Another big hitter in the US market, Janus, has been marketing a Dublin mirror fund range into the Eu...
In the US, Janus has around $225bn under its belt and its growth of assets in recent years has been phenomenal. Although the company was started in 1971, it has put on fully 50% of its assets in the last two years. Its flagship equity fund, the Twenty fund, rose 73% in 1998 and a further 56% to the end of November 1999.
The fund's manager, Scott Schoelzel, has regular access to Bill Gates, Scott McNealy and Michael Dell, such is the power of his fund. He also has 100% of his own net worth invested in the Janus Twenty. During 1999, the group overtook the US index fund giant Vanguard in net subscriptions.
The good news for non-US investors is that the portfolios within the Dublin umbrella follow as closely as possible the stock holdings of the corresponding US funds. The most popular is the Twenty fund, an aggressive growth fund, focusing primarily on the US and usually holding around 30 stocks.
Schoelzel is looking for the true leaders in their industry. He looks at a broad range of sectors but primarily telecoms, technology, healthcare, pharmaceuticals, biotech, financial services, retailing and media. He suggests there will soon be an unprecedented explosion in technology and related industries. He agrees with Bill Gates' assertion that the rate of technological advance over the next 10 years will be greater than in the previous 50.
Schoelzel's view of the current cyclicals and value plays versus growth stocks is that this is not really the issue. He remarks: "Value stocks may already have had their run, but growth stocks will go on forever. I cannot emphasise that enough."
He is fond of saying "there is no road map" in response to those who ask what the future holds, believing investors should not look back at what they might have missed because the revolution is just in its infancy. But he admits that 80% of new media stocks are grossly overvalued.
The Janus All Cap Growth fund, managed by Claire Young, is another fund run extremely well and is highlighted in the Funds to Watch section .
In addition, in the first quarter of 2000 Janus will be launching three more offshore funds to mirror existing US funds - the US Small Cap, Global Life Sciences (biotech) and Global Technology. This last fund, based in the US, was up 175% in the first 11 months of 1999. That kind of performance is why Janus have become so successful.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch