Back to top

Image: Bigstock

Is Janus Henderson Global Technology A (JATAX) a Strong Mutual Fund Pick Right Now?

Read MoreHide Full Article

On the lookout for a Sector - Tech fund? Starting with Janus Henderson Global Technology A (JATAX - Free Report) is one possibility. JATAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that JATAX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.

History of Fund/Manager

JATAX is a part of the Janus Fund family of funds, a company based out of Boston, MA. Janus Henderson Global Technology A debuted in July of 2009. Since then, JATAX has accumulated assets of about $308.90 million, according to the most recently available information. The fund's current manager, Denny Fish, has been in charge of the fund since January of 2016.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 19.47%, and is 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 5.98%, which places it in the middle 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. Compared to the category average of 0%, the standard deviation of JATAX over the past three years is 24.83%. Over the past 5 years, the standard deviation of the fund is 22.79% compared to the category average of 52%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.11, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. JATAX's 5-year performance has produced a positive alpha of 2.47, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Exploring 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 80.96% of its holdings in stocks, and these companies have an average market capitalization of $820.21 billion. The fund has the heaviest exposure to the following market sectors:

  • Technology
  • Other
Turnover is about 30%, so those in charge of the fund make more trades in a given year than the average of 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, JATAX is a load fund. It has an expense ratio of 0.98% compared to the category average of 30%. From a cost perspective, JATAX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Janus Henderson Global Technology A ( JATAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Janus Henderson Global Technology A ( JATAX ) looks like a good potential choice for investors right now.

Your research on the Sector - Tech segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Janus Henderson Global Tech A (JATAX) - free report >>

Published in