JSPMX
Janus Henderson Global Alloc Moderate-T
Balanced Global Exposure for Growth and Income
The Janus Henderson Global Alloc Moderate-T (JSPMX) is designed to provide investors with a balanced approach to growth and income through a diversified portfolio. The fund strategically allocates approximately 60% of its assets to stocks and 40% to bonds and money market securities. This allocation aims to capture the growth potential of equities while providing the stability and income generation of fixed-income securities. As part of the Janus Henderson family, JSPMX leverages the expertise of its underlying funds to achieve its investment objectives. This makes it an attractive option for investors seeking a moderate risk profile with exposure to global markets.
At A Glance
Executive Summary
JSPMX offers a balanced 60/40 stock-bond allocation with a low 0.33% expense ratio, ideal for growth and income-focused investors.
Balanced global exposure with 60% stocks and 40% bonds. Low expense ratio of 0.33%. Strong 1-year return of 19.40%.
Negative alpha and Sharpe ratio indicate underperformance. High downside risk with a max drawdown of -4.5%. Lower correlation with benchmark at 84.99%.
Impressive Recent Performance
JSPMX has demonstrated strong performance over the past year, with a notable 1-year return of 19.40%. This performance is particularly impressive given the fund’s balanced allocation strategy, which typically aims for steady growth rather than aggressive returns. The fund’s ability to deliver such returns in a volatile market environment highlights its effective asset management and strategic allocation. However, when compared to its benchmark, the S&P 500 Total Return Index, which posted a 1-year return of 37.62%, JSPMX’s performance underscores the trade-off between risk and return inherent in its balanced strategy.
Sector and Asset Class Diversification
JSPMX offers a well-diversified portfolio across various sectors and asset classes, which is crucial for managing risk and enhancing returns. The fund’s equity allocation is heavily weighted towards technology (25.26%), financials (18.13%), and healthcare (11.77%), reflecting a focus on sectors with strong growth potential. On the fixed-income side, the fund invests in a mix of corporate (22.49%), government (26.33%), and derivatives (32.76%) bonds, providing a stable income stream. This diversification across sectors and asset classes helps mitigate risks associated with market volatility and economic downturns.
Competitive Expense Ratio
One of the standout features of JSPMX is its competitive expense ratio of 0.33%. This low expense ratio is particularly appealing for cost-conscious investors, as it allows more of the fund’s returns to be retained by the investor rather than being consumed by management fees. In comparison to similar funds, such as the Goldman Sachs Growth&Income Strategy-Inst (GOIIX) with an expense ratio of 0.61%, JSPMX offers a cost-effective option for those seeking a balanced global allocation. This cost advantage can significantly impact long-term investment returns, making JSPMX an attractive choice for investors focused on minimizing expenses.
Risk Metrics and Considerations
Despite its strong recent performance, JSPMX presents certain risk metrics that investors should consider. The fund’s negative alpha of -18.26% and Sharpe ratio of -2.22 indicate that it has underperformed relative to its risk-adjusted expectations. Additionally, the fund’s beta of 0.57 suggests lower volatility compared to the market, but its downside risk, with a max drawdown of -4.5%, highlights potential vulnerabilities during market downturns. These metrics suggest that while JSPMX offers a balanced approach, investors should be mindful of its performance in different market conditions and consider their own risk tolerance.
Comparison with Similar Funds
When compared to similar funds, JSPMX holds its ground with a strong 1-year return and a low expense ratio. For instance, the Victory Strategic Allocation-A (SBALX) and BlackRock Global Allocation-Inst (MALOX) have similar 1-year returns of 19.16% and 19.51%, respectively, but JSPMX’s expense ratio of 0.33% is notably lower. This makes JSPMX a cost-effective option for investors seeking a balanced global allocation. However, investors should also consider the higher yields offered by some peers, such as the DWS Global Income Builder-A (KTRAX) with a yield of 3.38%, when making their investment decisions.
Suitability for Growth and Income Investors
JSPMX is particularly well-suited for investors seeking a combination of growth and income with a moderate risk profile. Its balanced allocation between stocks and bonds provides exposure to growth opportunities while maintaining a level of income stability. The fund’s focus on global markets offers diversification benefits, making it an attractive option for investors looking to broaden their investment horizons. Additionally, the fund’s low expense ratio enhances its appeal to cost-conscious investors. However, potential investors should weigh the fund’s risk metrics and recent performance against their own investment goals and risk tolerance.
Conclusion: A Balanced Choice for Global Investors
In conclusion, the Janus Henderson Global Alloc Moderate-T (JSPMX) stands out as a balanced investment option for those seeking global exposure with a focus on growth and income. Its strategic allocation of 60% stocks and 40% bonds, combined with a competitive expense ratio, makes it an attractive choice for moderate-risk investors. While the fund has shown strong recent performance, its risk metrics suggest that investors should remain vigilant about market conditions. Overall, JSPMX offers a compelling blend of growth potential and income stability, making it suitable for a wide range of investor profiles.
Similar Securities
GOBSX: BrandywineGLOBAL Global Opportunity Bond | Global Debt Investment
GOBSX offers global debt exposure with a 2.85% yield and a competitive 0.54% expense ratio, ideal for income-focused investors.
MDISX: Franklin Mutual Global Discovery-Z | Global Value Investment
MDISX offers global value equity exposure with a 0.96% expense ratio and strong 1-year return of 17.36%, outperforming its benchmark.
PRAFX: TRPrice Real Assets-Inv | Real Asset Growth Fund
PRAFX offers unique exposure to real assets with a focus on global value, featuring a 0.95% expense ratio and 1.43% yield.
AWSAX: Invesco Global Core Equity-A | Global Growth Opportunities
AWSAX offers global equity exposure with a strong tech focus and a 1-year return of 29.25%, outperforming its benchmark.
MAWIX: BlackRock Strategic Global Bond-Inst | Global Fixed Income Investment
MAWIX offers global fixed income exposure with a competitive 0.55% expense ratio and a 2.72% yield, ideal for income-focused investors.
Futher Reading
https://www.morningstar.com/funds/xnas/JSPMX/quote
https://finance.yahoo.com/quote/JSPMX/”>Yahoo: Janus Henderson Global Alloc Moderate-T
https://ftcloud.fasttrack.net/web/chart/JSPMX
https://www.wsj.com/market-data/quotes/mutualfund/JSPMX
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