HEAD-TO-HEAD: Janus Henderson versus Threadneedle

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Manager review

Both fund managers have the benefit of being able to lean on wider European equity resources, but in both cases stability in the supporting team has been an issue and is something we have been keeping an eye on, said Parekh.

Janus Henderson’s head of European equities John Bennett is highly experienced, having managed European equities for more than two decades, including 17 years at GAM.

There are in total 12 portfolio managers and analysts that Bennet can use but there are only three are dedicated to this strategy. This includes Bennett, his co-portfolio manager Tom O’Hara and analyst Tom Lemaigre.

“There has been some turnover on the team in recent years which has been of concern, however. Notably, Andrew McCarthy joined in 2018 but later left within a year due to a lack of cultural fit,” said Parekh.

While the dedicated resources are not as experienced or stable as they have been previously, “we take some comfort that Bennett has run this strategy with limited resources in the past and can also draw on the more experienced members of the broad European equity team,” he added.

As for Threadneedle, effective 1 Januart 2021, comanager Benjamin Moore was promoted to lead manager, with long-time manager David Dudding taking a step back. Roberta Zeno, recently hired as an analyst, has also been promoted to deputy manager. Dudding, who did well since taking on the strategy in 2008, will continue to have input, but as deputy manager.

“This move had been anticipated, and even though Moore’s portfolio management experience is limited, we believe Dudding’s continued involvement, Moore’s involvement to date, and the supporting resources are enough,” said Parekh.

Excluding the small-cap members of the team, there are ten portfolio managers and analysts on the European Equity bench with more resources available from the global team.

“Again, there has been some turnover in the team with a group of members leaving to join Jupiter in 2019, including Mark Nichols, who had been slated to take over this strategy from Dudding,” said Parekh.

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