Janus Henderson Enterprise Company Case Study

Janus Henderson Enterprise Fund (JDMAX) is a major fund management business that strives towards a long-term growth of capital. The business is a merge between Henderson Group and Janus Capital Group. It is a Class C mutual fund. It has a minimum investment of $2,500.00 and has a five start overall rating from Morningstar. Each fund has different ways that the risks can be evaluated. One way that a risk can be evaluated is through beta. Beta describes how much the fund’s price moves in relation to the market. The market is described as having a beta of 1. If a fund is less than one, it is less volatile in comparison to the overall market. If the fund has a beta greater than one, it is more volatile in comparison to the overall market. A fund with a lower beta fund and less volatility does not carry as much risk as a fund with a higher beta. Because of this, the fund provides less opportunity for a higher return. For example, if a fund beta is 0.62, it is 38% less volatile than the current market value. It doesn’t carry much risk and return will not be high. If a beta is 1.52, it means that it is 52% more volatile than the market. Therefore, the fund would be riskier and the return would be higher, theoretically. Janus Henderson Enterprise has a beta of 0.91. It is 9% less sensitive or volatile than the overall …show more content…
An expense ratio is an amount that a shareholder pays annually. It measures how much money a company needs to run the mutual fund. JDMAX has a high expense ratio, which is 1.81. Anything over 1.5 is judged as high. This figure is decided by a calculation. Operating expenses are divided by the dollar value of its total market value or assets under management (AUM). The expense ratio is related to investment return because the more money given in fees correlates with the amount of money the investors get. Investors care about this because if the amount fees is high, they get less money in