed to through 11/1/17.

Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 or visit janushenderson.com/performance.

For more information, please visit janushenderson.com. Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info. Read it carefully before you invest or send money. Returns include reinvestment of dividends and capital gains. Returns greater than one year are annualized. Performance for Class I Shares prior to 7/6/09 reflects the performance of one or more similar share classes of the Fund or a predecessor fund, adjusted, where applicable and permitted, for differing fees and expenses. See the Fund’s prospectus for further details concerning historical performance. Investing involves risk, including the possible loss of principal and fluctuation of value. There is no assurance that the investment process will consistently lead to successful investing. Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens. Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, C-1017-12806 01-15-18

initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details. Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment. Duration measures a bond price’s sensitivity to changes in interest rates. The longer a bond’s duration, the higher its sensitivity to changes in interest rates and vice versa. When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the ranking and/or rating for the period. © 2017 Morningstar, Inc. All Rights Reserved. Janus Henderson is a trademark of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC. Not all funds and share classes may be available at all firms. Janus Henderson Distributors 199-15-25356 10-17