Investors Diversify Beyond Mag Seven, Top Picks Named
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- Julian McManus of Janus Henderson Investors ($480 billion AUM as of March 31) told CNBC investors are exploring more overseas, warning the Magnificent Seven is "nearly half of your index" and leaves portfolios vulnerable if those names falter.
- The MSCI ACWI ex-US index is up over 8% year-to-date, outpacing the S&P 500's 6.8% gain, according to LSEG data cited in the article.
- McManus's favored names span European banks, Japanese banks and life insurers, Samsung Electronics, Tencent, CATL, BAE Systems, Hyundai Rotem, Argenx, AstraZeneca, NatWest, Canadian Natural Resources, and Teck Resources.
- On AI, Janus Henderson prefers semiconductor suppliers over AI application companies, with McManus arguing "we can't have AI without semis."
- McManus sees value in Korea after recent selloffs, is positive on India long-term but currently underweight Reliance Industries on valuation, and called Chinese "national champions" like Tencent and CATL "thrown out with the bathwater."
- Dissent came from Polka Mishra of Javelin Wealth Management, who still favors U.S. equities, citing AI leadership and continued American "exceptionalism."
- McManus said politics played "only a limited role" in allocation decisions, with investors choosing to "overlook the politics" and follow returns.
Why it matters: McManus's framing matters because the Magnificent Seven represent nearly half the S&P 500's weight, a concentration he himself flags as a vulnerability. With $480 billion under management, his named playbook of European banks, Japanese financials, and Asian tech gives institutional allocators a concrete template to move beyond the U.S. — turning what he calls a "conversation" into an actionable trade.
