Janus

Best Blogs of the Week #270

Posted by Anu Heda on Jul 10, 2017, in Best Blogs of the Week , tagged with ,

Happy July 4th week. So many blog posts; we focused on two with a particularly keen interest on the first post and the topic of portfolio construction.

BlackRock – Putting risk on a budget – We generally see two different approaches to portfolio construction aimed at improving the experience of the markets: 1) Achieve a return similar to your benchmark but with less total risk, or 2) generate a higher return than the benchmark, but at the same risk level. Refer to the chart below. Of the first set, only 35% of the portfolios we surveyed met the stated risk goal; in the second set, 53% met their risk target.

Janus Henderson – Meet the Newest Measure of Manager Performance: Phi –  The report finds that Phi, which attempts to quantify the combined motivational forces of purpose, habits and incentives of investment professionals, has a positive correlation to performance.

Construction

 

Best Blogs of the Week #269

Posted by Anu Heda on May 30, 2017, in Best Blogs of the Week , tagged with , ,

Hope everyone in the US was able to enjoy a good long weekend.

BlackRock – Common misconceptions about bond investing – Only about three in 10 (31%) of those surveyed correctly noted that if interest rates rise, the effect on the fixed income investments that investors already own is negative (when interest rates rise, bond prices fall).

Janus Henderson – The Three Pillars of Credibility – Carefully selecting a niche, or a Unique Business Tranche (UBT), means you can become a subject matter expert and further solidify your value among your clients. An easy way to define your niche is by personal affinity.

Wells Fargo – How thinking small could uncover value – The first reason equity valuations might look pricey could be due to flaws in the chosen valuation metric.

Everyone

The Top 3 Videos of 2016 (So Far)

Posted by Mike McLaughlin on Aug 08, 2016, in Thoughts , tagged with , , , , ,

Over the past few weeks I’ve spent A LOT of time looking at asset managers’ video content. I learned many things, but the most fun question to consider is a simple one: which videos are the best?

Below is a wholly subjective Top 3 list based on content posted to the YouTube catalogs of 25 firms since the start of 2016. Before we get there, a few quick thoughts:

  • There is a high-degree of sameness. Lots of talking heads covering lots of the same issues in similar formats. In fairness it’s not all that easy to be truly original with video in this industry.
  • Scripts are limiting. Having non-actors who are required to stick to a tight script is often a detriment in terms of being able to connect with presenters. Looser presentations have a little more snap to them.
  • Nothing is viral. It seems 98% of the video have view counts in the three figures (or less).
  • Production values are universally strong. Firms have mastered incorporating different angles, music, graphics, quick edits, and more.

That said, let’s get to the top 3…

3. Janus: Denver Pride Fest

So many firms have videos that TELL you about their culture. Voiceovers, brief looks at people in the office in various settings, you know the drill. This clip succeeds where those fall short – it SHOWS genuine aspects of the Janus culture. The video is only viewable on YouTube so click here or the image below to watch.

Janus

2. PIMCO: Asset Allocation for Equities in 2016

Over 25 seconds PIMCO uses one question, two statements, and two simple graphics to deliver its fundamental guidance on how the equity markets will go over the course of the year. No long-winded speeches, no multi-page paper… just a direct and clear message.

1. Schroders: Hidden Talent – Muy Thai

I am not sure how many topics would be more unexpected than Muy Thai in a video from an asset manager.

Morningstar’s Missing Ingredient

Posted by Mike McLaughlin on Nov 13, 2013, in Thoughts , tagged with , , ,

A few weeks back Morningstar published a short article called Investors Have Flocked to these So-So Funds. A good title and an analysis of why three purportedly mediocre funds with “lackluster profiles” remain successful in gathering assets had me hooked.

Unfortunately, the analysis left me disappointed. First of all, two of the funds had pretty clear (albeit superficial) reasons why investors would be attracted to them. The Federated Strategic Value Dividend Fund landed in the 97th percentile of its category for 2012 performance; the Janus Triton Fund has generated “strong returns” as Morningstar notes in its very first sentence and currently holds a 5-star rating.

The final fund of the three, the  T. Rowe Price International Growth & Income Fund, presents a more interesting case. Per Morningstar it has outperformed peers but not the index, has a portfolio largely undifferentiated from the underlying index, and carries a 3-star rating. Ok, so maybe this is an example of a so-so fund that is garnering assets. Why is that happening?

Morningstar never answers its own question. And the article makes obvious that Morningstar specifically fails to consider a singularly critical ingredient in a fund’s success: distribution. Maybe these funds have premium shelf space with broker-dealers, widespread presence on DC platforms, or just a good story supported aggressively and effectively by wholesalers.

Figuring out why good funds struggle and bad funds thrive is a great challenge, but answering it requires analyzing ALL of the variables that influence those outcomes.

The Rarely-Seen Mano-a-Mano Marketing

Posted by Mike McLaughlin on Mar 22, 2013, in Thoughts , tagged with , ,

Check out the banner and whitepaper from Janus, which is smack in the middle of its landing page for Institutional Investors:

The hook is clear: with equities, it's Janus v. Gross.

The hook is clear: with equities, it’s Janus v. Gross.

The asset management industry almost always takes a live-and-let-live approach to marketing. Certainly there are competing ideas and products, but not often is that competition made so specific in public, especially in print. Count me as a fan of the bold (and certainly smartly-opportunistic) positioning by Janus here.