Janus Capital Group, Inc. (NYSE: JNS) is a global investment manager with $378.1 billion in assets under management (AUM) as of November 2018. They have offered mutual funds for over 40 years, and is highly respected for its research, quality management and conviction to their investment approach. Over 50% of Janus funds have overall four- or five-star Morningstar ratings, and most rank above average on a total return basis when compared to competitors. Providing retirement plan diversification by using the right funds means you don't need to sacrifice total return on investment in favor of more security.

Janus Balanced Fund (JBALX)

The Janus Balanced Fund has a Morningstar rating of five stars. The fund’s objective is to provide solid returns while defensively changing the asset mix according to shifting market conditions. The fund keeps 35 to 65% of assets primarily in large-cap U.S. equities and the balance in fixed-income securities with Standard & Poor's ratings of BBB or higher. The fund’s Class A Shares have a three-year annualized total return of 19.68% and a yield of 1.98%. Conservative investors are well served by keeping a large portion of investable funds in the Balanced Fund.

Janus Growth and Income Fund (JNGIX)

The Janus Growth and Income Fund seeks to combine income with capital growth. The fund invests in over 60 large-cap U.S. companies that pay high dividends. Companies must be well established with a strong history of increasing dividends and strong potential for rising future dividends. The fund’s Class A shares have a five-year annualized total return based on a NAV of 13.61% and a yield of 1.98%.

The Janus Global Allocation Fund - Conservative (JMSCX)

The Janus Global Allocation fund takes a conservative approach to capital preservation, with a 10-year annualized return of 6.49% and a dedication to fixed income growth. As the name suggests it is a conservative fund, actively rebalancing between stocks, bonds and alternative investments. 

Janus Enterprise Fund (JMGRX)

A truly diversified retirement portfolio needs exposure to companies of multiple capitalization types. The Janus Enterprise Fund, a Morningstar five-star rated fund, invests in mid-cap companies. The fund brings a traditional value approach to this higher growth asset class. It seeks companies competing in large markets, with the ability to be leaders in those markets. The fund’s Class A Shares have a five-year annualized return based on NAV of 15.32%.

Janus Triton Fund (JSMGX)

The Janus Triton Fund adds additional diversification by bringing the fast growth potential of small-cap investing to a portfolio. This Morningstar five-star rated fund invests primarily in companies with $1 billion to $10 billion in market capitalization. These companies are large enough to be established but small enough to have explosive growth potential. The fund reduces risk by spreading assets over 100 stocks. Its Class A shares have a five-year annualized return on NAV of 14.99%.

Bottom Line

Turnover rates of fund portfolios can add to tax liability, which makes these funds more suitable for holding in an IRA. Holding the Balanced Fund and the Growth and Income Fund inside a Roth IRA allows the yield to be withdrawn tax-free. Asset allocation depends on individual risk tolerance. Investors who are 20 years from retirement should invest the majority of funds in the three growth funds with an emphasis on the Enterprise and Triton Funds. Investors who are nearing retirement should invest almost all funds in the Growth and Income Fund and the Balanced Fund.