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 $1,0001. 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 

sustainable investing.

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.

1 Source: ARK Analyst, 21 August 2014
Evidence of the pace of disruption
Sequencing the Human Genome
In less than two decades, the cost of genetic sequencing has fallen dramatically, leading to the creation of advanced treatment disciplines such as immuno-oncology, gene therapy and, potentially, personalised vaccines.
Source: National Human Genome Research Institute. Data reflect sequencing cost per genome from September 2001 to February 2019 in USD.
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 in USD.

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 $1,0001. 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 

sustainable investing.

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.

1 Source: ARK Analyst, 21 August 2014
Evidence of the pace of disruption
Sequencing the Human Genome
In less than two decades, the cost of genetic sequencing has fallen dramatically, leading to the creation of advanced treatment disciplines such as immuno-oncology, gene therapy and, potentially, personalised vaccines.
Source: National Human Genome Research Institute. Data reflect sequencing cost per genome from September 2001 to February 2019 in USD.
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 in USD.

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
Although tech stocks have soared in recent years, strong earnings growth has helped to keep valuations in check.
P/E refers to forward P/E which based on forward 12-month consensus estimates. EPS reflects trailing 12-month earnings. Source: Bloomberg. Data are quarterly from 12/30/94 to 9/30/19.
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
Although tech stocks have soared in recent years, strong earnings growth has helped to keep valuations in check.
P/E refer to forward P/E which based on forward 12-month consensus estimates. EPS reflects trailing 12-month earnings. Source: Bloomberg. Data are quarterly from 12/30/94 to 9/30/19.
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
Sustainable Investing

Investing in businesses that are strategically aligned with the powerful environmental and social trends changing the shape of the global economy.

Learn More
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
Sustainable Investing

Investing in businesses that are strategically aligned with the powerful environmental and social trends changing the shape of the global economy.

Learn More

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.

Key Investment Risks:

  • Janus Henderson Horizon Global Technology Fund invests in a globally diversified portfolio of technology-related companies.

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  • Investments involve varying degree of investment risks (e.g. liquidity, market, economic, political, regulatory, taxation, financial, interest rate, hedging and currency risks). In extreme market conditions, you may lose your entire investment.
  • Investments in financial derivatives instruments (“FDIs”) (such as futures, swaps, options, forward rate notes, and forward foreign exchange contracts) involve specific risks (e.g. counterparty, liquidity, leverage, volatility, valuation, short position and over-the-counter transaction risk).  Some sub-funds may use FDIs for investment purposes (up to 10% of its net assets) and / or for hedging and/or efficient portfolio management purposes.
  • Some sub-funds may invest in certain geographical area(s) /industry sector (e.g. technology, property) and may subject them to higher concentration risk. 
  • Some sub-funds may invest in Eurozone (in particular Portugal, Italy, Ireland, Greece and Spain) securities and may suffer from Eurozone sovereign debt crisis risk.
  • Some sub-funds may be subject to various risks relating to sustainable investment approach, including concentration risk, subjective judgment in investment selection, exclusion risk, risk of reliance on corporate data or third-party information and change in nature of investments.

Janus Henderson Balanced Fund; Janus Henderson Global Life Sciences Fund; Janus Henderson US Forty Fund

  • Some sub-funds may invest in any one or a combination of the following instruments:
    • futures, options and swaps and other FDI for investment purposes, up to 10% of the net asset value  ("NAV") of the sub-fund.  Given the leverage effect of FDI, such investments may result in substantial loss (as much as 100% of the NAV of the relevant sub-fund);
    • debt securities rated below investment grade;
    • fixed and floating rate investment grade bonds; and
    • mortgage and asset-backed securities and/or in index/structured securities. These financial instruments may be rated below investment grade.
  • Investing in any one of the above instruments may involve substantial credit/counterparty, market, liquidity, currency, leverage, index, interest, swap and downgrading risks. If the issuers default, or such securities or their underlying assets, cannot be realised or perform badly, investors’ entire investments may be lost. 
  • Some sub-funds' A inc share class may at its discretion (i) pay dividends out of the capital of the sub-fund, and (ii) pay dividends out of gross income while charging all or part of the fees and expenses to the capital of the sub-fund, resulting in an increase in distributable income available for the payment of dividends by the sub-fund and therefore, the sub-fund may effectively pay dividends out of capital. This may result in an immediate reduction of the sub-fund’s net asset value per share, and it amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. 
  • Some sub-funds' investments involve developing markets. Owing to its potentially higher volatility and risk levels, as well as lower political and economic stability than developed markets, asset values could be affected in various levels.
  • Some sub-fund’s investments may be more concentrated in terms of industry risk than others that diversify across industries and may therefore be subject to higher industry risk than sub-funds with more diversified holdings.
  • Some sub-fund’s investments may be more concentrated than others that diversify across investments and may therefore be subject to higher risk than sub-funds with more diversified investments. 
The investment decision is yours. If you are in any doubt about the contents of this document, you should seek independent professional financial advice. Investors should not only base on this document alone to make investment decisions and should read the offering documents including the risk factors for further details.
Balanced Fund

For over 20 years, this dynamic allocation strategy has delivered our equity and fixed income expertise in a one-stop core solution.

Global Life
Sciences Fund

By understanding the science and business of health care, the strategy invests in companies addressing unmet medical needs or improving health care efficiencies.

Horizon Global Technology Fund

Aims to generate long-term capital growth through investment in a globally diversified portfolio of technology-related companies.

US Forty Fund

Our differentiated view from the market identifies growth where growth is scarce, which we believe positions our investments to outperform the index over time.

Balanced Fund

For over 20 years, this dynamic allocation strategy has delivered our equity and fixed income expertise in a one-stop core solution.

Global Life
Sciences Fund

By understanding the science and business of health care, the strategy invests in companies addressing unmet medical needs or improving health care efficiencies.

Horizon Global Technology Fund

Aims to generate long-term capital growth through investment in a globally diversified portfolio of technology-related companies.

US Forty Fund

Our differentiated view from the market identifies growth where growth is scarce, which we believe positions our investments to outperform the index over time.

Balanced Fund

For over 20 years, this dynamic allocation strategy has delivered our equity and fixed income expertise in a one-stop core solution.

Horizon Global Technology Fund

Aims to generate long-term capital growth through investment in a globally diversified portfolio of technology-related companies.

Global Life
Sciences Fund

By understanding the science and business of health care, the strategy invests in companies addressing unmet medical needs or improving health care efficiencies.

US Forty Fund

Our differentiated view from the market identifies growth where growth is scarce, which we believe positions our investments to outperform the index over time.

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For more information on how to harness the power of disruption in your portfolio, please contact us.
For more information on how to harness the power of disruption in your portfolio please contact us.
For more information on how to harness the power of disruption in your portfolio please contact us.

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C-1019-26912 10-15-20

OverviewDisruption in ContextDisruption DriversInvest in Disruption
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