Insight from our equity teams to help clients navigate the markets and opportunities ahead.
A new paradigm – investment themes explored (June 2020)
Please see page footer for video disclaimer
Introducing the Janus Henderson Equity Perspectives
By Alex Crooke, Co-Head of Equities – EMEA & Asia Pacific
- The new Equity Perspectives launches at a particularly volatile time for markets with investors naturally uncertain about the path ahead. Here we seek to provide some of our views to help inform investment decision making.
- Janus Henderson has a wide range of expertise across equities globally. Our teams are able to develop their own approaches and views on markets; the quarterly Equity Perspectives will share their views on the challenges and opportunities ahead.
- In this first edition, we explore the current global backdrop and ask what the post COVID-19 world might look like from a U.S., Global Sustainable, Asian, Emerging Market and Life Science equities perspective.
Welcome to this new Equity Perspectives. We're really lucky to have great breadth and talent at Janus Henderson. We've got regional equity teams covering the U.S., Europe, Asia and Japan, and even emerging markets. And we've got specialist equity teams covering certain sectors or maybe sustainable investments. And then finally we’ve got global teams covering everything. This Perspectives is a quarterly publication providing insight into our current thinking, and it's supplemented by timely articles and videos we post on an ongoing basis as part of our Knowledge Shared approach.
So at Janus Henderson, we do not employ a standardized ‘house view’. Teams are allowed to develop their own approaches and views of markets. So this means sometimes there will be differing opinions, but we believe that that debate and challenge of ideas within Janus Henderson is healthy and results in better outcomes for our clients.
So we're launching this first edition of Perspectives after a particularly volatile period in markets. And I think the debate from here really is about the future normal state of the world. Key for us is the pace of recovery. Will it be V-shaped or U-shaped? Will governments prioritize the economy over medical advice for longer lockdowns and how are we going to get people economically active again with the confidence to travel, to shop, to work? I think another interesting debate is about how companies are managed. Will they be managed more for resilience – less debt, more equity maybe, rather than efficiency? And that government support that we're seeing comes at a cost. Will the loans that they're using to help support businesses turn into equity in the future?
So here we're going to ask some of our investment teams how they see the world changing as a result of the crisis. And they'll explore what the key issues and risks and opportunities might be for investors on a longer-term view. I hope you enjoy.
The opinions and views presented are as of the date published. They are for information purposes only and should not be used or construed as investment, legal or tax advice or as an offer to sell, a solicitation of an offer to buy, or a recommendation to buy, sell or hold any security, investment strategy or market sector. Nothing in this material shall be deemed to be a direct or indirect provision of investment management services specific to any client requirements. Opinions and examples are meant as an illustration of broader themes, are not an indication of trading intent, and are subject to change at any time. It is not intended to indicate or imply that any illustration/example mentioned is now or was ever held in any portfolio. No forecasts can be guaranteed and there is no guarantee that the information supplied is complete or timely, nor are there any warranties with regard to the results obtained from its use. In preparing this document, Janus Henderson Investors has reasonable belief to rely upon the accuracy and completeness of all information available from public sources. Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value.
Not all products or services are available in all jurisdictions. The distribution of this material or the information contained in it may be restricted by law and may not be used in any jurisdiction or any circumstances in which its use would be unlawful. The contents of this material have not been approved or endorsed by any regulatory agency. Janus Henderson is not responsible for any unlawful distribution of this material to any third parties, in whole or in part, or for information reconstructed from this material.
This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.
In Europe, issued by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Capital International Limited (reg no. 3594615), Henderson Global Investors Limited (reg. no. 906355), Henderson Investment Funds Limited (reg. no. 2678531), AlphaGen Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Henderson Management S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier). Advisory services in the U.S. are provided by SEC registered investment advisers that are subsidiaries of Janus Henderson Group plc. In Canada, products and services are offered through Janus Capital Management LLC only to institutional investors in certain jurisdictions.
Issued in (a) Singapore by Janus Henderson Investors (Singapore) Limited, licensed and regulated by the Monetary Authority of Singapore. Janus Henderson Investors (Singapore) Limited Company Registration No. 199700782N. This advertisement or publication has not been reviewed by Monetary Authority of Singapore. (b) Hong Kong by Janus Henderson Investors Hong Kong Limited, licensed and regulated by the Securities and Futures Commission, (c) Taiwan R.O.C by Janus Henderson Investors Taiwan Limited (independently operated), licensed and regulated by the Financial Supervisory Commission R.O.C. Suite 45 A-1, Taipei 101 Tower, No. 7, Sec. 5, Xin Yi Road, Taipei (110). Telephone: (02) 8101-1001. Approved SICE licence number 023, issued in 2018 by Financial Supervisory Commission, (d) Japan by Janus Henderson Investors (Japan) Limited, regulated by Financial Services Agency and registered as a Financial Instruments Firm conducting Investment Management Business, Investment Advisory and Agency Business and Type II Financial Instruments Business, (e) Australia by Janus Henderson Investors (Australia) Limited ABN 47 124 279 518 and its related bodies corporate including Janus Henderson Investors (Australia) Institutional Funds Management Limited (ABN 16 165 119 531, AFSL 444266) and Janus Henderson Investors (Australia) Funds Management Limited ABN 43 164 177 244, AFSL 444268 (f) the Middle East by Janus Capital International Limited, regulated by the Dubai Financial Services Authority as a Representative Office. No transactions will be concluded in the Middle East and any enquiries should be made to Janus Henderson.
This material is not to be reproduced or distributed to persons other than the recipient. Janus Henderson, Janus, Henderson, Perkins, Intech, Alphagen, Knowledge Shared, Knowledge. Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.
Insights from our Global Teams
George Maris, Co-Head of Equities – Americas, recaps equity market volatility in 2020 and what investors should consider as the outlook for the global economy remains unclear.
Hamish Chamberlayne explores the advancements made in the digital space and how this is closely linked with a sustainable future.
Daniel Graña argues that a large disparity is likely between the success stories of certain emerging market countries and the failures of others.
Tal Lomnitzer, portfolio manager in the Global Natural Resources Team, discusses why ESG reporting is necessary and that culture is crucial and not to be neglected.
Our Equity Capabilities
Janus Henderson provides an active approach to equity investing. The equities platform is shaped by the belief that fundamental research* is the foundation for delivering alpha*. Independent thought and unique viewpoints are central to this approach and result in portfolios that are meaningfully different to an index. Each team expresses their individual, high-conviction ideas through processes that have evolved to suit their specific areas of the market and within robust risk control frameworks.
While operating with independence, the equities teams benefit from collaboration and shared research that provide a source of portfolio ideas. The culture encourages intellectual challenge and stimulating debate to test – and ultimately strengthen – investment thinking. The success of ideas is measured by overall client outcomes with the aim to deliver consistent, long-term risk-adjusted excess returns over benchmarks and peers regardless of the investment landscape. This effort is supported by award-winning, proprietary portfolio construction technology and a cultural emphasis on the client promise.
The equity teams, led by Co-Heads of Equities Alex Crooke and George Maris, include 167 investment professionals, responsible for US$149.9bn in assets under management. The teams include those with a global perspective, those with a regional focus – US, Europe, Asia Pacific and Emerging Markets – and those invested in specialist sectors. A range of growth, value and absolute return styles are employed.
 Source: Janus Henderson, as at 31 March 2020.
*Fundamental research: The analysis of information that contributes to the valuation of a security, such as a company’s earnings or the evaluation of its management team, as well as wider economic factors. This contrasts with technical analysis, which is centred on idiosyncrasies within financial markets, such as detecting seasonal patterns.
*Alpha: Alpha is the difference between a portfolio's return and its benchmark’s return after adjusting for the level of risk taken. A positive alpha suggests that a portfolio has delivered a superior return given the risk taken.
Subscribe for relevant insights delivered straight to your inbox
This information is issued by Janus Henderson Investors (Australia) Institutional Funds Management Limited (AFSL 444266, ABN 16 165 119 531). The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
Whilst Janus Henderson Investors (Australia) Institutional Funds Management Limited believe that the information is correct at the date of this document, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson Investors (Australia) Institutional Funds Management Limited to any end users for any action taken on the basis of this information. All opinions and estimates in this information are subject to change without notice. Janus Henderson Investors (Australia) Institutional Funds Management Limited is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect.