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Is Janus Henderson Global Life Science T (JAGLX) a Strong Mutual Fund Pick Right Now?

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Sector - Health fund seekers may want to consider taking a look at Janus Henderson Global Life Science T (JAGLX - Free Report) . JAGLX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that JAGLX is a Sector - Health fund, and this area is also loaded with various options. Sector - Health mutual funds give investors an opportunity to focus on one of the largest sectors of the American economy, healthcare. Funds in this category can include everything from for-profit hospitals to pharmaceutical companies and medical device manufacturers.

History of Fund/Manager

Janus Fund is based in Boston, MA, and is the manager of JAGLX. Janus Henderson Global Life Science T made its debut in December of 1998, and since then, JAGLX has accumulated about $1.27 billion in assets, per the most up-to-date date available. The fund is currently managed by Andrew Acker who has been in charge of the fund since May of 2007.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 19.59%, and it sits in the top 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 6.3%, which places it in the top 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. Compared to the category average of 10.15%, the standard deviation of JAGLX over the past three years is 16.89%. Looking at the past 5 years, the fund's standard deviation is 15.97% compared to the category average of 9.79%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In JAGLX's case, the fund lost 35.92% in the most recent bear market and underperformed comparable funds by 3.05%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. JAGLX has a 5-year beta of 1.03, which means it is likely to be as volatile as the market average. 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. JAGLX has generated a positive alpha over the past five years of 3.61, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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, JAGLX is a no load fund. It has an expense ratio of 0.91% compared to the category average of 1.07%. JAGLX is actually cheaper than its peers when you consider factors like cost.

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

Bottom Line

Overall, Janus Henderson Global Life Science T has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

Your research on the Sector - Health 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.


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