| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 4.21% | -1.71% | -1.71% |
The Janus Henderson Strategic Bond Fund returned -2.03% in March 2026 as the investment environment shifted dramatically due to Middle East conflict. Government bonds moved from trading on growth data to inflation and commodity prices, similar to 2022, providing no diversification benefits versus equities. Rising yields occurred across all government bond markets, with the UK, Italy and France underperforming due to fiscal concerns and inflation expectations. The fund entered March with its lowest duration in recent years and further reduced it following US/Israeli attacks on Iran before partially increasing it back through reduced interest rate future shorts and investment grade bond purchases. Floating rate assets including AAA-rated CLOs and loans outperformed given their benefit from potential rate hikes. Credit spreads widened modestly but remain below compelling value levels. The outlook depends on the conflict's duration, energy infrastructure impact, and Strait of Hormuz reopening timing, with central banks now assessing whether rate hikes will be needed to combat the inflation shock.
The fund maintains a flexible approach to duration and credit exposure in response to the dramatic shift in the investment environment caused by Middle East conflict, positioning for potential inflation shock while avoiding bonds that provide no diversification benefits in the current regime.
The outlook has decisively shifted during March given the scale and likely duration of the commodity shock from conflict in the Middle East. Central banks will spend the coming months assessing the scale of the resulting inflation shock and deciding whether interest-rate hikes will be needed.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 15 2026 | 2026 Q1 | - | Bonds, duration, energy, fixed income, inflation, Middle East, rates | - | Strategic Bond Fund navigates dramatic regime shift as Middle East conflict drives commodity shock and inflation concerns. Fund maintains low duration positioning while floating rate assets outperform. Government bonds provide no equity diversification in current environment. Central banks reassessing rate policy as conflict creates systemic energy supply risks and potential inflation shock. |
| Oct 16 2025 | 2025 Q3 | ORCL | Bonds, credit, duration, Fed policy, high yield, investment grade, Yields | - | Strategic Bond Fund outperformed through credit allocation as spreads hit 20-year tights amid strong investor demand. Managers reduced US duration and increased high yield exposure, viewing the environment as favorable for credit risk over duration risk. Fed rate cuts and resilient growth create goldilocks conditions for risk assets despite selective credit market behavior. |
| Jul 22 2025 | 2025 Q2 | AAPL, AMZN, ARGX, AVGO, DHR, HWM, MA, META, MSFT, NVDA, ORCL, TSM, UNH | AI, Cloud, growth, large cap, semiconductors, technology |
ORCL AVGO HWM UNH |
Forty Fund outperformed on strong technology and industrial stock selection, particularly AI infrastructure plays Oracle and Broadcom. Healthcare detracted via UnitedHealth's cost pressures and Mastercard's digital payment competition. Managers remain constructive on markets with Fed easing expected, focusing on secular AI deployment and deglobalization themes while targeting application layer AI beneficiaries. |
| May 31 2025 | 2025 Q1 | - | Central Banks, credit, duration, fixed income, Government Bonds, Trade Policy | - | Strategic Bond Fund navigated complex macro conditions by emphasizing credit carry over duration as government bond supply-demand dynamics deteriorate. With tariff fears subsiding and credit fundamentals solid, the fund added high-yield exposure while reducing duration to 6.5 years. Managers remain alert to recession risks tied to labour market weakness. |
| Dec 31 2024 | 2024 Q4 | - | Charges, fixed income, Performance, Sterling, Strategic Bond, Value Assessment | - | The Strategic Bond Fund faced significant headwinds from rapid interest rate changes in 2022-2023, underperforming its sector benchmark over five and ten-year periods. Despite recent challenges, the fund benefits from an experienced investment team with a robust process and strong historical performance, positioning it to potentially deliver value to investors as market conditions normalize. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
InflationGovernment bonds have shifted from trading on growth data to inflation and commodity prices, similar to 2022. Central banks are assessing the scale of the inflation shock from Middle East conflict and deciding whether interest rate hikes will be needed. |
Commodities Energy Rates Central Banks Policy |
EnergyConflict in the Middle East has created a commodity shock with significant systemic tail risk for markets. There remains risk of physical shortages of energy products and additional rises in energy prices from already elevated levels. |
Oil Natural Gas Geopolitical Supply Infrastructure | |
RatesRising yields across all government bond markets with bonds providing no diversification benefits versus equities. Central banks who had ended cutting cycles in 2025 are now assessing whether rate hikes will be needed due to inflation shock. |
Yields Duration Central Banks Policy Bonds | |
| 2025 Q3 |
CreditCredit markets remain supported by strong investor demand driven by high all-in yields and low default rates, with spreads at 20-year tights. However, the market remains selective with CCC-rated bonds underperforming and investors showing caution toward capital structures at risk of restructuring. |
Investment Grade High Yield Spreads Default Rates Corporate Bonds |
RatesGovernment bond yields drifted lower with the US and New Zealand outperforming following weak economic data. The Fed is cutting rates in response to a stagnant labor market while maintaining a goldilocks environment for risk assets. |
Government Bonds Fed Policy Yield Curve Duration Treasury | |
| 2025 Q2 |
AIHyperscalers continue essential AI infrastructure investments with accelerating demand expected as compute costs decline. The fund is increasingly focused on application layer beneficiaries and productivity AI could create over the next decade. Early signs show enterprise software companies successfully monetizing AI through their installed base. |
Infrastructure Hyperscalers Applications Enterprise Productivity |
CloudOracle has successfully established itself as a major cloud provider by procuring GPU availability ahead of other hyperscalers and making architectural decisions that allow smaller, compartmentalized clouds versus competitors' mega-clouds. This technology advantage has helped Oracle win sovereign deals globally. |
Infrastructure GPU Sovereign Architecture Hyperscalers | |
SemiconductorsBroadcom benefits from hyperscalers' interest in a second source behind NVIDIA's merchant silicon. The company leads in custom silicon development, offering lower cost and better efficiency for specific workloads. Custom silicon has gained share relative to merchant chips. |
Custom Silicon Merchant Efficiency Workloads GPU | |
Data CentersPower management companies are benefiting from the surge in data center construction needed to support AI infrastructure. These themes are driving massive infrastructure and capacity buildouts from AI chips and cloud data centers. |
Construction Power Infrastructure Capacity AI | |
OnshoringIndustrial stocks benefited from reshoring trends during the quarter. The fund focuses on durable secular growth themes including deglobalization which is driving domestic manufacturing and infrastructure buildouts. |
Manufacturing Domestic Industrial Deglobalization Infrastructure | |
| 2025 Q1 |
CreditCredit markets have exhibited anti-fragile properties through recent turmoil, reflecting solid fundamentals and improving quality with 70% of European high yield being BB-rated. The fund added credit exposure through index derivatives and shifted allocation to AAA-rated CLOs, funded by switching out of tight-spread investment grade bonds. |
High Yield Investment Grade CLOs Spreads Fundamentals |
RatesCentral banks globally are reaching desired interest rate levels with Canada and New Zealand signaling holds at high neutral ranges. The fund reduced duration in US and related markets to around 6.5 years aggregate, managing duration tactically and preferring five to ten-year maturities. |
Duration Central Banks Yield Curve Interest Rates Monetary Policy | |
Trade PolicyThe narrative shift since President Trump's Liberation Day has been substantial with risk assets recovering from tariff concerns. The pause in tariffs and de-escalation has rendered near-term economic data hard to interpret, with worst-case tariff scenarios appearing to have been avoided. |
Tariffs Trade War Economic Data Risk Assets Policy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | Fund Letters | Janes Henderson Strategic Bond Fund | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NASDAQ | AI infrastructure, Cloud computing, Enterprise software, Gpu, hyperscaler, SaaS, sovereign cloud | Login |
| Jun 30, 2025 | Fund Letters | Janes Henderson Strategic Bond Fund | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI infrastructure, custom silicon, GPU Alternative, hyperscaler, Merchant Silicon, semiconductors | Login |
| Jun 30, 2025 | Fund Letters | Janes Henderson Strategic Bond Fund | HWM | Howmet Aerospace Inc. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, aftermarket, AI infrastructure, Aircraft Components, Cyclical Recovery, Gas turbines, market share gains | Login |
| Jun 30, 2025 | Fund Letters | Janes Henderson Strategic Bond Fund | UNH | UnitedHealth Group Incorporated | Health Care | Managed Health Care | Bull | NYSE | Data Assets, healthcare, Integrated Care, managed care, Medicare Advantage, Optum, Scale Advantages | Login |
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