Is Janus Henderson Enterprise T (JAENX) a Strong Mutual Fund Pick Right Now?

view original post

If you’re looking for a Mid Cap Growth fund category, then a potential option is Janus Henderson Enterprise T (JAENX). JAENX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Load Error

Objective

We note that JAENX is a Mid Cap Growth fund, and this area is also loaded with many different options. Companies are usually considered growth stocks when they consistently report notable sales and/or earnings growth. Thus, Mid Cap Growth funds pick stocks–usually companies with a market cap between $2 billion and $10 billion–that demonstrate extensive growth opportunities for investors compared to their peers.

History of Fund/Manager

JAENX is a part of the Janus Fund family of funds, a company based out of Boston, MA. Janus Henderson Enterprise T made its debut in November of 1992, and since then, JAENX has accumulated about $5.47 billion in assets, per the most up-to-date date available. The fund is currently managed by Brian Demain who has been in charge of the fund since November of 2007.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 18.4%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.79%, 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. Compared to the category average of 15.97%, the standard deviation of JAENX over the past three years is 21.22%. The fund’s standard deviation over the past 5 years is 17.11% compared to the category average of 13.15%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund’s risk compared to the market as a whole. JAENX has a 5-year beta of 1.06, which means it 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. The fund has produced a negative alpha over the past 5 years of -0.38, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, JAENX is a no load fund. It has an expense ratio of 0.90% compared to the category average of 1.17%. JAENX is actually cheaper than its peers when you consider factors like cost.

While the minimum initial investment for the product is $2,500, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

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

This could just be the start of your research on JAENXin the Mid Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio – both funds and stocks – in the most efficient way possible.

Continue Reading

Related Posts