Investing Together: Client Conversations

Key takeaways:

  • Macro drivers tied to geopolitical realignment, demographics, and the return of the cost of capital continue to be high on the agenda, with active rather than passive investing seen as better suited to taking advantage.
  • There is strong interest in fixed income, as well as in innovation themes like technology and biotech. Exchange traded funds (ETFs) are increasingly a vehicle of choice. Allocation views remain positive on the US and are becoming more constructive on Western Europe, developed Asia, and certain areas of emerging markets.
  • Demand continues for customisation of service and product to best suit individual needs. Clients are favouring Solutions offerings that blend expertise to start to bring the large amounts of cash on the sidelines back into play.

In this video Ali Dibadj explores the topics that are currently front of mind for clients and setting the direction of our industry. High on the agenda are the three macro drivers that we’ve talked and written about previously Navigating change: Three drivers for long-term investment positioning.

Geopolitical realignment, demographic shifts, and the return of the cost of capital are combining to have a meaningful impact on the investment landscape. Higher borrowing costs in particular are separating the winners and losers, and require a proactive approach to security selection as discussed in What the higher cost of capital means for investors. Harnessing innovation themes, such as biotech, AI, and technology more widely, also suits research-driven investing.

In other areas, investors are beginning to add more risk to portfolios and considering a balanced equity and fixed income approach, emerging markets are again on the radar, and the services of portfolio construction & strategy teams are in growing demand as clients look for optimal positioning.

As Ali notes, there is optimism coming back into the industry and it is an exciting time for Janus Henderson’s 340+ active investing experts and 500+ client service specialists. Having been investing together with clients – and their clients – for 90 years, our commitment to delivering a brighter future for all is as strong as ever.