JERSX
Janus Henderson Global Real Estate-S
Global Real Estate Exposure with JERSX
The Janus Henderson Global Real Estate-S (JERSX) fund is designed to provide investors with a unique opportunity to gain exposure to the global real estate market. With a focus on both capital appreciation and current income, the fund invests at least 80% of its net assets in equity and debt securities of real estate-related companies. This strategic allocation allows investors to benefit from the growth potential of real estate markets worldwide, while also receiving a steady income stream. The fund’s emphasis on real estate makes it a specialized investment vehicle, suitable for those looking to diversify their portfolios with a focus on property markets.
At A Glance
Executive Summary
JERSX offers global real estate exposure with a 2.45% yield, focusing on capital appreciation and income. High expense ratio but strong 1-year return.
Global real estate exposure Strong 1-year return of 20.12% 2.45% yield for income
High expense ratio of 1.38% Negative 3-year return High downside risk
Performance Analysis: A Mixed Bag
JERSX has shown a mixed performance over various time frames. The fund boasts a strong 1-year return of 20.12%, significantly outperforming its benchmark, the MSCI World DivAdj Index, which returned 31.60% over the same period. However, the fund’s 3-year annualized return is -5.33%, indicating some volatility and challenges in recent years. Over a 10-year period, the fund has achieved a modest return of 4.29%, reflecting its long-term potential despite short-term fluctuations. Investors should consider these performance metrics in the context of their investment goals and risk tolerance.
Portfolio Composition: A Focus on Real Estate Giants
The portfolio of JERSX is heavily weighted towards large and medium-cap real estate companies, with top holdings including Equinix Inc, Realty Income Corp, and Public Storage. These companies represent significant players in the real estate sector, providing stability and growth potential. The fund’s allocation is predominantly in real estate, with 97.90% of its sector allocation dedicated to this area, ensuring that investors are primarily exposed to the dynamics of the real estate market. This concentrated focus can be advantageous for those seeking targeted exposure to real estate, but it also means that the fund’s performance is closely tied to the fortunes of the real estate sector.
Risk Metrics: Navigating Volatility
JERSX presents a complex risk profile, with a beta of 0.90 indicating moderate volatility compared to the market. The fund’s alpha is -11.51%, suggesting it has underperformed its benchmark on a risk-adjusted basis. The Sharpe Ratio of -0.81 and Treynor Ratio of -12.83 further highlight the challenges in achieving risk-adjusted returns. The fund’s standard deviation of 4.12% and downside risk of 3.93% indicate potential volatility, which investors should be prepared to navigate. Despite these risks, the fund’s focus on real estate offers potential for upside in favorable market conditions.
Comparative Analysis: Expense and Yield Considerations
When compared to similar funds, JERSX stands out with its 2.45% yield, offering a higher income potential than many of its peers. However, the fund’s expense ratio of 1.38% is relatively high, which could impact net returns. In contrast, similar funds like Fidelity Adv Overseas-M and AB Sustainable Global Thematic-A have lower expense ratios, making them potentially more cost-effective options. Investors should weigh the benefits of JERSX’s yield against its higher costs, considering their own investment priorities and cost sensitivity.
Market Cap and Geographic Diversification
JERSX offers a diversified exposure across different market capitalizations, with a significant portion of its assets in medium-cap (45.26%) and large-cap (34.23%) companies. This diversification can help mitigate risks associated with investing in a single market cap segment. Additionally, the fund’s allocation includes 40.11% in non-U.S. equities, providing geographic diversification that can enhance returns and reduce risk through exposure to international real estate markets. This global approach aligns with the fund’s objective of capital appreciation and income generation from a broad real estate base.
Max Drawdown and Recovery Insights
The fund experienced a maximum drawdown of -9.5%, with a drawdown length of 4 months and a recovery length of 3 months. This indicates that while the fund has faced significant declines, it has also demonstrated the ability to recover relatively quickly. The peak date of 12/28/2023 and valley date of 04/18/2024 highlight a period of volatility that investors should be aware of. Understanding these drawdown dynamics is crucial for investors who are sensitive to short-term losses and are looking for funds with resilient recovery capabilities.
Conclusion: Is JERSX Right for You?
JERSX offers a compelling option for investors seeking exposure to the global real estate market with the potential for both capital appreciation and income. Its strong 1-year performance and 2.45% yield make it attractive for income-focused investors. However, the high expense ratio and recent volatility may deter cost-conscious investors or those with a low risk tolerance. Ultimately, JERSX is best suited for investors who are comfortable with the risks associated with real estate investments and are looking for a specialized fund to diversify their portfolios.
Similar Securities
JERSX: Janus Henderson Global Real Estate-S | Global Real Estate Investment
JERSX offers global real estate exposure with a 2.45% yield, focusing on capital appreciation and income. High expense ratio but strong 1-year return.
IGREX: Invesco Global Real Estate-R5 | Global Real Estate Investment
IGREX offers a 2.19% yield with a focus on global real estate, providing diversification and income potential. Its 0.98% expense ratio is competitive.
PAGEX: TRPrice Global Real Estate-Adv | Global Real Estate Investment
PAGEX offers global real estate exposure with a 2.24% yield and a focus on capital appreciation, despite a higher expense ratio of 1.15%.
BARDX: iShares Developed Real Estate IxFd-InvA | Global Real Estate Exposure
BARDX offers a 4.27% yield with a focus on developed market real estate equities, providing a unique global exposure with a competitive expense ratio.
ASRCX: Invesco Global Real Estate Income-C | High Income Real Estate Fund
ASRCX offers high income with a 2.81% yield, focusing on real estate securities. It has a high expense ratio of 1.96% but provides global exposure.
Futher Reading
https://www.morningstar.com/funds/xnas/JERSX/quote
https://finance.yahoo.com/quote/JERSX/”>Yahoo: Janus Henderson Global Real Estate-S
https://ftcloud.fasttrack.net/web/chart/JERSX
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