September, 2023
Tile Janus Henderson Global Research Growth Fund (Fund) had a negative return and lagged the AISCI Wand ex-Austraka Max (net drvidends reinvested) in ADD (Benchmark) for the month. A fund overweight and stock selection in the information technology sector dampened relative performance. Stock sesecbon in trie consumer erscretionary also nun resuns. Stock selection in industrials and matenals contnbuted CO relative performance.
A number of information technology sectors were relative detractors. as they gave back ground after strong performance earlier in the year. These ins ided semiconductor equipment manufacturer ASML Holding. as shares declined despite the company's solid second-quarter earnings. ASML's management team has voiced caution over the near-term business outlook. given elevated customer inventory levels and global economic uncertanty. This caution has worted on me stock performance in recent months. Desple this uncertainty. we reman upbeat on longer-term prospects for the company gwen its strong compebtwe positioning, track record or innovation. and attractive rex/reward. AdOlionally. we expect mat the rollout of °Wheel inteeigence will cove more demand for advanced semiconductors. and for me specialized equipment used to produce them.
Relative performance was also dampened by our position in Remoci Ricard. This leading goobal sons company owns brands such as Absolut vodka and hiumm champagne. The stock has faced neadwinds as the company management team has warned of stowing beverage sires in the US. and espeoally n Chma, vmere the post-reopening recovery has been weaker than anticipated. On a positive note. the company has experexecl market gams in other areas. such as inaa. I he management learn has also reiterated a commitment to margin improvement. especially as inflation pressures have abated. We remain invested in Remcci Ricard due to its strong market positioning and cinerslied product portfolio.
Relative performance benefited from our investment n T ea Resources. a Canadian miner Of copper, zinc, and coking coal. Despite economic headvanos. tne company nes reported progress in improving reducing expenses and improving its operating margins The company has also benefited from higher zinc pnces 7 he company management nas continued to express an interest in spinning off its coking coal business. venal would arow d to locus more on as green metals (copper) business.
Ferguson. another contributor. provides &twang super*, and otner building products to Coln the residential and commercial markets. The company reported solid quarterly restAts. showing resilience in both its revenue growth and margins despite economic neadwinds for construction. Adoitionally. Ferguson nas continued to gain share and grow at a raster pace than its end markets. We continue to me Ferguson tor its strong competitive position and tts large and growsng market share.
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The Janus Henderson Global Research Growth Fund (Fund) outperformed the MSCI World ex-Australia Index (net dividends reinvested) in AUD (Benchmark)for the month. Stock selection in the financials and health care sectors lifted relative performance. Stock selection in the information technology and consumer staples sectors detracted.
Among individual holdings, relative performance once again benefited from our investment in information technology holding Nvidia. The graphics chlpmaker experienced accelerating demand for its data center graphics processing units (GPUs), which are used in generative artificial intelligence (Al) applications. NvIdla reported very strong second-quarter revenue growth that well exceeded analyst targets. It also raised guidance to reflect surging demand for its products from data centers, cloud service providers, consumer Internet companies, and Al startups. Moreover. it reported strength in its gaming business fueled by robust demand for its RTX 40x Ada Lovelace GPUs.
Alphabet was another standout performer. In July, the Google parent company reported results that exceeded analyst expectations across nearly ever metric. Revenues from its search business. YouTube advertising, and cloud-based offerings were especially strong. The company also announced a larger-than-anticipated headcount reduction. as the management team focused on managing expenses and expanding margins. This news continued to support the stock performance in August.
Elsewhere in the portfolio. pharmaceutical company Eli Lilly was a notable performer. The stock rose to a record high after the pharmaceutical company reported better-than-expected top- and bottom-line results and increased guidance, supported by surging demand for its diabetes drug Mounjaro. Mounjaro is also undergoing clinical trials as a treatment of obesity. Additionally. expectations are high for the company's prospective treatment for early symptomatic Alzheimer's disease.
On a negative note. Penrod Ricard was a prominent detractor from relative performance. This leading global spirits company owns brands such as Absolut vodka and Mumm champagne. The stock declined in August after the company's management team warned of slowing sales In both China and the U.S.. as economic pressures have dampened consumer demand for high end spirits. On a positive note. company management indicated that easing cost pressures may help improve operating margins going forward. The company has also seen improved business trends in other markets, such as India.
Semiconductor equipment manufacturer ASML Holding was another detractor, as the stock has faced pressures following strong performance earlier in the year. Company management voiced caution about the near-term business outlook, given elevated customer inventory levels and global economic uncertainty. We remained invested in the company because of its strong competitive positioning. We also see positive long-term fundamentals for chipmakers, such as ASML Holding, tied to the deployment of Al capabilities.
Finally. worries over the near-term economic outlook for China weighed on stock performance for online retailer JD.com, another relative detractor. However, the company reported solid revenue and profits growth despite competitive and economic pressures. These results reflected improved supply-chain management and market-share gains.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-1-3.pdfJuly, 2023
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World ex-Australia Index (net dividends reinvested) in AUD (Benchmark) for the month. Stock selection in the information technology (IT) sector detracted from relative performance. Stock selection in the consumer staples sector contributed.
Relative performance was hindered as several IT stocks gave background after very strong second-quarter performance. Microsoft was a notable detractor. The stock retreated in July after rallying in the second quarter on excitement around the technology company's artificial intelligence (Al) initiatives, including its efforts to infuse Al through its Office. Azure. Search, and other products. While the company's management hopes these efforts will strengthen long-term growth trends across its business, the benefits of this investment may not be realized until 2024 or beyond. As investors recognized this potential lag. the stock lost ground. Microsoft also reported weaker-than-expected earnings for the second quarter of 2023. and these results also weighed on the stock performance.
Hexagon. another laggard, is a technology company that develops sensor. software, and automation solutions used across industrial. manufacturing, and other industries. The stock sold off after Hexagon's second-quarter results fell short of analyst expectations. Despite missing its earnings targets, the company reported positive business trends and new business wins. The company management team also reiterated a commitment to pursuing efficiency improvements.
Taiwan Semiconductor Manufacturing Company (TSMC) was another relative detractor. While TSMC reported better-than-expected second-quarter results, it disappointed investors by reducing its full-year guidance. Company management also warned that the cyclical downturn in chip demand may be deeper than expected, while the subsequent rebound in chip sales into 2024 may be more muted than anticipated. Despite near-term uncertainty, we remain upbeat on our longer-term outlook for TSMC given its strong competitive positioning and new product introductions across gaming, data center. automotive, software, and services. We also believe TSMC is well positioned as critical supplier of chips needed to support Al-related activities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/factsheet-janus-henderson-global-growth-research-fund.pdfJune, 2023
Among individual holdings. Parker-Hannifin was a top positive contributor to relative performance. Parker-Hannifin manufactures motion and control technologies and systems used in automation and other industrial and aerospace applications. The company reported better-than-expected revenue and earnings. and it raised its sales and earnings guidance for the fiscal year. The company is also exploring partnerships to utilize artificial intelligence (Al) and machine learning within its solutions.
Graphics chip company Nvtdia was another notable contributor. The company is experiencing a demand inflection for its data center graphics processor units (GPU). which are used in generative Al applications. It has also reported positive results and robust guidance. as investments in generative Al have fueled increased demand for its products from data centers. cloud service providers, consumer internet companies, and Al startups.
Microsoft was a relative detractor as the stock gave back some of its strong second-quarter performance. In April. the hardware and services company reported very strong first-quarter results, as both revenue and earnings-per-share growth exceeded analyst expectations. Additionally, Microsoft issued better-than-expected guidance as commercial bookings held up well despite a more challenging environment.
An underweight position in electric vehicle (EV) manufacturer Tesla hindered relative performance. The stock performance has benefited from several positive developments. including a charging network agreement with Ford. The stock also benefited from increased attention on Tesla's Al-powered and autonomous driving innovations. However, we remain concerned about consumer demand and elevated inventory levels. which have led the company to reduce vehicle prices in a number of markets. Given the potential pressure on margins. we remain comfortable with an underweight in the stock.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-16.pdfMay, 2023
The Janus Henderson Global Research Growth Fund (Fund) outperformed the MSCI World ex-Australia Index (net dividends reinvested) In AUD (Benchmark), assisted by an overweight and stock selection in the information technology sector. Investments in the communication services sector also contributed, due in part to stock selection. By contrast, stock selection in the materials sector detracted from relative performance.
Among individual holdings, graphics chip company Nvidia was a top relative contributor. Nvidia has benefited from its diverse portfolio of new products, including gaming chips that use artificial intelligence (Al) to enhance graphics. NVIDIA delivered very strong revenue and earnings growth for the first quarter. Nvidia's management team has also indicated that it expects data center demand to accelerate throughout 2023, as technology companies rush to deploy Al-related capabilities.
Alphabet was another positive contributor. The Google parent company reported better-than-expected first-quarter results, as its Search and YouTube revenues were relatively stable despite economic headwinds. Alphabets Google Cloud business also delivered its first quarter of profitability. Additionally, investors have responded positively to Google's plans to Incorporate Al functionality into its Workspace apps.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-15.pdfApril, 2023
The Janus Henderson Global Research Growth Fund (Fund) outperformed the MSCI World ex-Australia Index (net dividends reinvested) in AUD (Benchmark) for the month, aided by stock selection in the materials and information technology sectors. Investments in the health care and financials sectors detracted from relative performance, due in part to negative stock selection.
Top contributors among individual holdings included Teck Resources a cost-disciplined producer of steelmaking coal, copper, and zinc. The stock jumped higher on news that natural resources company Glencore made an unsolicited offer to acquire Teck Resources for a premium. Teck Resources reported better•han-expected results for the first quarter of 2023, while it maintained its lull-year outlook despite some weather-related production disruptions.
Relative performance also benefited from an overweight investment in computer hardware and services company Microsoft. Microsoft reported very strong quarterly results, as both revenue and earnings-per-share (EPS) growth exceeded analyst expectations These results showed strength across most major business lines, including Office 365, Dynamics. and Azure. Microsoft also issued better-than-expected guidance. Additionally, the stock has benefited from excitement around the company's artificial intelligence (Al) Initiatives. The company's management hope that infusing Al through Office. Azure. Search, and other products may strengthen long-term growth trends across the business.
Relative performance was lifted by the Fund's underweight position in electric vehicle (EV) manufacturer Tesla, as the stock declined in April. While the company reported relative robust production metrics for the first quarter of 2023, the pace of vehicle demand remained depressed in China despite the lifting of COVID restrictions. Tesla also reported slowing vehicle demand in the U.S. even as it announced additional price cuts. Taken together, slower demand trends and price reductions have raised concerns over its near-term eamings outlook. For this reason, we remain comfortable with an underweight position in the stock relative to the Benchmark.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-14.pdfMarch, 2023
The Global Research Growth Fund (Fund) outperformed the MSCI World Index (net dividends reinvested) in AUD (Benchmark) for the month, aided by its overweight and stock selection in information technology (IT). Stock selection in industrials detracted from relative performance.
A strong rally in IT stocks benefited several holdings, including computer hardware and services company Microsoft. The stock has benefited from increased investor interest In Microsoft's artificial intelligence (Al) initiatives. In late January, Microsoft announced it was investing $10 billion in OpenAI, the artificial intelligence company behind viral chatbot, ChatGPT. In February, Microsoft announced plans to integrate ChatGPT-related technology into its Bing search engine and Edge web browser. The company's management hopes that such investments will expand its search capabilities and help it compete against other search engines.
IT hardware and services company Apple was another standout performer for the month. Earlier in the first quarter. Apple reported weaker-than-expected top-and bottom-line results, which reflected some slowing iPhone sales as well as headwinds from production disruptions and currency pressures. However, these results were better than Investors had expected given global macroeconomic pressures. These headwinds have shown some signs of easing, while the relaxation of China's COVID-19 lockdowns has raised hopes for reduced supply chain Issues Additionally, Apple's management team also outlined plans to Increase returns by further monetizing its services business, and by looking for market share expansion opportunities in the emerging markets.
Alphabet was a notable positive contributor, as the stock rebounded from February underperformance in a broad-based technology rally. In February. the Google parent company reported lower-than-expected revenue and earnings growth, which in part reflected currency and macroeconomic headwinds. In March. investors focused more on growth potential tied to the company's longer-term initiatives. These included Al, where Google has outlined plans to introduce functionality into its Workspace apps such as Google Docs.
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File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-12.pdfJanuary, 2023
The Janus Henderson Global Research Growth Fund (Fund) outperformed the MSCI World Index ex-Australia Index (net dividends reinvested) in AUD (Benchmark) for the month, aided by stock selection in the information technology (IT) and consumer discretionary sectors.
Investments in financials and real estate detracted, due to both stock section and the Fund’s underweight allocations to these sectors. Semiconductor equipment manufacture ASML Holding was a top relative contributor for the month. ASML issued a robust 2023 top-line outlook, with revenues expected to grow by more than 25% despite headwinds for the broader semiconductor industry. Demand for the company's proprietary lithography equipment has been particularly strong. ASML has also benefited from a higher degree of earnings visibility because of its large order backlog. Our longer-term outlook for the company remains positive as we believe, even in a moderate recession, customers will continue to rely on ASML to advance their process technology roadmaps.
E-commerce and cloud computing company, Amazon.com, also contributed, as the stock regained ground following a fourth-quarter decline. Amazon reported fourth-quarter results in January. Revenue growth exceeded consensus forecasts, helping to alleviate some concerns about the impact of a weaker economy and inflation on retail spending. It also issued revenue guidance for the first quarter of 2023 that met consensus expectations. Additionally, the company reported progress in improving its margins as it reduced order fulfillment and shipping costs. It also announced headcount reductions.
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The Fund had a negative return and underperformed its benchmark for the one-month period. An overweight position in information technology and stock selection in communication services hindered relative performance. Stock selection in industrials and materials aided relative performance.
Among individual holdings, IT hardware and services company Apple was a notable detractor. The stock has faced headwinds since the company reported its third-quarter results. While it exceeded its top- and bottom-line growth targets. it cautioned of slowing year-over-year revenue growth due to currency headwinds and difficult sales comparisons. The company has also faced uncertainty because of softening advertising and gaming revenues, slower-than-anticipated iPhone 14 sales, and production disruptions caused by COVID outbreaks in China. Apple has, however, continued to deliver strong cash flow.
Due in part to investor concerns over the impact of a slower macroeconomic environment on its various businesses, Google's parent company Alphabet was another detractor. The company's leaders have cited currency shifts, difficult year-over-year comparisons, and generally lower advertising revenues as challenges for its near-term outlook. Despite the stock's decline, we believe Alphabet is well-positioned to benefit from secular tailwinds including the digitalisation of the economy and the growth of online video viewing.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-10.pdfNovember, 2022
The Janus Henderson Global Research Growth Fund (Fund) outperformed the MSCI World Index (net dividends reinvested) in AUD (Benchmark) for the month, aided by stock selection in Information technology and health care. Stock selection in consumer discretionary and communication services detracted.
Top individual contributors included ASML Holding, a manufacturer of semiconductor equipment. In October the company reported better-than-expected quarterly results, with record bookings and a massive orders backlog. Additionally, it raised its revenue and EPS targets for the next few years. supported by planned capacity expansions. Demand for its proprietary extreme ultraviolet (EUV) lithography scanners has been particularly strong. Our longer-term outlook for ASML remains positive as we believe that even in a slower global economy customers will continue to rely on ASML's technology to advance their road maps.
The stock of Taiwan Semiconductor Manufacturing Company also outperformed after falling in October on concems over a projected industry-wide decline in semiconductor sales next year. The company's guidance has been relatively positive for 2023 despite the more cautious forecast for broader semiconductor sales. Taiwan Semiconductor has benefited from sustained pricing power and diversified end markets, advantages that may support its relative performance even in a downcycle for the broader semiconductor market. Investor sentiment toward the company was also lifted by news that Warren Buffet's Berkshire Hathaway purchased more than S4.1 billion in TSMC stock. We remain upbeat in our longer-term outlook for Taiwan Semiconductor. as we believe new product introductions may bode well for Its long-term performance.
Nvidia also contributed, as the graphics chip maker reported slightly better-than-expected quarterly revenues. The company also raised guidance modestly to reflect moderate growth trends in gaming, data centers, and the automotive industry. Nvidia has continued to make new product announcements across gaming, data center, automotive, software, and services. Most recently, it introduced new gaming chips that use Al to enhance graphics. It also announced a multi-year partnership with Microsoft to create one of the world's most powerful Al-driven supercomputers. This project will require tens of thousands of Nvidia GPUs. as well as Nvidia's networking and enterprise software capabilities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-9.pdfOctober, 2022
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index (net dividends reinvested) in AUD (Benchmark) for the month, due primarily to negative stock selection within the consumer and technology sectors. Conversely. select investments within the industrial and financial sectors buoyed relative results.
On an individual stock basis, top relative detractors included consumer holding Amazon. The e-commerce company's shares declined after management reported third quarter earnings that broadly missed analysts' consensus estimates and guided lower for revenue growth during the upcoming holiday shopping quarter due to macroeconomic headwinds. Typically, a pillar of strength, the company's Amazon Web Services (AWS) segment reported year-over-year revenue that fell short of expectation& The lone bright spot was better-than-expected earnings per share.
Google parent Alphabet's management also issued weak guidance. The company's leaders cited currency headwinds, difficult year-over-year comparisons, and generally lower advertising revenues as the reason it reduced guidance. Although Google's search business showed year-over-year growth, this growth was offset by modest declines in YouTube ad revenues. Despite the stock's decline in October, we remain optimistic about long-term trends driving cloud adoption and maintained our position in the stock .
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-8.pdfSeptember, 2022
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index (net dividends reinvested) in AUD (Benchmark) for the month, due primarily to an overweight position in the weak performing technology sector. Select investments within the financial sector also detracted. Conversely, our selections within the health care and energy sectors lifted relative results.
Top individual detractors included semiconductor holdings Taiwan Semiconductor Manufacturing Company (TSMC) and graphics chip maker Nvidia. Both stocks fell in response to forecasts of an industry-wide decline in semiconductor sales next year. TSMC. a major chip supplier to Apple (another portfolio holding), also suffered from news that Apple will back off on plans to increase production of its latest iPhones this year due to lower-than-projected demand. Additional headwinds for US-based Nvidia included weaker-than-expected guidance Issued by management on the company's recent quarterly earnings call and export restrictions on high-end data centre chips to China imposed by the US Commerce Department. We remain upbeat In our outlook for both companies. TSMC recently reiterated Its 2022 full-year revenue growth forecast of 30% and Nvidia continued to make new product announcements across gaming, data centre, automotive, software, and service& Most recently, Nvidia introduced new gaming chips that use Al to enhance graphics. Notably. it plans to tap TSMC to manufacture the chips.
Another key detractor was United Parcel Service (UPS). The package delivery company declined alongside other delivery companies following a profit and revenue warning by FedEx, which cautioned that worsening macroeconomic trends, particularly in Asia and Europe, would negatively impact Its first quarter 2023 financial results. We are confident that UPS will be able to shrug off the negative sentiment and were pleased when management recently reiterated its 2022 guidance.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-7.pdfAugust, 2022
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World ex Australia Index (net dividends reinvested) (Benchmark) for the month, due primarily to an overweight position in the technology sector and an underweight in the energy sector. Weak stock selection within the consumer sector also hindered relative results. Conversely, our selections within the communications and health care sectors buoyed performance.
Top individual detractors included ASML, a manufacturer of semiconductor equipment. The company exceeded analysts' earnings estimates for the second quarter, reporting record bookings and a massive order backlog, particularly for its proprietary extreme ultraviolet (EUV) lithography scanners. However, its stock pulled back after management cut its 2022 revenue outlook in half due to delayed revenue recognition. Our longer•term outlook for ASML remains positive as we believe, even in a moderate recession, customers will continue to rely on ASML's technology to advance their road maps.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-6.pdfJuly, 2022
The Fund outperformed its MSCI World ex Australia Index (net dividends reinvested) (Benchmark) benchmark for the month, due primarily to positive stock selection within the technology and consumer sectors. Conversely. our overweight to the communications sector weighed marginally on relative performance.
On an individual stock basis. top relative contributors included e-commerce and cloud computing company Amazon.com. Investors bid shares higher following a better-than-expected second quarter earnings report. Strong demand for the company's cloud computing services contributed to its strong quarterly results.
Technology holdings Apple and ASML Holding also contributed to relative performance. Impressive quarterly earnings results and management's upbeat outlook for the upcoming quarter supported gains in Apple's stock. The computer hardware and services company reported high Phone 13 demand for the quarter ended June 30. as well as 24% year-over-year growth in paid subscribers for its services. Our research suggests Apple's strong execution has enabled it to successfully navigate the current challenging macroeconomic environment. Furthermore. we are excited about the company's recent market share gains in China. We believe Apple's integration of hardware. software. and services result in an impressive flywheel that is difficult for competitors to replicate.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-2-1.pdfJune, 2022
The Global Research Growth Fund (Fund) lagged its MSCI World ex Australia Index (net dividends reinvested) (Benchmark) Benchmark for the month, due primarily to an overweight position and negative stock selection in the technology sector. Weak stock selection within the consumer sector also hindered relative results. Conversely, an underweight position in the energy sector contributed to relative performance. Positive stock selection within the communications sector also helped.
On an individual stock basis. top relative detractors included semiconductor companies Nvidia and ASML Holding. Their stocks declined along with the broader semiconductor industry as recession fears sparked a rotation out of faster-growing companies into more defensive stocks. We believe these are high-quality businesses with durable growth drivers, strong management teams, robust margins and free cash flow generation. Although Nvidia is seeing slowing demand for several of the consumer products in which its chips are used, our long-term conviction in the company is strong. Its chips have powerful processing capabilities and are used across a variety of end markets and applications, such as gaming, data centres. automotive. artificial intelligence, and virtual reality. We also remain upbeat in our outlook for ASML, which continued to see robust demand and has strong order visibility well into 2023. In turn, the company is planning capacity increases across all of its product lines.
Notable detractors also included Canada-based mining company, Teck Resources. which saw its share price pull back in response to lower commodity prices. While disappointed with its stock performance in June. we are excited about Teck's progress in building out Quebrada Blanca Phase 2 (082), a low-cost, long-life copper project in northern Chile that is on target to begin production in the second half of the year. Q82 is expected to allow Teck Resources to double its copper production in 2023.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-1-2.pdfJanuary, 2022
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World ex Australia (net dividends reinvested) Index (Benchmark), due primarily to the weak results of select communications holdings and an underweight position in the energy sector. Key individual detractors included technology holdings ASML and Nvidia, both of which were impacted by the prospect of rising rates and subsequent weakness in the tech sector. ASML's stock was further pressured by concerns that a recent fire at its Berlin factory may materially impact the semiconductor company's production. However, after assessing the damage, the company reported that it expects the impact to be limited. Later in the month, management issued better-than-expected earnings. Streaming content provider Netflix also weighed on the Fund's relative results. Despite reporting another quarter of healthy revenue and member growth, a significant decline in members compared to the same period last year raised concerns about slowing growth. Also pressuring the stock was the company's weak guidance for the first quarter of 2022.
Our long-term outlook for Netflix remains positive, as the company's execution around content offerings continues to be strong: Recent metrics showed that Netflix TV shows accounted for six of the 10 most searched shows on the Internet globally and its movies represented two of the top 10 most searched movies globally.
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The Janus Henderson Global Research Growth Fund (Fund) outperformed ithe MSCI World Index ex Australia (net dividends reinvested) (Benchmark) in July by 0.49% net of fees, due primarily to positive stock selection and an overweight position in the information technology sector. Investment selections within the financial sector also contributed to relative gains. Conversely, results were limited by the weak performance of our communications and consumer holdings.
On an individual stock basis, top relative contributors came from the information technology sector, where our holdings in Microsoft and ASML drove outperformance. Microsoft gained following several analyst upgrades to the stock triggered by the software maker’s strong fiscal fourth quarter earnings report and upbeat guidance. ASML also reported strong quarterly earnings and projected robust growth in the second half of 2021. The producer of semiconductor manufacturing equipment reported gross margins of more than 50% in the second quarter and announced plans to return cash to shareholders through dividends and a new stock buyback program
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-3-1.pdfJuly, 2021
The Janus Henderson Global Research Growth Fund (Fund) outperformed ithe MSCI World Index ex Australia (net dividends reinvested) (Benchmark) in July by 0.49% net of fees, due primarily to positive stock selection and an overweight position in the information technology sector. Investment selections within the financial sector also contributed to relative gains. Conversely, results were limited by the weak performance of our communications and consumer holdings. On an individual stock basis, top relative contributors came from the information technology sector, where our holdings in Microsoft and ASML drove outperformance. Microsoft gained following several analyst upgrades to the stock triggered by the software maker’s strong fiscal fourth quarter earnings report and upbeat guidance. ASML also reported strong quarterly earnings and projected robust growth in the second half of 2021. The producer of semiconductor manufacturing equipment reported gross margins of more than 50% in the second quarter and announced plans to return cash to shareholders through dividends and a new stock buyback program.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-1-1.pdfMay, 2021
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index ex Australia (net dividends reinvested) (Benchmark) in May by -1.24% net of fees, due primarily to negative stock selection within the financials and consumer sectors.
On an individual stock basis, notable relative detractors included online retailer Amazon.com, technology hardware and services company Apple, and software firm Microsoft. All three stocks followed other mega-cap growth stocks lower as rapid vaccinations and an improving economy led many investors to gravitate toward more defensive names. Further pressuring Apple’s stock were regulatory concerns and several analyst downgrades, while expectations of less-robust earnings growth for Microsoft in fiscal year 2022 contributed to the decline in its share price. Our long-term outlooks for all three companies remain positive.
Amazon.com exceeded earnings estimates for its most recent quarter, reporting significant growth across its retail, cloud services, and advertising businesses. The company also announced plans to acquire MGM in pursuit of becoming the preferred destination for feature films. Apple and Microsoft also recently reported strong quarterly earnings, surpassing consensus estimates.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-5.pdfApril, 2021
The Janus Henderson Global Research Growth Fund ( Fund ) outperformed the MSCI world index ex Australia ( net dividends reinvested ) ( Benchmark ) in April by 2.08% net of fees, due primarly to positive stock selection within the communications and consumer sectors.
On an individual stock basis, top relative contributors include Alphabet and Amazon.com Alphabet stock rallied on news of quarterly earnings that handily beat consensus estimates on both the top and bottom lines. The parent company of Google enjoyed strong growth in its advertising business, particularly on YOUTube, which is increasingly being recognized as the dominant ad-supported platform in the connected Tv ecosystem. Alpahabets cloud revenue also jumped considersbly higher in the quarter
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-4.pdfMarch, 2021
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index ex Australia (net dividends reinvested) (Benchmark) by 1.70% net of fees in March. Key detraction came primarily from the consumer, health care and financial sectors, where weak stock selection dragged on results. On an individual stock basis, relative detractors included Taiwan Semiconductor Manufacturing Company (TSMC). After gaining steadily for several months, the semiconductor foundry company’s stock paused in March as investors took gains. We believe TSMC remains well positioned to benefit from current strong supply/demand dynamics for semiconductors and broad end-market demand strength. As a result, we maintained our position in the stock.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-3.pdfFebruary, 2021
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index ex Australia (net dividends reinvested) (Benchmark) by 1.35% net of fees in February. Areas of relative weakness included financials, where our underweight in the sector detracted from results. Financial stocks were among the market’s strongest performers in February, benefiting from a rising rate environment.
Our overweight in technology also detracted, as the sector sold off due to investors taking gains in strong-performing stocks and higher-trending rates. Conversely, positive stock selection within health care bolstered results. While we aim to outperform over shorter periods, our goal is to provide consistent outperformance long term by focusing on what we consider our strengths: picking stocks and avoiding macroeconomic risks. Stocks are selected by our seven global sector teams, which employ a bottom-up, fundamental approach to identify what we consider the best global opportunities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-2.pdfJanuary, 2021
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index ex Australia (net dividends reinvested) (Benchmark) by 0.64% net of fees. Negative stock selection among industrials and financials stocks drove the Fund’s underperformance in January. However, relative performance was buoyed by an overweight position and strong stock selection within the technology sector as well as the solid performance of several communications holdings. While we aim to outperform over shorter periods, our goal is to provide consistent outperformance long term by focusing on what we consider our strengths: picking stocks and avoiding macroeconomic risks. Stocks are selected by our seven global sector teams, which employ a bottom-up, fundamental approach to identify what we consider the best global opportunities.
On an individual stock basis, top relative detractors came from the financials sector, where our holdings in credit card companies Visa and Mastercard pressured results. Although both firms reported better-than-expected earnings for the quarter ended December 2020, these positive results were eclipsed by a decline in cross-border purchases and an uncertain global economic outlook. We are seeing incremental improvement in payment and volume trends at both companies and maintain an upbeat outlook for their stocks.
Software firm Adobe also hindered relative performance. A decline in investor confidence triggered by a smaller-than-expected fourth quarter 2020 beat in Adobe’s Digital Media segment continued to pressure the stock in January. Nonetheless, we are optimistic the digital transformation trends that accelerated during the pandemic will continue to provide long-term tailwinds to Adobe maintained our position in the stock.
Despite the Fund’s weak relative performance, a number of holdings contributed to results, including Microsoft. The pandemic has highlighted the importance of empowering front-line workers from around the world with the necessary technology. Beneficiaries of this trend include software developer Microsoft, which reported exceptionally strong quarterly earnings driven by growth in the company’s Azure cloud computing service.
Semiconductor foundry ASML also contributed strongly in January. Positive short-term catalysts include strong supply/demand dynamics for foundry companies, broad end-market demand strength and an uptick in sales of memory chips. Longer term, we believe increasing capital intensity, industry consolidation and rational capital expenditure will continue to support share strength for ASML.
Alphabet also gained and boosted relative performance. The parent company of Google continued to benefit from its position as a leader in online search and advertising. The company’s innovation in artificial intelligence and autonomous vehicles also continued to bode well for the stock.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Factsheet-Janus-Henderson-Global-Growth-Research-Fund-1.pdfNovember, 2021
The Janus Henderson Global Research Growth Fund (Fund) underperformed the MSCI World Index ex Australia (net dividends reinvested) (Benchmark) due primarily to an underweight position and negative stock selection in the financials sector. Financials and other cyclical stocks rallied amid the market’s rotation into businesses perceived likely to be the first to benefit from an economic recovery. Weak stock selection within the health care sector also weighed on relative results. Conversely, select holdings within the industrials sector buoyed relative performance.
Key individual detractors for the month included China-based Alibaba Group Holding. Shares of the e-commerce firm slid lower following news of the postponement of Ant Group’s initial public offering (Ant Group is the sister company of Alibaba). This negative news was compounded by recently introduced antitrust guidelines in China, which investors perceive as a potential threat to Alibaba’s market position, particularly given compressed margins in e-commerce business in China. We liquidated our position in Alibaba, redeploying assets from the sale into stocks we believe demonstrate more compelling risk/reward profiles.
Detractors also included Amazon.com, which traded lower following charges by the European Commission that the company breached antitrust rules by distorting competition in online retail markets. The market’s rotation out of companies benefiting from pandemic-related safe-athome trends also pressured Amazon’s stock. Microsoft’s relatively weak results also weighed on the Fund’s performance. Although the stock advanced in November, it lagged the broader market, which favoured cyclical, value-oriented stocks over high growth stocks. The company recently reported another quarter of double-digit growth, maintains a strong competitive position, and has leverage to the most powerful trends in technology. We consequently maintained our position in the stock.
Conversely, a number of Fund holdings buoyed relative performance, including aircraft engine manufacturer Safran and civil aviation training specialist CAE. Increased optimism about COVID-19 vaccines lifted transportation- and travel-related stocks, which have been battered during the coronavirus pandemic. Safran and CAE also reported better-than-expected quarterly earnings.
Strong contribution from Constellation Brands also lifted the Fund’s relative results. After declining in October, shares of the international beverage company rallied in November on data showing strong demand for at-home beverage sales. Constellation boasts an attractive portfolio of beer, wine and spirits.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/JanusHendersonDiversifiedCreditFund_MonthlyReport-2.pdfOctober, 2020
The Janus Henderson Global Research Growth Fund (Fund) outperformed the MSCI World Index ex Australia (net dividends reinvested) in AUD (Benchmark) due primarily to positive stock selection within the communications and health care sectors. Conversely, relative performance was hindered by the weak results of select financials and consumer holdings.
On an individual stock basis, top contributors included communications holdings Alphabet and Tencent Holdings. Google parent Alphabet reported fiscal fourth quarter earnings and revenue that handily beat analysts’ expectations and sent the stock soaring. Earnings highlights included a significant increase in advertising spending for its search and YouTube segments. China-based social media company Tencent continued to benefit from increased time spent online during pandemic-related quarantines. The stock received an additional boost in the final days of the month after a US appeals court rejected a Justice Department request to let the government immediately ban Tencent’s WeChat from being downloaded in the Apple and Google app stores.
Technology holding Avalara also contributed to relative performance. Through its cloud-based software platform, Avalara enables customers to more easily identify applicable tax rates, prepare and file tax returns, maintain tax records and manage compliance documents. Increased adoption of its compliance automation suite of products supported stock gains during the period.
While we were pleased with the Fund’s outperformance, select holdings detracted from our relative results, including consumer staples company Constellation Brands. Shares of the international beverage company slid lower on concerns of beer supply capacity issues, particularly in Mexico. We continue to like this stock for its attractive portfolio of beer, wine and spirits and were pleased to see improved momentum of on-premises beverage sales during its most recent fiscal quarter. We are also encouraged by the strong launch and sales of Corona Hard Seltzer during the spring and summer.
Financials holding Mastercard also detracted. The digital payments company’s stock declined after management reported third quarter earnings that fell short of analysts’ expectations. International transaction volumes were particularly weak. Positives for the business, however, included an acceleration in tailwinds such as rising e-commerce volumes, declining use of cash among consumers and an increase in business-to-business growth.
Another weak performer was Adobe. The software firm’s stock paused in October after strong gains in recent months. We believe the continued migration of work and leisure activities to the web during the pandemic bodes well for Software as a Service companies.
ticker: ETL0186AU
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https://www.janushenderson.com/en-au/investor/product/janus-henderson-global-research-growth-fund/
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release_schedule: Monthly
fund_features:
The Janus Henderson Global Research Growth Fund seeks long-term growth of capital by investing primarily in equity securities selected for their growth potential. It uses MSCI World Index ex Australia, net dividends reinvested, in AUD as the benchmark. The Fund is suitable for investor seeking exposure to growth securities and will understand the risks associated with investing in foreign securities as it is considered as a high risk investment.
- Invest in companies of any size located anywhere in the world (excluding Australia), from larger, well-established companies to smaller, emerging growth companies.
- May have significant exposure to emerging markets.
- Use derivatives for different purposes.
- It may invest in exchange traded funds or other collective investment vehicles in seeking to meet the Fund’s investment objective.
- Suggested investment timeframe is 5-7 years.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Growth
peer_benchmark: Foreign Equity - Large Growth Index
broad_market_index: Developed -World Index
structure: Managed Fund