Janus Global Research Fund

ctors are not entirely off the menu of consideration, though "bottom-up"is in focus.

Portfolio Analysis
Over the bumpy 2007, Janus Global Research Fund registered a solid 1-year return of 24.98 percent, occupying the first quartile of the Morningstar Global Large-Cap Growth Equity Category. With 43.70 percent US equities as of September-end 2007, which are recently drowned in the sub-prime issue, the Fund's solid return shows itself a proven bottom-up stock picker so far.

As for its portfolio of Septembers, some performance drivers like Apple Inc., Reliance Industries and Owens-Illinois Inc. are not surprising picks to investors, but the fund is not a trend chaser, as some "unloved"companies, like JA Solar, are also included. However, some detractors, especially financials and Japanese stocks, hurt the fund's performance over 2007.

The outbreak of sub-prime crisis last August battered some holdings of the fund including J.P. Morgan Chase, Fannie Mae and UBS, though their weightings were not significant. On the other hand, the fund did not reap profits from Japanese picks last year either, such as SONY, Park24, Shin-Etsu Chemical and Mitsubishi Estate.

The portfolio is managed in a diversified manner. As of September-end 2007, the portfolio held around 120 names and the top ten holdings soaked up only 18.21 percent of the portfolio asset. This diversified strategy has helped the fund to reward investors at a lower risk level. As of December-end 2007, the Fund's volatility (1-year) is merely 11.96, situated in the middle of the category.

Although Janus Global Research Fund is relatively new to Hong Kong investors, investors can feel ease with its analyst-driven strategy, as some other Janus's US-centric offerings, like Janus U.S. Research Fund and Janus Research Fund (not available for sale in Hong Kong) have been performing pretty well in the past few years. On the other hand, investors should keep their eyes closed to the team's retention and stability, which is the key to the fund's success.

Lastly, we would like to applaud for the fund's monthly disclosure of its full portfolio. It certainly helps investors to better understand and evaluate management's approach.