VIT BALANCED PORTFOLIO - 25+ Years of Dynamic Asset Allocation - Janus Henderson
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Q2 2021
VIT BALANCED
PORTFOLIO
25+ Years of Dynamic Asset Allocation
INSTITUTIONAL SHARES: 471021402 / JABLX SERVICE SHARES: 471021691
Overall Morningstar RatingTM
Based on risk-adjusted returns as of 6/30/21
★★★★★
Institutional Shares among 659 Allocation – 50% to 70%
Equity Funds
PORTFOLIO
AT A GLANCE
25+ Years of Portfolio Construction
Actively Managed Allocation Sleeves in a One-Stop Core Solution:
Dynamic Asset
Equity: Primarily U.S. Large Cap Growth (35% to 65% of portfolio)
Allocation Fixed Income: Fundamentally driven, U.S. dollar-denominated
core bond
HIGHLIGHTS
Since Inception, the Portfolio Management
Portfolio has Delivered: An Integrated Partnership:
Strong Capital Allocation decisions are made based on our view of overall
Appreciation market risk and careful examination of individual security
Nearly Half the valuations across equity and fixed income markets. Integration
Volatility of the at the research level allows the team to analyze a business in its
S&P 500 ® Index entirety and make better informed decisions.
(details on page 5)
PORTFOLIO POSITION:
Jeremiah Buckley, CFA
Balanced Core ■
Portfolio Manager since 2015
One-Stop Asset ■
Joined Firm in 1998
Allocation
Greg Wilensky, CFA
■
Portfolio Manager since 2020
■
Industry since 1993
Michael Keough
■
Portfolio Manager since 2019
■
Industry since 2006
Page 2 of 8
What is the Benefit of a Dynamic Asset Allocation Approach?
The Portfolio’s dynamic approach provides the flexibility to defensively position ahead of market volatility while seeking strong
risk-adjusted returns. This process, coupled with diverse sources of return, can help mitigate downside risk.
Equity Allocation Adapting to Market Changes
VIT Balanced Portfolio equity allocation in relation to market volatility
(12/31/97 – 6/30/21)
70% VIT Balanced Portfolio - Equity Allocation Cboe Volatility Index® 60
55
65%
50
60%
45
Equity Allocation (% of Portfolio)
40
55%
Cboe Volatility Index®
35
50% 30
25
45%
20
40% 15
10
35%
5
30% 0
2000
2008
2006
2009
2005
2004
2003
2002
2020
2021
2007
1998
1999
2001
2010
2018
2016
2019
2015
2014
2013
2012
2017
2011
In 1999, ahead of the 2000- Prior to the events of In early 2009, the Fund In mid-2015, the Fund In early 2020, the Fund quickly
2002 bear market, the Fund 2008, the Fund reduced began to increase its began to increase its decreased its equity allocation
decreased its equity allocation. its equity allocation. equity allocation. equity allocation. response to the Coronavirus.
Cboe Volatility Index® or VIX® Index® shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500®
Index options and is a widely used measure of market risk. The VIX Index methodology is the property of Chicago Board of Options Exchange, which is not affiliated with
Janus Henderson.
Page 3 of 8
VIT BALANCED PORTFOLIO (as of 6/30/21)
What Does This Approach Mean for Performance?
Sometimes losing less is more important than gaining more. The VIT Balanced Portfolio has historically delivered when it has counted
– on the downside. Whether it was market downturns like the Tech Bubble Collapse of the early 2000s or the Great Recession of
2008, the VIT Balanced Portfolio consistently captured less of the downside.
IT’S EASIER TO CLIMB OUT
OF A SMALL HOLE THAN
Annualized Return Downside Capture A LARGE ONE ...
(Since Inception as of 6/30/21) (Since Inception as of 6/30/21)
Losing less in down markets
10.32% 10.49% 50.01% 100% has helped the Portfolio
Portfolio Index Portfolio Index
deliver index-beating
performance over the
long term.
Strong Downside Performance vs. the Broad U.S. Equity Market
Calendar Year Returns (1994 – 2020)
40% VIT Balanced Portfolio (Institutional Shares) S&P 500® Index
30%
20%
10%
0%
-10%
-20%
-30%
-40%
2000
2008
2006
2009
2005
2004
2003
2002
2020
2007
1998
1996
1999
1995
1994
2001
2010
2018
2016
2019
2015
2014
2013
1997
2012
2017
2011
Tech Bubble Great Recession Market Volatility COVID-19
Collapse of 2008 of 2018 Global Pandemic
(Cumulative return 1/1/00 – 12/31/02) (1/1/08 – 12/31/08) (1/1/18 – 12/31/18) (1/1/20 – 3/31/20)
VIT S&P 500® VIT S&P 500® VIT S&P 500® VIT S&P 500®
Balanced Index Balanced Index Balanced Index Balanced Index
Portfolio Portfolio Portfolio Portfolio
0.7%
-4.4%
-11.6%
-12.8% -15.8%
-19.6%
-37.6% -37.0%
Downside Capture Ratio Downside Capture Ratio Downside Capture Ratio Downside Capture Ratio
38.52% 48.71% 52.23% 59.06%
Past performance is no guarantee of future results. Please see the back pages for additional performance information and important disclosures.
Page 4 of 8Does Higher Performance Mean Higher Risk?
Not necessarily. Since inception, the VIT Balanced Portfolio has outperformed the S&P 500® Index with significantly less
volatility (as illustrated below).
Competitive Returns with Nearly Half the Volatility of the Broad Equity Market
The Portfolio (Institutional Shares) Compared to Index and Peers Since Portfolio Inception (9/13/93 — 6/30/21)
11%
Higher
10% S&P 500® Index
Reward: Annualized Performance
VIT Balanced
Portfolio
9%
Morningstar Allocation –
50% to 70% Equity Peer Group Median
8%
7%
Lower
6%
9% 13% 17% 21% 25%
Lower Higher
Risk: Standard Deviation
Risk Statistics vs. S&P 500® Index
Since Inception (9/13/93 – 6/30/21) Alpha Beta Standard Deviation Sharpe Ratio
VIT Balanced Portfolio (Institutional Shares) 3.31 0.50 12.37 0.93
Benchmark – 1.00 22.57 0.60
Morningstar Percentile Ranking 7 87 94 5
Allocation – 50% to 70% Equity Category Rank/Count 8/210 191/210 187/210 5/210
Alpha compares the risk-adjusted performance of a portfolio to a benchmark index. Positive alpha means outperformance on a risk-adjusted basis.
Sharpe Ratio measures risk-adjusted performance using excess returns versus the “risk-free” rate and the volatility of those returns. A higher ratio means better return per unit of risk.
Standard Deviation measures historical volatility. Higher standard deviation implies greater volatility.
Beta measures the volatility of a security or portfolio relative to an index. Less than one means lower volatility than the index; more than one means greater volatility.
Source: © 2021 Morningstar, Inc. All Rights Reserved. Statistics based on daily returns.
Past performance is no guarantee of future results. Please see the back pages for additional performance information and important disclosures.
Page 5 of 8VIT BALANCED PORTFOLIO (as of 6/30/21)
How Has The VIT Balanced Portfolio Handled Specific Difficult Markets?
Over its 25+ year history, the Balanced Fund has delivered through multiple economic cycles and difficult markets. From the
boom and bust of the late 1990’s to the Global Financial Crisis and volatile markets of 2018, in tough times, the Balanced Fund
has delivered strong, absolute and risk-adjusted returns.
2008 – Getting Back in the Black after the Global Financial Crisis
Hypothetical Growth of $10,000 (10/1/07 – 9/30/09)
Starting Value: GETTING INVESTOR
$10,000
GOALS BACK ON
VIT Balanced TRACK SIX MONTHS
Allocation –
Portfolio
S&P 500 Index ® 50%-70% Equity (Institutional Shares) AFTER MARKET LOWS
Ending Value Ending Value
$8,482
Ending Value During the market decline
$7,264 $10,250
Annualized Return Annualized Return
Annualized Return
of 10/1/07 to 9/30/09,
-8.03%
-14.77% +1.24% only five unique Portfolios
in Allocation – 50% to 70%
Equity category made it
Source: Morningstar, Inc. out of the red at the end
Past performance is not guarantee of future results. This example is based on returns during the period stated of this challenging period
and is used for illustration purposes only. Return figures include reinvestment of dividends and capital gains.
*Based on best performing share class out of 148 unique portfolios. Including all share classes, there were a total of 551 – VIT Balanced Portfolio
funds in the category.
was one of them.*
2018 – Weathering Whipsaw Volatility VIT BALANCED FUND
Persistent market volatility is what many investors will remember about 2018. OUTPERFORMANCE
■
1Q18 was the only time in the last 10 years and only the 8th quarter in the past DURING DOWN
30 years that both the S&P 500® Index and Bloomberg Barclays U.S. Aggregate MARKET DAYS
Bond Index were negative. VIT Balanced Portfolio was positive +0.68% in 1Q18.
■
In December, the S&P 500® was down -9.03% which led to the index ending
negative for the first time since 2008. VIT Balanced Portfolio was down -4.54% in
December 2018. 88%
In 2018, VIT Balanced Portfolio
of time, VIT Balanced
outperformed the S&P 500 ® by 5.07% Portfolio outperformed
(+0.68% vs. -4.38%). during the 118 days in
2018 when the index
Statistics based on Institutional shares. was negative
Past performance is no guarantee of future results. Please see the back pages for additional performance information and important disclosures.
Page 6 of 8RETIREMENT PLANNING
Current realities such as longer life expectancies, changing tax legislation and rising health care costs
put pressure on an investor’s portfolio to last throughout their retirement years. Maintaining a larger
exposure to equities in retirement for growth potential may be necessary.
Consider this… If an investor entering retirement in 2000 had invested $1 million in VIT Balanced
Portfolio and taken an annual withdrawal of $45,000 (increased by 2.5% each year to adjust for
inflation), they would have seen that investment end 2020 with a balance of just over $900,000 after
taking cumulative income of just over $1.1 million.
Balancing Income Needs with Long-Term Growth of Capital
Hypothetical Growth of $1,000,000 over 20 Years with Withdrawals (1/1/00 – 12/31/20)
$1,500,000 VIT Balanced Portfolio - Insti. Shares Withdrawal
$1,000,000
$936,610
Year End Balance
$500,000
$80,000
Annual Withdrawals
$60,000
$40,000
$20,000
$0 $0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Janus Henderson Retirement Analytics Center.
Portfolio
Year End Balance Comparison* (2020) (Insti Shares)
VIT Balanced Portfolio $936,610
S&P 500 Index
®
$0
Balanced Index (55/45) $640,607
*Assumptions: $1,000,000 starting balance, $45,000 withdrawal at the beginning of Year 1.
Each annual withdrawal is increased by 2.5%, adjusting for inflation. Taxes not taken into account.
Past performance is no guarantee of future results. Please see the back page for additional performance information and important disclosures.
Page 7 of 8VIT BALANCED PORTFOLIO (as of 6/30/21)
Since Inception
Performance (%) 1 Year 3 Year 5 Year 10 Year (9/13/93)
Institutional Shares 24.28 14.09 13.76 10.51 10.32
Service Shares 24.00 13.82 13.48 10.24 10.13
S&P 500 Index
®
40.79 18.67 17.65 14.84 10.49
Bloomberg Barclays U.S. Aggregate Bond Index -0.33 5.34 3.03 3.39 5.08
Balanced Index 20.92 12.98 11.16 9.82 8.31
Morningstar Percentile Ranking 63 10 6 8 7
Allocation – 50% to 70% Equity Category Rank/Count 422/703 54/689 30/662 35/545 10/210
Expense Ratios (%): Institutional Shares - Gross 0.62; Net 0.62. Service Shares - Gross 0.87; Net 0.87.
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and
principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 or visit
janushenderson.com/performance.
FOR MORE INFORMATION, PLEASE VISIT JANUSHENDERSON.COM
Please consider the charges, risks, expenses and investment funds and 5 stars out of 428 funds, for the 3-, 5-, and 10-year periods, respectively.
objectives carefully before investing. For a prospectus or, if The Morningstar RatingTM for funds, or “star rating”, is calculated for funds with at least
a three-year history. Exchange-traded funds and open-ended mutual funds are
available, a summary prospectus containing this and other considered a single population for comparative purposes. It is calculated based on a
information, please call Janus Henderson at 800.668.0434 or Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s
monthly excess performance, placing more emphasis on downward variations and
download the file from janushenderson.com/VIT. Read it carefully rewarding consistent performance. The Morningstar Rating does not include any
before you invest or send money. adjustment for sales loads. The top 10% of funds in each category receive 5 stars, the
Performance for Service Shares prior to 12/31/99 reflects the performance of next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars,
Institutional Shares, adjusted to reflect the expenses of Service Shares. and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived
from a weighted average of the performance figures associated with its three-, five-, and
Returns shown do not represent actual returns since they do not include insurance
10-year (if applicable) Morningstar Rating metrics, and may not indicate positive
charges. Returns shown would have been lower had they included insurance charges.
performance. Ratings may vary by share class.
Returns include reinvestment of dividends and capital gains. Returns greater than one
The Morningstar percentile ranking is based on a fund’s total return (including income
year are annualized.
and capital gains, if any, and excluding sales charges) relative to all funds in the same
There is no assurance that the investment process will consistently lead to category for the period, and may not indicate positive performance. The highest (or
successful investing. There is no assurance the stated objective(s) will be met. most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank
As of 6/30/21, the Portfolio’s 3-Year Risk Metrics (vs. S&P 500® Index) are as follows: is 100%. The top-performing funds in a category will always receive a rank of 1.
Alpha: 2.63; Sharpe Ratio: 1.14; Standard Deviation: 11.25; Beta: 0.60. The 5-Year © 2021 Morningstar, Inc. All Rights Reserved.
Downside Capture Ratio (vs the S&P 500® Index) is 54.75%.
S&P 500® Index measures broad U.S. equity performance. Bloomberg Barclays U.S.
A Portfolio’s performance may be affected by risks that include those associated Aggregate Bond Index is a broad-based measure of the investment grade, US
with nondiversification, non-investment grade debt securities, high-yield/high-risk dollar-denominated, fixed-rate taxable bond market. Balanced Index is an internally-
securities, undervalued or overlooked companies, investments in specific calculated, hypothetical combination of total returns from the S&P 500® Index (55%)
industries or countries and potential conflicts of interest. Additional risks to a and the Bloomberg Barclays U.S. Aggregate Bond Index (45%). Capture Ratio
Portfolio may also include, but are not limited to, those associated with investing measures the percentage of index (market) performance an investment “captured”
in foreign securities, emerging markets, initial public offerings, real estate during periods when the index achieved gains (up capture) or declined (down capture).
investment trusts (REITs), derivatives, short sales, commodity-linked investments A capture ratio of 100% means investment performance went up or down exactly the
and companies with relatively small market capitalizations. Each Portfolio has same amount as the index
different risks. Please see a Janus Henderson prospectus for more information
A Portfolio’s holdings may differ significantly from the securities held in an index. An index
about risks, portfolio holdings and other details.
is unmanaged and not available for direct investment; therefore its performance does
Fixed income securities are subject to interest rate, inflation, credit and default not reflect the expenses associated with the active management of an actual portfolio.
risk. The bond market is volatile. As interest rates rise, bond prices usually fall,
Not all Funds and Share classes may be available. Please consult your
and vice versa. The return of principal is not guaranteed, and prices may decline if
financial professional.
an issuer fails to make timely payments or its credit strength weakens.
Janus Henderson is a trademark of Janus Henderson Group plc or one of its
Growth stocks are subject to increased risk of loss and price volatility and may not
subsidiaries. © Janus Henderson Group plc.
realize their perceived growth potential.
Janus Henderson Distributors
As of 6/30/21, VIT Balanced Portfolio Class Institutional Morningstar RatingsTM in the
Allocation – 50% to 70% Equity category: 5 stars out of 659 funds, 5 stars out of 601
C-0621-38788 10-15-21 199-15-30148 07-21You can also read
