(

JBALX

)

Balanced Fund

25 Years of Dynamic Asset Allocation
NAV As of 02/22/18 $33.32

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Fund Facts

Details Yields Morningstar (As of 01/31/18)
09/01/92 Inception Date
$14.56B Total Net Assets (As of 01/31/18)
GROSS 0.65%
NET 0.65%
Annual Expense Ratio
(As of fiscal year end 09/30/17)
Morningstar Fee Level (As of 01/31/18)
Fee Level Group
Moderate Allocation Institutional
(out of 169 funds)
Morningstar Fee Level Below Average
View Morningstar Fee Level
1.97% Distribution Yield at NAV
(As of 12/31/17)
30 Day SEC Yield (As of 01/31/18)
With Waivers 1.59%
Without Waivers 1.59%
Quarterly Distribution Frequency
Performance (As of 02/22/18)
0.00% 1 Day Return %
1.15% YTD Return
Category
Allocation-50% to 70% Equity
ic_star ic_star ic_star ic_star ic_star
681 Funds Rated
Overall Rating
(Based on risk-adjusted returns)
LARGE VALUE
LARGE BLEND
LARGE GROWTH
MID VALUE
MID BLEND
MID GROWTH
SMALL VALUE
SMALL BLEND
SMALL GROWTH
Equity Style Box *
HIGH LIMITED
HIGH MODERATE
HIGH EXTENSIVE
MEDIUM LIMITED
MEDIUM MODERATE
MEDIUM EXTENSIVE
LOW LIMITED
LOW MODERATE
LOW EXTENSIVE
Fixed Income Style Box *
Important Morningstar Information

Overview

Client Commitment

Janus Henderson Balanced Fund’s dynamic asset allocation strategy has the flexibility to defensively position ahead of market volatility while seeking strong risk-adjusted returns. Unlike many competitor products, where asset allocations are constrained by static targets, the Fund’s asset allocations may vary between 35% and 65% equities depending on market conditions.

Why Invest in the Fund

    Dynamic Asset Allocation

  1. The Fund’s portfolio managers make allocation decisions based on their view of overall market risk and careful examination of individual security valuations across equity and fixed income markets.
  2. Integrated Research

  3. Our equity and fixed income analysts work side-by-side covering the same global sectors, facilitating deeper analysis of a company’s fundamental outlook and understanding of management’s true intentions.
  4. Seeks Consistent Results

  5. The end result is a multi-asset, core holding portfolio offering the potential for long-term capital appreciation with the flexibility to navigate uncertain and volatile markets.

Equity Allocation Adapting to Market Changes

Balanced Fund Equity Allocation in Relation to Market Volatility (12/31/97 – 12/31/17)
Chart: Balanced Fund Equity Allocation in Relation to Market Volatility (12/31/97 – 12/31/17)
Chicago Board of Options Exchange (CBOE) Volatility Index® (VIX®) shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options and is a widely used measure of market risk and is often referred to as the “investor fear” gauge. The VIX® volatility methodology is the property of CBOE, which is not affiliated with Janus Henderson.

Featured Insights

Performance

RETURNS

(As of 12/31/2017)
(As of 01/31/2018)
Inception: Sep 01, 1992 3M YTD 1YR 3YR 5YR 10YR Since Inception
Balanced Fund – I Shares 5.30% 18.58% 18.58% 7.68% 10.18% 7.66% 9.78%
S&P 500® Index 6.64% 21.83% 21.83% 11.41% 15.79% 8.50% 9.80%
Bloomberg Barclays U.S. Aggregate Bond Index 0.39% 3.54% 3.54% 2.24% 2.10% 4.01% 5.45%
Balanced Index 3.80% 13.29% 13.29% 7.35% 9.57% 6.73% 8.11%
Inception: Sep 01, 1992 3M YTD 1YR 3YR 5YR 10YR Since Inception
Balanced Fund – I Shares 7.18% 3.79% 20.17% 9.32% 10.36% 8.26% 9.90%
S&P 500® Index 10.18% 5.73% 26.41% 14.66% 15.91% 9.78% 10.01%
Bloomberg Barclays U.S. Aggregate Bond Index -0.83% -1.15% 2.15% 1.14% 2.01% 3.71% 5.39%
Balanced Index 5.16% 2.63% 14.97% 8.54% 9.59% 7.27% 8.20%
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold.
View Fees and Expenses
Performance for Class I Shares that includes periods prior to 7/6/09 reflects the performance of one or more share classes of the Fund or a predecessor fund, adjusted, where applicable and permitted, for differing fees and expenses. See the Fund’s prospectus for further details concerning historical performance.

MORNINGSTAR PERCENTILE

(As of 12/31/2017)
(As of 01/31/2018)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 4 11 12 4 8
Allocation-50% to 70% Equity Category
Rank/Count
24/842 82/791 85/771 20/626 14/195
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 4 11 8 4 8
Allocation-50% to 70% Equity Category
Rank/Count
24/802 72/753 62/734 18/589 14/195

Calendar Year Performance

GROWTH OF A $10,000 HYPOTHETICAL INVESTMENT

Source: Morningstar, Inc.

RETURNS-BASED STATISTICS

(As of 01/31/18 CLASS I SHARES)

RISK / REWARD
VS. S&P 500® INDEX

3 YEAR 5 YEAR
Information Ratio -1.39 -1.44
Alpha -0.21 0.33
Tracking Error 3.83 3.85
Beta 0.66 0.64
R-Squared (%) 94.43 92.78

UP AND DOWN MARKET CAPTURE (%)
VS. S&P 500® INDEX

3 YEAR 5 YEAR
Up Capture Ratio 63.96 62.94
Down Capture Ratio 69.38 63.44

STANDARD DEVIATION

3 YEAR 5 YEAR
Balanced Fund 6.88 6.32
S&P 500® Index 10.15 9.54

SHARPE RATIO

3 YEAR 5 YEAR
Balanced Fund 1.29 1.60
S&P 500® Index 1.40 1.64

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 09/30/17)

CLASS I SHARES
Management Fees 0.55%
12b-1 Fees -
Other Expenses 0.10%
Total Gross Expenses 0.65%
Waivers 0.00%
Total Net Expenses 0.65%
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 2/1/19.

Characteristics

TOP HOLDINGS

(As of 01/31/2018)

% of Fund
Microsoft Corp 3.85
Boeing Co 3.01
Mastercard Inc 2.90
Alphabet Inc 2.55
CME Group Inc 2.05
Altria Group Inc 2.05
LyondellBasell Industries NV 1.99
Home Depot Inc 1.96
United States Treasury Note/Bond, 1.75%, 11/30/19 1.91
US Bancorp 1.89
TOTAL 24.16

PORTFOLIO CHARACTERISTICS

(As of 01/31/18)

Number of Holdings - Equity Issues 64
Number of Holdings - Debt Issues 535
Market Capitalization - Weighted Average $192.38B
Market Capitalization - Median $98.13B
Portfolio Turnover Rate
(1-year trailing)
63.52%
Price/Earnings Ratio
(1-year forward)
22.53
Price/Book Ratio
(1-year forward)
6.99
Earnings Growth Rate
(1-year forward)
14.89%
Weighted Average Maturity
(years)
7.69
Effective Duration
(years)
5.40

DEVELOPED VS. EMERGING MARKET

(As of 01/31/18)

% OF FUND
U.S. 97.30
Non-U.S. Developed 2.30
Cash & Equivalents 0.40

CREDIT QUALITY OF FIXED INCOME HOLDINGS

(As of 01/31/18)

% OF FUND
Aaa 16.01
Aa 0.10
A 2.75
Baa 10.75
Ba 4.22
B 0.89
NOT RATED 0.30
Bond credit quality ratings provided by Barclays and reflect the middle rating received from Moody's, Standard & Poor's and Fitch, where all three agencies have provided a rating. If only two agencies rate a security, the lowest rating is used. If only one agency rates a security, that rating is used. Ratings are measured on a scale that ranges from Aaa (highest) to D (lowest).

SECTOR ALLOCATION

(As of 01/31/18)

% OF FUND
Equity 64.58
Information Technology 16.84
Consumer Discretionary 9.71
Industrials 9.24
Financials 8.19
Consumer Staples 7.65
Health Care 7.47
Real Estate 2.37
Materials 1.99
Energy 1.12
Fixed Income 35.02
Credit-Investment Grade 12.27
MBS 8.04
Treasuries 7.58
Credit-High Yield 3.24
ABS 1.43
Bank Loans 1.30
CMBS 1.16
Cash & Equivalents 0.40

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 01/31/2018)

% OF FUND
Over $100B 31.73
$50B to $100B 18.79
$10B to $50B 12.55
$5B to $10B 0.60
$1B to $5B 0.91

MATURITY BREAKDOWN OF FIXED INCOME HOLDINGS

(As of 01/31/18)

% OF FUND
< 1 yr 1.39
1 - 3 yrs 6.09
3 - 5 yrs 3.63
5 - 7 yrs 8.72
7 - 10 yrs 11.50
10 - 20 yrs 1.19
> 20 yrs 2.50

REGIONAL ALLOCATION

(As of 01/31/18)

% OF FUND
North America 98.74
Europe 0.70
Africa/Mideast 0.16
Cash & Equivalents 0.40

Commentary & Literature

4Q17 Portfolio Commentary Highlights

  • The Fund outperformed the Balanced Index during the fourth quarter.
  • Stock selection in information technology contributed to outperformance in the equity sleeve. The fixed income sleeve underperformed its benchmark, due largely to our corporate credit positioning.
  • Continued low interest rates, modest economic growth and lower corporate tax rates lead us to believe equities present more attractive risk-adjusted opportunities relative to fixed income.

Read The Full Commentary