Janus Henderson Global Equity Income Fund seeks to achieve a dividend yield that exceeds the dividend yield of the Benchmark with the potential for long-term capital growth. The Fund may invest in equities (including equity like securities) and cash (such as money market instruments and bank deposits).
The portfolio’s overweight exposure to the energy sector was positive for relative returns during the period. The sector benefited from a rise in crude prices and European natural gas prices. Oil prices increased as extended production cuts by some major producers and strong U.S. demand offset worries about higher-for-longer interest rates and economic weakness in China. Natural gas prices rose in August on concerns about strike actions at three liquefied natural gas (LNG) plants in Australia that together are responsible for 10% of global LNG supply.
Strong stock selection in the materials sector also was beneficial. Reparation of the Chinese property market and higher infrastructure spend from local authorities once their debt positions are cleaner should support demand for mining commodities, and the portfolio’s mining positions outperformed on this basis. Chemicals stocks in the portfolio also performed well after announcing weak sets of financial results, suggesting expectations have been rebased to appropriate levels.
The portfolio’s underweight exposure to the communication services sector detracted from relative performance. The sector outperformed the broader market, driven by Internet media and services companies that reported good financial results and are perceived to benefit from progress in artificial intelligence. Because these companies are too low yielding, they are not in the portfolio’s investible universe, and this hurt portfolio performance during the quarter.
Another notable detractor was the portfolio’s overweight exposure to the consumer staples sector. The sector underperformed on concerns about risks to pricing as volumes continued to be more subdued across the industry. The largest detractor from a stock perspective was Brazilian beer company Ambev, which released a disappointing set of results due to weak Brazilian beer volumes. Ambev gained market share during the period, however, and we see scope for outperformance as the Brazilian market improves and the costs of goods sold decline.
What is Janus Henderson Glb Equity Income Fund Janus Henderson Glb Equity Income Fund is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Income Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Janus Henderson Glb Equity Income Fund has Assets Under Management of 34.07 M with a management fee of 0.85%, a performance fee of 0.00% and a buy/sell spread fee of 0.3%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Janus Henderson Glb Equity Income Fund has returned -2.67% in the last month. The previous three years have returned 0.51% annualised and 10.85% each year since inception, which is when the Janus Henderson Glb Equity Income Fund first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Janus Henderson Glb Equity Income Fund first started, the Sharpe ratio is 0.33 with an annualised volatility of 10.85%. The maximum drawdown of the investment product in the last 12 months is -13.99% and -15.42% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Janus Henderson Glb Equity Income Fund has a 12-month excess return when compared to the Foreign Equity - Large Income Index of 0.16% and -0.41% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Janus Henderson Glb Equity Income Fund has produced Alpha over the Foreign Equity - Large Income Index of -0.01% in the last 12 months and -0.03% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Income Index category, you can click here for the Peer Investment Report.
What level of diversification will Janus Henderson Glb Equity Income Fund provide?
Janus Henderson Glb Equity Income Fund has a correlation coefficient of 0.97 and a beta of 0.96 when compared to the Foreign Equity - Large Income Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Janus Henderson Glb Equity Income Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Janus Henderson Glb Equity Income Fund with the Developed -World Index?
For a full quantitative report on Janus Henderson Glb Equity Income Fund compared to the Developed -World Index, you can click here.
Can I sort and compare the Janus Henderson Glb Equity Income Fund to do my own analysis?
To sort and compare the Janus Henderson Glb Equity Income Fund financial metrics, please refer to the table above.
Has the Janus Henderson Glb Equity Income Fund been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Janus Henderson Glb Equity Income Fund?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Janus Henderson Glb Equity Income Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 The largest detractor from relative returns was an underweight position in the information technology sector, which significantly outperformed the broader market. Excitement about the rapid growth in AI was the main driver for the sector’s strong returns during the quarter.
An overweight position in the materials sector also detracted from relative returns. The sector underperformed the broader market and holdings in the mining industry were notably weak due to falling commodity prices and worries over economic growth.
The largest positive driver of relative returns was the healthcare sector, which underperformed the broader market during the quarter. However, holdings in the pharmaceutical industry outperformed the sector. We believe pharmaceutical companies trade at attractive valuations and recent drug pipeline announcements are a testament to the R&D capabilities in the sector, which we believe will ultimately drive long term returns for the sector.
Performance Commentary - March 31, 2023 The Fund’s underweight position in the information technology sector was the largest detractor from relative performance during the quarter. The sector outperformed in the context of peaking interest rate expectations driving better performance in economically sensitive areas of information technology and in high-growth companies that had devalued in 2022.
Our overweight exposure to the energy sector and stock selection and overweight allocation in the materials sector also were detrimental on a relative basis. These sectors underperformed due to concerns about the impact of further economic tightening.
The largest positive contributor to relative performance was the Fund’s stock selection in the financials sector, which lagged the broader market due to concerns about a global banking crisis. We had reduced our bank exposure earlier in the quarter to take profits after a period of strong performance. This was beneficial to performance, most notably in March when banking stocks underperformed the broader sector. Stock selection in the utilities and healthcare sectors also was additive to relative returns.
Performance Commentary - December 31, 2022 The Fund underperformed its secondary benchmark, the 85% MSCI ACWI Ex U.S. High Yield Dividend / 15% MSCI USA High Dividend Yield Index.
The largest contributor to relative performance during the period was the Fund’s underweight position in the information technology sector. In particular, our overweight exposure to Asian technology companies was a key driver of outperformance. We had added to Asian semiconductor stocks earlier in the year as valuations had fallen relative to non-Asian peers, which we believed to be unwarranted. These holdings provided strong dividend yields and traded at attractive multiples post recent outperformance.
Performance Commentary - October 31, 2022 The Fund underperformed both its primary benchmark, the MSCI World IndexSM, and its secondary benchmark, the 85% MSCI ACWI Ex U.S. High Yield Dividend / 15% MSCI USA High Dividend Yield Index, for the quarter ended September 30, 2022.
The Fund’s stock selection in healthcare was the largest detractor from relative returns over the period. Holdings in Sanofi and GSK (formerly GlaxoSmithKline) underperformed due to their exposure to former gastrointestinal blockbuster drug Zantac, which is at the center of a U.S. class action lawsuit. Although sentiment may remain negative until there is clarity on the financial implications for these companies, the share price reactions appear to be pricing in a worst-case scenario and do not account for the potential shared liability given Zantac has been owned over the years by multiple pharmaceutical companies.
Performance Commentary - September 30, 2022 The Fund underperformed both its primary benchmark, the MSCI World IndexSM, and its secondary benchmark, the 85% MSCI ACWI Ex U.S. High Yield Dividend / 15% MSCI USA High Dividend Yield Index, for the quarter ended September 30, 2022.
The Fund’s stock selection in healthcare was the largest detractor from relative returns over the period. Holdings in Sanofi and GSK (formerly GlaxoSmithKline) underperformed due to their exposure to former gastrointestinal blockbuster drug Zantac, which is at the center of a U.S. class action lawsuit. Although sentiment may remain negative until there is clarity on the financial implications for these companies, the share price reactions appear to be pricing in a worst-case scenario and do not account for the potential shared liability given Zantac has been owned over the years by multiple pharmaceutical companies.
Performance Commentary - June 30, 2022 During this turbulent quarter, the Fund’s focus on reasonable valuations, attractive dividends, strong cash flows and conservative balance sheets helped provide downside relief to strong declines seen across global equity markets.
The Fund’s stock selection in communication services contributed positively to relative returns. The holdings in the telecommunications industry were the main driver of outperformance during the period as these companies were viewed as defensive and attractively valued versus other areas of the market.
Also benefiting relative returns was our underweight and stock selection in the consumer discretionary sector. Automotive names outperformed the sector after COVID infections declined in China, which should help to ease production issues for the industry. Holdings in luxury goods also outperformed, benefiting from China’s reopening due to the luxury industry’s high exposure to the Chinese consumer.
Performance Commentary - October 31, 2021 The Janus Henderson Global Equity Income Fund (Fund) returned 0.25% in October versus the MSCI World ex-Australia (net dividends reinvested) in AUD Index (Benchmark) which gained 1.65% in Australian dollar terms.
This month, the Fund’s holding in Samsung Electronics detracted from returns after the company announced slightly weaker than expected results. The position in medical devices company Medtronic also underperformed after it announced a delay to the launch of one of its key products. Conversely, Spanish utility Iberdrola outperformed after announcing decent results whilst regulatory risks also looked to be receding. The holding in Air Products & Chemicals was also beneficial after the completion of the Jazan joint venture was confirmed on more favourable terms than expected, leading to earnings upgrades
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