Janus Overseas Fund

Scorecard
1 / 5 Stars
Lipper
2 1 1 5 2
Zacks Investment Research
4 (Sell)
Standard & Poor's
2 / 5 Stars
TheStreet.com
E- (Sell)

U.S. News evaluated 209 Foreign Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 7.39 percent over the past year, -7.52 percent over the past three years, 13.18 percent over the past five years, and 8.56 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date -4.4%
1 Year 7.4%
3 Years (Annualized) -7.5%
5 Years (Annualized) 13.2%
10 Years (Annualized) 8.6%

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Summary

Janus Overseas is an international fund that can sometimes march to the beat of its own drum.

As of March 05, 2014, the fund has assets totaling $4.34 billion. Its portfolio consists of stocks in companies from around the world.

Despite the fund’s international mandate, it can veer heavily into select U.S. names if manager Brent Lynn sees deals too good to pass up, and investments in downtrodden U.S. companies that snapped back to life during the rally helped recent returns. In the process, management significantly increased the fund’s stake in domestic stocks that depend heavily on revenues from foreign countries. While Asian holdings make up the bulk of the portfolio as of mid-2010, North American firms still top a quarter of total holdings. The fund's more limited exposure to Europe helped it avoid equity market woes there, and, by sector, it has benefited from consumer discretionary and information technology holdings as management created an increasingly concentrated portfolio. Since the start of the downturn, emerging markets have been a mixed blessing for the fund, though it continues to outperform it's category through the third quarter of 2010. The fund has returned 7.39 percent over the past year and -7.52 percent over the past three years.

During the past few years, the fund’s tendency to favor emerging markets and to depart from its benchmark, which until 2008 was the MSCI Europe, Australia, Far East Index and is currently the MSCI All Country World ex-U.S. Index, has often caused it to move out of step with its peers. Going back further, the fund was crushed by the downturn at the turn of the century and spent some time on life support, but it has been improving ever since. Reflecting this upward trend, the fund’s assets grew to around $11 billion by the time it closed its doors to new investors in December 2007. When it reopened a year later, assets under management stood at just $3.5 billion thanks to hefty losses and redemptions, though they've returned to previous levels. The fund has returned 13.18 percent over the past five years and 8.56 percent over the past decade.

Investment Strategy

The fund looks to grow capital. According to its prospectus, "The portfolio manager applies a 'bottom up' approach in choosing investments. In other words, the portfolio manager looks at companies one at a time to determine if a company is an attractive investment opportunity and if it is consistent with the Fund's investment policies. If the portfolio manager is unable to find such investments, the Fund's uninvested assets may be held in cash or similar investments, subject to the Fund's specific investment policies." Says Morningstar, "Manager Brent Lynn scours the world for the fastest-growing companies. He emphasizes experienced management and high returns on capital. The fund often ends up focusing on specific regions, sectors, or both."

Role in Portfolio

Morningstar calls it a "supporting player."

Management

Brent Lynn took on a comanager position in 2000; he has been the sole manager since 2003.

Fees

Janus Overseas Fund has an expense ratio of 0.60 percent.

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Risk

Like any stock fund, particularly one invested in emerging markets, this one comes with some risks.

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