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Exhibit 99.1
July 27, 2006
JANUS ANNOUNCES SECOND QUARTER 2006 RESULTS
Second quarter earnings of $0.15 per diluted share
Long-term net outflows of $400 million for quarter
Strongest 1- and 3-year relative investment performance in five years
Company buys back $105 million of its stock during quarter
DENVER—Janus Capital Group Inc. (NYSE: JNS) today reported second quarter net income of $31.1 million, or $0.15 per diluted share, compared with net income of $35.3 million, or $0.17 per diluted share, in the first quarter 2006, and $25.7 million, or $0.12 per diluted share, in the second quarter 2005. The company's investment management operating margins for the second quarter 2006 were 24.6% compared with 27.1% in the first quarter 2006 and 21.0% in the second quarter 2005. As previously disclosed, first quarter 2006 results included a $5 million net benefit from an insurance recovery that was partially offset by non-recurring charges.
Flows and Assets Under Management
Average assets under management during the second quarter were nearly flat at $154.0 billion compared with $154.4 billion during the first quarter 2006. At June 30, 2006, the company's total assets under management were $153.4 billion compared with $158.1 billion at March 31, 2006. The lower assets at the end of the second quarter reflect long-term net outflows of $0.4 billion, money market net inflows of $1.2 billion and $5.5 billion in market depreciation and fund performance.
Janus' INTECH subsidiary had net inflows of $2.6 billion in the second quarter compared with net inflows of $4.0 billion in the first quarter 2006. Excluding INTECH, Janus' long-term net outflows totaled $3.0 billion in the second quarter 2006 versus long-term net outflows of $0.5 billion in the first quarter 2006. Approximately $1.2 billion of the long-term net outflows during the second quarter came from small-cap value products.
"Despite the downturn in the market and this quarter's flows, Janus has come a long way," said CEO Gary Black. "If we keep delivering consistently strong performance, I'm confident our investments in expanding our distribution will pay off."
Investment Management
Janus' investment management performance remained strong during the first quarter, driving continued improvement in the company's five-year results. As of June 30, 2006, approximately 84%, 78% and 64% of the funds in the company's primary retail fund family, Janus Investment Fund (JIF), were in
1
the top half of their Lipper categories on a one-, three- and five-year total-return basis, respectively. (Detailed Lipper rankings and performance data for all JIF funds are on pages 9 - 12.)
"Our relative performance is the best it's been in more than five years," Black said. "Being able to deliver consistent results through all market cycles is our top priority—and much of our success is due to our rigorous research and disciplined investment process."(1)
- (1)
- Based on Lipper relative performance on a 1- and 3-year total-return basis as of 6/30/06.
At the end of June, 57% of the rated funds in Janus' primary fund family had received either four- or five-star overall ratings from Morningstar and 61% of those funds had earned four- or five-star ratings on a three-year basis (based on risk-adjusted returns). (Detailed Morningstar ratings are on page 13.)
Financial Discussion
Financial Highlights
(dollars in millions, except per share data or as noted)
| | Three Months Ended
| |
|---|
| | June 30,
2006
| | March 31,
2006
| | June 30,
2005
| |
|---|
| Investment Management Segment | | | | | | | | | | |
| Average Assets (in billions) | | $ | 154.0 | | $ | 154.4 | | $ | 129.3 | |
| Ending AUM (in billions) | | $ | 153.4 | | $ | 158.1 | | $ | 130.3 | |
| Revenues | | $ | 233.1 | | $ | 232.5 | | $ | 208.7 | |
| Operating Expenses | | $ | 175.8 | | $ | 169.6 | | $ | 164.8 | |
| Operating Income | | $ | 57.3 | | $ | 62.9 | | $ | 43.9 | |
| Operating Margin | | | 24.6 | % | | 27.1 | % | | 21.0 | % |
| Printing and Fulfillment Operating Loss | | $ | (4.1 | ) | $ | (3.7 | ) | $ | (4.1 | ) |
| Consolidated Net Income | | $ | 31.1 | | $ | 35.3 | | $ | 25.7 | |
| Diluted Earnings per Share | | $ | 0.15 | | $ | 0.17 | | $ | 0.12 | |
| Shares Repurchased (in millions) | | | 5.3 | | | 5.7 | | | 3.8 | |
| Cost of Shares Repurchased | | $ | 104.9 | | $ | 125.0 | | $ | 55.3 | |
Investment Management Segment—Second Quarter 2006 versus First Quarter 2006
Second quarter revenues of $233.1 million were up slightly from the $232.5 million in the previous quarter. Second quarter 2006 operating expenses totaled $175.8 million, an increase of $6.2 million from the first quarter. Approximately $5.0 million of the increased expenses came from the net credit recorded in the first quarter and discussed on the first page of this release. The remaining $1.2 million increase primarily reflects higher long-term incentive compensation and marketing costs, offset by lower employee compensation and benefits.
Printing and Fulfillment Segment
Janus' printing business, Rapid Solutions Group (RSG), had an operating loss of $4.1 million in the second quarter of 2006 compared with a $3.7 million loss in the previous quarter. RSG's core business results were nearly flat quarter to quarter.
Capital and Liquidity
At June 30, 2006, Janus had stockholders' equity of $2.5 billion, cash and investments of $674.1 million and $375.7 million of outstanding debt. As part of its capital and liquidity management, Janus reduced
2
its outstanding shares by 2.3% during the second quarter by repurchasing 5.3 million shares of its common stock at an average price of $19.66 per share and a total cost of $104.9 million.
Second Quarter 2006 Earnings Call Information
Janus Capital Group will discuss its results during a conference call on Thursday, July 27 at 10 a.m. Eastern Daylight Time. The call-in number will be 877-301-7574. Anyone outside the U.S. or Canada should call 706-643-3623. The slides used during the presentation will be available in the investor relations section of the Janus Capital Group Web site (www.janus.com/ir) approximately one hour prior to the call. For those unable to join the conference call at the scheduled time, an audio replay will be available on www.janus.com/ir.
About Janus Capital Group Inc.
Founded in 1969, Denver-based Janus Capital Group Inc. (Janus) is a recognized leader of growth and risk-managed investment strategies. Our commitment to deliver for investors is rooted in our research-intensive approach and relentless passion to gain a competitive edge.
At the end of June 2006, Janus managed $153.4 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, Milan, Tokyo and Hong Kong. Janus Capital Group consists of Janus Capital Management LLC, Enhanced Investment Technologies, LLC (INTECH) and Capital Group Partners, Inc. (doing business as Rapid Solutions Group). In addition, Janus Capital Group owns 30% of Perkins, Wolf, McDonnell and Company, LLC.
Contacts:
Shelley Peterson, 303-316-5625
Blair Johnson, 720-210-1439
###
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 1-800-525-3713 or download the file from www.janus.com. Read it carefully before you invest or send money.
Data presented reflects past performance, which is no guarantee of future results. Rankings referenced exclude money markets.
Funds distributed by Janus Distributors LLC (7/06).
This press release includes statements concerning potential future events involving Janus Capital Group Inc. that could differ materially from the events that actually occur. The differences could be caused by a number of factors including those factors identified in Janus' Annual Report on Form 10-K for the year ended December 31, 2005, on file with the Securities and Exchange Commission (Commission file no. 001-15253), including those that appear under headings such as "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Many of these factors are beyond the control of the Company and its management. Any forward-looking statements contained in this release are as of the date on which such statements were made. The Company assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or implied therein will not be realized.
3
JANUS CAPITAL GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
| | Three Months Ended
| |
|---|
| | June 30,
2006
| | March 31,
2006
| | June 30,
2005
| |
|---|
| Investment Management Revenues: | | | | | | | | | | |
| | Investment management fees | | $ | 187.0 | | $ | 185.6 | | $ | 161.8 | |
| | Performance fees | | | 4.3 | | | 4.2 | | | 5.5 | |
| | Shareowner servicing fees and other | | | 41.8 | | | 42.7 | | | 41.4 | |
| | |
| |
| |
| |
| | | Total | | | 233.1 | | | 232.5 | | | 208.7 | |
| | |
| |
| |
| |
| Investment Management Operating Expenses: | | | | | | | | | | |
| | Employee compensation and benefits | | | 78.2 | | | 83.4 | | | 69.4 | |
| | Long-term incentive compensation | | | 23.0 | | | 22.0 | | | 18.5 | |
| | Marketing and advertising | | | 7.7 | | | 5.4 | | | 9.0 | |
| | Distribution | | | 27.2 | | | 26.8 | | | 25.9 | |
| | Depreciation and amortization | | | 8.3 | | | 8.3 | | | 9.4 | |
| | General, administrative and occupancy | | | 31.4 | | | 33.7 | | | 38.6 | |
| | Mutual fund investigation recoveries, net of charges | | | — | | | (10.0 | ) | | (6.0 | ) |
| | |
| |
| |
| |
| | | Total | | | 175.8 | | | 169.6 | | | 164.8 | |
| | |
| |
| |
| |
| Investment Management Operating Income | | | 57.3 | | | 62.9 | | | 43.9 | |
| Printing and Fulfillment Segment: | | | | | | | | | | |
| | Revenue | | | 21.5 | | | 23.6 | | | 20.6 | |
| | Operating expenses | | | 23.7 | | | 25.4 | | | 22.8 | |
| | Intangibles amortization | | | 1.9 | | | 1.9 | | | 1.9 | |
| | |
| |
| |
| |
| Printing and Fulfillment Operating Loss | | | (4.1 | ) | | (3.7 | ) | | (4.1 | ) |
| Interest expense | | | (7.2 | ) | | (7.0 | ) | | (7.2 | ) |
| Other income, net | | | 7.8 | | | 9.0 | | | 11.4 | |
| Income tax provision | | | (19.5 | ) | | (22.2 | ) | | (15.7 | ) |
| Equity in earnings of unconsolidated affiliate | | | 2.0 | | | 1.7 | | | 1.7 | |
| Minority interest in consolidated earnings | | | (5.2 | ) | | (5.4 | ) | | (4.3 | ) |
| | |
| |
| |
| |
| Net Income | | $ | 31.1 | | $ | 35.3 | | $ | 25.7 | |
| | |
| |
| |
| |
| Basic Earnings per Share | | | | | | | | | | |
| | Weighted average shares outstanding(in millions) | | | 205.3 | | | 210.1 | | | 221.0 | |
| | Basic earnings per share | | $ | 0.15 | | $ | 0.17 | | $ | 0.12 | |
| Diluted Earnings per Share | | | | | | | | | | |
| | Weighted average shares outstanding(in millions) | | | 206.4 | | | 211.7 | | | 221.8 | |
| | Diluted earnings per share | | $ | 0.15 | | $ | 0.17 | | $ | 0.12 | |
| Average Assets Under Management(in billions) | | $ | 154.0 | | $ | 154.4 | | $ | 129.3 | |
4
JANUS CAPITAL GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
| | June 30,
2006
| | December 31,
2005
|
|---|
| Assets | | | | | | |
| | Cash and cash equivalents | | $ | 337.9 | | $ | 552.6 |
| | Investments | | | 336.2 | | | 334.1 |
| | Other assets | | | 263.2 | | | 285.5 |
| | Property and equipment, net | | | 58.4 | | | 64.7 |
| | Intangibles and goodwill, net | | | 2,474.8 | | | 2,391.6 |
| | |
| |
|
| | | Total Assets | | $ | 3,470.5 | | $ | 3,628.5 |
| | |
| |
|
| Liabilities and Stockholders' Equity | | | | | | |
| | Debt | | $ | 375.7 | | $ | 376.3 |
| | Other liabilities | | | 208.0 | | | 246.9 |
| | Deferred income taxes | | | 424.2 | | | 424.1 |
| | Stockholders' equity | | | 2,462.6 | | | 2,581.2 |
| | |
| |
|
| | | Total Liabilities and Stockholders' Equity | | $ | 3,470.5 | | $ | 3,628.5 |
| | |
| |
|
UNAUDITED CONDENSED CONSOLIDATED
CASH FLOW INFORMATION
(dollars in millions)
| | Three Months Ended
| |
|---|
| | June 30,
2006
| | March 31,
2006
| | June 30,
2005
| |
|---|
| Cash provided by (used in) | | | | | | | | | | |
| | Operating activities | | $ | 114.6 | | $ | 32.2 | | $ | 100.1 | |
| | Investing activities | | | 10.4 | | | (128.2 | ) | | 83.4 | |
| | Financing activities | | | (114.3 | ) | | (129.4 | ) | | (62.4 | ) |
| | |
| |
| |
| |
| Net change during period | | $ | 10.7 | | $ | (225.4 | ) | $ | 121.1 | |
| | |
| |
| |
| |
5
JANUS CAPITAL GROUP INC.
ASSETS & FLOWS BY INVESTMENT DISCIPLINE
(dollars in billions)
| | Three Months Ended
| |
|---|
| | June 30, 2006
| | March 31, 2006
| | June 30, 2005
| |
|---|
| Growth/Blend | | | | | | | | | | |
| | Beginning of period assets | | $ | 71.5 | | $ | 68.5 | | $ | 66.3 | |
| | Sales | | | 3.0 | | | 3.5 | | | 1.6 | |
| | Redemptions | | | 4.4 | | | 3.6 | | | 5.2 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | (1.5 | ) | | (0.1 | ) | | (3.7 | ) |
| | Market appreciation | | | (3.1 | ) | | 3.1 | | | 2.0 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 66.9 | | $ | 71.5 | | $ | 64.7 | |
| | |
| |
| |
| |
Global/International |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 13.3 | | $ | 12.2 | | $ | 13.4 | |
| | Sales | | | 0.9 | | | 0.9 | | | 0.3 | |
| | Redemptions | | | 1.2 | | | 1.1 | | | 1.9 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | (0.3 | ) | | (0.2 | ) | | (1.7 | ) |
| | Market appreciation | | | (0.4 | ) | | 1.3 | | | (0.2 | ) |
| | |
| |
| |
| |
| | End of period assets | | $ | 12.6 | | $ | 13.3 | | $ | 11.5 | |
| | |
| |
| |
| |
Mathematical/Quantitative |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 50.6 | | $ | 44.7 | | $ | 27.6 | |
| | Sales | | | 3.8 | | | 5.7 | | | 4.0 | |
| | Redemptions | | | 1.1 | | | 1.7 | | | 0.3 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | 2.6 | | | 4.0 | | | 3.8 | |
| | Market appreciation | | | (1.7 | ) | | 1.8 | | | 0.4 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 51.5 | | $ | 50.6 | | $ | 31.7 | |
| | |
| |
| |
| |
Fixed Income |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 4.9 | | $ | 5.2 | | $ | 5.9 | |
| | Sales | | | 0.2 | | | 0.2 | | | 0.3 | |
| | Redemptions | | | 0.4 | | | 0.4 | | | 0.4 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | (0.2 | ) | | (0.3 | ) | | (0.2 | ) |
| | Market appreciation | | | — | | | — | | | 0.1 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 4.7 | | $ | 4.9 | | $ | 5.7 | |
| | |
| |
| |
| |
Value |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 11.1 | | $ | 10.4 | | $ | 10.2 | |
| | Disposition | | | — | | | — | | | (0.2 | ) |
| | Sales | | | 0.7 | | | 1.0 | | | 0.7 | |
| | Redemptions | | | 1.8 | | | 1.0 | | | 1.0 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | (1.1 | ) | | 0.1 | | | (0.4 | ) |
| | Market appreciation | | | (0.3 | ) | | 0.6 | | | 0.4 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 9.7 | | $ | 11.1 | | $ | 10.0 | |
| | |
| |
| |
| |
Money Market |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 6.7 | | $ | 7.5 | | $ | 8.5 | |
| | Sales | | | 12.4 | | | 9.5 | | | 9.2 | |
| | Redemptions | | | 11.3 | | | 10.4 | | | 11.0 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | 1.2 | | | (0.8 | ) | | (1.8 | ) |
| | Market appreciation | | | — | | | — | | | — | |
| | |
| |
| |
| |
| | End of period assets | | $ | 7.9 | | $ | 6.7 | | $ | 6.7 | |
| | |
| |
| |
| |
| | | | | | | | | | | |
6
Total |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 158.1 | | $ | 148.5 | | $ | 131.8 | |
| | Disposition | | | — | | | — | | | (0.2 | ) |
| | Sales | | | 21.1 | | | 20.8 | | | 16.3 | |
| | Redemptions | | | 20.3 | | | 18.2 | | | 20.2 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | 0.8 | | | 2.6 | | | (3.9 | ) |
| | Market appreciation | | | (5.5 | ) | | 6.9 | | | 2.6 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 153.4 | | $ | 158.1 | | $ | 130.3 | |
| | |
| |
| |
| |
Total Excluding Money Markets |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 151.4 | | $ | 141.0 | | $ | 123.3 | |
| | Disposition | | | — | | | — | | | (0.2 | ) |
| | Sales | | | 8.6 | | | 11.3 | | | 6.9 | |
| | Redemptions | | | 9.0 | | | 7.8 | | | 9.0 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | (0.4 | ) | | 3.5 | | | (2.1 | ) |
| | Market appreciation | | | (5.5 | ) | | 6.9 | | | 2.6 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 145.5 | | $ | 151.4 | | $ | 123.6 | |
| | |
| |
| |
| |
Total Excluding Mathematical/Quantitative & Money Markets |
|
|
|
|
|
|
|
|
|
|
| | Beginning of period assets | | $ | 100.8 | | $ | 96.2 | | $ | 95.7 | |
| | Disposition | | | — | | | — | | | (0.2 | ) |
| | Sales | | | 4.9 | | | 5.6 | | | 2.8 | |
| | Redemptions | | | 7.9 | | | 6.2 | | | 8.7 | |
| | |
| |
| |
| |
| | Net Sales (redemptions) | | | (3.0 | ) | | (0.5 | ) | | (5.9 | ) |
| | Market appreciation | | | (3.8 | ) | | 5.1 | | | 2.2 | |
| | |
| |
| |
| |
| | End of period assets | | $ | 94.0 | | $ | 100.8 | | $ | 91.9 | |
| | |
| |
| |
| |
Each line has been rounded on the schedule individually to increase the accuracy of the amounts presented. Therefore totals and subtotals may not foot.
7
Janus Investment Funds ("JIF")
| |
| |
| | Lipper Rankings Based
on Total Returns as of 6/30/06
|
|---|
| |
| |
| | 1-Year
| | 3-Year
| | 5-Year
| | 10-Year
| | Since PM Inception
|
|---|
| | PM Inception
| | Lipper Category
| | Percentile
Rank (%)
| | Rank/
Total Funds
| | Percentile
Rank (%)
| | Rank/
Total Funds
| | Percentile
Rank (%)
| | Rank/
Total Funds
| | Percentile
Rank (%)
| | Rank/
Total Funds
| | Percentile
Rank (%)
| | Rank/
Total Funds
|
|---|
| Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Fund | | Jan-06 | | Large-Cap Growth Funds | | 28 | | 195 / 705 | | 34 | | 202 / 594 | | 73 | | 350 / 482 | | 42 | | 70 / 167 | | ‡ |
| Janus Twenty Fund(1) | | Aug-97 | | Large-Cap Growth Funds | | 4 | | 22 / 705 | | 1 | | 2 / 594 | | 8 | | 38 / 482 | | 1 | | 1 / 167 | | 4 | | 7 / 230 |
| Janus Mercury Fund | | Jan-06 | | Large-Cap Growth Funds | | 23 | | 161 / 705 | | 17 | | 100 / 594 | | 54 | | 260 / 482 | | 9 | | 14 / 167 | | ‡ |
| Janus Olympus Fund(1) | | Aug-97 | | Multi-Cap Growth Funds | | 45 | | 183 / 414 | | 47 | | 164 / 355 | | 53 | | 151 / 284 | | 25 | | 24 / 97 | | 18 | | 23 / 134 |
| Janus Enterprise Fund | | Jan-02 | | Mid-Cap Growth Funds | | 39 | | 219 / 572 | | 23 | | 105 / 473 | | 62 | | 223 / 360 | | 70 | | 94 / 134 | | 20 | | 78 / 396 |
| Janus Venture Fund(1) | | Jan-01 | | Small-Cap Growth Funds | | 61 | | 323 / 533 | | 21 | | 92 / 454 | | 28 | | 100 / 360 | | 37 | | 44 / 118 | | 30 | | 100 / 343 |
| Janus Orion Fund | | Jun-00 | | Multi-Cap Growth Funds | | 1 | | 1 / 414 | | 1 | | 3 / 355 | | 3 | | 8 / 284 | | — | | — | | 29 | | 64 / 226 |
| Janus Triton Fund | | Jan-06 | | Small-Cap Growth Funds | | 10 | | 52 / 533 | | — | | — | | — | | — | | — | | — | | ‡ |
| Janus Research Fund | | Feb-05 | | Multi-Cap Growth Funds | | 6 | | 22 / 414 | | — | | — | | — | | — | | — | | — | | 5 | | 19 / 401 |
| Core Funds | | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund | | Dec-03 | | Large-Cap Core Funds | | 9 | | 73 / 848 | | 8 | | 54 / 725 | | 20 | | 121 / 609 | | 3 | | 7 / 241 | | 5 | | 36 / 755 |
| Janus Balanced Fund | | Apr-05 | | Mixed-Asset Target Alloc. Mod. Funds | | 19 | | 73 / 392 | | 39 | | 105 / 271 | | 36 | | 74 / 209 | | 3 | | 2 / 85 | | 11 | | 41 / 390 |
| Janus Contrarian Fund | | Feb-00 | | Multi-Cap Core Funds | | 1 | | 7 / 819 | | 1 | | 2 / 585 | | 3 | | 11 / 430 | | — | | — | | 11 | | 36 / 334 |
| Janus Fundamental Equity Fund | | Apr-05 | | Large-Cap Core Funds | | 1 | | 6 / 848 | | 2 | | 8 / 725 | | 4 | | 21 / 609 | | 2 | | 3 / 241 | | 1 | | 6 / 838 |
| INTECH Risk-Managed Stock Fund | | Feb-03 | | Multi-Cap Core Funds | | 50 | | 403 / 819 | | 13 | | 73 / 585 | | — | | — | | — | | — | | 24 | | 135 / 574 |
| International/Global Funds | | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Worldwide Fund | | Jun-04 | | Global Funds | | 95 | | 352 / 371 | | 99 | | 286 / 290 | | 99 | | 224 / 227 | | 69 | | 59 / 85 | | 92 | | 293 / 319 |
| Janus Overseas Fund | | Jun-03 | | International Funds | | 1 | | 1 / 908 | | 1 | | 2 / 769 | | 17 | | 101 / 611 | | 5 | | 11 / 231 | | 1 | | 2 / 769 |
| Janus Global Life Sciences Fund | | Dec-98 | | Health/Biotechnology Funds | | 36 | | 63 / 174 | | 13 | | 20 / 159 | | 47 | | 61 / 130 | | — | | — | | 31 | | 15 / 48 |
| Janus Global Technology Fund | | Jan-06 | | Science & Technology Funds | | 21 | | 59 / 287 | | 37 | | 94 / 257 | | 43 | | 95 / 222 | | — | | — | | ‡ |
| Janus Global Opportunities Fund | | Jun-01 | | Global Funds | | 99 | | 366 / 371 | | 60 | | 172 / 290 | | 22 | | 49 / 227 | | — | | — | | 22 | | 49 / 227 |
8
| Value Funds | | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Mid Cap Value Fund—Inv(2) | | Aug-98 | | Mid-Cap Value Funds | | 46 | | 121 / 264 | | 43 | | 91 / 215 | | 33 | | 47 / 142 | | — | | — | | 4 | | 3 / 77 |
| Janus Small Cap Value Fund—Inv.(1,2) | | Feb-97 | | Small-Cap Core Funds | | 91 | | 578 / 640 | | 84 | | 426 / 508 | | 66 | | 258 / 391 | | — | | — | | 21 | | 29 / 140 |
| Income Funds | | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Flexible Bond Fund | | Dec-91 | | Intermediate Inv Grade Debt Funds | | 43 | | 205 / 477 | | 49 | | 198 / 411 | | 20 | | 63 / 323 | | 26 | | 37 / 146 | | 4 | | 2 / 56 |
| Janus High-Yield Fund | | Dec-03 | | High Current Yield Funds | | 46 | | 203 / 444 | | 63 | | 248 / 395 | | 51 | | 160 / 313 | | 13 | | 14 / 114 | | 43 | | 173 / 407 |
| Janus Short-Term Bond Fund | | Jun-03 | | Short Investment Grade Debt Funds | | 26 | | 57 / 226 | | 21 | | 38 / 182 | | 48 | | 64 / 135 | | 20 | | 14 / 70 | | 21 | | 38 / 182 |
| Janus Federal Tax-Exempt Fund | | Feb-05 | | General Muni Debt Funds | | 45 | | 117 / 259 | | 88 | | 219 / 248 | | 68 | | 152 / 224 | | 83 | | 119 / 143 | | 42 | | 107 / 255 |
| | Percent of JIF Funds per Lipper Quartile based on Total Returns
| |
|---|
| | 1-Year
| | 3-Year
| | 5-Year
| | 10-Year
| | Since PM Inception
| |
|---|
| 1st Quartile | | 44.0 | % | 52.2 | % | 36.4 | % | 60.0 | % | 71.4 | % |
| 2nd Quartile | | 40.0 | % | 26.1 | % | 27.3 | % | 20.0 | % | 23.8 | % |
| 3rd Quartile | | 4.0 | % | 8.7 | % | 31.8 | % | 13.3 | % | 0.0 | % |
| 4th Quartile | | 12.0 | % | 13.0 | % | 4.5 | % | 6.7 | % | 4.8 | % |
Lipper Inc.—A Reuters Company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.
Data presented reflects past performance, which is no guarantee of future results.
Notes:
- (1)
- Closed to new investors
- (2)
- Ranking is for the investor share class only; other classes may have different performance characteristics.
- ##
- The Fund's since PM-Inception ranking is not available.
9
Data presented reflects past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 1-800-975-9932 or visit www.janus.com for performance current to the most recent month-end.
See notes to performance on the following page.
Janus Investment Fund ("JIF")
| |
| | Average Annual Total Returns (%) for Periods Ended 6/30/06(1)
| |
|---|
| | Inception
Date
| | 1 Year
| | 3 Year
| | 5 Year
| | 10 Year
| | Life of
Fund
| |
|---|
| Growth Funds | | | | | | | | | | | | | |
| Janus Fund | | 2/70 | | 7.07 | | 8.80 | | (2.52 | ) | 5.97 | | 13.64 | |
| Janus Twenty Fund(3) | | 4/85 | | 11.73 | | 15.13 | | 2.74 | | 9.98 | | 13.18 | |
| Janus Mercury Fund | | 5/93 | | 7.62 | | 10.27 | | (1.60 | ) | 8.17 | | 12.03 | |
| Janus Olympus Fund(3,5) | | 12/95 | | 10.54 | | 12.06 | | 0.39 | | 8.93 | | 10.86 | |
| Janus Enterprise Fund | | 9/92 | | 13.77 | | 17.00 | | 1.97 | | 5.86 | | 11.07 | |
| Janus Venture Fund(3,6) | | 4/85 | | 10.65 | | 17.92 | | 5.58 | | 8.43 | | 13.29 | |
| Janus Orion Fund(6,7,8,23) | | 6/00 | | 24.65 | | 21.57 | | 9.58 | | — | | (1.62 | ) |
| Janus Triton Fund(4,6) | | 2/05 | | 20.53 | | — | | — | | — | | 16.20 | |
| Janus Research Fund(7) | | 2/05 | | 21.64 | | — | | — | | — | | 18.11 | |
| Core Funds | | | | | | | | | | | | | |
| Janus Growth and Income Fund | | 5/91 | | 12.36 | | 13.34 | | 2.86 | | 11.15 | | 13.23 | |
| Janus Balanced Fund | | 9/92 | | 8.20 | | 8.47 | | 4.54 | | 9.72 | | 11.01 | |
| Janus Contrarian Fund(7,10,13) | | 2/00 | | 22.05 | | 23.56 | | 9.73 | | — | | 8.39 | |
| Janus Fundamental Equity Fund(2,10) | | 6/96 | | 17.76 | | 15.92 | | 5.32 | | 12.71 | | 12.70 | |
| INTECH Risk-Managed Stock Fund(10,11,12) | | 2/03 | | 9.77 | | 15.70 | | — | | — | | 18.31 | |
| International/Global Funds | | | | | | | | | | | | | |
| Janus Worldwide Fund(11) | | 5/91 | | 10.45 | | 9.60 | | (1.47 | ) | 5.78 | | 10.61 | |
| Janus Overseas Fund(7,9,10,11,15) | | 5/94 | | 52.33 | | 33.29 | | 11.83 | | 12.73 | | 13.85 | |
| Janus Global Life Sciences Fund(10,11) | | 12/98 | | 6.63 | | 12.77 | | 2.08 | | — | | 9.55 | |
| Janus Global Technology Fund(7,10,11,14) | | 12/98 | | 13.92 | | 11.24 | | (4.30 | ) | — | | 2.40 | |
| Janus Global Opportunities Fund(11) | | 6/01 | | 8.39 | | 15.73 | | 8.49 | | — | | 8.48 | |
| Value Funds | | | | | | | | | | | | | |
| Janus Small Cap Value Fund—Inv.(3,8,16) | | 10/87 | | 7.48 | | 15.53 | | 8.50 | | 15.40 | | 14.24 | |
| Janus Mid Cap Value Fund—Inv.(8,10,17) | | 8/98 | | 11.58 | | 18.54 | | 11.19 | | — | | 17.28 | |
| Income Funds | | | | | | | | | | | | | |
| Janus Flexible Bond Fund(10,18,19,20) | | 7/87 | | (0.87 | ) | 1.77 | | 5.05 | | 6.00 | | 7.41 | |
| Janus High-Yield Fund(8,10,11,18,19,20,24) | | 12/95 | | 4.77 | | 7.22 | | 7.23 | | 7.05 | | 8.04 | |
| Janus Short-Term Bond Fund(10,18,19,21) | | 9/92 | | 2.27 | | 2.02 | | 3.01 | | 4.83 | | 4.63 | |
| Janus Federal Tax-Exempt Fund(10,18,19,21,22) | | 5/93 | | 0.63 | | 1.60 | | 3.92 | | 4.32 | | 4.47 | |
Notes:
- (1)
- All figures unaudited.
- (2)
- Effective 06/30/06, Janus Core Equity Fund has been renamed Janus Fundamental Equity Fund.
- (3)
- Closed to new investors.
10
- (4)
- Effective at the close of the New York Stock Exchange on 6/30/06, Blaine Rollins is no longer the portfolio manager of Janus Triton Fund, and Brian Schaub and Chad Meade are now the Fund managers.
- (5)
- Effective at the close of the New York Stock Exchange on 6/30/06, Claire Young is no longer the portfolio manager of Olympus Fund, and Ron Sachs is now the Fund manager.
- (6)
- This Fund has been significantly impacted, either positively or negatively, by investing in initial public offerings (IPOs).
- (7)
- This Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund's returns and NAV may be subject to such volatility.
- (8)
- Due to certain investment strategies, some funds may have an increased position in cash.
- (9)
- Returns have sustained significant gains due to market volatility in the financials sector.
- (10)
- The Fund will invest at least 80% of its net assets in the type of securities described by its name.
- (11)
- A 2% redemption fee may be imposed on shares held for 3 months or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
- (12)
- For certain periods, the Fund's performance reflects the effect of expense waivers. Without the effect of these expense waivers, the performance shown would have been lower.
- (13)
- The Fund held approximately 17.6% of its assets in Indian securities as of March 31, 2006 and the Fund has experienced significant gains due, in part, to its investments in India. While holdings are subject to change without notice, the Fund's returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in India.
- (14)
- Returns have sustained significant gains due to market volatility in the information technology sector.
- (15)
- The Fund held approximately 15.9% and 13.2% of its assets in India and Brazil securities, respectively, as of March 31, 2006, and the Fund has experienced significant gains due, in part, to its investments in India and Brazil. While holdings are subject to change without notice, the Fund's returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in India and/or Brazil.
- (16)
- Returns shown for Janus Small Cap Value Fund prior to April 21, 2003 are those of Berger Small Cap Value Fund.
- (17)
- Returns shown for Janus Mid Cap Value Fund prior to April 21, 2003 are those of Berger Mid Cap Value Fund.
- (18)
- Bond funds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of bonds funds. The return of principal is not guaranteed due to net asset value fluctuation that is caused by changes in the price of specific bonds held in the Fund and selling of bonds within the fund by the portfolio manager.
- (19)
- As of June 30, 2006, the 30-day SEC Yield was 4.06% on Janus Federal Tax-Exempt Fund, 4.74% on Janus Flexible Bond Fund, 7.45% on Janus High-Yield Fund and 4.89% on Janus Short-Term Bond Fund.
- (20)
- Adviser has agreed to waive a portion of the Fund's expenses if they exceed the designated cap. If during the periods shown, the Fund's actual expenses exceeded the cap, its total return would have been lower. There were no waivers in effect for the most recent period presented.
11
- (21)
- Janus Capital has contractually agreed to waive Janus Short-Term Bond Fund and Janus Federal Tax-Exempt Fund's total operating expenses to the levels indicated in the prospectus until at least March 1, 2007. Without such waivers, Janus Short-Term Bond Fund and Janus Federal Tax-Exempt Fund's yield as of June 30, 2006 would have been4.42% and3.57%, respectively and total returns would have been lower.
- (22)
- Income may be subject to state or local taxes and to a limited extent certain federal tax. Capital gains are subject to federal, state and local taxes.
- (23)
- The Fund held approximately 10.6% of its assets in Brazilian securities as of March 31, 2006 and the Fund has experienced significant gains due, in part, to its investments in Brazil. While holdings are subject to change without notice, the Fund's returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in Brazil.
- (24)
- Due to additional expense accruals deducted from the fund, the yield experienced a negative fluctuation. There is no guarantee of any future expense accruals from the fund.
Differences between compared investments may include objectives, sales and management fees, liquidity, volatility, tax features and other features, which may result in differences in performance.
A fund's performance may be affected by risks that include those associated with non-diversification, investments in foreign securities and emerging markets, non-investment grade debt securities, undervalued or overlooked companies, companies with relatively small market capitalizations and investments in specific industries or countries. Please see a Janus prospectus or janus.com for more information about fund holdings and details.
12
Janus Investment Fund ("JIF")
The Overall Morningstar Rating™ is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating™ metrics.
| |
| | Overall Rating
| | Three-Year Rating
| | Five-Year Rating
| | Ten-Year Rating
|
|---|
Fund
| | Category
| | Stars
| | # of Funds
| | Stars
| | # of Funds
| | Stars
| | # of Funds
| | Stars
| | # of Funds
|
|---|
| Janus Fund | | Large Growth Funds | | *** | | 1361 | | *** | | 1361 | | ** | | 1081 | | *** | | 402 |
| Janus Enterprise Fund | | Mid-Cap Growth Funds | | *** | | 823 | | **** | | 823 | | *** | | 642 | | ** | | 231 |
| Janus Growth and Income Fund | | Large Growth Funds | | ***** | | 1361 | | ***** | | 1361 | | **** | | 1081 | | ***** | | 402 |
| Janus Mercury Fund | | Large Growth Funds | | *** | | 1361 | | **** | | 1361 | | *** | | 1081 | | *** | | 402 |
| Janus Olympus Fund(1) | | Large Growth Funds | | *** | | 1361 | | **** | | 1361 | | *** | | 1081 | | *** | | 402 |
| Janus Orion Fund | | Mid-Cap Growth Funds | | ***** | | 823 | | ***** | | 823 | | ***** | | 642 | | | | N/A |
| Janus Twenty Fund(1) | | Large Growth Funds | | **** | | 1361 | | ***** | | 1361 | | **** | | 1081 | | **** | | 402 |
| Janus Venture Fund(1) | | Small Growth Funds | | *** | | 646 | | **** | | 646 | | *** | | 509 | | ** | | 182 |
| Janus Triton Fund | | Small Growth Funds | | | | N/A | | | | N/A | | | | N/A | | | | N/A |
| Janus Research Fund | | Large Growth Funds | | | | N/A | | | | N/A | | | | N/A | | | | N/A |
| Janus Global Life Sciences Fund | | Specialty-Health Funds | | *** | | 191 | | **** | | 191 | | *** | | 156 | | | | N/A |
| Janus Global Technology Fund | | Specialty-Technology Funds | | **** | | 282 | | **** | | 282 | | **** | | 243 | | | | N/A |
| Janus Overseas Fund | | Foreign Large Growth Funds | | **** | | 195 | | ***** | | 195 | | **** | | 153 | | **** | | 66 |
| Janus Worldwide Fund | | World Stock Funds | | ** | | 403 | | * | | 403 | | * | | 314 | | ** | | 136 |
| Janus Global Opportunities Fund | | World Stock Funds | | **** | | 403 | | *** | | 403 | | **** | | 314 | | | | N/A |
| Janus Balanced Fund | | Moderate Allocation Funds | | **** | | 794 | | *** | | 794 | | **** | | 619 | | **** | | 301 |
| INTECH Risk-Managed Stock Fund | | Large Blend Funds | | ***** | | 1476 | | ***** | | 1476 | | | | N/A | | | | N/A |
| Janus Fundamental Equity Fund | | Large Blend Funds | | ***** | | 1476 | | ***** | | 1476 | | **** | | 1175 | | ***** | | 443 |
| Janus Contrarian Fund | | Large Blend Funds | | ***** | | 1476 | | ***** | | 1476 | | ***** | | 1175 | | | | N/A |
| Janus Mid Cap Value Fund—Investor Shares(2) | | Mid-Cap Value Funds | | **** | | 266 | | *** | | 266 | | **** | | 167 | | | | N/A |
| Janus Small Cap Value Fund—Investor Shares(1)(2) | | Small Value Funds | | * | | 291 | | ** | | 291 | | * | | 205 | | **** | | 64 |
| Janus Federal Tax-Exempt Fund | | Muni National Long Funds | | ** | | 292 | | ** | | 292 | | ** | | 275 | | ** | | 198 |
| Janus Flexible Bond Fund | | Intermediate-Term Bond Funds | | **** | | 905 | | *** | | 905 | | **** | | 702 | | **** | | 354 |
| Janus High-Yield Fund | | High Yield Bond Funds | | **** | | 476 | | *** | | 476 | | *** | | 382 | | **** | | 145 |
| Janus Short-Term Bond Fund | | Short-Term Bond Funds | | *** | | 335 | | **** | | 335 | | *** | | 239 | | *** | | 141 |
| Percent of funds rated 4 / 5 Stars | | | | 56.5% | | | | 60.9% | | | | 50.0% | | | | 50.0%
| | |
Data presented reflects past performance, which is no guarantee of future results.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)
Notes:
- (1)
- Closed to new investors
- (2)
- Ranking is for the investor share class only; other classes may have different performance characteristics.
13
QuickLinks
JANUS ANNOUNCES SECOND QUARTER 2006 RESULTS
