JANA Spark is an online portal designed to provide JANA’s clients with easy access to a showcase of our insights and thought leadership as well as highlighting interesting industry content.




JANA Insights

US Elections Outcomes - Some Implications


November 2020
Steven Carew, Chief Investment Officer


The outcome of the election in the United States has seen Democrat Joe Biden claim victory in the Presidential election. However, counting in some close states is not complete and the Trump campaign has called for recounts or has launched legal action with respect to the conduct of the election in some states.


In this article
  • In this brief Note, we consider the implications of this outcome on policy, the US economy and society, trade and foreign policy, and for investors.

Read more 8 min read

Internet access and connectivity is now an essential service for consumers and businesses and this trend has been accelerated by COVID-19. Digital infrastructure assets such as datacentres, fibre networks and telecom towers play a critical role in enabling global internet networks. In this session, a panel of leading infrastructure investors will discuss opportunities and emerging trends in digital infrastructure.


In this article
  • What makes these assets infrastructure and what are the fundamental attributes they share with traditional infrastructure assets?
  • What type of digital infrastructure assets should investors consider investing in?
  • What key risks should they consider and how exposed are digital infrastructure assets to underlying technology risk?
  • What does the future hold for this sector?
Read more 5 min read
Conferences

JANA 2020 Pre-Conference Session 2: Harnessing Growth from the Transition to New Economic and Social Dynamics


November 2020
Greg Wilkinson, Head of Insurance Strategy
Raymond Lam, Senior Consultant


The coronavirus pandemic has accelerated the already rapid transitions taking place in the global economy and society, creating strong growth opportunities. David Eiswert of T. Rowe Price will provide his insights on how to harness this growth, by identifying these changes/ trends and the companies best placed to benefit, while also managing the risks, including assessing the valuations of these stocks.


In this article
  • Covid has accelerated change and resulted in an extremely bifurcated market, however the future opportunities in a post-Covid world may not be as obvious;
  • There are potential valuation risks in companies that have done well from Covid over the short-term but aren’t real winners over the long-term, i.e. ‘growth imposters’;
  • Valuation always matters, it just matters most at extremes.
Read more 5 min read
Conferences

JANA 2020 Pre-Conference Session 3: Investing in Challenging Times: Tools for the Road


November 2020
Bill Dwyer, Senior Consultant
Ed Giudice, Senior Consultant


The transitions occurring in the global economy and society pose many challenges for investors. Global equity investor Sharon Fay of AllianceBernstein shall reflect on her experience of investing through challenging times and discuss some of the tools that investors can draw upon, including active management, ensuring diversity of investment approaches, and the assessment of ESG risks including climate change.


In this article
  • Keep the long view in perspective;
  • Generating alpha isn’t easy;
  • Use active and passive;
  • One style investing is risky;
  • Don’t ignore ESG.
Read more 7 min read

The trends towards economic ‘de-coupling’ of China from other countries, particularly developed countries, and ‘regionalisation’, often touted as the next phase of globalisation, may be accelerated as a result of the COVID-19 pandemic. In this session, our panel of Asia-based investors will explore the opportunities and risks for China and Asia more broadly of these trends, and the implications for investors.


In this article
  • The terms “de-coupling” and “regionalisation” are buzzwords that are increasingly associated with the ever-changing geopolitical landscape faced by the global economy. At the centre of this is China and Asia and how their relationships with other countries as well as each other may change, particularly in a post COVID-world. At the JANA Conference 2020 a panel comprised of highly experienced, Asia-based experts unpacks these themes along with the implications on economies and markets that investors should pay heed to.
Read more 4 min read

Over the past decade, Australian equities have produced high dividends, but returns have lagged the US market. In this session, three leading Australian equity managers will consider if this will remain the case, or whether changes in the dominant sectors such as banking, mining and retailing and the increasing representation of ‘new’ industries will see a transition to a higher growth market.


In this article
  • The panel believe that there are some structural issues with respect to the Australian equities market, but the market has already adapted to these issues and offers opportunity to investors wanting exposure to growth companies and investors who prefer higher income certainty.  The panel also believe that ESG is very important in companies extracting long term higher returns, while diversity of thought and experience is important at board level.
Read more 2 min read

The theme of our conference is the world in transition over the next decade, and we believe climate change is a key consideration in this. However, it can be challenging to understand what to do. This session will focus on how asset owners, both locally and globally, are addressing climate change, as well as the trends that are being observed.


In this article
  • As markets and economies align to the globally recognised need to keep warming as close to 1.5o as possible, the unprepared will be taking on heightened unrewarded risk
  • This risk puts climate change consideration clearly into the category of fiduciary responsibility for asset owners
  • While the topic and required action can appear broad and complex there has never been more support for action and making progress.
Read more 4 min read

Has COVID-19 driven a final push lower in very loose monetary and fiscal policy worldwide, the rise of on-line business models, and de-globalisation, or was the world going down this path anyway? Two leading economic thinkers, Andrew Balls of PIMCO and John Butler of Wellington, will provide their perspectives on the future direction of the global economy post the pandemic.


In this article
  • COVID-19 further reinforced the existing environment of low global growth, low interest and inflated asset valuations, and accelerated de-globalisation.
  • But it also appears to have triggered change in some key themes including the shift from monetary to fiscal dominance and risk of higher inflation over the medium to long term.
  • Investors need to be realistic about future return expectations given starting valuations. Key topics for investors to consider are the value of cash safety and the importance of diversification looking ahead due to differences in fiscal support across countries resulting in greater idiosyncratic risks.
Read more 7 min read
JANA Insights

Caution Warranted in a Time of Easy Money


October 2020
Michael Mulcahy, Principal Consultant



In this article
  • JANA’s quarterly asset allocation meeting is one of the most powerful forums we have as it brings together the top down macroeconomic analysis and considerations of the Capital Markets Group (CMG), with the bottom up micro and macro findings of the firm’s asset class research teams. This debate of the whole firm in one room, which draws upon the 100s of investment manager and strategist meetings that we are privileged to participate in, creates an environment that leads to insights, we believe, that are greater than the sum of the parts.
Read more 5 min read
JANA Insights

October 2020 Monthly Economic Update


November 2020
Steven Carew, Chief Investment Officer


JANA holds fortnightly all-staff research meetings on Monday mornings, and once a month a member of our Capital Markets Group provides the business with a snapshot of JANA’s major economic developments from around the globe.


In this article
  • US:  While a recovery in economic activity is underway, the accelerating pandemic will remain a headwind
  • UK:  Economic activity is picking up, but renewed COVID-19 controls will dampen the recovery
  • Euro Zone:  The economic recovery is showing signs of stalling and is under pressure from rising infection rates
  • China:  After a sharp contraction in the March quarter, economic activity has rebounded strongly
  • Japan:  An already fragile economic outlook has been further weakened by the coronavirus impact
  • Australia:  An economic recovery is underway, but the initial rebound is moderating, leading to further policy support
  • New Zealand:  While the outlook has improved, the winding down of wage subsidies will be a major headwind
Read more 8 min read

JANA Market Commentary - September 2020


November 2020
Marc Wong, Investment Analyst


JANA’s monthly market commentary summarises global news and economic commentary that is material to markets.


In this article
  • Muted investor confidence as evidence of a second wave grew across Europe.
  • Increased dispersion of economic recovery across major economies.
  • Changes to the Fed’s inflation targeting policy, leading to the likely extension of low rates.
  • Depreciation of the Australian dollar and reduced bond yields due to broad risk off sentiment.
Read more 5 min read
JANA Insights

Member Outcomes: Bringing Retirement Adequacy to the Forefront


August 2020
Danielle Bose, Head of Retirement Strategies
Neil Maines, Consultant


JANA believes a key outcome of the SPS515 requirements is the enhanced focus on retirement adequacy. That is, what amount of retirement income is a superannuation fund’s default MySuper option expected to deliver for a fund’s members? Assessing retirement adequacy given the complex Australian retirement system can be challenging but we firmly believe this important endeavour can be achieved. We have outlined a practical, robust and flexible framework in the article below.


In this article
  • The key elements of JANA’s Framework for assessing Retirement Adequacy that are covered in this article include:
  1. Step 1: Construction of representative fund members
  2. Step 2: Consideration of appropriate retirement adequacy objectives
  3. Step 3: Assessment of likelihood of meeting retirement adequacy objectives
  •  In this article we have also included analysis from our proprietary model (JANA Solve). 
Read more 15 min read
JANA Insights

The unique role of Technology in investment portfolios


September 2020
Sam Pfitzner, Senior Investment Analyst


Over recent decades we have born witness to an incredible modern era of entrepreneurial innovation and creativity within the technology universe. Today, virtually every industry is now being (or has been) “consumed” by technology, with technology permeating into every part of the global economy, as well as our daily lives. Accordantly, within an investment portfolio, an exposure to technology can often provide unique advantages (and risks).


In this article
  • An overview of the unique and evolving role technology plays within investment portfolios.
  • The benefits of drawbacks of the different ways to access technology exposures.
  • As well as the potential structural impacts brought by COVID-19.
Read more 6 min read
JANA Insights

JANA Market Commentary – July 2020


September 2020
Natalie Thomas, Senior Investment Analyst


JANA’s monthly market commentary summarises global news and economic commentary that is material to markets.


In this article
  • The impact on the global economy from the coronavirus pandemic is large and broad.
  • Fuelled by optimism of the potential for a vaccine as well as some better than expected economic and earnings data, global equity markets continued to rally in July. 
  • The Australian Dollar appreciated against most of the major developed market currencies.
  • Most major bond yields fell during the month though the Chinese 10-year yield moved higher as economic data offered positive signs.
Read more 5 min read


In this article
  • Is the cost of your superannuation a casualty of the Coronavirus pandemic?

    Kirsten Temple JANA’s Manager of Research discusses what low interest rates mean for those who are relying on investment returns.

    ‘Superannuation funds and their members face a conundrum: continue to target the same returns knowing that it comes with higher risk – and a greater chance of failing to hit objectives - or accept that the cost of retirement will need to be funded more by current income.

    For each of us this is ultimately a trade-off between our current and future needs. It will be hard to put our future first while the economy remains fragile – but our future still needs taking care of.’
Read more 5 min read

Ausbiz Interview with Tim Conly




Tim Conly appeared on Ausbiz last week to discuss the findings of our recent study into the impacts of climate change for long term investors.