There are plenty of choices in the Mid Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Janus Henderson Enterprise T (JAENX). JAENX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
JAENX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
Janus Fund is based in Boston, MA, and is the manager of JAENX. Janus Henderson Enterprise T made its debut in November of 1992, and since then, JAENX has accumulated about $5.92 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 July of 2009.
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 18.3%, and it sits in the middle third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3-year annualized total return of 17.08%, 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. Over the past three years, JAENX’s standard deviation comes in at 21.4%, compared to the category average of 15.87%. Over the past 5 years, the standard deviation of the fund is 17.11% compared to the category average of 13.29%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.07, 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. Over the past 5 years, the fund has a positive alpha of 0.98. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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 largely on equities that are traded in the United States.
Right now, 91.94% of this mutual fund’s holdings are stocks, with an average market capitalization of $23.86 billion. The fund has the heaviest exposure to the following market sectors:
With turnover at about 14%, this fund is making fewer trades than the average comparable fund.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, JAENX is a no load fund. It has an expense ratio of 0.90% compared to the category average of 1.18%. From a cost perspective, JAENX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that there is no minimum for each subsequent investment.
Overall, Janus Henderson Enterprise T ( JAENX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Janus Henderson Enterprise T ( JAENX ) looks like a great potential 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.