JAIGX
Janus Henderson VIT Overseas-Inst
Global Diversification with Emerging Market Focus
The Janus Henderson VIT Overseas-Inst (JAIGX) fund is designed to provide investors with long-term capital growth by investing primarily in securities of issuers from countries outside the United States. With a significant portion of its assets allocated to emerging markets, the fund offers a unique opportunity for investors seeking exposure to high-growth regions. The fund’s strategy involves a bottom-up approach, allowing the portfolio manager to select investments based on individual company merits rather than macroeconomic factors. This approach can potentially uncover undervalued opportunities in diverse international markets, making JAIGX an attractive option for those looking to diversify their portfolios beyond domestic borders.
At A Glance
Executive Summary
JAIGX offers global exposure with a focus on emerging markets, leveraging a bottom-up approach. Competitive expense ratio and diverse holdings.
Global diversification with emerging market focus. Competitive expense ratio for its category. Strong historical performance in 1-year returns.
Higher risk metrics compared to peers. Significant exposure to market volatility. Lower Sharpe and Treynor ratios indicating risk-adjusted performance concerns.
Performance Analysis: A Year of Strong Returns
In the past year, JAIGX has delivered a robust return of 13.70%, showcasing its ability to capitalize on global market opportunities. This performance, while slightly trailing its benchmark MSCI ACWI xUS DivAdj Idx’s 17.25% return, highlights the fund’s potential in capturing growth in international markets. The fund’s annualized returns over five years stand at 8.68%, indicating consistent performance over a medium-term horizon. However, the fund’s ten-year annualized return of 4.88% suggests that while it has performed well recently, long-term investors should consider the variability in returns over extended periods. The fund’s focus on emerging markets and a diversified portfolio has contributed to its recent success, making it a compelling choice for growth-oriented investors.
Sector Allocation: Financials and Technology Lead
JAIGX’s portfolio is heavily weighted towards the financial and technology sectors, which together comprise over 40% of its total holdings. Financials alone account for 22.61% of the portfolio, reflecting the fund’s strategic emphasis on sectors with strong growth potential and resilience in various economic conditions. The technology sector, representing 17.83% of the portfolio, underscores the fund’s commitment to investing in innovative companies that are driving global economic growth. This sector allocation aligns with the fund’s objective of seeking long-term capital appreciation by investing in high-growth industries. Investors interested in these sectors may find JAIGX’s allocation strategy particularly appealing, as it positions the fund to benefit from technological advancements and financial sector developments.
Risk Metrics: Navigating Volatility
JAIGX exhibits a higher risk profile, as indicated by its risk metrics. The fund’s beta of 1.09 suggests a higher sensitivity to market movements compared to its benchmark, while its alpha of -3.57% indicates underperformance relative to the benchmark on a risk-adjusted basis. The Sharpe ratio of -0.27 and Treynor ratio of -3.27 further highlight the fund’s challenges in delivering risk-adjusted returns. Despite these metrics, the fund’s standard deviation of 3.89% and downside risk of 2.56% suggest a moderate level of volatility. Investors should be aware of these risk factors when considering JAIGX, especially those with a lower risk tolerance. The fund’s exposure to emerging markets, while offering growth potential, also contributes to its volatility, necessitating a careful assessment of risk versus reward.
Competitive Expense Ratio and Yield
JAIGX offers a competitive expense ratio of 0.89%, which is relatively low for a fund in the foreign-large category. This cost efficiency can enhance net returns for investors, making it an attractive option for those seeking to minimize expenses while gaining international exposure. Additionally, the fund provides a yield of 1.03%, offering a modest income stream alongside potential capital appreciation. This combination of a competitive expense ratio and yield positions JAIGX favorably against its peers, such as BNY Mellon Worldwide Growth-I and Nationwide Global Sustainable Equity-S, which have similar expense structures but varying yields. Investors looking for cost-effective international exposure with income potential may find JAIGX’s financial structure appealing.
Top Holdings: Strategic Global Investments
JAIGX’s top holdings reflect its strategic focus on leading global companies across various industries. Taiwan Semiconductor Manufacturing Co Ltd, the fund’s largest holding at 7.09%, exemplifies its investment in technology leaders. Other significant holdings include BAE Systems PLC and Teck Resources Ltd, highlighting the fund’s diversification across defense and basic materials sectors. The presence of companies like BNP Paribas and Dai-ichi Life Holdings further underscores the fund’s commitment to financial sector investments. This diverse mix of top holdings not only provides exposure to different economic sectors but also enhances the fund’s potential for capital growth. Investors interested in a well-rounded international portfolio may find JAIGX’s top holdings particularly compelling.
Comparative Analysis: How JAIGX Stacks Up
When compared to similar funds, JAIGX presents a mixed picture. While its one-year return of 13.70% is commendable, it falls short of peers like Nationwide Global Sustainable Equity-S, which achieved a 21.29% return. However, JAIGX’s expense ratio of 0.89% is competitive, especially when compared to funds like BNY Mellon Worldwide Growth-I, which has a lower expense ratio but also a lower yield. JAIGX’s focus on emerging markets and its strategic sector allocations differentiate it from peers, offering unique growth opportunities. Investors should weigh these factors against the fund’s higher risk metrics and consider their own investment goals and risk tolerance when evaluating JAIGX against its competitors.
Conclusion: A Strategic Choice for Growth Seekers
JAIGX stands out as a strategic choice for investors seeking global diversification with a focus on emerging markets. Its competitive expense ratio and recent strong performance make it an attractive option for growth-oriented investors. However, the fund’s higher risk metrics and exposure to market volatility necessitate careful consideration. Investors with a higher risk tolerance and a long-term investment horizon may find JAIGX well-suited to their portfolios, particularly those looking to capitalize on international growth opportunities. As always, potential investors should conduct thorough due diligence and consider their individual financial goals before investing in JAIGX.
Similar Securities
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BDOAX: iShares MSCI Total Intern'l IxFd-InvA | Global Diversification with BlackRock
BDOAX offers global exposure with a 0.42% expense ratio, focusing on large-cap international stocks. It closely tracks the MSCI ACWI ex-US Index.
JAIGX: Janus Henderson VIT Overseas-Inst | Global Growth Opportunities
JAIGX offers global exposure with a focus on emerging markets, leveraging a bottom-up approach. Competitive expense ratio and diverse holdings.
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TROSX: TRPrice Overseas Stock-Inv | Global Growth Opportunities
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Futher Reading
https://finance.yahoo.com/quote/JAIGX/”>Yahoo: Janus Henderson VIT Overseas-Inst
https://ftcloud.fasttrack.net/web/chart/JAIGX
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