Janus Henderson Balanced Fund Class S (JABRX)

Overview

The fund is designed to offer a balanced approach to investing, carefully managing the mix between equity securities and fixed-income securities, alongside maintaining liquidity through cash equivalents. By allocating 35-70% of its assets in equity securities, the fund aims to capture growth opportunities, while dedicating at least 25% of its assets to fixed-income senior securities ensures a stable income component. The strategic investment in both fixed and floating rate obligations with varied durations aims to optimize returns against market fluctuations. Additionally, the fund incorporates a cautious stance towards high-yield/high-risk bonds, capping the investment in such instruments to 35% of the fixed-income portfolio, thereby balancing the pursuit of higher returns with risk management.

Products and Services

• Equity Securities Investment

This portion of the fund focuses on equity securities, which include stocks in public companies. By allocating 35-70% of its assets to equities, the fund aims to leverage the growth potential of these companies, which can include dividends and capital gains. This represents the fund's approach to capturing market upsides while maintaining a balanced portfolio.

• Fixed-Income Senior Securities Investment

At least 25% of the fund’s assets are invested in fixed-income senior securities, such as bonds and debentures, which often offer stable and predictable returns. This portion of the portfolio is designed to provide a steady income stream while minimizing risk, balancing the more volatile equity investments.

• Cash Equivalents and Money Market Instruments

To ensure liquidity and safeguard against market volatility, the fund maintains a portion of its portfolio in cash equivalents and money market instruments. This strategy allows for quick reallocation of assets when necessary and provides a buffer against market downturns.

• Fixed and Floating Rate Obligations

The fund diversifies its fixed-income investments by including both fixed and floating rate obligations. This mixture allows the fund to benefit from rate movements and, in turn, manages the interest rate risk. Fixed-rate obligations provide predictable returns, whereas floating-rate obligations offer a hedge against inflation.

• Limited High-Yield/High-Risk Bonds Investment

As part of its risk management framework, the fund limits its exposure to high-yield/high-risk (junk) bonds to 35% of the fixed-income segment of its assets. This approach seeks to achieve a higher yield than that of investment-grade bonds, without excessively increasing the portfolio’s risk profile.