JANA ALTERNATIVES TRUST
JANA Alternatives Trusts (JAT) is designed to incorporate investments that have diversified return drivers to equities and government bonds. JAT will hold a several underlying investments strategies that generate their returns via access to non-traditional market return drivers and strategies that rely on manager skill. These investments have been chosen and constructed to be complementary to each, creating a diversified portfolio with a more consistent return profile at the total fund level.
JANA Select Opportunities Trust
The JANA Select Opportunities Trust invests predominantly in a diversified portfolio of alternative strategies. It is designed to provide investors with a diversified source of returns to complement traditional asset class exposures in a typical diversified fund. Asset classes may include shares, bonds, credit, currency, commodities and listed property in addition to non-traditional asset classes such as listed infrastructure and hedge funds.
The charts below provide information on the trust and strategies into which the above trust may invest.
This multi-asset strategy aims to provide a more consistent pattern of returns than a traditional balanced fund. The strategy invests in mainstream asset classes and uses a small amount of leverage to increase the return potential from less volatile asset classes. It is a lower cost strategy than many other alternative strategies. This strategy is used in portfolios to reduce reliance on shares for long-term growth.
Global infrastructure (currency hedged)
The strategy invests in listed companies whose business is the ownership, operation and maintenance of infrastructure assets such as energy grids and telecommunications networks. As infrastructure assets are often highly regulated monopolies, their revenue streams tends to be more regular and stable than traditional shares. As a result, the strategy has the potential to generate total returns that:
- are less volatile and tend to be considered more defensive than the broader listed share market
- generally have low correlation with mainstream asset classes and
- can provide a long-term hedge against inflation.
The strategy aims to provide regular and stable income plus capital growth with a focus on minimising the volatility of returns.
Please note Redpoint is the currency manager for this strategy.
Global absolute return bonds
These are flexible strategies where managers have discretion to invest across a broad spectrum of bonds and currencies to achieve a higher return than cash. These investments provide a low risk diversifier to traditional fixed income securities providing some protection from rising interest rates.
JANA Multi-Sector Credit Trust
The JANA Multi-Sector Credit Trust comprises two high quality, experienced investment managers, as well as a small cash allocation to assist with the management of liquidity. The portfolio seeks to provide an attractive, risk-adjusted high yielding portfolio that will invest in primarily non-investment grade securities. The managers have flexible mandates that will allow them to invest in a wide range of credit sectors, rotating to the most attractive parts of the credit market as well as avoiding the least attractive, at given points in time. Investments will be primarily in the non-investment grade sectors of the credit markets to complement other fixed interest portfolios which often invest in government and investment grade corporate securities. Non-investment grade credit offers investors attractive returns and is a relatively inefficient part of the market, which we believe skilled investment managers are able to exploit.
The portfolio may include:
- High yield bonds
- Bank loans
- Emerging market debt
- Collateralised debt obligations
- Corporate Bonds
- Government securities