Janus' "Straight Talk" Declares 2015 The Year of Volatility

Insights From Bill Gross, Myron Scholes and Other Janus Professionals on Key Themes for 2015

Company Release - 1/5/2015 10:52 AM ET

DENVER, Jan. 5, 2015 (GLOBE NEWSWIRE) -- Janus Capital Group today announced the release of "Straight Talk on 2015," a collective investment outlook on the year ahead, addressing key market themes such as uncertainty about global growth, divergent monetary policies and the changing direction of U.S. interest rates. The report features commentary on 2015's most pressing issues from Janus' foremost investing experts, including Bill Gross, Myron Scholes, Gibson Smith, Enrique Chang and more. Among all the lurking uncertainties of 2015, there is one predominant consensus in which all of Janus' investment experts agree – greater volatility lies ahead. The report is available on the Janus website at: www.janus.com/straighttalk2015.

"Investors face a complex landscape heading into 2015. Last year defied expectations in many ways. Investors are looking for expert guidance on how to navigate the markets in the coming year," said Bruce Koepfgen, President of Janus Capital. "There is not a one-size-fits-all model for today's investment landscape, and similarly, a single point of view about the year ahead seems insufficient. We have an enormous bench of intellectual capital across our multiple investment platforms, and believe our clients will find tremendous value in accessing the insights from many of the brightest and most respected investment experts in the industry in a single location." 

The following are highlights from Janus Capital Group's "Straight Talk on 2015":

  • Myron Scholes, Chief Investment Strategist
    "I think 2015 will be the year of volatility. There is a lot of uncertainty all around the world. If there are going to be more shocks, now would be the time to avoid over-reaching for the highest returns."
  • Gibson Smith, Chief Investment Officer, Fixed Income
    "Overall, my outlook for the global economy is a little more positive than others' right now. The risk of a higher rate environment in the U.S. in 2015 is real, albeit a significant move is unlikely. I think the wild card is if Europe and Japan do better."
  • Enrique Chang, Chief Investment Officer, Equities & Asset Allocation 
    "Exactly when it happens is hard to predict, but in the next year or two, I would expect company-specific fundamentals to start driving performance again. We've already seen that reversal take place with small-cap stocks, where higher-quality stocks have begun to perform much better. I would expect that trend to carry over across the market cap spectrum."
  • Ashwin Alankar, Global Head of Asset Allocation & Risk Management 
    "The one word that describes the current economic state is experimentation. We are running history's largest economic experiment with central banks all over the world injecting unprecedented amounts of liquidity over the last few years. We don't know how this experiment will end, but we do know that gross imbalances have been created, which amplify the risk of tail events."
  • Adrian Banner, Chief Executive Officer and Chief Investment Officer, INTECH 
    "A real question for any investment strategy next year will be whether it can dynamically adjust to the volatility that's observed in the market, and reduce portfolio volatility more aggressively as necessary. Investors can benefit from such an investment process that adjusts to put a greater focus on risk reduction when there's more observed market risk."
  • Nick Cherney, Chief Investment Officer, VelocityShares 
    "We have been in a regime of low volatility with intermittent spikes that have been very emotional in nature. We have been seeing these spikes accelerate, like the one on October 15, and it signals the really emotional state of the market. We expect volatility to continue to spike higher and more quickly with each one of these corrections until ultimately, we see a more substantial correction. Consequently, we also expect the cost of hedging to keep going up."
  • Bill Gross, Portfolio Manager of Janus Global Unconstrained Bond Fund 
    "Asset prices depend significantly on economic growth, and that isn't good news for investors in 2015. Aside from the United States, the growth outlook for developed countries and many emerging ones is subpar. Do not look, therefore, for economic growth to be the magic elixir for 2015. Almost all economies are facing structural headwinds..."
  • George Maris, Portfolio Manager of Janus Global Select Fund 
    "For China to be trading at a substantial discount to European market multiples, while recording 7% or even 6.5% real growth, seems like an attractive opportunity. Many investors are missing the big picture. For those who have a longer-term view and can withstand some short-term volatility, I expect exposure to this country to pay off over the medium to long term."

The complete version of Straight Talk on 2015, as well as exclusive video commentaries, are available on the Janus website at www.janus.com/straighttalk2015.

Editor's Note: Janus Capital Group experts are available to expand on their commentary found in Straight Talk on 2015. To arrange an interview, please contact Taylor Smith at [email protected] or (720) 726-5458.

About Janus Capital Group Inc.

Janus Capital Group Inc. (JCG) is a global investment firm dedicated to delivering better outcomes for clients through differentiated investment solutions. It currently has a number of distinct investment groups, including equity and fixed income teams within Janus Capital Management LLC, as well as subsidiaries INTECH Investment Management LLC and Perkins Investment Management LLC. Each brings a distinct perspective, style-specific expertise and a disciplined approach to risk. The firm's strategy for growth and development is based on continuing to expand a range of distinctive solutions across multiple asset classes and styles including equities, fixed & other income, alternatives, asset allocation and managed volatility.

At the end of September 2014, JCG managed approximately $174.4 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in London, Milan, Munich, Singapore, Hong Kong, Tokyo, Melbourne, Paris, The Hague, Zurich, Frankfurt, Dubai and Taipei.

Investing involves market risk. Investment return and value will fluctuate, and it is possible to lose money by investing. The views presented are as of the date published. They are for information purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or market sector. No forecasts can be guaranteed. The opinions and examples are meant as an illustration of broader themes, are not an indication of trading intent, and are subject to change at any time due to changes in market or economic conditions. There is no guarantee that the information supplied is accurate, complete, or timely, nor are there any warranties with regards to the results obtained from its use. It is not intended to indicate or imply in any manner that any illustration/example mentioned is now or was ever held in any Janus portfolio, or that current or past results are indicative of future profitability or expectations. As with all investments, there are inherent risks to be considered

Janus is a registered trademark of Janus Capital International Limited. © Janus Capital International Limited.

CONTACT: Media Contact:
         Taylor Smith
         [email protected]
         (720) 726-5458

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Source: Janus Capital Group Inc.