Janus Capital unveils Gross's five-point plan for his new fund

Daniel Cancian WebFG News | 21 Oct, 2014 18:35 - Updated: 18:33 | | |

screenshot 10 01 2017 13 58 50

Janus Capital, Bill Gross’s new fund, will place an increased focus on liquidity and positive absolute return.

On Tuesday, the investment management company released a five-point plan to illustrate its vision for the Janus Global Unconstrained Bond fund, less than three weeks after Gross was officially named as manager of the fund, after quitting PIMCO at the end of September.

The Janus Global Unconstrained Bond fund was launched, initially as a US-only fund, for Gibson Smith and Darrell Watters in May 2014 and both will continue to work on the strategy alongside Gross.

Since Gross’s appointment, the size of the fund has increased from $12.8m to $79.13m between the end of June 2014 and the end of September, while the level of cash and cash equivalents in the fund has risen 1.27% of the fund to 69.4% over the same period of time.

A spokesperson for Janus Capital told Citywire Global that the fund was being adapted to a new investment style, which is set to be applied across both versions of the funds.

The five-point plan focuses on yield base, overlay plays, front-end loading, protecting and outperforming and short duration stance.

As far as the latter is concerned, Gross believes that the combination of more liquid assets and shorter-date bonds will curb the overall duration of the estimated carry/yield.

Gross has also already indicated Mexico as one area which will provide an attractive overlay in global markets, though Janus have confirmed he will also use overlays with selected volatility sales in credit, treasuries and equities.

The former PIMCO manager is also set to place a greater focus on the front-end of the Treasury and euro-dollar curve, as he believes the Federal Reserve will act at a slower pace than markets are pricing in.

More news

00:20 US close: Wall Street mixed ahead of Thanksgiving holiday

Wall Street finished mixed on Wednesday, following the record highs set the day before and amid lighter-than-usual trading volumes ahead of the Thanksgiving holiday on Thursday.

22 Nov Jefferies upgrades Kingfisher to 'buy', raises target price

Analysts at Jefferies upgraded home improvement products retailer Kingfisher (KGF) to 'buy' from its previous 'hold' rating on Wednesday, raising its target price from 310p to 400p along the way.

22 Nov Europe close: German stocks give back gains amid political impasse

Stocks ended the session modestly lower as traders waited for the release of the minutes of the US Federal Reserve's last rate-setting meeting in the evening and monitored the news-flow out of Germany, amid speculation that a 'grand coalition' between Germany's two main political parties, the centre-right CDU/CSU and the Socialist SPD, may yet be possible.

22 Nov Lebanon prime minister Hariri retracts resignation

Saad al-Hariri has revoked his resignation as Lebanon's prime minister, according to a local news report on Wednesday.

22 Nov Budget: Planning probe spooks builders, mixed reaction for stamp duty cut

A range of new housing policies were proposed by Chancellor Philip Hammond in his Budget statement, including more funds for smaller housebuilder, a probe into potential holding of land by major housebuilders and a stamp duty cut for first-time buyers.

22 Nov US open: Shares hold ground ahead of FOMC minutes

Wall Street is holding its ground following the record highs set the day before, albeit amid lighter than usual trading volumes ahead of the Thanksgiving Holiday on Thursday, with investors looking to the release of the minutes of the most recent meeting of the Federal Open Market Committee.

22 Nov London close: Stocks higher on UK budget

Shares closed higher on Wednesday as investors sifted through corporate releases as well as the Autumn Budget.

22 Nov FTSE 250 movers: Qinetiq boosted by Berenberg note as Thomas Cook tanks

The FTSE 250 index was up around 0.50% on the day in which Chancellor Philip Hammond revealed his budget for the upcoming year.

22 Nov Higher margins offset declining sales volumes at Cambria

Motor dealer Cambria Automobiles managed to successfully grow profit and revenue throughout the financial year, as per-unit profits counteracted a slide in sales volumes.

22 Nov First production at Texas asset transforms Pantheon Resources into full-cycle energy and power business

Oil and gas exploration firm Pantheon Resources announced "another year of progress" in its full-year results on Wednesday, as it completed the transition from a pure-play exploration company to a full-cycle energy and power business.