Janus Capital Group: Gross Returns Beat the Majority



Performing funds

Janus Capital Group (JNS), like other mutual fund and asset managers, attracts more capital based on its performance. Overall performance is one of the most important drivers of inflows and outflows. Of the company’s complex mutual funds, 51% get a four- or five-star overall Morningstar rating.

As of March 31, 2015, 73% of Janus Capital’s fundamental equity mutual fund assets ranked in the top half of Morningstar categories for one-year returns. A total of 68% figured in the top half for three-year returns, and 50% of its assets were included in the top half for five-year returns.

Article continues below advertisement

The company’s performance with fixed income mutual funds over the last year was significantly less impressive than its historical performance. As of March 31, 2015, only 2% of fixed income mutual fund assets ranked in the top half of Morningstar categories for one-year returns. Meanwhile, 68% ranked in the top half for three-year returns and 82% finished in the top half for five-year returns.

The mathematical equity relative return strategies returned 40% in the one-year category, 69% in the three-year category, and 75% in the five-year category, surpassing their respective benchmarks.

Gross’s performance

Bill Gross, the successful debt fund manager, manages $1.5 billion under the Janus Global Unconstrained Bond Fund. He has returned 1.78% since trading began October 6. This is far more than the fund’s benchmark has returned. The ICI Libor three-month index has returned only 0.13%. According to fund research firm Morningstar, Gross is beating 76% of other similar funds as well.

Mutual fund managers including T. Rowe Price Group (TROW), Vanguard, and American Funds have a higher market share of the domestic industry.

Janus Capital Group’s performance is also measured against ETF providers and bulge bracket managers including Franklin Resources (BEN), Federated Investors (FII), BlackRock (BLK), State Street (STT), Legg Mason (LM), Morgan Stanley (MS), Goldman Sachs (GS), Invesco (IVZ), and Affiliated Managers Group (AMG). Together, these companies form 9.66% of the Financial Select Sector SPDR Fund (XLF).


More From Market Realist