Posted inHead To Head

HEAD-TO-HEAD: Blackrock versus Janus Henderson

FSA compares two global technology products: The BGF World Technology Fund and the Janus Henderson Global Technology Leaders Fund.
by Francis Nikolai Acosta

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The three-year performance of the Blackrock and Janus Henderson funds versus their benchmark index. In US dollars. Source: FE Fundinfo.

PERFORMANCE

Given its tilts in opportunistic companies, the Blackrock fund is expected to outperform in environments where highly valued high growth stocks continue to outperform, such as most of 2020, according to Meakin.

“However, if we were to see a significant, sustained reversal of the current market leadership where high growth stocks on very high multiples de-rated, then the Janus Henderson fund’s more conservative approach to valuations may help it to outperform,” he said.

Annual calendar performance (%)

Fund / index YTD 2020 2019 2018 2017 2016
Blackrock fund 77.39 43.48 -0.34 51.99 5.92
Janus Henderson fund 38.44 39.52 -6.91 43.79 6.17
Index: MSCI ACWI/Information Technology 38.97 47.52 -5.47 42.27 12.71
Source: FE Fundinfo. In US dollars.

In terms of volatility, the Blackrock fund has been more volatile than the Janus Henderson offering.

“The Blackrock fund’s tilt towards names lower down the market-cap scale may explain some of this, and valuation risk is higher since it is willing to hold companies on higher valuation multiples than the Janus Henderson fund,” Meakin said.

Three-year annualized volatility

Fund / Index Volatility Sharpe ratio
Blackrock 24.37 1.33
Janus Henderson 21.66 0.81
MSCI ACWI/Information Technology Index 23.24  
Source: FE Fundinfo. In US dollars.

 

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