Janus Henderson High-Yield Fund Q2 2024 Performance Review
The Janus Henderson High-Yield Fund has shown positive performance in the second quarter of 2024, with various classes of shares posting returns in different ranges. The Class I Shares (MUTF:JHYFX) recorded a return of 1.43% for the quarter and 3.22% year-to-date. On an annualized basis, the returns for 1 year, 3 years, 5 years, and 10 years were 9.56%, -0.08%, 2.79%, and 3.36%, respectively. Since inception on December 29, 1995, the fund has delivered a return of 6.53%.
In comparison, the Class T Shares (MUTF:JAHYX) and Class N Shares (MUTF:JHYNX) also showed positive performance with returns of 1.40% and 1.60% for the quarter, respectively. The Class A Shares (MUTF:JHYAX) had a return of 1.53% at NAV for the quarter, while the maximum offering price (MOP) returns for Class A Shares were -3.30%. The Bloomberg U.S. Corporate High Yield Bond Index had a return of 1.09% for the quarter.
Investment Environment and Portfolio Review
The U.S. high-yield market saw positive returns in the second quarter, driven by economic resilience and inflation trends. While yields initially rose due to inflation concerns, they retraced later in the quarter as the Federal Reserve signaled rate cuts. Corporate high-yield credit spreads ended the quarter slightly wider at 309 basis points.
The Janus Henderson High-Yield Fund’s portfolio witnessed slight widening of credit spreads but remained tight due to strong corporate fundamentals and healthy supply-demand dynamics. The fund’s exposure to cable satellites, wirelines, transportation, and technology sectors contributed positively, while pharmaceuticals, chemicals, and healthcare detracted.
Manager Outlook and Top Holdings
Looking ahead to the latter half of 2024, the fund managers are monitoring the Fed’s rate-cutting decisions and economic indicators closely. The fund remains optimistic about the high-yield sector’s potential due to attractive yields, a resilient economy, and strong investor demand. The top holdings of the fund include US 2YR NOTE (CBT) Sep24, FTAI Infra Escrow Holdings LLC, Medline Borrower LP, Cargo Aircraft Management Inc, and others.
Conclusion
In conclusion, the Janus Henderson High-Yield Fund has shown positive performance in the second quarter of 2024, driven by economic resilience and strong corporate fundamentals. The fund managers remain optimistic about the high-yield sector’s outlook and are closely monitoring market conditions to make informed decisions. Investors looking for exposure to high-yield bonds may find the Janus Henderson High-Yield Fund an attractive option based on its performance and portfolio composition.
