Is Janus Henderson Enterprise I (JMGRX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should consider taking a look at Janus Henderson Enterprise I (JMGRX). JMGRX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Janus Fund is based in Boston, MA, and is the manager of JMGRX. Janus Henderson Enterprise I made its debut in November of 2005, and since then, JMGRX has accumulated about $7.18 billion in assets, per the most up-to-date date available. The fund's current manager, Brian Demain, has been in charge of the fund since November of 2007.
Performance
Of course, investors look for strong performance in funds. JMGRX has a 5-year annualized total return of 13.62% and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.17%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. JMGRX's standard deviation over the past three years is 18.25% compared to the category average of 15.21%. The fund's standard deviation over the past 5 years is 20.52% compared to the category average of 16.31%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.04, so it is likely going to be more volatile than the market at large. 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. JMGRX has generated a negative alpha over the past five years of -1.94, demonstrating that 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 mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 81.2% of its assets in stocks, which have an average market capitalization of $24.33 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Other
Finance
With turnover at about 14%, this fund is making fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, JMGRX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 0.98%. Looking at the fund from a cost perspective, JMGRX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Janus Henderson Enterprise I ( JMGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Janus Henderson Enterprise I ( JMGRX ) looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into JMGRX too 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.
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