HDAVX
Janus Henderson Responsible Int’l Div-A
A Global Approach to Income and Growth
The Janus Henderson Responsible Int’l Div-A (HDAVX) fund is designed to provide investors with a dual objective: current income and long-term capital appreciation. This fund primarily invests in income-producing securities, with at least 80% of its net assets allocated to such investments. As a Foreign-Large Value fund, HDAVX focuses on global stocks that offer value and income potential, making it an attractive option for investors seeking to diversify their portfolios internationally while also benefiting from a steady income stream. The fund’s strategy is particularly appealing to those looking for a balance between income and growth, leveraging global market opportunities to achieve its objectives.
At A Glance
Executive Summary
HDAVX offers a 2.07% yield with a focus on global value stocks, outperforming its benchmark with a 19.49% 1-year return.
High yield of 2.07% for income-focused investors.\nStrong 1-year return of 19.49%, outperforming benchmark.\nDiverse global portfolio with a focus on large-cap stocks.
Higher expense ratio of 1.16% compared to peers.\nLimited exposure to small and medium-cap stocks.\nPotential volatility due to foreign market exposure.
Impressive Performance Metrics
HDAVX has demonstrated strong performance, particularly over the past year, with a 1-year return of 19.49%, significantly outperforming its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. This impressive performance is indicative of the fund’s effective management and strategic asset allocation. The fund’s alpha of 2.22% suggests that it has been able to generate returns above the expected benchmark performance, while maintaining a beta of 0.96, indicating a level of volatility slightly below the market. These metrics highlight HDAVX’s ability to deliver superior returns while managing risk effectively, making it a compelling choice for investors seeking both income and growth.
Strategic Asset Allocation
The asset allocation of HDAVX is strategically designed to maximize income and growth potential. With 83.82% of its assets in non-U.S. equities, the fund provides significant exposure to international markets, which can offer diversification benefits and access to growth opportunities not available in domestic markets. The fund also maintains a small cash position of 5.61%, which can be used to manage liquidity and take advantage of market opportunities. The focus on large-cap stocks, which make up 61.13% of the portfolio, provides stability and potential for capital appreciation, while the absence of bonds and other fixed-income securities aligns with the fund’s equity-income objective.
Sector Diversification for Stability
HDAVX’s sector allocation is diversified across various industries, with significant investments in technology (23.45%), financials (21.10%), and healthcare (15.35%). This diversification helps mitigate sector-specific risks and provides a balanced approach to capturing growth across different segments of the global economy. The fund’s exposure to defensive sectors such as utilities and healthcare can offer stability during market downturns, while its investments in technology and financials provide growth potential. This strategic sector allocation supports the fund’s objective of delivering both income and capital appreciation, making it a resilient choice for investors seeking a diversified global portfolio.
Comparative Analysis with Peers
When compared to similar funds, HDAVX holds its ground with a competitive 1-year return of 19.49%. While funds like Goldman Sachs Tax-Advantagd Glbl Eq-A (TAGGX) and Eaton Vance Rich Brnstn Eq Strtgc-A (ERBAX) have higher returns of 28.94% and 26.34% respectively, HDAVX offers a higher yield of 2.07%, which is attractive for income-focused investors. The fund’s expense ratio of 1.16% is higher than some peers, but its strong performance and yield may justify the cost for investors prioritizing income and growth. This comparative analysis highlights HDAVX’s strengths in delivering consistent income and competitive returns, making it a viable option for those seeking a balanced approach to global investing.
Risk Management and Volatility
HDAVX exhibits a well-managed risk profile, with a beta of 0.96 indicating slightly lower volatility compared to the market. The fund’s standard deviation of 3.31% and a Sharpe ratio of 0.19 suggest a moderate risk-return balance, suitable for investors with a moderate risk tolerance. The fund’s downside risk, measured by a maximum drawdown of -7.9%, is relatively contained, with a quick recovery period, demonstrating effective risk management strategies. These risk metrics, combined with a Treynor ratio of 2.32, indicate that HDAVX is capable of delivering returns that compensate for the risks taken, making it an appealing choice for investors seeking a stable yet rewarding investment.
Focus on Large-Cap Value Stocks
HDAVX’s focus on large-cap value stocks is a key component of its investment strategy. With 61.13% of its portfolio in extra-large cap stocks and 28.83% in large caps, the fund emphasizes stability and potential for capital appreciation. This focus aligns with the fund’s objective of providing income and growth, as large-cap stocks often offer dividends and have the financial strength to weather market volatility. The fund’s top holdings, including companies like Unilever PLC and Taiwan Semiconductor Manufacturing Co Ltd, reflect this strategy, providing a mix of income and growth potential. This emphasis on large-cap value stocks makes HDAVX a suitable choice for investors seeking a reliable income stream with the potential for long-term growth.
Conclusion: A Balanced Choice for Income and Growth
In conclusion, the Janus Henderson Responsible Int’l Div-A (HDAVX) fund stands out as a balanced option for investors seeking both income and growth. Its strong performance, strategic asset allocation, and focus on large-cap value stocks make it a compelling choice for those looking to diversify their portfolios internationally. While the fund’s expense ratio is higher than some peers, its impressive yield and performance metrics may justify the cost for income-focused investors. HDAVX is particularly suitable for those with a moderate risk tolerance, offering a well-managed risk profile and the potential for stable returns. Investors seeking a global value fund with a focus on income and growth should consider HDAVX as a viable addition to their investment strategy.
Similar Securities
TRIGX: T. Rowe Price International Value Equity | Foreign-Large Value Fund
TRIGX offers a blend of growth and value in large-cap foreign stocks with a competitive 0.85% expense ratio and 2.47% yield.
DODFX: Dodge & Cox International Stock-I | Diversified Foreign Equity Investment
DODFX offers diversified foreign equity exposure with a competitive 0.62% expense ratio, focusing on value stocks across multiple countries.
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.
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/HDAVX/quote
https://finance.yahoo.com/quote/HDAVX/”>Yahoo: Janus Henderson Responsible Int’l Div-A
https://ftcloud.fasttrack.net/web/chart/HDAVX
https://www.wsj.com/market-data/quotes/mutualfund/HDAVX
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