Ratings

09 Feb 2023

  Janus Henderson

Janus Henderson: Global Perspectives: Seeking to mitigate risk with Alternatives

Steve Cain and David Elms from the Diversified Alternatives team join Adam Hetts, Global Head of Portfolio Construction and Strategy, to discuss liquid alternatives at a time when investors are re-evaluating more traditional portfolio allocation philosophies.

Key takeaways:

  • Inflation remains a key factor in determining the shape of investors’ portfolios. A lot depends on whether we are at the end of the inflationary cycle, with disinflation ahead, or if inflation is going to be more persistent.
  • We believe a multi-strategy approach should be designed to deliver consistent, long-term returns uncorrelated to traditional assets and seek to balance exposure to a range of adaptive “alternative” strategies designed to thrive in abnormal market environments.
  • The ability to adjust exposure to the varying underlying strategies is a powerful tool that can help investors to capture different forms of stress or opportunity in the marketplace.

IMPORTANT INFORMATION

Fixed income securities are subject to interest rate, inflation, credit and default risk. As interest rates rise, bond prices usually fall, and vice versa.

High-yield bonds, or “junk” bonds, involve a greater risk of default and price volatility.

Foreign securities, including sovereign debt, are subject to currency fluctuations, political and economic uncertainty and increased volatility and lower liquidity, all of which are magnified in emerging markets.

 

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.


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