JANBX
Janus Henderson Balanced-D
Balancing Growth and Income with JANBX
The Janus Henderson Balanced-D Fund (JANBX) is designed to provide investors with a blend of long-term capital growth and current income, while maintaining a focus on capital preservation. This balanced fund typically allocates 50-60% of its assets to equity securities, chosen primarily for their growth potential, and 40-50% to income-generating securities. This strategic allocation aims to offer a stable investment option for those seeking a moderate-risk profile. The fund’s balanced approach makes it suitable for investors looking to diversify their portfolios with a mix of growth and income assets, providing a hedge against market volatility.
At A Glance
Executive Summary
JANBX offers balanced growth and income with a 0.70% expense ratio, focusing on tech and financial sectors for moderate-risk investors.
Balanced exposure to equities and bonds Strong technology sector allocation Competitive yield of 1.87%
Higher expense ratio than some peers Negative alpha and Sharpe ratio Limited upside potential
Technology Sector Dominance in Portfolio
JANBX’s portfolio is heavily weighted towards the technology sector, which constitutes 35.34% of its holdings. This significant allocation reflects the fund’s strategy to capitalize on the growth potential of leading tech companies. Top holdings include major players like Microsoft Corp, NVIDIA Corp, and Apple Inc, which are known for their robust performance and innovation. This focus on technology not only positions the fund to benefit from the sector’s growth trends but also aligns with the broader market’s shift towards digital transformation. Investors in JANBX can expect to gain exposure to some of the most dynamic and high-performing companies in the tech industry.
Comparative Performance Analysis
When compared to its benchmark, the S&P 500 Total Return Index, JANBX has shown a mixed performance. Over the past year, the fund delivered a return of 24.78%, which is commendable but falls short of the benchmark’s 37.62% return. Despite this, JANBX’s performance is competitive within its category, as evidenced by its similar returns to peer funds like Columbia Balanced-Inst and PGIM Balanced-Z. The fund’s expense ratio of 0.70% is slightly higher than some peers, but it offers a yield of 1.87%, which is attractive for income-focused investors. This performance analysis highlights the fund’s ability to provide balanced returns, albeit with some room for improvement in matching benchmark performance.
Risk Metrics and Volatility Considerations
JANBX exhibits a relatively low beta of 0.66, indicating lower volatility compared to the broader market. However, the fund’s negative alpha of -12.88% and Sharpe ratio of -1.51 suggest challenges in achieving risk-adjusted returns. The fund’s standard deviation of 2.45% reflects moderate volatility, while its downside risk is measured at 1.31. These metrics indicate that while JANBX offers a stable investment option, it may not fully capitalize on market upswings. Investors should consider these risk factors when evaluating the fund’s potential for growth and income, especially in comparison to its peers and benchmark.
Sector and Asset Class Diversification
JANBX offers a diversified portfolio with a significant allocation to both equities and bonds. The fund’s asset class allocation includes 61.00% in U.S. equities and 36.79% in bonds, providing a balanced exposure to growth and income-generating assets. The bond sector allocation is predominantly in securitized and corporate bonds, which together make up over 80% of the bond holdings. This diversification strategy helps mitigate risk and provides a steady income stream, making JANBX an attractive option for investors seeking a balanced approach to asset allocation. The fund’s sector diversification further enhances its stability, with significant investments in financials and healthcare alongside technology.
Max Drawdown and Recovery Insights
JANBX experienced a maximum drawdown of -5.1% during a brief period in 2024, with a quick recovery, indicating resilience in adverse market conditions. The drawdown length was just one month, with an immediate recovery, showcasing the fund’s ability to withstand market volatility. This resilience is a key consideration for investors who prioritize capital preservation and seek funds that can recover swiftly from downturns. The fund’s ability to manage drawdowns effectively is a testament to its balanced investment strategy, which aims to protect investor capital while providing growth and income opportunities.
Competitive Positioning Among Peers
JANBX holds a competitive position among balanced funds, with a focus on technology and financial sectors that differentiates it from peers. While its expense ratio of 0.70% is higher than some competitors, the fund’s yield of 1.87% and its strategic sector allocations offer compelling reasons for investors to consider it. Compared to similar funds like Columbia Balanced-Inst and PGIM Balanced-Z, JANBX provides a unique blend of growth and income, appealing to investors seeking a diversified portfolio with exposure to high-growth sectors. This competitive positioning highlights the fund’s strengths and areas for potential improvement in cost efficiency.
Investor Suitability and Final Thoughts
JANBX is well-suited for investors seeking a balanced approach to growth and income, with a moderate risk profile. Its significant exposure to the technology sector offers potential for capital appreciation, while its bond holdings provide income stability. The fund’s performance metrics and risk considerations suggest it is best suited for investors who are comfortable with some volatility in exchange for the potential of higher returns. Overall, JANBX stands out for its strategic asset allocation and sector focus, making it an attractive option for those looking to diversify their investment portfolios with a balanced fund that offers both growth and income potential.
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Futher Reading
https://finance.yahoo.com/quote/JANBX/”>Yahoo: Janus Henderson Balanced-D
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