Janus Henderson UK Responsible Income Fund on The Sage Group plc
Thesis
Sage is one of the fund's data and information-services holdings that has suffered because of investor concern that AI could disrupt established software and data businesses. The managers reject that view and still see attractive valuation despite some recent share-price recovery. The thesis is that Sage's long-term prospects are stronger than current AI-related skepticism implies. ([London Stock Exchange][3])
“We continue to disagree with this view and, despite some better share price performance recently, we believe these companies remain attractively valued given their long-term prospects.”
Key risks
- AI disruption could impair Sage's competitive position or reduce the durability of its software franchise