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.

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.

Horizon Biotechnology Fund

Investing in innovative companies addressing high unmet medical needs or improving the standard of care in the fast growing biotechnology sector.

Horizon Global Sustainable Equity Fund

A global equity strategy employing an integrated approach to sustainable and responsible investment (SRI).

Balanced Fund

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

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.

Horizon Bio-Technology Fund

Investing in innovative companies addressing high unmet medical needs or improving the standard of care in the fast growing biotechnology sector.

Horizon Global Sustainable Equity
Horizon Global Sustainable Equity Fund

A global equity strategy employing an integrated approach to sustainable and responsible investment (SRI).

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.

Horizon Bio-Technology Fund
Horizon Biotechnology Fund

A global equity strategy employing an integrated approach to sustainable and responsible investment (SRI).

Horizon Global Sustainable Equity
Horizon Global Sustainable Equity Fund

A global equity strategy employing an integrated approach to sustainable and responsible investment (SRI).

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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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OverviewDisruption in ContextDisruption DriversInvest in Disruption
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