EQUITY PERSPECTIVES

Insight from our equity teams to help clients navigate the markets and opportunities ahead.

A new paradigm – investment themes explored (June 2020)

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Introducing the Janus Henderson Equity Perspectives
By Alex Crooke, Co-Head of Equities – EMEA & Asia Pacific

Key takeaways

  • 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.

Video transcript

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.

 

 

Disclosure:

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.

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Close transcript

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.

Marc Pinto and Jeremiah Buckley discuss accelerating and emerging themes amid the COVID-19 crisis and which companies stand to benefit.

Hamish Chamberlayne explores the advancements made in the digital space and how this is closely linked with a sustainable future.

Andrew Gillan explores the impact of the pandemic on Asian equities and explains why structural growth stories remain intact.

Daniel Graña argues that a large disparity is likely between the success stories of certain emerging market countries and the failures of others.

Health care’s aggressive efforts to address COVID-19 could have a positive impact on the sector long term, says Andy Acker.

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[1]. 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.

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[1] 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.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance is not a guide to 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.

 

The information in this article does not qualify as an investment recommendation.

 

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