Global Multi-Strategy Fund
See alternatives in a different light
Diversification can be especially valuable in turbulent and unpredictable markets
Most investors’ portfolios have traditionally relied on equities and bonds to provide their primary source of returns. However, as markets and investor behaviours evolve, so too do investment opportunities.
Declining bond yields and historically low cash rates, coupled with geopolitical uncertainty and a slowing global economy, has resulted in lower return expectations across a range of asset classes.
The gap between what investors are seeking, and what their investment portfolios have been delivering, is widening. As such, investors are increasingly looking to alternative sources of returns.
To perform differently from the market, you have to invest differently
We believe that over time, in addition to potentially helping reduce the overall risk and volatility of a portfolio, a diversified mix of asset classes and strategies that includes alternative investments, may offer sources of positive expected return irrespective of the broader market environment.
Our competitive advantage
Diversifying absolute return strategy
A globally positioned multi-strategy portfolio seeking to provide positive absolute return with low to moderate volatility and low correlation to both traditional and alternative asset classes.
A distinct range of return sources
The skill-based market neutral nature and low expected correlations between the underlying strategies seeks to enhance risk-adjusted returns for investors.
Explicit portfolio protection strategy
History shows that during periods of market stress, the prices for seemingly unrelated investments can become highly correlated. An explicit top-down portfolio ‘protection’ strategy seeks to generate uncorrelated positive returns during these periods of market stress.
Stable and experienced global multi-strategy team
A collaborative team of highly experienced investment professionals with a diversified skill set based in the UK, US and Australia.
A turn-key alternatives solution
The Janus Henderson Global Multi-Strategy Fund seeks absolute returns through investing across a diversified suite of skill-based, market neutral strategies, combined with a risk aware approach to portfolio construction and protection.
The Fund is designed to provide positive absolute returns, with low to moderate volatility and low correlation to both traditional and alternative asset classes. Our seasoned investment team seeks to deliver attractive risk-adjusted returns, regardless of market conditions.
A continuous global research effort aims to identify new sources of returns and avoid crowded trades.
Diversification works well in up markets, but is unreliable in down markets – like March 2020 – when investor panic induces risk assets to fall in a synchronised manner. We address this issue by running a set of protection strategies that aim to provide positive returns in down markets and are the mirror image of the diversified return-seeking strategies we use to generate returns in more normal markets.”
David Elms, Head of Diversified Alternatives
The Fund invests in a diversified set of strategies at a bottom-up level, including convertible arbitrage, event driven, price pressure, risk transfer and equity market neutral, combined with a top-down protection strategy.
Aims to capitalise on mispricings of convertible bonds.
Looks to exploit pricing inefficiencies around corporate events or capital structures.
Equity market neutral
Seeks to deliver alpha by investing long and short across pan-European equities.
Aims to generate returns through the provision of capital to liquidity opportunities.
Looks to capitalise on supply/demand-driven imbalances in the derivatives market.
Seeks to mitigate left tail risk through a multi-faceted protection strategy.
About the fund
How to invest
To invest, you can speak to your financial adviser or find a professional adviser here.
Alternatively, to invest directly:
- Netwealth (non-super)
|Inception date||3 June 2020|
|Benchmark||Bloomberg AusBond Bank Bill Index|
|Target return||Benchmark plus 7% p.a. (before fees)
over rolling 3-year periods
|Expected volatility||Low to moderate, 4-8% long term|
|Expected correlation||Seeks low correlation with
global equities and bonds
|Risk profile||Very High|
|Minimum initial investment||$25,000|
|Management fee||0.90% p.a.|
|Indirect costs||0.17% p.a.|
|Performance fee||20% of the amount of outperformance
of the current day NAV relative to prior
day NAV above the Benchmark (after
management fees) and subject to
a high watermark
|Buy/Sell spread||The Fund currently does not charge a buy/sell spread|
|Unit pricing frequency||Daily|
|Distribution||Annually (if any)|
Meet the team
The Janus Henderson Diversified Alternatives team is made up of 21 investment professionals situated in the UK, US and Australia. The team is responsible for $15.2 billion* in client assets and manages a range of investment solutions including multi-strategy, alternative risk premia, alpha capture and global commodities/managed futures.
David Elms is Head of Diversified Alternatives for Janus Henderson Investors responsible for enhanced index, risk premia, and hedge fund portfolios. Prior to joining Henderson in 2002, he spent eight years as a founding partner at Portfolio Partners. He was initially based in Melbourne, where he managed derivatives and enhanced index portfolios, and was later seconded to Aviva in London in a corporate strategy role following Aviva’s acquisition of Portfolio Partners. Earlier, he spent three years as associate director at County NatWest Investment Management, Melbourne, where he was responsible for equities and equity derivative trading as well as quantitative research. David received a BCom degree (Hons) from the University of Melbourne, Australia. He has 28 years of financial industry experience.
Steve Cain is a Portfolio Manager of Diversified Alternatives at Janus Henderson, a position he has held since joining Henderson in 2010. Prior to Henderson, Steve ran Kurtosis Capital Partners. He was a partner as well as a volatility and macro portfolio manager at JWM Partners from 2006 to 2009. From 2004 to 2006, he was founding partner and currency and macro portfolio manager at Nylon Capital. In 2002, he was managing director, head of macro strategies at Shumway Capital Partners. Steve started his career in 1987 in investment banking. Between 1987 and 2002, he held a variety of roles managing currency and emerging market businesses at numerous global investment banks. Steve received a BA degree (Hons) in philosophy, politics, and economics from Oxford University. He has 32 years of financial industry experience.
* Australian dollars, as at 31 March 2020.