So, you've probably seen the name pop up in your retirement account or a random screener: the Janus Henderson Forty Fund Class D. Or maybe you just know it as JFRDX. Either way, there is a lot of noise in the mutual fund world, and it is easy to get lost in the sea of tickers. Honestly, most people look at the name "Forty" and assume it’s just another bloated large-cap fund.
They are wrong.
The Janus Forty Fund D is a bit of a weird beast in the best way possible. While most big-box funds try to hug their benchmark by holding 100 or 500 stocks to play it safe, this fund does exactly what the name says. It picks about 40 stocks. Sometimes fewer. As of early 2026, it is actually sitting around 31 holdings. That is a massive amount of conviction. If you're looking for "closet indexing," you won't find it here.
What Is the Janus Forty Fund D Actually Doing?
The core philosophy here is basically "quality over quantity." Managers Nick Schommer and Brian Recht aren't trying to throw darts at the entire S&P 500. They are hunting for what they call "innovative wide-moat companies."
Think of it like this. Instead of owning every tech company on the planet, they might bet big on NVIDIA, Microsoft, and Amazon—which, by the way, are currently massive chunks of the portfolio. When these big bets win, they win big. When they miss? Well, that’s where the volatility kicks in.
Because the fund is non-diversified, it doesn't have the same safety net as a broader fund. If one of their top ten holdings—which make up over 60% of the total assets—has a bad quarter, you’re going to feel it. But that's the trade-off you make for the potential to outperform the Russell 1000 Growth Index.
The Specifics of the Class D Share
You might be wondering what the "D" even stands for. In the Janus Henderson world, Class D shares (JFRDX) are typically "Direct" shares. They are often what you get if you opened an account directly with Janus back in the day, or they might appear in certain fee-based advisory platforms.
The expense ratio is surprisingly decent for an active fund. We’re looking at about 0.63% as of the most recent 2025/2026 data. Compare that to some old-school growth funds charging 1% or more, and JFRDX starts to look like a bargain.
Janus Forty Fund D Performance: The Reality Check
Let’s talk numbers, but keep it real. 2024 and 2025 were wild years for growth stocks. The Janus Forty Fund D rode that wave, but it hasn't always been a smooth ride.
- Short-term Volatility: In the last year (ending late 2025), the fund returned around 18.3%. That’s solid, but it actually trailed the Russell 1000 Growth Index slightly.
- The Three-Year Win: If you look at the three-year stretch, the fund has been a beast, clocking in at over 28% annualized. That’s where the "conviction" part of the strategy pays off.
- The Long Game: Since its inception way back in 1997 (though the D class specifically restructured later), it has averaged roughly 12.68% annually.
What people get wrong is thinking this fund is a "set it and forget it" for a conservative portfolio. It’s not. It’s a growth engine. It’s designed for the part of your portfolio that can handle a 30% drop in a bad year in exchange for those 40% gain years.
What’s Inside the Engine Room?
As we move through 2026, the fund is heavily leaning into Information Technology—nearly 50% of the fund is there. They’ve also got big positions in:
- Broadcom Inc. (Heavy AI play)
- Oracle Corp. (Cloud migration bet)
- Meta Platforms (The ad-revenue giant)
They recently dumped some positions where "earnings visibility" got murky. They aren't afraid to cut bait. If a company loses its "moat," it’s gone. That active management is why you pay the 0.63% fee instead of buying a 0.03% Vanguard index fund.
Why This Fund Still Matters in 2026
The world has changed. AI isn't just a buzzword anymore; it’s the primary driver of earnings for the biggest companies in the world. The Janus Forty Fund D is positioned right in the crosshairs of that shift.
Honestly, the "Active vs. Passive" debate is kind of tired. Most people should probably just buy an index. But for the investor who wants a manager to actually make decisions—to say "I like these 30 companies and I hate the other 470"—this fund remains one of the purest ways to do that.
The management team is stable. Nick Schommer has been at the helm since 2016. Brian Recht joined him in 2022. They aren't "star managers" in the 1990s sense, but they are disciplined. They look for "growth where growth is scarce."
💡 You might also like: Other Words for Hands On: Why Precision Actually Matters in Your Resume
Actionable Next Steps for Investors
If you're looking at JFRDX for your own portfolio, don't just jump in because the three-year numbers look pretty. Do this instead:
- Check Your Concentration: If you already own a bunch of QQQ or individual tech stocks, JFRDX is going to double down on that risk. You might end up 80% in tech without realizing it.
- Minimums Matter: Usually, there is a $2,500 minimum for initial purchases. Make sure you aren't tying up money you need for next month's rent.
- Watch the Turnover: The fund has a turnover rate of about 33%. That means they swap out about a third of the portfolio every year. This can create "capital gains distributions" which might bite you at tax time if you hold this in a regular brokerage account instead of an IRA.
- Compare to Class N: If you have the choice, check the Class N shares (JFRNX). Sometimes the expense ratios are even lower depending on the platform you're using.
Ultimately, the Janus Forty Fund D is a high-conviction tool. It's for the person who believes that a few great companies will always beat a thousand mediocre ones. It’s been around for nearly 30 years for a reason: it does exactly what it says on the tin.