Midway through 2016, the backdrop for investors and financial markets remains uncertain. Many of the concerns we expressed in the January Market GPS persist, and additional sources of risk have emerged. At Janus Capital Group, we recognize your challenges, but we also see the opportunities they may create.

The insights that follow are divided into three themes influencing financial markets. The possibility of the UK exiting the European Union and other disruptive geopolitical risks around the globe have captured the attention of the financial markets. Low, and in some cases negative, yields make the search for excess return in fixed income portfolios more difficult, leading investors to consider strategies untethered to traditional benchmarks.

Volatility, although disconcerting to some investors, can be productively managed through a variety of techniques. These issues serve as a reminder that investors need insights and strategies to actively look for paths through potential difficulties. We invite you to explore the thoughts of the investment professionals at Janus Capital Group and its affiliates to help identify the most effective paths to achieving your investment goals in the months ahead.