Navigating the Currents: Janus Henderson Growth & Income Fund's Q3 2025 Perspective

Well, another quarter has flown by, and it’s always fascinating to step back and assess the market landscape. The third quarter of 2025, from July through September, certainly kept us on our toes, presenting a somewhat mixed bag of economic signals and investor sentiment. While we did see some continued resilience in certain growth sectors, the broader market experienced its fair share of choppiness, reflecting ongoing concerns about inflation’s stubborn grip, the Federal Reserve’s future rate path, and indeed, the general health of global economic activity. It felt like a period where investors were really trying to distinguish between genuine underlying strength and fleeting rallies, you know?

For the Janus Henderson Growth & Income Fund, our aim, as always, is to navigate these currents, seeking both capital appreciation and a steady stream of income. Looking at our performance through Q3, we were generally pleased with how the portfolio held up, especially when considering the various headwinds. Our strategy of investing in high-quality companies with sustainable growth prospects and attractive dividend policies truly shone through, helping to cushion against some of the broader market volatility. Stock selection, particularly within the industrials and healthcare sectors, proved quite beneficial, contributing positively to our returns. On the flip side, some of our consumer discretionary holdings, reflecting a more cautious consumer, faced a bit of a challenge, but these were managed with an eye towards long-term value.

We remain steadfast in our conviction that a balanced approach is absolutely crucial, especially in an environment like the one we’re in. This means blending those exciting growth opportunities with more mature, income-generating businesses. For example, we continued to favor companies demonstrating robust free cash flow generation and a commitment to returning capital to shareholders, either through dividends or share buybacks. These are the kinds of businesses that, frankly, tend to weather economic uncertainty much better. We also maintained a keen eye on valuation, always looking to ensure we weren't overpaying, even for great companies. It’s that discipline that really matters.

Looking ahead, as we transition into the final quarter of 2025 and peer into early 2026, the economic picture still feels a little murky in spots, doesn't it? Inflation, while showing signs of cooling in some areas, remains elevated, and the Fed’s messaging continues to emphasize a 'higher for longer' stance on interest rates. This undoubtedly creates a more challenging backdrop for corporate earnings and, naturally, equity valuations. Geopolitical tensions, too, unfortunately, add another layer of uncertainty that we simply can't ignore. But amidst these challenges, we also see pockets of opportunity.

Our team is continually re-evaluating the portfolio, making judicious adjustments where necessary. We're leaning into sectors and individual companies that we believe are either less sensitive to economic downturns or possess strong competitive advantages that allow them to thrive even in tougher times. We’re particularly interested in firms benefiting from long-term secular trends, like digitalization and healthcare innovation, which often transcend short-term economic cycles. We also expect to selectively add to positions in companies that may have been oversold due to market sentiment, but where the underlying business fundamentals remain strong. Our commitment to delivering a compelling combination of growth and income for our shareholders remains unwavering, come what may.