Janus Henderson Absolute Return Fund on SSE
Thesis
The fund increased its SSE position after weakness in the share price caused by higher bond yields. The managers viewed that decline as an attractive opportunity to gain exposure to the company's long-term asset growth potential. The thesis therefore rests on buying a rate-sensitive utility after a valuation setback while retaining confidence in the growth of its asset base.
“recent share price weakness driven by higher bond yields has, in our view, created an attractive opportunity”
Key risks
- Higher bond yields can continue to pressure the shares
- The long-term asset growth opportunity may take time to be reflected in valuation