5 Minutes With Janus Henderson’s Bethany Payne

This week Bethany Payne, manager of the Janus Henderson Index-Linked Bond fund, reveals how computer algorithms help her invest and why work/life balance is important

Annalisa Esposito 18 October, 2019 | 11:37AM
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Bethany Payne, co-manages the four-star rated Janus Hnderson Index-Linked bond fund with Andrew Mulliner. She joined the firm in 2006 as an assistant manager on hedge funds and later assumed the role of quantitative analyst. The fund she currently manages enjoys a five-year annualised return of over 8% and is up 14% year to date. Top 10 holdings are Gilts (UK goverment bonds). 

What does the fund do?

Invests in index-linked government bonds as well as other fixed income investments across the globe including money market funds and derivatives. 

What’s the position you’re currently excited about in the portfolio?

Bonds issued by the Bank of Mexico. We saw a deterioration in the country's economy and thought the Bank of Mexico wouldn’t be able to continue its path of rate hikes so we invested. We were right and the bank had started to cut rates by the summer. 

What is your best investment?

Early on in my career I invested time creating my own quantitative models - algorithms that help to make investment decisions. I still use these today and it has helped me to spot opportunities when the market is mispriced.

And what’s the worst?

UK government bonds last year – there was a sudden negative shift in the market and everyone rushed to exit their trades, including us. We saw a strong move in the yield curve, only for it to trade back the following week. It taught me to be wary of crowded positions.

What’s the most important lesson you’ve learned?

To continuously challenge my views.

What do you do in your spare time?

I have two little sleep thieves at home, aged two and four, so I don’t get a lot of free time. But when I do, I like to research subjects that interest me and play piano.

If I weren’t a fund manager…

I love problem solving and biology, so I would be in a lab researching medicines.

What’s the best thing about this industry?

We’re constantly analysing new information and datasets – it’s a challenging and exciting environment to work in. I also get to finish the day at a reasonable hour so I can have a good balance between work, family and friends.

And what’s the worst?

That there still isn’t enough diversity within the industry and, while there are a lot of initiatives in place to change this, we still have a long way to go.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk