Janus Henderson launches multi-strategy fund
Janus Henderson has announced the launch of its new global multi-strategy fund which will invest in diversified alternative assets.
The Janus Henderson Global Multi-Strategy fund would be backed by the firm’s experience in multi-strategy investing, with the team managing over US$11.6 billion in assets globally. Currently run as a hedge fund domiciled in the Cayman Islands, it would now be available in an Australian managed investment scheme structure to wholesale retail and institutional investors.
The fund would offer exposure to alternative assets, while seeking to minimise risk through separate portfolio protection strategies and would have minimal correlation with the performance of the major asset classes, offering investors diversified protection as part of a balanced portfolio
The Janus Henderson Global Multi-Strategy fund would be co-managed by David Elms and Stephen Cain, based in London and Denver respectively, and supported by a global team of specialist portfolio managers based in Australia, the UK and US.
The fund would also use a portfolio protection strategy, which aimed to generate uncorrelated positive returns during periods of market stress and enable the other strategies to weather short-term market stresses, with the six key investment strategies being:
- Convertible arbitrage: aims to capitalise on mispricing of convertible bonds
- Event driven: looks to exploit pricing inefficiencies around corporate events or capital structures
- Equity market neutral: seeks to deliver alpha by investing long and short across pan-European equities
- Price pressure: aims to generate returns through the provision of capital to liquidity opportunities
- Risk transfer: looks to capitalise on supply/demand-driven imbalances in the derivatives market
- Portfolio protection: seeks to mitigate left tail risk through a multi-faceted protection strategy.
“We continue to see investors in the region demand a wider range of performance drivers in their portfolios to help them ride out this financial market instability. We are therefore focused on ensuring Australian investors can access the best of Janus Henderson’s suite of global investment offerings,” Matt Gaden, head of Australia, said.
“This new global multi-strategy draws upon our experience and expertise across the global business. The broad toolbox of strategies gives our experienced investment management team the flexibility to take advantage of opportunities through different market cycles, while mitigating risk exposure during volatile markets.”
The fund would aim to deliver positive absolute returns, regardless of market conditions, and to outperform the Bloomberg AusBond Bank Bill Index by 7% per annum (before fees) over rolling three-year periods. It would also aim to do so with low levels of volatility, expected to be 4-8%, the firm said.
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