Benefits of investing in the Janus Henderson Tactical Income Fund

Investing in the Fund offers a range of benefits, including:

• Exposure to investment opportunities - Access to investment opportunities that individual investors may not be able to achieve on their own.

• Professional management - Access to a highly experienced investment management team with a proven track record of managing diversified cash and fixed income portfolios.

• Global presence - Access to the investment knowledge and expertise of Janus Henderson's global network of investment professionals.

• Access your information - You can keep regularly updated on your investment in the Fund and access Fund investment performance information at www.janushenderson.com/australia/funddocs. In addition you will receive regular unitholder statements and an annual tax statement and can access these statements through an online portal.

Risk profile
Low-medium

About the Fund

The Fund has been established to provide investors with the opportunity to gain exposure to an actively managed diversified fixed income strategy.

The Fund is an integrated and diversified fixed interest solution, designed to make tactical investment decisions between cash, longer duration fixed interest securities and higher yielding securities, throughout every step of the investment cycle.

The Fund primarily gains exposure through investing in the following underlying funds ("Underlying Funds):

• Janus Henderson Cash Fund - Institutional (ARSN 127 731 006)

• Janus Henderson Cash Enhanced Fund - Institutional (ARSN 100 098 271)

• Janus Henderson Australian Fixed Interest Fund - Institutional (ARSN 100 098 413)

• Janus Henderson Diversified Credit Fund (ARSN 127 727 431)

Key reasons to invest in the Fund

• Fresh approach to defensive investing: With a focus on delivering a stable return profile and capital preservation, the Team has the flexibility to actively change the asset allocations of the Fund in order to take full advantage of the interest rate cycle and credit environment.

• Managing interest rate risk: Rising interest rates negatively impact the value of fixed rate securities. Duration is the key measure of that risk. The higher the duration, the more sensitive a fixed interest portfolio is to changes in bond yields.

• Local expertise: Access to a highly experienced investment management team with a proven track record of managing diversified cash and fixed interest portfolios.

• Global presence: Access to the investment knowledge and expertise of Janus Henderson's global network of investment professionals.

Investment strategy

The Fund is an actively managed strategy that invests in a wide range of cash and fixed interest securities. These include debt issued by banks and other corporations, mortgage and other asset backed securities and government, semi-government and supra-national bonds. The Fund may also allocate to Australian and global high yielding securities when attractive opportunities are identified.

The Fund is designed to leverage the considerable expertise of the Manager and gives them the flexibility to tactically and actively allocate the Fund's assets based on their assessment of the outlook for the Australian and global economy, interest rates and fundamentals of the corporate sector within the context of the credit cycle.

The flexible asset allocation ranges and fundamentally driven approach allows the Manager to meaningfully adjust the level of fixed interest exposure to both enhance performance in periods of falling interest rates and conversely, to protect value from the adverse impact of rising yields.

The overall level of credit risk within the Fund is actively adjusted to reflect the Manager's assessment of fundamentals and valuations within the corporate debt market.

Investment philosophy

The Fund is designed to leverage the considerable expertise of Janus Henderson's Australian Fixed Interest Team ("Team) and gives them the flexibility to actively allocate the Fund's assets based on their assessment of where the best value lies.

The strategies adopted by the Team are based on their analysis and assessment of the outlook for the Australian and global economies, interest rates and fundamentals of the corporate sector within the context of the credit cycle.

Flexible asset allocation ranges allow the Team to adjust the level of fixed interest exposure to aim for enhanced performance in periods of falling interest rates and conversely to preserve value from the adverse impact of rising yields. The overall level of credit risk within the Fund is actively adjusted to reflect the Team's assessment of fundamentals and valuations within the corporate debt market.

Investment process

The Fund incorporates a three-stage investment process:

Stage 1: Strategy formulation

Rank the active duration and credit positions of our core Australian Fixed Income Strategy.

Stage 2: Risk calibration

Using these rankings, determine asset allocation.

Stage 3: Implementation

Implement the strategy by investing in a range of cash, fixed interest and higher yielding securities. By investing in the Fund, the following key investment decisions are managed by the Team:

• Interest rates: Determine when to hold longer dated fixed rate assets (e.g. government bonds are typically cheap when interest rates peak in an economic cycle) and when to hold shorter dated floating rate exposure.

• Sectors: Consider the right proportion of government securities versus non- government securities, dependent on the adequacy of compensation to investors for the additional risk.

• Securities: Determine which non-government securities have stable to improving credit quality. Of these securities, understand which offer an appropriate return for the underlying risk.

Asset allocation ranges

Asset / Indicative asset allocation range (as % of NAV)

• Cash 0 - 100%

• Cash Enhanced 0 - 100%

• Australian Fixed Interest 0 - 100%

• High Yielding Securities(*) 0 - 20%

(*) The maximum aggregate exposure to sub-investment grade securities will not exceed 10% of NAV. The maximum exposure to global high yielding securities will not exceed 10% of NAV.

The Fund may have exposure to non-Australian dollar denominated securities including limited exposure to non-Australia debt issuers. Where the Fund invests in non-Australian dollar denominated securities, the associated foreign currency exposure will be as close to fully hedged as is practicable using appropriate derivative instruments.

Derivatives may be used solely for investment and risk management purposes and cannot be used to gear the Fund.