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New Fund Uses Dynamic Allocation Approach to Minimize Risk of Significant Loss Due to Market Downturn, Without Sacrificing Upside Potential of Capital Markets
Janus Capital Group Inc. (NYSE:JNS) today announced the launch of the Janus Adaptive Global Allocation Fund that aims to provide investors total returns by dynamically allocating assets across a portfolio of global equity and fixed-income investments.
Ashwin Alankar, Global Head of Asset Allocation and Risk Management, and Enrique Chang, Chief Investment Officer, Equities and Asset Allocation, are the fund’s portfolio managers. Chief Investment Strategist Myron Scholes, Ph.D., co-led the research and development of the fund with Alankar and will contribute to the overall investment strategy.
The Janus Adaptive Global Allocation Fund is designed to adapt allocations actively based on forward-looking views regarding extreme market movements, both positive and negative. The goal is to mitigate the risk of significant loss in a major downturn while participating in the growth of capital markets.
“A primary concern for investors is the risk of significant loss of capital, as well as the failure to take advantage of sustained upward-moving markets,” Alankar said. “While most investment approaches look for average outcomes, this adaptive global allocation fund seeks to manage outcomes that have the largest impact on growth, namely left and right tail events.”
The launch of the Janus Adaptive Global Allocation Fund furthers Janus’ Chief Executive Officer Dick Weil’s intelligent diversification strategy, which included the July 2014 hiring of Alankar and Myron Scholes to begin designing asset allocation options for clients.
“The addition of Ashwin Alankar and Myron Scholes last year provided the platform to launch a fund that directly addresses client concerns around tail risk,” Chang said. “Ash, along with our equity and risk management teams, have built an attractive core offering designed to avoid large drawdowns while allowing clients to participate in upwards moving markets.”
Janus Adaptive Global Allocation Fund is tailored primarily for advisors and their clients. The Janus Adaptive Multi-Asset Strategy, tailored for institutional investors, will launch on June 30. The institutional strategy will differ from the fund in that it invests beyond equities and fixed income to include inflation-hedging assets, such as commodities and global inflation-linked bonds. In addition, it is an absolute return-oriented strategy with LIBOR as its primary benchmark.
