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NBI Unconstrained Fixed Income Fund

Challenge traditional investment strategies

Managed by Janus Capital Management LLC

Investment strategy

Markets are under constant evolution and traditional investing strategies are proving to be ineffective under certain circumstances. Challenge the status quo with the NBI Unconstrained Fixed Income Fund and consider a strategy that invests broadly across global fixed income markets and is not constrained by benchmark-specific guidelines.

Key differentiators

 

  • Traditional active fixed income strategies seek to outperform their respective benchmarks by making tactical calls on both duration and sector positioning. However, margins to manoeuver are generally limited.

  • Unconstrained fixed income strategies have greater flexibility when it comes to selecting and allocating securities, sectors and countries as they are not subject to restrictions related to a 'traditional' benchmark such as the Barclays Global Aggregate or FTSE TMX Canada Universe.

  • The portfolio's duration can also be adjusted with greater flexibility than traditional fixed income strategies.

  • Overall, an unconstrained approach can better react to market fluctuations. It also provides greater flexibility in generating positive absolute returns while managing risk in changing global markets.

Why invest in this Fund?

World-renowned portfolio manager

  • Proven and established global unconstrained fixed income management team.

  • Janus’ Global Unconstrained Bond strategy is headed by esteemed fixed income expert, Bill Gross, who has over 45 years of financial industry experience.

Vast investment flexibility

  • Investing broadly across global fixed income markets without the traditional benchmark-specific guidelines.

  • High conviction ideas and attempts to achieve absolute risk-adjusted returns in a variety of environments.

  • Integrated risk management.

Uncorrelated sources of returns

  • Better diversification, downside protection and returns stabilization by investing in uncorrelated assets to traditional risk assets.

  • Derivatives and option-based strategies are used to generate long-term returns and protect the portfolio.

More information

How to position an unconstrained fixed income fund in a portfolio?

The unconstrained approach allows the management team to avoid areas of the market posing greater downside risk and be more responsive to changes in markets. The portfolio is built by maintaining a stable, liquid assets base combined with a dynamic set of risk-mitigating and return-enhancing trades.

 

Core strategy

An unconstrained fixed income fund can be added to an existing core allocation, as a complement to traditional fixed income funds, due to its global exposure and potential for lower interest rate sensitivity.

  • Diversification within fixed income allocation

  • Alternative to passive fixed income strategies

  • Hedge against rising rates

 

Alternative strategy

An unconstrained fixed income fund can be positioned as an alternative allocation, due to its potential lower correlation to traditional stocks and bonds.

  • Aim to generate alpha regardless of market conditions using broader opportunity set

  • Targeting absolute return with focus on capital preservation

  • Liquidity

What are the benefits of investing in an unconstrained fixed income strategy?

Traditional fixed income may not be as compelling in a rising rate environment. With yields at historical lows and the unclear timing of rate hikes, investors need to consider investing in non-traditional strategies with greater flexibility to manoeuver in an increasingly complex market environment.

  • Broader opportunity set and range of potential alpha sources

  • Benchmark-agnostic: not constrained by a “traditional” fixed income benchmark

  • More flexibility to take advantage of the best opportunities and adjust the portfolio to enhance returns and mitigate risk

  • More leeway in terms of duration management which may help to attenuate interest rate risk, a distinctive advantage in a rising rate environment

  • Low correlation to traditional and spread-oriented bond and equity indices

  • Good complement to traditional fixed income and alternative strategies

  • Consistent, attractive risk-adjusted returns in all market environments

  • Integrated risk management process: focus on preserving capital and maximizing risk-adjusted returns

Documents

Learn more about the NBI Unconstrained Fixed Income Fund Investor | Advisor

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Portfolio Management Team

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About the portfolio manager’s firm

Janus Henderson Investors logo

The NBI Unconstrained Fixed Income Fund’s Portfolio manager, Janus Henderson Investors (“Janus”), seeks to optimize clients’ returns and preserve capital in a variety of market environments, through a broad range of managed investments solutions within fixed income, equity, alternative and multi-asset strategies.

  • Founded in 1969

  • USD 137.5 billion in assets under management as of September 30, 2016

  • 189 investment professionals and 57 investment professionals with over 20 years of industry experience

 

Learn more

Fund Series

Advisor Series

F Series

T5 Series

F5 Series

Initial sales charge

Low sales charge

Deferred sales charge

Initial sales charge

Low sales charge

Deferred sales charge

NBC405

NBC605

NBC505

NBC705

NBC5405

NBC5605

NBC5505

NBC5705

Advisor Series

Initial sales charge

NBC405

Low sales charge

NBC605

Deferred sales charge

NBC505

F Series

NBC705

T5 Series

Initial sales charge

NBC5405

Low sales charge

NBC5605

Deferred sales charge

NBC5505

F5 Series

NBC5705

Learn more about series*

Questions?

Call or email an NBI sales representative: 1-877-463-7627

Legal notes

The NBI Unconstrained Fixed Income Fund (the “Fund”) is offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Janus Henderson Investors acts as portfolio manager for the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Fund before investing. The Fund’s securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Fund is not guaranteed, its values change frequently and past performance may not be repeated.