Overview

The Pace of Change Is Greater
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 

health care innovation

 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.

Evidence of the pace of disruption
Sequencing the Human Genome
Genetics-based research has accelerated, driven by a dramatic fall in sequencing costs. This has led to the creation of advanced treatment disciplines, such as immuno-oncology, gene therapy and, potentially, personalized vaccines.
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.
Estimated
Source: IDC, "Digital Transformation (DX): Understanding the Business Case - Market Spend & Trend Outlook," June 2018.
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 

health care innovation

 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.

Evidence of the pace of disruption
Sequencing the Human Genome
Genetics-based research has accelerated, driven by a dramatic fall in sequencing costs. This has led to the creation of advanced treatment disciplines, such as immuno-oncology, gene therapy and, potentially, personalized vaccines.
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.
Estimated
Source: IDC, "Digital Transformation (DX): Understanding the Business Case - Market Spend & Trend Outlook," June 2018.

Disruption in Context

Why Today Is Different

Change and innovation are always present in the global economy but do not necessarily turn out well from an investment perspective. The tech-driven 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, providing these firms with sizable competitive advantages and strong earnings growth potential.

  • 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 durability of today's transformation.
Source: Bloomberg. Data are for rolling, quarter-end periods through 6/29/18.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.

Change and innovation are always present in the global economy but do not necessarily turn out well from an investment perspective. The tech-driven 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, providing these firms with sizable competitive advantages and strong earnings growth potential.

  • 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 durability of today's transformation.
Source: Bloomberg. Data are for rolling, quarter-end periods through 6/29/18.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.

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
Health Care Innovation

Health care companies are increasingly focused on developing therapies to meet unmet medical needs and improving efficiencies. Such trends are transforming lives and creating sound investment opportunities.

Learn More
Coming November 15th
Old World vs. New

As China and other ‘new world’ markets advance, they have become leading adopters of technology. At the same time, many ‘old world’ industries are using technology to improve efficiencies and fend off disruption.

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
Health Care Innovation

Health care companies are increasingly focused on developing therapies to meet unmet medical needs and improving efficiencies. Such trends are transforming lives and creating sound investment opportunities.

Learn More
Coming November 15th
Old World vs. New

As China and other ‘new world’ markets advance, they have become leading adopters of technology. At the same time, many ‘old world’ industries are using technology to improve efficiencies and fend off disruption.

Invest 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.

(JCAPX)
Forty Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

This Fund leverages our differentiated fundamental research to invest, with conviction, in the large-cap companies driving innovation as well as compounding-growth companies we believe are insulated from disruption.

Learn More
(JFNIX)
Global Life
Sciences Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

Using a unique approach, this Fund is managed by a team who understands the science and business of health care, seeking to capitalize on companies developing innovative therapies addressing unmet medical needs or making health care more efficient.

Learn 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 disruption.
Source: IDC Digital Transformation Benchmark Survey, May 2017.
Note: Based on 1,841 organizations with 1,000+ employees worldwide.
(JATIX)
Global Technology Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

This Fund seeks to invest in growth companies driving innovation or benefiting from advances in technology. We invest in companies that we believe are resilient as well as companies that have optionality ‐ meaning large potential upside in certain scenarios.

Learn More
(JBALX)
Balanced Fund
Overall Morningstar RatingTM
out of
Funds as of
Prospectus

This dynamic asset allocation strategy delivers our equity and fixed income expertise in a core solution, with holdings that consist of what we believe are innovative companies as well as firms that we think are resilient to disruption.

Learn More
(JCAPX)
Forty Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

This Fund leverages our differentiated fundamental research to invest, with conviction, in the large-cap companies driving innovation as well as compounding-growth companies we believe are insulated from disruption.

Learn More
(JFNIX)
Global Life
Sciences Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

Using a unique approach, this Fund is managed by a team who understands the science and business of health care, seeking to capitalize on companies developing innovative therapies addressing unmet medical needs or making health care more efficient.

Learn More
(JATIX)
Global Technology Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

This Fund seeks to invest in growth companies driving innovation or benefiting from advances in technology. We invest in companies that we believe are resilient as well as companies that have optionality – meaning large potential upside in certain scenarios.

Learn More
(JBALX)
Balanced Fund
Overall Morningstar RatingTM
out of
Funds as of
Prospectus

This dynamic asset allocation strategy delivers our equity and fixed income expertise in a core solution, with holdings that consist of what we believe are innovative companies as well as firms that we think are resilient to disruption.

Learn More
(JCAPX)
Forty Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

This Fund leverages our differentiated fundamental research to invest, with conviction, in the large-cap companies driving innovation as well as compounding-growth companies we believe are insulated from disruption.

Learn More
(JFNIX)
Global Life
Sciences Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

Using a unique approach, this Fund is managed by a team who understands the science and business of health care, seeking to capitalize on companies developing innovative therapies addressing unmet medical needs or making health care more efficient.

Learn More
(JATIX)
Global Technology Fund
Overall Morningstar RatingTM
out of Funds
as of
Prospectus

This Fund seeks to invest in growth companies driving innovation or benefiting from advances in technology. We invest in companies that we believe are resilient as well as companies that have optionality – meaning large potential upside in certain scenarios.

Learn More
(JBALX)
Balanced Fund
Overall Morningstar RatingTM
out of
Funds as of
Prospectus

This dynamic asset allocation strategy delivers our equity and fixed income expertise in a core solution, with holdings that consist of what we believe are innovative companies as well as firms that we think are resilient to disruption.

Learn 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 disruption.
Source: IDC Digital Transformation Benchmark Survey, May 2017.
Note: Based on 1,841 organizations with 1,000+ employees worldwide.

Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus or, if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.

Receive updates on harnessing the power of disruption.
For more information on how to harness the power of disruption in your portfolio, please
call 800.668.0434.
For more information on how to harness the power of disruption in your portfolio please call 800.668.0434.
For more information on how to harness the power of disruption in your portfolio please call 800.668.0434.

Past performance is no guarantee of future results.

Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.

Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens.

Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.

Emerging market investments have historically been subject to significant gains and/or losses. As such, returns may be subject to volatility.

The health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations.

Technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions. A concentrated investment in a single industry could be more volatile than the performance of less concentrated investments and the market as a whole.

Investments focused on a single sector, country or region are subject to increased volatility because such investments may react similarly to market developments and a significant portion of assets may be invested in a small number of issuers.

As of , Forty Fund Class I Shares Morningstar RatingsTM in the category: stars out of funds, stars out of funds and stars out of  funds, for the 3-, 5-, and 10-year periods, respectively.

As of , Global Technology Fund Class I Shares Morningstar RatingsTM in the category: stars out of funds, stars out of funds and stars out of funds, for the 3-, 5-, and 10-year periods, respectively.

As of , Global Life Sciences Fund Class I Shares Morningstar RatingsTM in the category: stars out of funds, stars out of funds and stars out of funds, for the 3-, 5-, and 10-year periods, respectively.

As of , Balanced Fund Class I Shares Morningstar RatingsTM in the category: stars out of  funds, stars out of funds and stars out of funds, for the 3-, 5-, and 10-year periods, respectively.

The Morningstar RatingTM for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. Ratings may vary by share class.

Ratings and/or rankings may be based, in part, on the performance of a predecessor fund or share class and are calculated by Morningstar using a methodology that differs from that used by Janus. Methodology differences may have a material effect on the return and therefore the rating/ranking.

When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the ranking and/or rating for the period.

© 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Definitions

Janus Henderson Distributors

Terms of Use

Janus Henderson Investors ©

C-0818-19063 1-15-19

Past performance is no guarantee of future results.

Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.

Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens.

Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.

Emerging market investments have historically been subject to significant gains and/or losses. As such, returns may be subject to volatility.

The health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations.

Technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions. A concentrated investment in a single industry could be more volatile than the performance of less concentrated investments and the market as a whole.

As of , Forty Fund Class I Shares Morningstar RatingsTM in the category: stars out of funds, stars out of funds and stars out of  funds, for the 3-, 5-, and 10-year periods, respectively.

As of , Global Technology Fund Class I Shares Morningstar RatingsTM in the category: stars out of funds, stars out of funds and stars out of funds, for the 3-, 5-, and 10-year periods, respectively.

As of , Global Life Sciences Fund Class I Shares Morningstar RatingsTM in the category: stars out of funds, stars out of funds and stars out of funds, for the 3-, 5-, and 10-year periods, respectively.

As of , Balanced Fund Class I Shares Morningstar RatingsTM in the category: stars out of  funds, stars out of funds and stars out of funds, for the 3-, 5-, and 10-year periods, respectively.

The Morningstar RatingTM for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. Ratings may vary by share class.

Ratings and/or rankings may be based, in part, on the performance of a predecessor fund or share class and are calculated by Morningstar using a methodology that differs from that used by Janus. Methodology differences may have a material effect on the return and therefore the rating/ranking.

When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the ranking and/or rating for the period.

© 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Investments focused on a single sector, country or region are subject to increased volatility because such investments may react similarly to market developments and a significant portion of assets may be invested in a small number of issuers.

Definitions

Janus Henderson Distributors

Terms of Use

Janus Henderson Investors ©

C-0818-19057 1-15-19

OverviewDisruption in ContextDisruption DriversInvest in Disruption