THEMATIC
INVESTING

Hi, I’m Richard Clode, and I’m a portfolio manager on our Global Technology Investments team. In recent years, we’ve seen more of our clients look to invest through a thematic lens to identify those long-term growth opportunities and deliver the capital returns that can come from identifying the beneficiaries of those themes.

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And that really resonates with us at Janus Henderson because we have many dedicated investment teams that very much think through that thematic framework, whether it be in property, in technology, in life sciences or in sustainable investing, have demonstrated, over multiple decades, that they can identify the true beneficiaries and winners from those themes.

And so that, for us, is where we can provide our value-add. That bottom-up thinking with that top-down thematic overlay can truly deliver, over the long term, those beneficiaries and those opportunity sets. And because ultimately we think that’s important for two reasons, because, one, those themes are going to be dynamic, those themes are going to evolve over time, whether that be in technology, and I’ve been a technology investor for 20 years now and I’m the least experienced of some of the thematic investors we have, those technology trends, they will evolve very differently from the Internet age that we’re just coming out of into the AI era today.

And those themes will impact other sectors, whether that be the impact of AI in life sciences, or in sustainable investing, or the impact that will have on cities of the future. And harnessing that through dedicated teams that have that investment experience and track record over many years that have proven that they can identify those beneficiaries.

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And the other important factor that’s changed versus the market environment we’ve seen in the last decade is money is no longer free. And again, it’s not enough to just have growth. You’ve also got to deliver, as a company and as a stock, profits and cash flow and have a reasonable valuation to back up your stock. And again, we think this is an important time to be thinking about that, rather than just be thinking about themes and growth, marrying that with the fundamentals as well.

Now, here at Janus Henderson we very much look forward to partnering with you, to share our insights around themes and thematic investing, and also look to partner with you to provide thematic solutions to your clients as well. Thank you, and if you have any further questions, please do reach out to your Janus Henderson sales representative.

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Thematic equities: Thematic investing- aiming to identify long-term global investment themes and the companies that stand to benefit from them.

Capital: When referring to a portfolio, the capital reflects the net asset value of a fund. More broadly, it can be used to refer to the financial value of an amount invested in a company or an investment portfolio.

Sustainable investing: Sustainable investing considers factors beyond traditional financial analysis. This may limit available investments and cause performance and exposures to differ from, and potentially be more concentrated in certain areas than the broader market.

Bottom-up: Bottom-up fund managers build portfolios by focusing on the analysis of individual securities, in order to identify the best opportunities in their industry or country/region. The opposite of top down investing.

Top-down: A top-down fund manager builds a portfolio based mainly on the economic environment and asset allocation decisions. This contrasts with an approach based on individual security-specific criteria, known as bottom-up.

AI: Artificial Intelligence.