Janus Henderson joins income bandwagon in Singapore

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Products that provide regular income streams to investors have become popular in the Lion City this year.

Janus Henderson is expected to roll out two fixed income products to Singapore’s retail investors, according to records from the Monetary Authority of Singapore.

The funds – the Janus Henderson Multi-Sector Income Fund and the Absolute Return Income Opportunities Fund – are still under pending regulatory approval, the records show.

The Multi-Sector Income Fund, which is not yet available to accredited investors, seeks to invest in fixed income securities that provide high income, with a secondary focus on capital appreciation, according to the fund’s prospectus. It invests in government and corporate bonds, commercial mortgage-backed securities, asset-backed securities, emerging markets and high yield bonds.

The firm claims that the product, which incepted in 2014 and is available in the US, has provided investors with a monthly distribution yield of around 4%, according to the firm’s website.

FSA sought more information from Janus Henderson, but the firm was not able to provide more details in time for publication.

The registration of the firm’s Multi-Sector Income Fund comes at a time when income funds have become popular in the Lion City. Income products dominated the top selling list of Singapore-domiciled funds in the first half of this year, according to Broadridge Financial’s Asia-Pacific quarterly report.

“Investors have been piling into income-oriented funds for the past few years,” Yoon Ng, director of Apac insights for global market intelligence at Broadridge said earlier.

“There is strong demand for funds which can provide downside protection, access to upside potential and a regular income stream,” she said.

Other fund management firms have taken advantage of the trend toward income products, with Aviva Investors being the latest to roll out an income fund. The firm applied in July with the MAS to launch the Sustainable Income and Growth Fund, which was launched yesterday, according to a statement from the firm.

The Aviva fund aims to provide 5% income to investors, with ESG factors integrated into the investment process, the firm said.

In May, Fullerton Fund Management also launched the SGD Heritage Income Fund, while BNP Paribas Asset Management rolled out the Parvest Multi-Asset Income Europe Fund. In October last year, Phillip Capital Management launched the Phillip Sing Income ETF, which provides regular income in the form of dividends.

Income continues to be important for investors in Asia and not just in Singapore. According to findings from a previous Cerulli Associates report, regular steady income payments are the most important feature for investors in the region.

Other funds

Meanwhile, Janus Henderson’s Absolute Return Income Opportunities Fund is already available to accredited investors in the Lion City, according to FE data.

Its investment objective is “to maximise total return consistent with the preservation of capital and seeks to provide long-term positive returns through various market environments”, according to the fund’s prospectus.

The fund expects to have an average portfolio duration of around four-to-six years and may make significant use of derivatives, including futures, options, forward commitments and swap agreements. It also invests in both investment grade and non-investment grade bonds, as well as securities that have not been rated by rating agencies.

Janus Henderson’s application of the Absolute Return Income and Multi-Sector Income funds follows the firm’s launch of two thematic products in Singapore last month. The funds – the Biotechnology Fund and the Global Sustainable Equity Fund – are also waiting for retail sales approval from the Securities and Futures Commission in Hong Kong.

Janus Henderson Absolute Return Income Opportunities Fund vs category average and benchmark

Source: FE. Three years’ cumulative performance in US dollars.


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