Essentials: the Pan European Equity strategy in three minutes

17/10/2016

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Fund overview

The fund is a focused list of equities invested in the Pan European area, so it includes the UK. It does not invest in developing markets, sticking instead to developed markets in Europe. It is predominantly mid- to large-cap companies – we will not invest in a company with a market cap of less than €2 billion – and we are limited to 60 positions. What I am looking for in those companies is consistency, reliability and good, long-term quality growth.

What differentiates the fund?

The fund is different because of the way that we have consistently focused, since we launched the fund in 2001, on good quality consistent, reliable companies that can increase the return to us as shareholders. You have to have a degree of patience when investing in these businesses. Put simply, we are just trying to find really good companies – of which there are a lot in Europe – and participate in their future. 

Opportunities in European equities?

The current opportunities in the portfolio revolve around the comparison between the valuations on European equities compared with European bonds. In our view, European bonds look over-valued at the moment. Relative to that, European equities certainly do look attractive. Over the medium term, however, there are political risks in Europe, indeed political risks worldwide. Politics has an irritating habit of getting in the way, as we’ve seen in the UK with Brexit. We need to be aware of that. Above all, over the long term, we have to accept that we are in a world of low growth. So if you can eke out something like a 10% total return, then that may turn out to be a very good long-term investment.

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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Important information

Please read the following important information regarding funds related to this article.

Janus Henderson Horizon Pan European Equity Fund

Specific risks

  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • This fund is designed to be used only as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this fund.
  • The Fund could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Fund.
  • If a Fund has a high exposure to a particular country or geographical region it carries a higher level of risk than a Fund which is more broadly diversified.
  • Changes in currency exchange rates may cause the value of your investment and any income from it to rise or fall.
  • If the Fund or a specific share class of the Fund seeks to reduce risks (such as exchange rate movements), the measures designed to do so may be ineffective, unavailable or detrimental.
  • Any security could become hard to value or to sell at a desired time and price, increasing the risk of investment losses.

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