Janus Henderson Responsible International Dividend Fund Q4 2024 Commentary

2025-02-15 02:40:00 ET

Summary

• The Janus Henderson Responsible International Dividend Fund returned -6.46% and the MSCI World ex-USA Index returned -7.43%.
• Stock selection in information technology, industrials, and consumer discretionary contributed to relative performance, while stock selection in financials, healthcare, and real estate detracted.
• We remain confident that the companies held in the portfolio can navigate the current economic environment, aided by strong balance sheets and cash-generating capabilities.

Investment environment

During the quarter, global equity markets were flat in U.S. dollar ( USDOLLAR , DXY ) terms, although international markets declined. Donald Trump’s election win spurred the U.S. market to record highs on hopes the new administration would be more proactive about promoting U.S. economic growth. Elsewhere, concerns that Trump’s policies might negatively impact other countries’ growth due to trade tariffs and changes in foreign policy proved to be a headwind. Political turmoil in Germany and France also weighed on sentiment, with European equities lagging their U.S. counterparts. The “Magnificent 7” stocks – the seven dominant tech companies Apple ( AAPL ), Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet ( GOOG , GOOGL ), META , Nvidia ( NVDA ), and Tesla ( TSLA ) – contributed to relative performance, driven by optimism about artificial intelligence. Growth stocks notably outperformed value stocks. Higher yields weighed on defensive sectors such as real estate, consumer staples, and utilities, but were positive for the banking sector, which contributed to relative results. Asian equities weakened over the quarter as anxiety about U.S.-China trade tensions hurt sentiment. Chinese shares retreated amid uncertainty about President-elect Trump’s policies and concerns that stimulus measures would fail to deliver the expected economic boost....

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