Is Janus Henderson Research D (JNRFX) a Strong Mutual Fund Pick Right Now?

view original post

Mutual Fund Equity Report fund seekers may want to consider taking a look at Janus Henderson Research D (JNRFX). JNRFX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

Janus Fund is based in Boston, MA, and is the manager of JNRFX. Janus Henderson Research D made its debut in May of 1993, and since then, JNRFX has accumulated about $13.83 billion in assets, per the most up-to-date date available. The fund’s current manager, Matthew Peron, has been in charge of the fund since April of 2020.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 13.39%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 11.35%, which places it in the bottom third during this time-frame.

When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of JNRFX over the past three years is 20.61% compared to the category average of 15.9%. Looking at the past 5 years, the fund’s standard deviation is 18.2% compared to the category average of 13.98%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.06, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -0.7, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.

The mutual fund currently has 95.37% of its holdings in stocks, and these companies have an average market capitalization of $657.01 billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology

  2. Retail Trade

Turnover is 31%, which means this fund makes fewer trades than comparable funds.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, JNRFX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.99%. JNRFX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $50.

Bottom Line

Overall, Janus Henderson Research D ( JNRFX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

Don’t stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare JNRFX to its peers as well for additional information. And don’t forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Get Your Free (JNRFX): Fund Analysis Report
 
To read this article on Zacks.com click here.