Is Janus Henderson US Managed Volatilty T (JRSTX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Large Cap Blend funds, you might want to consider passing on by Janus Henderson US Managed Volatilty T (JRSTX) as a possibility. JRSTX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
JRSTX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
Janus Fund is based in Boston, MA, and is the manager of JRSTX. The Janus Henderson US Managed Volatilty T made its debut in July of 2009 and JRSTX has managed to accumulate roughly $211.22 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 12.29%, 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 8.79%, which places it in the middle 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 JRSTX over the past three years is 17.63% compared to the category average of 15.82%. Looking at the past 5 years, the fund's standard deviation is 14.36% compared to the category average of 13.14%. 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 0.86, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. JRSTX's 5-year performance has produced a negative alpha of -1.4, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, JRSTX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 0.96%. Looking at the fund from a cost perspective, JRSTX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Janus Henderson US Managed Volatilty T ( JRSTX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Janus Henderson US Managed Volatilty T ( JRSTX ) looks like a somewhat weak choice for investors right now.
Want even more information about JRSTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.
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