JANA Insights

January 2020 Monthly Economic Update


February 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:  Moderate growth to continue
  • UK:  Brexit uncertainty continues to cloud the outlook
  • Euro Zone:  Outlook for growth remains modest
  • China:  Outcomes in 2020 will depend upon the impact of the coronavirus outbreak
  • Japan:  Growth outlook has improved but remains modest
  • Australia:  Growth expected to remain constrained
  • New Zealand:  Stable economic outlook expected
Read more 10 min read
JANA Insights

JANA Market Commentary - December 2019


January 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 ‘Phase One’ trade deal between the US and China has eased geopolitical concerns.
  • While most developed markets were strong, the US market outperformed.
  • Emerging markets markedly outpaced developed markets, broadly supported by the trade deal and US dollar weakness.
  • Australia lagged offshore markets, driven in part by a rise in the Australian 10-year yield and strengthening of the AUD.
Read more 3 min read
JANA Insights

Australian Airports continue to fly high


December 2019
Angela Ruchin, Senior Consultant
Sebastien Small, Senior Investment Analyst


On average, Australian airports make up about ~30% of JANA clients’ infrastructure exposure and most Australian investors with an allocation to infrastructure, have exposure to Australian airports. As such, the outcome of the Productivity Commission (“PC”) review, relating to the Economic Regulation of Australian Airports, has been eagerly anticipated by infrastructure managers, investors and airlines alike.


In this article

The PC has firmly concluded: 

  • the existing light-handed regulatory regime remains fit for purpose 
  • the airline proposal for a ‘negotiate-arbitrate’ regime was a “solution in search of a problem” 
  • the “negotiate-arbitrate” regime being pushed by airlines was deemed to have few benefits and substantial risks. It should not be implemented.” 
Read more 7 min read
JANA Insights

APRA Heatmaps - Are Super Funds Left Sweating Unfairly?


December 2019
Matthew Griffith, Head of Portfolio Construction & Risk
Neil Maines, Consultant



In this article

Last week saw the release of the inaugural APRA heatmap, one of a suite of tools to be used by the regulator to try and drive up the quality of outcomes delivered to superannuation members.

The press coverage in the immediate aftermath of the release included as much discussion on the construction of the heatmaps themselves as there was on actual results achieved. JANA have provided our own observations on the heatmaps as well as suggested several improvements for future releases we think will address some of the criticisms raised by the industry.

Read more 25 min read
JANA Insights

November 2019 Monthly Economic Update


November 2019
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:  Gradual slowdown in growth continues
  • UK:  Growth outlook remains weak
  • Euro Zone:  Outlook for growth is deteriorating
  • China:  Economic activity continues to gradually slow
  • Japan:  Growth outlook remains weak
  • Australia:  Growth expected to remain constrained
  • New Zealand:  Slowdown in growth continues
Read more 9 min read
JANA Insights

JANA Market Commentary – October 2019


November 2019
Ben Coune, Investment Analyst


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


In this article
  • Geopolitical tensions appeared to ease during October for the big players.
  • A partial trade deal between the US and China tabled.
  • A no deal-Brexit was temporarily avoided after the deadline was extended.
  • Central banks retained their dovish stance.
  • Turkey invaded Northern Syria, anti-government/pro-democracy protests continued in Hong Kong, and civil unrest flared in Chile, Spain, Ecuador, Lebanon and Iraq.
  • The US Federal Reserve cut interest rates for the third time this year, to a range of 1.5% to 1.75%, and indicated further cuts would be unlikely.
  • The Reserve Bank of Australia cut the official cash rate by 25bps to 0.75%.
Read more 3 min read
JANA Insights

PRI in Person Conference Summary


October 2019
Tim Conly, Senior Consultant


PRI in Person is the largest responsible investment conference in the world, with c. 1800 delegates attending this year’s conference in Paris. This article provides a brief overview of the key topics discussed


In this article
  • This conference reinforced the message that Australian asset owners are grappling with the same challenges that global investors are, and that Responsible Investing is an evolution not a destination.  
Read more 5 min read

There is an increasing need for distribution networks, particularly the “last mile” logistics close to cities with high population bases.


In this article
  • In excess of 8.5 billion kilos of food is distributed throughout New York City (NYC) each year.  
  • NYC’s food distribution system serves 8.4 million residents, over 60 million annual tourists and hundreds of thousands of commuters on a daily basis.
  • NYC (like many global cities) has a high dependency on last mile distribution logistics which feeds into the retail supply chain.
Read more 5 min read
JANA Insights

How does the Domestic Private Debt Space compare Globally?


October 2019
Robert Moore, Head of Fixed Income
Young Jo Bae, Consultant



In this article
  • The Australian Private Debt market appears equally attractive to global private debt markets, on a risk-adjusted basis.
  • The paper takes a unique approach in directly comparing the characteristics of domestic private debt offerings to global private debt offerings.  
  • Previous papers on the Australian private debt space that JANA has reviewed have made comparisons to the liquid, leveraged loans market in the US, an approach we feel is inappropriate given the vast differences in liquidity between the markets.
Read more 2 min read
JANA Insights

JANA Market Commentary – September 2019


October 2019
James Leigh, Investment Analyst


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


In this article
  • Equity markets rebounded from weakness in August
  • There was mixed news in relation to trade; more tariffs were implemented by both sides and new trade talks were announced
  • Central banks continued to favour loose monetary policies amid fears of a slowdown in global growth
  • The US Federal Reserve cut rates by 25bp
  • The European Central Bank (ECB) also delivered accommodative monetary policy including the recommencement of QE
  • The Reserve Bank of Australia (RBA) left the official cash rate on hold at 1.0%
Read more 3 min read
JANA Insights

Securitisation


September 2019
Robert Moore, Head of Fixed Income



In this article
  • Securitisation markets offer investors attractive risk adjusted yields, via instruments that are not exposed to corporate credit risks. 
  • The market is a very large and complex space, only partially represented by indices, and is a sector that in JANA’s view enables skilled managers to add material amounts of “alpha”, more so than many other fixed income sectors.
  • This paper analyses the market, as well as a range of active, multi-sector securitisation strategies offered to institutional investors.
Read more 3 min read

The Australian equity reporting season was one of the weakest in over a decade with only a quarter of all companies reporting beating consensus earnings expectations.


In this article
    • Disappointing Australian equity reporting season with more downgrades than upgrades.
    • Corporate revenue declining, costs rising, earnings margins compressing, dividend expectations falling.
    • JANA maintains its view on the outlook for the Australian equity market as well as an underweight recommendation for Australian equity portfolio positioning.
Read more 3 min read
JANA Insights

Looking beyond the 70/30: Alternatives Research trip highlights


August 2019
Courtney Wilder, Senior Consultant
Iain North, Consultant


JANA’s Courtney Wilder and Iain North recently returned from a global research trip where they focused on a specific sub-set of alternative investment strategies that are in demand across our client base.


In this article
  • As clients seek solutions away from the status quo, research focuses on growth Alternatives as well as bond replacers
  • Multi-Strategy Quant, EM macro, Insurance-linked, Fixed Income Relative Value, and Merger Arbitrage specialists
  • Demand for alternatives continues to rise and is a priority for JANA research 
Read more 13 min read
JANA Insights

JANA European Study Tour


July 2019
Duncan Smith, Head of Consulting


Each year JANA hosts a client study tour, where clients are invited to join Senior JANA staff on an investment trip focusing on a specific global region. This year the study tour focused on Europe, in particular the impact of Brexit.


In this article
  • Potential outcomes and implications of Brexit and UK elections
  • Short on the ground update on issues in the UK and Europe
  • In addition to the above learn about the JANA study tour
Read more 4 min read

JANA Insights

What do current market trends mean for infrastructure investors? Take-aways from JANA’s infrastructure research trip

July 2019
Claire Simpson, Co-Head of the Infrastructure Research Team Bharat Satghare, Consultant


In this article
  • Claire Simpson and Bharat Satghare from JANA’s infrastructure research team were overseas recently to meet infrastructure managers in New York and London. They share below their key insights from these meetings on the current infrastructure investment market.
Read more 4 min read


JANA’s Tania Freeman and Matthew Moon visited global private equity managers across five cities during a recent research trip concluding in May. Here they share their insights on how private equity managers are positioning their portfolios for the late cycle.


In this article
    • Where do managers think we are in the cycle?
    • How are they positioning their portfolios for the late cycle?
    • What should JANA clients be thinking about regarding late cycle investing?
Read more 3 min read
JANA Insights

The Death of LIBOR


July 2019
Steven Cross, Consultant


Once known as “The Number” in financial markets, LIBOR is now walking the green mile.


In this article
  • The UK's Financial Regulator will stop requiring the submission of data to support LIBORs at the end of 2021
  • What is the alternative?
  • Will you be ready?
Read more 5 min read