Overview

The Pace of Change is Greater
Now than Ever Before

Disruption is rippling through the global economy, and the pace of change is accelerating. To take one example, when the human genome was first sequenced in 2000, it took 13 years and cost $3 billion. Now, sequencing can be done in one day for $1,000. Such dramatic change is being felt across industries and geographies, and potentially shaping the long-term performance of investors’ portfolios.
That’s why, at Janus Henderson, we are using fundamental analysis to stay on the right side of disruption. As part of that research, we are focusing on widespread
technology disruption
, as well as
shifting demographics
 and 
old world vs new
 economies and industries. Together, these drivers could have a dramatic impact on companies – and their stocks – in the years ahead. What does that mean for investors, and how can Janus Henderson provide solutions? Read on.

The Importance of Disruption

Evidence of the pace of disruption
Sequencing the Human Genome
Genetics-based research has accelerated, driven by a dramatic fall in sequencing costs since 2001. This has led to the creation of new and advanced treatment disciplines, such as immuno-oncology, gene therapy and, potentially, personalized vaccines.
Human Genome
Source: Human Genome Research Institute. Data as of 7/17
Worldwide Enterprise Spend on "Digital Transformation"
Companies globally are investing heavily to keep up with the digital economy.
Source: IDC's Worldwide Semiannual Digital Transformation Spending Guide, 1H2017
Disruption is rippling through the global economy, and the pace of change is accelerating. To take one example, when the human genome was first sequenced in 2000, it took 13 years and cost $3 billion. Now, sequencing can be done in one day for $1,000. Such dramatic change is being felt across industries and geographies, and potentially shaping the long-term performance of investors’ portfolios.
That’s why, at Janus Henderson, we are using fundamental analysis to stay on the right side of disruption. As part of that research, we are focusing on widespread
technology disruption
, as well as
shifting demographics
 and 
old world vs new
 economies and industries. Together, these drivers could have a dramatic impact on companies – and their stocks – in the years ahead. What does that mean for investors, and how can Janus Henderson provide solutions? Read on.

The Importance of Disruption

Evidence of the pace of disruption
Sequencing the Human Genome
Genetics-based research has accelerated, driven by a dramatic fall in sequencing costs since 2001. This has led to the creation of new and advanced treatment disciplines, such as immuno-oncology, gene therapy and, potentially, personalized vaccines.
Human Genome
Source: Human Genome Research Institute. Data as of 7/17
Worldwide Enterprise Spend on "Digital Transformation"
Companies globally are investing heavily to keep up with the digital economy.
Source: IDC's Worldwide Semiannual Digital Transformation Spending Guide, 1H2017

Disruption in Context

Why Today us Different

Change and innovation are always present in the global economy but do not necessarily turn out well from an investment perspective. The techdriven revolution of the 1990s and resulting Internet bubble led to sharp falls in equity markets. However, we believe today’s disruption is more enduring:

  • Leading technology companies are building large networks of data and users that create sizable competitive advantages and strong earnings growth.

  • New and transformative technologies, such as artificial intelligence, the Internet of Things and cloud computing, have become pervasive, impacting business models across industries and regions.

  • Rising living standards in emerging economies are helping drive demand for these new tools and services. So, too, is the coming of age of “digital natives,” and a growing and aging global population.

S&P 500 Technology Sector Earnings
Tech stocks have soared in recent years. But the performance is backed by impressive earnings growth, highlighting the breadth of today’s transformation and helping companies on the right side of disruption stand out.
Source: Bloomberg. Data are for rolling, quarter-end periods through 6/29/18

Change and innovation are always present in the global economy but do not necessarily turn out well from an investment perspective. The techdriven revolution of the 1990s and resulting Internet bubble led to sharp falls in equity markets. However, we believe today’s disruption is more enduring:

  • Leading technology companies are building large networks of data and users that create sizable competitive advantages and strong earnings growth.

  • New and transformative technologies, such as artificial intelligence, the Internet of Things and cloud computing, have become pervasive, impacting business models across industries and regions.

  • Rising living standards in emerging economies are helping drive demand for these new tools and services. So, too, is the coming of age of “digital natives,” and a growing and aging global population.

S&P 500 Technology Sector Earnings
Tech stocks have soared in recent years. But the performance is backed by impressive earnings growth, highlighting the breadth of today’s transformation and helping companies on the right side of disruption stand out.
Source: Bloomberg. Data are for rolling, quarter-end periods through 6/29/18

Disruption Drivers

Three Major Trends Behind Disruption

We believe three megatrends are helping transform the global economy and lead to new investment opportunities:

Technology Disruption

Technology is penetrating every part of the global economy, led by what we think are a number of powerful and investable trends: cloud computing, mobility, the Internet of Things and artificial intelligence.

Learn More
Coming September 15th
Shifting Demographics

By 2050, the number of people age 60+ is projected to hit roughly 2 billion, up from only 600 million at the start of the century. These and other population shifts are having a dramatic impact on the economy.

Coming October 1st
Old World vs. New

As China and other “new world” markets modernize their economies, these countries are proving to be leading adopters of new technology. Meanwhile, many “old world” industries must invest heavily in order to stay relevant.

Technology Disruption

Technology is penetrating every part of the global economy, led by what we think are a number of powerful and investable trends: cloud computing, mobility, the Internet of Things and artificial intelligence.

Learn More
Coming September 15th
Shifting Demographics

By 2050, the number of people age 60+ is projected to hit roughly 2 billion, up from only 600 million at the start of the century. These and other population shifts are having a dramatic impact on the economy.

Coming October 1st
Old World vs. New

As China and other “new world” markets modernize their economies, these countries are proving to be leading adopters of new technology. Meanwhile, many “old world” industries must invest heavily in order to stay relevant.

Investing in Disruption

Harness the Power of Disruption in Your Portfolio

A time of accelerating change can be unsettling for investors and make it harder to achieve financial goals. Janus Henderson’s expert investment teams can help offer solutions.

Among our offerings, we have funds managed by sector specialists:

(JCAPX)
Forty Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JFNIX)
Global Life
Sciences Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More
Is Your Portfolio Ready for Disruption?
According to one estimate, one-third of companies are struggling to evolve with today’s technological innovation, making it all the more important to create an investment portfolio that stands on the right side of disrutption.
Source: IDC Digital Transformation Benchmark Survey, May 2017
Notes: Based on 1,841 organizations with 1,000+ employees worldwide

Among our offerings, we have funds managed by sector specialists:

(JATIX)
Global Technology Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JBALX)
Balanced Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JCAPX)
Forty Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JFNIX)
Global Life
Sciences Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JATIX)
Global Technology Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JBALX)
Balanced Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JCAPX)
Forty Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JFNIX)
Global Life
Sciences Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JATIX)
Global Technology Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More

Among our offerings, we have funds managed by sector specialists:

(JBALX)
Balanced Fund
Overall Morningstar Rating as of 00/00/00
ProspectusLearn More
Is Your Portfolio Ready for Disruption?
According to one estimate, one-third of companies are struggling to evolve with today’s technological innovation, making it all the more important to create an investment portfolio that stands on the right side of disrutption.
Source: IDC Digital Transformation Benchmark Survey, May 2017
Notes: Based on 1,841 organizations with 1,000+ employees worldwide
For more information on how to harness the power of disruption in your portfolio please
call 800.668.0434 or visit janushenderson.com/advisor.
For more information on how to harness the power of disruption in your portfolio please call 800.668.0434 or visit janushenderson.com/advisor.
For more information on how to harness the power of disruption in your portfolio please call 800.668.0434 or visit janushenderson.com/advisor.
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OverviewDisruption in ContextDisruption DriversInvest in Disruption