Global Perspectives

By Janus Henderson InvestorsBusiness News Investing Business News

Global Perspectives episodes

December 02, 2021Global Perspectives: Technology is Enabling Sustainability
Technology plays a pivotal role in the transition towards a more sustainable world and is a deflationary force. This episode explores these themes and the investment opportunities.
Key takeaways:
Technology is providing solutions to major environmental and social challenges, and as a consequence, providing attractive long-term growth opportunities.
Tech innovation is inherently a deflationary force, alleviating labour, natural resources and other supply shortages by improving efficiency and productivity.
Permeating every aspect of our lives, technology is a truly broad sector, offering an opportunity set going beyond the standard classifications of a tech company.
35 min
November 02, 2021 Research in Action: Investing in the Renewable Revolution
In a new series from Janus Henderson, Research in Action, Director of Research Matt Peron explains the magnitude of the energy transition now taking place in the economy and what investors should consider as the switch to renewables unfolds.
Key Takeaways:
In the U.S., the shift to renewable energy could require as much as $1 trillion in spending per year, with implications for almost every area of the economy.
While that level of spending may not be feasible, significant investment is occurring in select technologies that will be key to moving the transition forward, such as battery technology.
Diversification can help manage downside risk as technologies emerge. A pragmatic approach to investment timelines is also important. Real-world constraints, for example, could create near-term volatility for long-term investment opportunities.
23 min
October 21, 2021 Global Perspectives: ESG Is More Than a Score
In the latest episode of Global Perspectives, Head of Global Sustainable Equities Hamish Chamberlayne and Portfolio Manager Aaron Scully join Adam Hetts, Global Head of Portfolio Construction and Strategy. The trio dig deeper into sustainable investing, discussing how ESG analysis is more than just a "score" and how sustainable investing truly impacts the risk and return of all investors’ portfolios.
Key Takeaways:
ESG analysis should consider the physical and transition risks associated with climate change. Transition risk is the risk that a company’s business model will not adapt to the move toward a green and clean economy. Meanwhile, the physical risks of climate change go beyond hurricanes and floods and should consider where a company’s assets are located and what this means for its business.
There are many examples of technology driving productivity and being deflationary. In many cases, renewable energy is cheaper than traditional thermal generation for electricity. We expect the price of renewable energy to continue to come down and the adoption of renewal energy to increase, which should be deflationary over time.
We are standing at the beginning of what appears to be a transformational decade with an expected acceleration in investment and deployment of clean technologies across multiple sectors and industries. We believe that transformations can be driven by decarbonization.
27 min
September 22, 2021 Global Perspectives: No One’s Listening to the Bond Markets
Jenna Barnard and John Pattullo, Co-Heads of Strategic Fixed Income, join Adam Hetts, Global Head of Portfolio Construction and Strategy, to talk through their views on bond markets. They explain why they think bond yields have behaved logically throughout the year and why they disagree with the pervasive linear thinking of higher bond yields ahead. Bond markets are signaling where interest rates are heading but people seem to be oblivious to the message.
Key Takeaways
Bond yields in 2021 have behaved logically, reacting to the rate of change in economic data. As such, the peak in sovereign bond yields (in March/April) coincided with the peak in acceleration in the rate of economic growth. Yields have since declined with the deceleration in the rate of change of economic data and not, as the media would put it, because of short covering or the Delta variant.
A clue to the bond market’s thinking on the long-term outlook for rates came after the U.S. Federal Reserve announced two rate hikes in 2023; the yield curve flattened as it would at the end of a hiking cycle, signaling a lower long-term neutral rate of interest.
Next spring/summer will prove interesting for the bond investor. This is because we expect to see a reverse base effect – i.e., the base effects that drove inflation up this year will be very hard to beat next year, and we expect to see the first signs of what the structural outlook will be in terms of inflation. We are open‑minded to potential new lows in bond yields occurring next year.
32 min
September 22, 2021 Global Perspectives: No One’s Listening to the Bond Markets
Jenna Barnard and John Pattullo, Co-Heads of Strategic Fixed Income, join Adam Hetts, Global Head of Portfolio Construction and Strategy, to talk through their views on bond markets. They explain why they think bond yields have behaved logically throughout the year and why they disagree with the pervasive linear thinking of higher bond yields ahead. Bond markets are signaling where interest rates are heading but people seem to be oblivious to the message.
Key Takeaways
Bond yields in 2021 have behaved logically, reacting to the rate of change in economic data. As such, the peak in sovereign bond yields (in March/April) coincided with the peak in acceleration in the rate of economic growth. Yields have since declined with the deceleration in the rate of change of economic data and not, as the media would put it, because of short covering or the Delta variant.
A clue to the bond market’s thinking on the long-term outlook for rates came after the U.S. Federal Reserve announced two rate hikes in 2023; the yield curve flattened as it would at the end of a hiking cycle, signaling a lower long-term neutral rate of interest.
Next spring/summer will prove interesting for the bond investor. This is because we expect to see a reverse base effect – i.e., the base effects that drove inflation up this year will be very hard to beat next year, and we expect to see the first signs of what the structural outlook will be in terms of inflation. We are open‑minded to potential new lows in bond yields occurring next year.
32 min
August 10, 2021 Global Perspectives: The Case for REITs in the Economic Recovery
Real Estate Investment Trusts (REITs) have staged a strong recovery since their pandemic lows. In this episode, Adam Hetts, Global Head of Portfolio Construction and Strategy, is joined by Global Property Equities Portfolio Managers Guy Barnard and Greg Kuhl to discuss the benefits offered by the asset class amid rising inflation expectations, and why an active approach is warranted in a dynamic sector with attractive growth potential.
Key Takeaways
Real estate fundamentals are strong, especially for those property types with pricing power and that are less impacted by the pandemic.
Historically, a positive relationship has existed between inflation and REITs, thanks to leases that typically have a built-in inflation uplift, boosting income.
REITs are entering a new era, with improving operational sophistication, better access to capital and more focus on sustainability, which should help drive investor returns.
39 min
August 10, 2021 Global Perspectives: The Case for REITs in the Economic Recovery
Real Estate Investment Trusts (REITs) have staged a strong recovery since their pandemic lows. In this episode, Adam Hetts, Global Head of Portfolio Construction and Strategy, is joined by Global Property Equities Portfolio Managers Guy Barnard and Greg Kuhl to discuss the benefits offered by the asset class amid rising inflation expectations, and why an active approach is warranted in a dynamic sector with attractive growth potential.
Key Takeaways
Real estate fundamentals are strong, especially for those property types with pricing power and that are less impacted by the pandemic.
Historically, a positive relationship has existed between inflation and REITs, thanks to leases that typically have a built-in inflation uplift, boosting income.
REITs are entering a new era, with improving operational sophistication, better access to capital and more focus on sustainability, which should help drive investor returns.
39 min
July 15, 2021 Global Perspectives: Come on down: is inflation priced right?
Join Adam Hetts as he speaks to Jim Cielinski, Global Head of Fixed Income, about the direction of inflation and some of the potential pitfalls in traditional “inflation protection” tools.
Key takeaways
Base effects are distorting inflation figures; a permanent rise in inflation likely requires a closing of the output gap and momentum in wage inflation.
Treasury Inflation Protected Securities and floating rate securities may solve one type of risk but can open up investors to other under-appreciated risks; what’s more investors are not absolved of the need to avoid overpaying.
The world may be less synchronized exiting the pandemic, creating potential opportunities for active investors in emerging markets and across the credit spectrum.
36 min
July 15, 2021 Global Perspectives: Come on down: is inflation priced right?
Join Adam Hetts as he speaks to Jim Cielinski, Global Head of Fixed Income, about the direction of inflation and some of the potential pitfalls in traditional “inflation protection” tools.
Key takeaways
Base effects are distorting inflation figures; a permanent rise in inflation likely requires a closing of the output gap and momentum in wage inflation.
Treasury Inflation Protected Securities and floating rate securities may solve one type of risk but can open up investors to other under-appreciated risks; what’s more investors are not absolved of the need to avoid overpaying.
The world may be less synchronized exiting the pandemic, creating potential opportunities for active investors in emerging markets and across the credit spectrum.
36 min
June 02, 2021 Global Perspectives: The Outlook for Tech through the Economic Reopening
Portfolio Manager Denny Fish joins Adam Hetts in a discussion of how different segments of the tech sector will likely be impacted through each phase of the global economic reopening and recovery.
26 min