Janus Capital International, the international arm of Janus Capital Group, has announced the launch of a European Research Strategy for professional investors, managed by the Janus rese
Janus Capital International, the international arm of Janus Capital Group, has announced the launch of a European Research Strategy for professional investors, managed by the Janus research team and overseen by director of research Jim Goff.
It is an analyst-driven strategy with holdings and weightings in each sector determined by the firm’s seven global sector teams and consisting entirely of stocks that the Janus research team rates ‘buy’ or ‘strong buy.’
The strategy has been modelled on the firm’s existing US and global research platform and nearly 20-year track record of investing in European and global stocks. The investment process adopts a similar approach to the existing analyst-driven Global Research Strategy.
The investment objective will be long-term growth of capital. The strategy will be managed in a core with a growth bias style with the aim of producing excess returns over a full market cycle.
The portfolio will typically consist of 50-80 stocks with a position size of between one and four per cent, with a four per cent maximum at purchase and five per cent at market, and a EUR500m minimum market cap.
The primary benchmark will be the MSCI Europe Index with the MSCI AC Europe Index as its secondary benchmark. It will have an expected tracking error of between 4.0 per cent and 6.0 per cent.
‘This European equity launch will allow us to take advantage of our long track record of investing in European equities as part of our global strategies; and enable professional investors to use our research-driven approach when making an allocation to these markets,’ says Erich Gerth, chief executive of Janus Capital International.
‘This will also build on the demand we have seen for our US and global research-driven approach. I see the market for European equity strategies dominated by value orientated strategies, while this will be managed in a core growth style."
Goff (photo) says: ‘We start with our research rather than the benchmark. At Janus we encourage our analysts to gain a research edge through deep bottom-up research to allow us to invest with conviction in stocks from anywhere in Europe. Position sizes are determined without regard to the index weight and therefore industry and index weights are a residual of the process and not the driving force.’
Investors can invest in the European Research strategy either on a separate account basis or through the retail and institutional US dollar, euro and sterling denominated share classes of the Janus Capital Funds European Research Fund.
Janus Capital Funds are a series of Ireland-based funds, with segregated liability between sub-funds, introduced in 1998 by Janus Capital International.