HFQAX
Janus Henderson Global Equity Income-A
Global Income with Growth Potential
The Janus Henderson Global Equity Income-A fund (HFQAX) is designed to provide investors with a high level of current income, while also aiming for steady capital growth. This fund primarily invests in income-producing equity securities, including both common and preferred dividend-paying stocks. With a focus on both U.S. and international issuers, HFQAX offers a diversified approach to income generation, making it an attractive option for investors seeking to balance income with growth potential. The fund’s strategy aligns with its category of Foreign-Large Value, emphasizing value stocks that offer dividends and potential for appreciation.
At A Glance
Executive Summary
HFQAX offers a high 7.83% yield with a focus on income-producing equities, suitable for value investors seeking global exposure.
High yield of 7.83% for income-focused investors.\nDiverse global equity exposure.\nStrong performance with 15.79% 1-year return.
Higher expense ratio at 1.2%.\nNegative alpha indicating underperformance.\nPotential volatility with a beta of 0.89.
Impressive Yield and Income Focus
One of the standout features of HFQAX is its impressive yield of 7.83%, which is significantly higher than many of its peers. This high yield is a key attraction for income-focused investors who prioritize regular income streams from their investments. The fund’s focus on dividend-paying stocks across various sectors and geographies supports its income objective, providing a steady flow of dividends. This makes HFQAX particularly appealing to retirees or those looking to supplement their income through investments. The fund’s yield is a testament to its effective strategy in selecting high-quality, income-generating equities.
Diverse Portfolio Composition
HFQAX boasts a diverse portfolio, with significant allocations in financials (21.02%), technology (12.77%), and defense (17.72%) sectors. This diversification across sectors helps mitigate risks associated with market volatility and sector-specific downturns. The fund’s top holdings include well-known companies like British American Tobacco, Taiwan Semiconductor Manufacturing, and Unilever, which are known for their stable dividend payouts. Additionally, the fund’s allocation to both U.S. (18.34%) and non-U.S. equities (80.99%) provides a broad exposure to global markets, enhancing its potential for income and growth.
Performance Metrics and Risk Analysis
While HFQAX has delivered a strong 1-year return of 15.79%, it is important to consider its risk metrics. The fund has a beta of 0.89, indicating lower volatility compared to the market, yet its negative alpha of -1.48% suggests it has underperformed its benchmark, the MSCI ACWI xUS DivAdj Idx. The Sharpe ratio of -0.14 and Treynor ratio of -1.67 further highlight the fund’s risk-adjusted performance challenges. Despite these metrics, the fund’s standard deviation of 3.02% suggests moderate risk, making it suitable for investors who can tolerate some volatility in pursuit of high income.
Competitive Expense Ratio Considerations
HFQAX has an expense ratio of 1.2%, which is relatively higher compared to some of its peers. For instance, similar funds like Mundoval (MUNDX) and BNY Mellon Worldwide Growth-A (PGROX) have lower expense ratios of 0.0151% and 0.0113%, respectively. While the higher expense ratio may be a consideration for cost-conscious investors, it is important to weigh this against the fund’s high yield and income potential. Investors should consider whether the fund’s income benefits justify the higher costs, especially if they prioritize income over cost efficiency.
Comparative Analysis with Peers
When compared to similar funds, HFQAX holds its ground with a competitive 1-year return of 15.79%. However, funds like abrdn Dynamic Dividend-A (ADAVX) and Catalyst/MAP Global Equity-A (CAXAX) have slightly outperformed with returns of 18.24% and 17.88%, respectively. Despite this, HFQAX’s high yield remains a distinguishing factor. Its focus on income-producing equities sets it apart from growth-oriented funds, making it a unique choice for investors prioritizing income. The fund’s global diversification and sector allocation further enhance its appeal, offering a balanced approach to income and growth.
Sector and Market Cap Allocation Insights
HFQAX’s sector allocation is heavily weighted towards financials, technology, and defense, which together comprise over 50% of the portfolio. This strategic allocation reflects the fund’s emphasis on sectors with strong income potential. Additionally, the fund’s market cap allocation is predominantly in large (47.81%) and extra-large (32.75%) companies, which are typically more stable and reliable dividend payers. This focus on larger market cap stocks aligns with the fund’s objective of providing steady income, as these companies are often better positioned to maintain and grow their dividend payouts.
Investor Suitability and Final Thoughts
HFQAX is well-suited for investors seeking high income with the potential for capital growth. Its focus on dividend-paying stocks and global diversification makes it an attractive option for those looking to enhance their income through equity investments. However, investors should be mindful of the fund’s higher expense ratio and its risk metrics, which indicate some performance challenges. Overall, HFQAX stands out for its high yield and diversified approach, making it a compelling choice for income-focused investors who are comfortable with moderate risk and seeking exposure to global markets.
Similar Securities
TEMFX: Templeton Foreign-A | Global Value Investment
TEMFX offers diversified foreign equity exposure with a focus on value. It stands out with a 2.44% yield and a strategic allocation in financials and cyclicals.
HFQAX: Janus Henderson Global Equity Income-A | High Income & Growth
HFQAX offers a high 7.83% yield with a focus on income-producing equities, suitable for value investors seeking global exposure.
MEURX: Franklin Mutual European-Z | European Value Investment
MEURX offers European value exposure with a 0.95% expense ratio and 2.48% yield, focusing on capital appreciation and income.
PNGAX: Putnam International Value-A | Foreign Value Investment
Putnam International Value-A (PNGAX) offers a 2.19% yield with a focus on foreign large value stocks, providing growth and income potential.
HDAVX: Janus Henderson Responsible Int'l Div-A | High Yield Global Value Fund
HDAVX offers a 2.07% yield with a focus on global value stocks, outperforming its benchmark with a 19.49% 1-year return.
Futher Reading
https://www.morningstar.com/funds/xnas/HFQAX/quote
https://finance.yahoo.com/quote/HFQAX/”>Yahoo: Janus Henderson Global Equity Income-A
https://ftcloud.fasttrack.net/web/chart/HFQAX
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