The global growth strategy built to compound and endure

Please note that this interview was recorded Wednesday 10 September 2025

For Australian investors hungry for diversification and access to long-term growth, the global equity universe is as vast as it is promising. But navigating that universe requires a clear framework; one that doesn’t just chase headlines, but instead leans into discipline, domain expertise, and time-tested business models.

That’s the approach taken by Joshua Cummings, Portfolio Manager on the Janus Henderson Global Research Growth Fund, who recently sat down with Livewire to walk us through the fund’s strategy, current holdings, and the macro risks on his radar.

Janus Henderson’s approach is anything but benchmark-hugging. In fact, the firm leans into a “sector-neutral” portfolio construction methodology, backed by a 38-person global analyst team who are - quite literally - experts in their field. We're talking semiconductor analysts who worked at Intel, healthcare specialists who hold PhDs and still see patients, and tech leads who’ve been inside the guts of Silicon Valley.

At the core of their philosophy? Patience and compounding.

“We’re trying to find businesses that can compound at competitive rates… and then leave them alone to do their thing. 

If we can find the right business model run by the right people with good corporate governance, the time horizon can be forever," says Cummings 

In the Fund in Focus above, Cummings shares:

• How Janus Henderson’s analyst-driven, sector-neutral approach sets them apart
• Why the focus is on idiosyncratic risk over style or beta
• Two standout global names in the portfolio: Spotify and Liberty Formula One
• And how the team is managing macro risks like tariffs and consumer elasticity

For the full experience, watch the video above. Alternatively, you can read a short summary below. 

INTERVIEW SUMMARY

The sector-neutral edge

Janus Henderson’s Global Research Growth Fund is built around a distinctive idea: give world-class analysts full freedom - within sectors - and avoid uncompensated risk. That means not betting on which sector will outperform, but rather empowering analysts to go deep into the parts of the market they know best.

“We don’t think we’re really good at picking sectors. What we think we’re great at is being domain experts,” said Cummings. 

“Sector neutral does not mean benchmark hugging… We try to take risk where we know we can get compensated for it.”

Instead of macro tilts or style bets, the strategy is focused on stock-specific alpha. As Cummings puts it, “As much of the risk of the funds that we manage… is trying to come from stock selection, idiosyncratic risk - not shared style risk.”

Compounders, not traders

While the fund is global and growth-oriented, it’s not about chasing flashy trends. Cummings stressed the goal is to find high-quality, capital-efficient businesses and then hold them for the long term.

“If there’s one thing that we’re trying to arbitrage… it’s that many people really struggle with the notion of compound interest,” he said. 

This mindset feeds directly into Janus Henderson’s preference for “owner” mindsets rather than trader mentalities. As Cummings explained, “If we can find the right business model run by the right people with good corporate governance, the time horizon can be forever.”

Spotify and the power of platform economics

One standout stock in the portfolio is Spotify, a business that Cummings believes has reached an inflection point, especially as it extends into podcasting.

“We think Spotify is starting to exhibit a lot of the characteristics that we saw from Amazon 15, almost 20 years ago,” he said. 

“They’ve aggregated supply so that they can aggregate demand.”

He noted that Spotify is capturing 50–60% of new streaming customers globally - a share that’s tough to challenge over time. “If you do that for three or four or five years, your lead just gets insurmountable.”

On top of that, Cummings sees potential in the company’s pricing power. “If the royalty rates they pay can drop by a few hundred basis points structurally over time… that has a big impact on a net present value basis.”

And in case you’re wondering - he’s currently got English indie rock band Wet Leg at the top of the pops on his own Spotify playlist.

Formula One: A forever franchise

Another stock in the portfolio is Liberty Formula One, which Janus Henderson has held since 2018. Cummings believes the company is now hitting its stride.

“They don’t actually own the tracks or any of these assets. They just own the global IP,” he said. 

“It’s one of the best business models I’ve ever seen.”

With 80% of revenue contracted and CPI-linked escalators, Cummings sees a high-quality, predictable earnings stream. Add to that new entrants like Cadillac and Audi, and the fan base continues to grow.

“I would say it’s the definition of a forever business. F1 is in its 76th year and pretty relevant to this day still.”

He also highlighted Liberty’s capital management: “They’re at the point now where they’re going to start buying back the stock. I think you’re going to fast forward 10–15 years and the share count’s going to be materially lower.”

Risk, resilience, and tariffs

Cummings didn’t shy away from discussing macro risks, especially tariffs, which are once again in focus.

“We don’t love tariffs, obviously,” he admitted. “But so far our companies are really managing it quite well.”

The team stays close to management teams - whether it’s Walmart, McDonald’s or Home Depot - to understand pricing dynamics and supply chain strategies. He said there’s a focus on shifting sourcing where possible, passing on price increases selectively, and avoiding pain on high-frequency goods.

“What I would say is… our companies are probably best equipped on a relative basis to handle tariffs. I’d rather be Home Depot than a local hardware store.”

The key, Cummings says, is to stay alert: “We’re not quite sure which way this is going to break… maybe we’ll start seeing some pretty bad economic numbers. But so far, we haven’t.”

A high conviction portfolio of best ideas

Josh and the Global Research Growth team identify industry-leading companies with brand power, enduring business models and strong competitive positioning. You can learn more by visiting the fund profile below, or the Janus Henderson website. 

Managed Fund

Janus Henderson Global Research Growth Fund

Global Shares

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