Janus touch works again

Fund profile

Growth and Income wins using a few different wrinkles

Dollars & Sense

November 14, 1999|By MORNINGSTAR

Putting a slightly milder spin on the Janus formula hasn't hurt the Janus Growth and Income Fund's returns.

Like the rest of its family's big-cap offerings, this offering lands in the category's upper reaches for the year to date through mid-October. The story behind the fund's success is a familiar one for Janus watchers. With stocks like Nokia among its top holdings, the fund has trounced the competition. And, while manager David Corkins believes that most Internet stocks are overvalued, he has also had success with small positions in a few Internet names, including Verisign and DoubleClick.

The fund's great showing so far this year is all the more impressive when one considers that Corkins hasn't kept as concentrated a portfolio or stuffed as much into technology as have funds such as Twenty.

While Corkins could hardly be labeled a bargain-hunter, he says he is eyeing a few unloved industries these days, arguing that whole industries have been tarred with the same brush. He has been buying office-supply retailer Staples, for example; while its industry has blown up this year, Corkins argues that Staples' management is the best of the lot.

Additionally, he has been adding back to his Pfizer and Schering-Plough positions. While the stocks have languished so far this year, Corkins believes that their new product pipelines are underappreciated.

That kind of opportunism has panned out pretty well since Corkins replaced Tom Marsico more than two years ago. Returns have bested the category average by a respectable margin, while volatility has been lower. Investors shouldn't mistake the fund for a shrinking violet: As is the case with all of Janus' big-cap funds, this one is vulnerable to a sell-off in technology and telecommunications names, and its average P/E is higher than the category norm. Nonetheless, the fund has been a more than respectable choice for core large-cap growth exposure.

Janus Growth & Income

Fund manager: David Corkins

Largest investment sector: Services Style: The fund's median investment is in growth stocks of companies with large market capitalizations.

Total returns as of 11/5/99

Year-to-date: 28.16 percent

One year: 49.03 percent

Three-year annualized: 34.00 percent

Five-year annualized: 31.21 percent

Risk vs. domestic equity funds: Average

Morningstar rating: 5 Stars

Maximum sales charge: None

Phone number: 800-525-8983

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