Janus Funds: High-Yield Fund (JAHYX)
Janus Funds has a total of five fixed-income mutual funds to choose from, with the Janus High-Yield Fund (JAHYX) providing the best combination of good long-term performance and reasonable fees. With a 15% annual total return over the past five years, along with a reasonable annual expense ratio of 0.87% (or $87 annually for every $10,000 invested), JAHYX focuses on companies that generate significant free cash flow and are committed to improving their capital structures.
A majority of the 217 bonds held are corporate bonds, with 70% of them garnering either a B or BB rating, making them speculative in nature but not junk. Most of the bonds held are from North American companies, with 60% represented by four industries — energy, communications, consumer cyclical and consumer non-cyclical.
JAHYX has been managed by Gibson Smith, Janus Funds’ chief investment officer, since December 2003. It’s rated four starts by Morningstar, and has had just one year of negative returns in the past decade. This is among the top mutual funds to own if you are interested in a bond component actively managed for your portfolio.