Janus Henderson Short Duration Flexible Bond Fund Q3 2025 Commentary
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Janus Henderson Investors3.6K FollowersFollow5ShareSavePlay(8min)CommentsSummaryJanus Henderson Short Duration Flexible Bond Fund returned 1.54% and the Bloomberg 1-3 Year U.S. Government/Credit Index returned 1.19%.Our overweight allocation to spread risk was the primary contributor to relative performance, while yield curve positioning performed in line with the benchmark. Exposure to asset-backed securities (ABS) detracted.Amid a backdrop of elevated macro uncertainty, we believe nimble asset allocation and careful security selection can be reliable levers to generate performance. FREDERICA ABAN/iStock via Getty Images Portfolio management Greg Wilensky, CFA and Michael Keough Investment environment The U.S. short-term fixed income market registered a positive return for the quarter. Short-term Treasury yields rallied, helping to drive positive performance. Spread sectors outperformed comparable maturity U.S. Treasuries. This article was written byJanus Henderson Investors3.6K FollowersFollowJanus Henderson Investors exists to help clients achieve their long-term financial goals. Formed in 2017 from the merger between Janus Capital Group and Henderson Global Investors, we are committed to adding value through active management. For us, active is more than our investment approach – it is the way we translate ideas into action, how we communicate our views and the partnerships we build in order to create the best outcomes for clients. While our investment managers have the flexibility to follow approaches best suited to their areas of expertise, overall our people come together as a team. This is reflected in our Knowledge. Shared ethos, which informs the dialogue across the business and drives our commitment to empowering clients to make better investment and business decisions.www.janushenderson.comQuick InsightsHow does the current credit spread environment shape portfolio positioning?With spreads at historically tight levels, we focus on maximizing carry per unit of risk and selectively overweight securitized credit, while remaining nimble in asset allocation.What is the outlook for Fed policy and its impact on short-term rates?We expect the Fed to continue cutting rates, especially if labor market weakness persists, supporting a modest duration overweight at the front end of the curve.Which sectors are favored or reduced in the current allocation, and why?We increased exposure to corporate debt and CLOs due to attractive valuations and economic stability, while trimming agency MBS after strong performance to fund these positions.Recommended For You