Trustnet Magazine 81 February 2022 | Page 52

Janus Henderson

Glossary terms

CYCLICAL STOCK – A cyclical stock is a stock whose price is affected by macroeconomic or systematic changes in the overall economy . Cyclical stocks are known for following the cycles of an economy through expansion , peak , recession , and recovery . Most cyclical stocks involve companies that sell discretionary items that consumers buy more of during a booming economy but spend less on during a recession .
FISCAL POLICY – Government policy relating to setting tax rates and spending levels . It is separate from monetary policy , which is typically set by a central bank . Fiscal austerity refers to raising taxes and / or cutting spending in an attempt to reduce government debt . Fiscal expansion ( or ‘ stimulus ’) refers to an increase in government spending and / or a reduction in taxes .
GROWTH STOCK – Shares of a company that generally shows above-average earnings and is expected to grow at a rate significantly above the average growth for the market .
INFLATION – The rate at which the prices of goods and services are rising in an economy . The CPI and RPI are two common measures .
MONETARY POLICY – The policies of a central bank , aimed at influencing the level of inflation and growth in an economy . It includes controlling interest rates and the supply of money . Monetary stimulus refers to a central bank increasing the supply of money and lowering borrowing costs . Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy , by raising interest rates and reducing the supply of money .
QUANTITATIVE EASING – An unconventional monetary policy used by central banks to stimulate the economy by boosting the amount of overall money in the banking system .
VALUE STOCK – Shares of a company that appear to trade at a lower price relative to the company ’ s fundamentals , such as dividends , earnings , or sales .
VOLATILITY – The rate and extent at which the price of a portfolio , security , or index moves up and down . If the price swings up and down with large movements , it has high volatility .
For insights , research and commentary on the range of Janus Henderson Investment Trusts , visit the Insights Hub .
References made to individual securities should not constitute or form part of any offer or solicitation to issue , sell , subscribe , or purchase the security . Janus Henderson Investors , one of its affiliated advisors , or its employees , may have a position mentioned in the securities mentioned in the report .
For promotional purposes . Not for onward distribution . Before investing in an investment trust referred to in this document , you should satisfy yourself as to its suitability and the risks involved , you may wish to consult a financial adviser . Past performance is not a guide to future performance . The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested . Tax assumptions and reliefs depend upon an investor ’ s particular circumstances and may change if those circumstances or the law change . Nothing in this document is intended to or should be construed as advice . This document is not a recommendation to sell or purchase any investment . It does not form part of any contract for the sale or purchase of any investment . We may record telephone calls for our mutual protection , to improve customer service and for regulatory record keeping purposes .
Issued in the UK by Janus Henderson Investors . Janus Henderson Investors is the name under which investment products and services are provided by Janus Capital International Limited ( reg no . 3594615 ), Henderson Global Investors Limited ( reg . no . 906355 ), Henderson Investment Funds Limited ( reg . no . 2678531 ), Henderson Equity Partners Limited ( reg . no . 2606646 ), ( each registered in England and Wales at 201 Bishopsgate , London EC2M 3AE and regulated by the Financial Conduct Authority ) and Henderson Management S . A . ( reg no . B22848 at 2 Rue de Bitbourg , L-1273 , Luxembourg and regulated by the Commission de Surveillance du Secteur Financier ).
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Issue 81 - February 2022 / 27 /