United States Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
Investment Company Act file number 811-01879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
Kathryn Santoro, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
Registrant's telephone number, including area code: 303-333-3863
Date of fiscal year end: 6/30
Date of reporting period: 12/31/18
Item 1 - Reports to Shareholders
SEMIANNUAL REPORT December 31, 2018 | ||
Janus Henderson Adaptive Global Allocation Fund | ||
Janus Investment Fund | ||
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by contacting a Janus Henderson representative. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by visiting janushenderson.com/edelivery. You may elect to receive all future reports in paper free of charge. If you do not invest directly with the Fund, you should contact your plan sponsor, broker-dealer, or financial intermediary, to request to continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-525-3713 to let the Fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Janus Henderson mutual funds where held (i.e., all Janus Henderson mutual funds held in your account if you invest through your financial intermediary or all Janus Henderson mutual funds held with the fund complex if you invest directly with a fund).
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HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics |
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Table of Contents
Janus Henderson Adaptive Global Allocation Fund
Janus Henderson Adaptive Global Allocation Fund (unaudited)
PERFORMANCE OVERVIEW
Janus Henderson Adaptive Global Allocation Fund Class I Shares returned -4.84% for the 6-month period ended December 31, 2018. This compares with a return of -9.02% for its primary benchmark, the MSCI All Country World IndexSM. The Fund’s secondary benchmark, the Adaptive Global Allocation 60-40 Index (Hedged), an internally calculated index comprised of the MSCI All Country World IndexSM (60%) and the Bloomberg Barclays Global Aggregate Bond Index (Hedged) (40%), returned -4.71%. Its tertiary benchmark, the Bloomberg Barclays Global Aggregate Bond Index (Hedged), returned 1.69%.
MARKET ENVIRONMENT
The period started with riskier assets on the ascendency as steady growth in the U.S. seemed to offset brewing economic weakness in other pockets of the global economy. While many regions struggled, several U.S. equity benchmarks reached record highs mid-period. The same heightened growth expectations, however, fueled concerns of an overheating economy with a spike in inflation being a potential side effect. Those fears pushed up U.S. Treasury yields, which, in turn negatively impacted stocks as investors feared elevated levels of corporate debt would weigh on earnings in a higher interest rate environment. Consequently stocks sold off mid-way through the period and never regained their footing. All the while, the deleterious effects of a global trade war further caused investors to downgrade their growth expectations.
Benefiting from the shift toward a more cautious environment were safer asset classes, including U.S. Treasuries. After hitting an intra-period high of 3.24%, the yield on the U.S. 10-year note finished at 2.68%, 16 basis points (1 basis point equals 0.01%) below where it began. This produced a flattening yield curve as the 2-year note rose on the back of two rate hikes by the Federal Reserve (Fed). A broad bond market benchmark gained, driven by lower interest rates. Similarly, investment-grade credits delivered positive returns, while their high-yield peers suffered losses. Energy and materials led stocks lower. Historically defensive sectors health care and utilities eked out positive returns.
PERFORMANCE DISCUSSION
For the six-month period, the Fund outperformed its primary benchmark but underperformed its secondary and tertiary benchmarks. Underperformance relative to its secondary benchmark, comprised of a 60/40 allocation to equities and bonds, was largely due to an overweight to stocks leading into the October market correction. The Fund’s proprietary options-market signals indicated diminished attractiveness for equities as the autumn proceeded and the Fund consequently reduced its equities exposure significantly from 74% at the end of September to 47% by the end of October. While this underweight aided relative performance against the secondary benchmark during December’s stock market weakness, the Fund’s equity exposure, in aggregate, weighed on performance relative to this blended benchmark. Conversely, the mid-period transition to a lower equity allocation helped drive outperformance against the Fund’s primary index.
Also during 2018, our market-based signals indicated that interest rates would head higher and the term structure of bonds would steepen. This positioning worked well for much of the period. During the fourth quarter, however, this trend shifted and U.S. Government Treasuries rallied significantly, with the yield on the 10-year note sliding from 3.23% to 2.68% by the end of December. While the Fund was not positioned for this flight to safer assets such as Treasuries, its duration positioning, which averaged just under two years for the period, proved advantageous as shorter-dated bonds rallied on the
Janus Investment Fund | 1 |
Janus Henderson Adaptive Global Allocation Fund (unaudited)
expectation that the Fed would not raise interest rates as quickly as it had previously inferred.
In executing the strategy, during the period the Fund utilized derivatives, including futures and forward exchange contracts. For the period covered by this letter, the impact of derivatives on the Fund was positive. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Myriad forces at play in markets and the global economy have left investors scratching their heads and searching for some signs of clarity. Conflicting economic readings about the strength of the U.S. economy appear to be pulling investors in opposite directions: on one hand, slowing manufacturing activity points to a slowing economy; on the other hand, a robust job market points to continued strength in the U.S. economy.
The about-face in the Fed’s tone from hawkish to dovish contributed to uncertainty and thereby merited investor attention. Internationally, China’s announcement of fiscal and monetary stimuli reined in investor optimism; likewise, a steadily weakening Chinese economy, hallmarked by December’s manufacturing data, further fueled investors’ fears. The political complexities presented by the U.S. government shutdown and U.S.-China trade negotiations – or lack thereof – have carried over into the new year. Ascertaining clarity about the future in this “conflicting” environment is no easy task – should one side with the “bears” or the “bulls”?
Our options market signals are indicating a potential shift to a higher-risk, higher-volatility environment across bonds and equities. Both the expected tail loss and the expected tail gain implied by option prices have risen sharply. In such an environment, the amount of risk taken, first and foremost, must be scaled appropriately as a function of how much risk one is willing to take (i.e., how much capital one is willing to lose). A $100 investment in a 20% downside risk environment puts at risk the same amount of capital as a $200 investment in a 10% downside risk environment. As our options-based signals point to a higher-risk, higher-volatility regime going forward, notional allocations among growth, capital preservation and inflation-sensitive assets become very important and should represent the key investment theme going forward.
Thank you for investing in Janus Henderson Adaptive Global Allocation Fund.
2 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund (unaudited)
Fund At A Glance
December 31, 2018
5 Largest Equity Holdings - (% of Net Assets) | |
Vanguard Total International Bond | |
Exchange-Traded Funds (ETFs) | 10.8% |
iShares Agency Bond | |
Exchange-Traded Funds (ETFs) | 5.6% |
Vanguard Mortgage-Backed Securities | |
Exchange-Traded Funds (ETFs) | 5.2% |
iShares 7-10 Year Treasury Bond | |
Exchange-Traded Funds (ETFs) | 5.0% |
iShares iBoxx $ Investment Grade Corporate Bond | |
Exchange-Traded Funds (ETFs) | 4.8% |
31.4% | |
Asset Allocation - (% of Net Assets) | |||||
Investment Companies | 85.4% | ||||
Commercial Paper | 18.2% | ||||
Common Stocks | 9.4% | ||||
U.S. Government Agency Notes | 3.9% | ||||
Preferred Stocks | 0.0% | ||||
Other | (16.9)% | ||||
100.0% | |||||
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2018
| As of June 30, 2018
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Janus Investment Fund | 3 |
Janus Henderson Adaptive Global Allocation Fund (unaudited)
Performance
See important disclosures on the next page. |
| Expense Ratios - | ||||||||
Average Annual Total Return - for the periods ended December 31, 2018 |
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| per the October 29, 2018 prospectuses | ||||||
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| Fiscal | One | Since |
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| Total Annual Fund | Net Annual Fund | |
Class A Shares at NAV |
| -4.87% | -6.48% | 2.17% |
|
| 1.73% | 1.09% | |
Class A Shares at MOP |
| -10.37% | -11.88% | 0.47% |
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Class C Shares at NAV | -5.23% | -7.11% | 1.42% |
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| 2.44% | 1.83% | ||
Class C Shares at CDSC |
| -6.13% | -8.00% | 1.42% |
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Class D Shares(1) |
| -4.88% | -6.40% | 2.23% |
|
| 1.94% | 0.95% | |
Class I Shares |
| -4.84% | -6.28% | 2.41% |
|
| 1.48% | 0.86% | |
Class N Shares |
| -4.81% | -6.25% | 2.43% |
|
| 1.37% | 0.81% | |
Class S Shares |
| -4.95% | -6.56% | 2.04% |
|
| 1.93% | 1.31% | |
Class T Shares |
| -4.85% | -6.38% | 2.25% |
|
| 1.64% | 1.06% | |
MSCI All Country World Index |
| -9.02% | -9.42% | 3.16% |
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Adaptive Global Allocation 60/40 Index (Hedged) |
| -4.71% | -4.86% | 3.25% |
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Bloomberg Barclays Global Aggregate Bond Index (Hedged) |
| 1.69% | 1.76% | 2.95% |
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Morningstar Quartile - Class I Shares |
| - | 1st | 1st |
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Morningstar Ranking - based on total returns for World Allocation Funds |
| - | 104/471 | 60/424 |
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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 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
4 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund (unaudited)
Performance
Net expense ratios reflect the expense waiver, if any, contractually agreed to through November 1, 2019.
Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
There is a risk that the Fund’s investments will correlate with stocks and bonds to a greater degree than anticipated, and that the proprietary options implied information model used to implement the Fund's investment strategy may not achieve the desired results. The Fund may underperform during up markets and be negatively affected in down markets. Diversification does not assure a profit or eliminate the risk of loss.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
See Financial Highlights for actual expense ratios during the reporting period.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2018 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – June 23, 2015
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
Janus Henderson Adaptive Global Allocation Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses |
| Beginning | Ending | Expenses | Net Annualized | ||
Class A Shares | $1,000.00 | $951.30 | $5.07 |
| $1,000.00 | $1,020.01 | $5.24 | 1.03% | ||
Class C Shares | $1,000.00 | $947.70 | $8.54 |
| $1,000.00 | $1,016.43 | $8.84 | 1.74% | ||
Class D Shares | $1,000.00 | $951.20 | $4.33 |
| $1,000.00 | $1,020.77 | $4.48 | 0.88% | ||
Class I Shares | $1,000.00 | $951.60 | $3.84 |
| $1,000.00 | $1,021.27 | $3.97 | 0.78% | ||
Class N Shares | $1,000.00 | $951.90 | $3.49 |
| $1,000.00 | $1,021.63 | $3.62 | 0.71% | ||
Class S Shares | $1,000.00 | $950.50 | $5.95 |
| $1,000.00 | $1,019.11 | $6.16 | 1.21% | ||
Class T Shares | $1,000.00 | $951.50 | $4.72 |
| $1,000.00 | $1,020.37 | $4.89 | 0.96% | ||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. | |||||||||
6 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – 9.4% | |||||||
Aerospace & Defense – 0.1% | |||||||
BAE Systems PLC | 253 | $1,476 | |||||
Harris Corp | 118 | 15,889 | |||||
Lockheed Martin Corp | 8 | 2,095 | |||||
Meggitt PLC | 780 | 4,665 | |||||
MTU Aero Engines AG | 20 | 3,632 | |||||
Raytheon Co | 57 | 8,741 | |||||
Safran SA | 20 | 2,402 | |||||
38,900 | |||||||
Air Freight & Logistics – 0% | |||||||
Expeditors International of Washington Inc | 103 | 7,013 | |||||
FedEx Corp | 20 | 3,227 | |||||
Royal Mail PLC | 387 | 1,343 | |||||
11,583 | |||||||
Airlines – 0.1% | |||||||
Alaska Air Group Inc | 77 | 4,685 | |||||
American Airlines Group Inc | 197 | 6,326 | |||||
ANA Holdings Inc | 100 | 3,605 | |||||
Delta Air Lines Inc | 88 | 4,391 | |||||
Deutsche Lufthansa AG | 13 | 293 | |||||
Southwest Airlines Co | 300 | 13,944 | |||||
United Continental Holdings Inc* | 126 | 10,550 | |||||
43,794 | |||||||
Auto Components – 0.1% | |||||||
Aptiv PLC | 51 | 3,140 | |||||
Cie Generale des Etablissements Michelin SCA | 29 | 2,867 | |||||
Continental AG | 29 | 4,010 | |||||
Goodyear Tire & Rubber Co | 1,586 | 32,370 | |||||
Nokian Renkaat OYJ | 499 | 15,375 | |||||
Sumitomo Rubber Industries Ltd | 100 | 1,190 | |||||
Toyoda Gosei Co Ltd | 100 | 1,994 | |||||
Valeo SA | 114 | 3,305 | |||||
Yokohama Rubber Co Ltd | 100 | 1,866 | |||||
66,117 | |||||||
Automobiles – 0.1% | |||||||
Bayerische Motoren Werke AG | 44 | 3,563 | |||||
Daimler AG | 16 | 841 | |||||
Ferrari NV | 73 | 7,261 | |||||
Fiat Chrysler Automobiles NV* | 371 | 5,393 | |||||
Ford Motor Co | 2,985 | 22,835 | |||||
General Motors Co | 747 | 24,987 | |||||
Mazda Motor Corp | 100 | 1,029 | |||||
Mitsubishi Motors Corp | 300 | 1,657 | |||||
Nissan Motor Co Ltd | 900 | 7,255 | |||||
Peugeot SA | 87 | 1,849 | |||||
Renault SA | 150 | 9,337 | |||||
Yamaha Motor Co Ltd | 100 | 1,947 | |||||
87,954 | |||||||
Banks – 0.4% | |||||||
ABN AMRO Group NV | 34 | 796 | |||||
Aozora Bank Ltd | 200 | 5,932 | |||||
Australia & New Zealand Banking Group Ltd | 286 | 4,927 | |||||
Banco Bilbao Vizcaya Argentaria SA | 93 | 491 | |||||
Bank of America Corp | 32 | 788 | |||||
Bank of East Asia Ltd | 5,000 | 15,826 | |||||
Bank of Kyoto Ltd | 100 | 4,102 | |||||
Bank of Nova Scotia | 8 | 399 | |||||
Bank of Queensland Ltd | 499 | 3,396 | |||||
Bankia SA | 5,687 | 16,558 | |||||
Bankinter SA | 861 | 6,880 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Banks – (continued) | |||||||
Barclays PLC | 626 | $1,201 | |||||
Bendigo & Adelaide Bank Ltd | 1,309 | 9,954 | |||||
BOC Hong Kong Holdings Ltd | 4,000 | 14,775 | |||||
CaixaBank SA | 2,455 | 8,835 | |||||
Chiba Bank Ltd | 700 | 3,882 | |||||
Citigroup Inc | 150 | 7,809 | |||||
Citizens Financial Group Inc | 348 | 10,346 | |||||
Comerica Inc | 14 | 962 | |||||
Commerzbank AG* | 176 | 1,166 | |||||
Concordia Financial Group Ltd | 600 | 2,288 | |||||
DNB ASA | 380 | 6,099 | |||||
Erste Group Bank AG* | 5 | 167 | |||||
Fifth Third Bancorp | 1,306 | 30,730 | |||||
Fukuoka Financial Group Inc | 300 | 6,050 | |||||
Hang Seng Bank Ltd | 1,300 | 29,038 | |||||
HSBC Holdings PLC | 220 | 1,805 | |||||
Huntington Bancshares Inc/OH | 1,521 | 18,130 | |||||
Japan Post Bank Co Ltd | 700 | 7,687 | |||||
KBC Group NV | 14 | 906 | |||||
KeyCorp | 747 | 11,041 | |||||
M&T Bank Corp | 45 | 6,441 | |||||
Mebuki Financial Group Inc | 1,400 | 3,696 | |||||
National Australia Bank Ltd | 505 | 8,567 | |||||
People's United Financial Inc | 736 | 10,620 | |||||
Raiffeisen Bank International AG | 130 | 3,311 | |||||
Regions Financial Corp | 483 | 6,463 | |||||
Royal Bank of Scotland Group PLC | 1,704 | 4,685 | |||||
Seven Bank Ltd | 2,300 | 6,561 | |||||
Shinsei Bank Ltd | 300 | 3,551 | |||||
Shizuoka Bank Ltd | 600 | 4,671 | |||||
Skandinaviska Enskilda Banken AB | 35 | 341 | |||||
Westpac Banking Corp | 479 | 8,447 | |||||
Yamaguchi Financial Group Inc | 500 | 4,780 | |||||
Zions Bancorp NA | 230 | 9,370 | |||||
314,470 | |||||||
Beverages – 0.1% | |||||||
Brown-Forman Corp | 205 | 9,754 | |||||
Coca-Cola Amatil Ltd | 1,198 | 6,909 | |||||
Coca-Cola Bottlers Japan Holdings Inc | 100 | 2,986 | |||||
Coca-Cola Co | 89 | 4,214 | |||||
Davide Campari-Milano SpA | 380 | 3,216 | |||||
Diageo PLC | 11 | 391 | |||||
Heineken NV | 28 | 2,468 | |||||
Molson Coors Brewing Co | 59 | 3,313 | |||||
Monster Beverage Corp* | 303 | 14,914 | |||||
PepsiCo Inc | 135 | 14,915 | |||||
Remy Cointreau SA | 18 | 2,035 | |||||
Suntory Beverage & Food Ltd | 100 | 4,514 | |||||
Treasury Wine Estates Ltd | 567 | 5,909 | |||||
75,538 | |||||||
Biotechnology – 0.1% | |||||||
AbbVie Inc | 19 | 1,752 | |||||
Alexion Pharmaceuticals Inc* | 13 | 1,266 | |||||
BeiGene Ltd (ADR)* | 33 | 4,629 | |||||
Biogen Inc* | 29 | 8,727 | |||||
Celgene Corp* | 179 | 11,472 | |||||
CSL Ltd | 31 | 4,048 | |||||
Gilead Sciences Inc | 251 | 15,700 | |||||
Grifols SA | 821 | 21,442 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Biotechnology – (continued) | |||||||
Incyte Corp* | 105 | $6,677 | |||||
Regeneron Pharmaceuticals Inc* | 7 | 2,615 | |||||
Vertex Pharmaceuticals Inc* | 14 | 2,320 | |||||
80,648 | |||||||
Building Products – 0% | |||||||
Allegion PLC | 117 | 9,326 | |||||
AO Smith Corp | 46 | 1,964 | |||||
Assa Abloy AB | 44 | 787 | |||||
Cie de Saint-Gobain | 26 | 865 | |||||
Johnson Controls International PLC | 291 | 8,628 | |||||
21,570 | |||||||
Capital Markets – 0.2% | |||||||
ASX Ltd | 256 | 10,816 | |||||
BlackRock Inc | 2 | 786 | |||||
Cboe Global Markets Inc | 13 | 1,272 | |||||
CME Group Inc | 217 | 40,822 | |||||
Deutsche Boerse AG | 36 | 4,329 | |||||
E*TRADE Financial Corp | 370 | 16,236 | |||||
Goldman Sachs Group Inc | 12 | 2,005 | |||||
Hargreaves Lansdown PLC | 85 | 2,002 | |||||
Hong Kong Exchanges & Clearing Ltd | 200 | 5,740 | |||||
Invesco Ltd | 807 | 13,509 | |||||
Investec PLC | 1,357 | 7,570 | |||||
Japan Exchange Group Inc | 400 | 6,425 | |||||
London Stock Exchange Group PLC | 177 | 9,133 | |||||
Macquarie Group Ltd | 47 | 3,596 | |||||
Morgan Stanley | 80 | 3,172 | |||||
MSCI Inc | 5 | 737 | |||||
Nasdaq Inc | 129 | 10,523 | |||||
Natixis SA | 110 | 519 | |||||
Northern Trust Corp | 51 | 4,263 | |||||
Partners Group Holding AG | 10 | 6,081 | |||||
Schroders PLC | 50 | 1,550 | |||||
State Street Corp | 122 | 7,695 | |||||
T Rowe Price Group Inc | 107 | 9,878 | |||||
168,659 | |||||||
Chemicals – 0.4% | |||||||
Air Liquide SA | 54 | 6,685 | |||||
Air Water Inc | 200 | 3,005 | |||||
Akzo Nobel NV | 334 | 26,844 | |||||
Albemarle Corp | 66 | 5,087 | |||||
CF Industries Holdings Inc | 122 | 5,308 | |||||
Clariant AG* | 982 | 18,126 | |||||
Covestro AG | 82 | 4,056 | |||||
Daicel Corp | 300 | 3,083 | |||||
DowDuPont Inc | 165 | 8,824 | |||||
Eastman Chemical Co | 24 | 1,755 | |||||
Ecolab Inc | 144 | 21,218 | |||||
EMS-Chemie Holding AG | 22 | 10,480 | |||||
Evonik Industries AG | 137 | 3,421 | |||||
FMC Corp | 44 | 3,254 | |||||
Hitachi Chemical Co Ltd | 300 | 4,481 | |||||
Incitec Pivot Ltd | 2,611 | 6,030 | |||||
International Flavors & Fragrances Inc | 112 | 15,038 | |||||
Johnson Matthey PLC | 27 | 963 | |||||
JSR Corp | 200 | 2,989 | |||||
Kaneka Corp | 100 | 3,574 | |||||
Kansai Paint Co Ltd | 100 | 1,919 | |||||
Koninklijke DSM NV | 65 | 5,288 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Chemicals – (continued) | |||||||
LANXESS AG | 208 | $9,579 | |||||
LyondellBasell Industries NV | 51 | 4,241 | |||||
Mitsubishi Gas Chemical Co Inc | 300 | 4,482 | |||||
Mosaic Co | 145 | 4,235 | |||||
Nippon Paint Holdings Co Ltd | 100 | 3,391 | |||||
Nissan Chemical Corp | 100 | 5,206 | |||||
Orica Ltd | 527 | 6,401 | |||||
Sherwin-Williams Co | 21 | 8,263 | |||||
Sika AG (REG) | 38 | 4,832 | |||||
Symrise AG | 453 | 33,472 | |||||
Taiyo Nippon Sanso Corp | 200 | 3,293 | |||||
Teijin Ltd | 200 | 3,184 | |||||
Tosoh Corp | 300 | 3,882 | |||||
Umicore SA | 136 | 5,408 | |||||
Yara International ASA | 274 | 10,524 | |||||
271,821 | |||||||
Commercial Services & Supplies – 0.2% | |||||||
Brambles Ltd | 213 | 1,522 | |||||
Cintas Corp | 55 | 9,239 | |||||
Copart Inc* | 358 | 17,105 | |||||
Edenred | 142 | 5,205 | |||||
G4S PLC | 3,017 | 7,549 | |||||
Republic Services Inc | 707 | 50,968 | |||||
Rollins Inc | 355 | 12,816 | |||||
Securitas AB | 16 | 257 | |||||
104,661 | |||||||
Communications Equipment – 0.1% | |||||||
Arista Networks Inc* | 7 | 1,475 | |||||
F5 Networks Inc* | 158 | 25,601 | |||||
Juniper Networks Inc | 686 | 18,460 | |||||
Nokia OYJ | 3,759 | 21,716 | |||||
Telefonaktiebolaget LM Ericsson | 1,248 | 11,006 | |||||
78,258 | |||||||
Construction & Engineering – 0.1% | |||||||
ACS Actividades de Construccion y Servicios SA | 50 | 1,922 | |||||
Bouygues SA | 34 | 1,216 | |||||
CIMIC Group Ltd | 76 | 2,323 | |||||
Ferrovial SA | 531 | 10,708 | |||||
Fluor Corp | 399 | 12,848 | |||||
HOCHTIEF AG | 16 | 2,156 | |||||
Quanta Services Inc | 113 | 3,401 | |||||
Skanska AB | 140 | 2,237 | |||||
Vinci SA | 13 | 1,068 | |||||
37,879 | |||||||
Construction Materials – 0.1% | |||||||
Boral Ltd | 1,559 | 5,423 | |||||
HeidelbergCement AG | 24 | 1,468 | |||||
Imerys SA | 4 | 191 | |||||
James Hardie Industries PLC (CDI) | 207 | 2,204 | |||||
LafargeHolcim Ltd* | 134 | 5,539 | |||||
Martin Marietta Materials Inc | 56 | 9,625 | |||||
Taiheiyo Cement Corp | 100 | 3,078 | |||||
Vulcan Materials Co | 46 | 4,545 | |||||
32,073 | |||||||
Consumer Finance – 0% | |||||||
AEON Financial Service Co Ltd | 100 | 1,797 | |||||
Synchrony Financial | 108 | 2,534 | |||||
4,331 | |||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Containers & Packaging – 0.1% | |||||||
Amcor Ltd/Australia | 988 | $9,218 | |||||
Avery Dennison Corp | 160 | 14,373 | |||||
Ball Corp | 202 | 9,288 | |||||
International Paper Co | 147 | 5,933 | |||||
Packaging Corp of America | 54 | 4,507 | |||||
Sealed Air Corp | 476 | 16,584 | |||||
Westrock Co | 102 | 3,852 | |||||
63,755 | |||||||
Distributors – 0% | |||||||
Genuine Parts Co | 81 | 7,778 | |||||
Diversified Consumer Services – 0% | |||||||
H&R Block Inc | 1,043 | 26,461 | |||||
Diversified Financial Services – 0.1% | |||||||
AMP Ltd | 3,778 | 6,520 | |||||
Eurazeo SA | 127 | 8,965 | |||||
Industrivarden AB | 231 | 4,689 | |||||
Kinnevik AB | 273 | 6,609 | |||||
Mitsubishi UFJ Lease & Finance Co Ltd | 200 | 958 | |||||
Tokyo Century Corp | 100 | 4,351 | |||||
Wendel SA | 19 | 2,279 | |||||
34,371 | |||||||
Diversified Telecommunication Services – 0.2% | |||||||
AT&T Inc | 829 | 23,660 | |||||
BCE Inc | 841 | 33,227 | |||||
BT Group PLC | 2,787 | 8,435 | |||||
CenturyLink Inc | 1,383 | 20,952 | |||||
Deutsche Telekom AG | 203 | 3,448 | |||||
Elisa OYJ | 237 | 9,813 | |||||
HKT Trust & HKT Ltd | 5,000 | 7,199 | |||||
Iliad SA | 8 | 1,118 | |||||
Koninklijke KPN NV | 3,798 | 11,099 | |||||
Nippon Telegraph & Telephone Corp | 100 | 4,072 | |||||
PCCW Ltd | 10,000 | 5,753 | |||||
Proximus SADP | 25 | 675 | |||||
Singapore Telecommunications Ltd | 3,100 | 6,651 | |||||
Swisscom AG (REG) | 8 | 3,830 | |||||
Telefonica Deutschland Holding AG | 799 | 3,126 | |||||
Telefonica SA | 83 | 700 | |||||
Telenor ASA | 547 | 10,566 | |||||
Telstra Corp Ltd | 6,447 | 12,938 | |||||
United Internet AG | 71 | 3,105 | |||||
Verizon Communications Inc | 69 | 3,879 | |||||
174,246 | |||||||
Electric Utilities – 0.2% | |||||||
Alliant Energy Corp | 83 | 3,507 | |||||
AusNet Services | 983 | 1,077 | |||||
Chugoku Electric Power Co Inc | 200 | 2,594 | |||||
CLP Holdings Ltd | 500 | 5,637 | |||||
Duke Energy Corp | 59 | 5,092 | |||||
Electricite de France SA | 183 | 2,883 | |||||
Emera Inc | 205 | 6,565 | |||||
Entergy Corp | 144 | 12,394 | |||||
Eversource Energy | 38 | 2,472 | |||||
Fortum OYJ | 73 | 1,601 | |||||
Hydro One Ltd | 1,301 | 19,301 | |||||
Kyushu Electric Power Co Inc | 100 | 1,189 | |||||
Pinnacle West Capital Corp | 37 | 3,152 | |||||
Power Assets Holdings Ltd | 1,000 | 6,943 | |||||
PPL Corp | 160 | 4,533 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Electric Utilities – (continued) | |||||||
Red Electrica Corp SA | 461 | $10,267 | |||||
SSE PLC | 285 | 3,918 | |||||
Terna Rete Elettrica Nazionale SpA | 2,441 | 13,855 | |||||
Xcel Energy Inc | 71 | 3,498 | |||||
110,478 | |||||||
Electrical Equipment – 0% | |||||||
ABB Ltd | 178 | 3,395 | |||||
Legrand SA | 12 | 675 | |||||
Melrose Industries PLC | 1,762 | 3,648 | |||||
OSRAM Licht AG | 14 | 608 | |||||
Prysmian SpA | 14 | 271 | |||||
Rockwell Automation Inc | 68 | 10,233 | |||||
Siemens Gamesa Renewable Energy SA* | 246 | 2,980 | |||||
21,810 | |||||||
Electronic Equipment, Instruments & Components – 0.2% | |||||||
Amphenol Corp | 604 | 48,936 | |||||
Corning Inc | 362 | 10,936 | |||||
FLIR Systems Inc | 130 | 5,660 | |||||
Hexagon AB | 507 | 23,414 | |||||
Hitachi Ltd | 100 | 2,659 | |||||
IPG Photonics Corp* | 119 | 13,482 | |||||
Keysight Technologies Inc* | 78 | 4,842 | |||||
TE Connectivity Ltd | 118 | 8,924 | |||||
118,853 | |||||||
Energy Equipment & Services – 0.1% | |||||||
Baker Hughes a GE Co | 513 | 11,030 | |||||
Halliburton Co | 671 | 17,835 | |||||
Helmerich & Payne Inc | 136 | 6,520 | |||||
National Oilwell Varco Inc | 621 | 15,960 | |||||
Schlumberger Ltd | 653 | 23,560 | |||||
TechnipFMC PLC | 357 | 6,990 | |||||
Tenaris SA | 608 | 6,516 | |||||
WorleyParsons Ltd | 354 | 2,846 | |||||
91,257 | |||||||
Entertainment – 0.3% | |||||||
Activision Blizzard Inc | 514 | 23,937 | |||||
DeNA Co Ltd | 200 | 3,329 | |||||
Electronic Arts Inc* | 513 | 40,481 | |||||
Netflix Inc* | 20 | 5,353 | |||||
Nexon Co Ltd* | 200 | 2,555 | |||||
Take-Two Interactive Software Inc* | 212 | 21,823 | |||||
Toho Co Ltd/Tokyo | 100 | 3,614 | |||||
Ubisoft Entertainment SA* | 32 | 2,567 | |||||
Viacom Inc | 1,192 | 30,634 | |||||
Vivendi SA | 289 | 7,021 | |||||
Walt Disney Co | 833 | 91,338 | |||||
232,652 | |||||||
Equity Real Estate Investment Trusts (REITs) – 0.2% | |||||||
Alexandria Real Estate Equities Inc | 16 | 1,844 | |||||
Apartment Investment & Management Co | 35 | 1,536 | |||||
Ascendas Real Estate Investment Trust | 1,000 | 1,881 | |||||
Boston Properties Inc | 15 | 1,688 | |||||
British Land Co PLC | 33 | 224 | |||||
CapitaLand Mall Trust | 1,700 | 2,813 | |||||
Covivio | 9 | 866 | |||||
Crown Castle International Corp | 29 | 3,150 | |||||
Daiwa House REIT Investment Corp | 1 | 2,239 | |||||
Duke Realty Corp | 142 | 3,678 | |||||
Equity Residential | 83 | 5,479 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | |||||||
Essex Property Trust Inc | 8 | $1,962 | |||||
Extra Space Storage Inc | 21 | 1,900 | |||||
Federal Realty Investment Trust | 34 | 4,013 | |||||
Gecina SA | 8 | 1,033 | |||||
Goodman Group | 988 | 7,394 | |||||
GPT Group | 2,475 | 9,307 | |||||
Hammerson PLC | 379 | 1,587 | |||||
Japan Retail Fund Investment Corp | 2 | 4,005 | |||||
Kimco Realty Corp | 494 | 7,237 | |||||
Klepierre SA | 55 | 1,693 | |||||
Land Securities Group PLC | 70 | 717 | |||||
Mid-America Apartment Communities Inc | 26 | 2,488 | |||||
Nippon Prologis REIT Inc | 4 | 8,445 | |||||
Nomura Real Estate Master Fund Inc | 2 | 2,632 | |||||
Public Storage | 5 | 1,012 | |||||
Realty Income Corp | 114 | 7,187 | |||||
Regency Centers Corp | 75 | 4,401 | |||||
RioCan Real Estate Investment Trust | 210 | 3,662 | |||||
SBA Communications Corp* | 5 | 809 | |||||
Scentre Group | 5,764 | 15,829 | |||||
SL Green Realty Corp | 23 | 1,819 | |||||
SmartCentres Real Estate Investment Trust | 10 | 226 | |||||
Stockland | 1,573 | 3,902 | |||||
UDR Inc | 31 | 1,228 | |||||
United Urban Investment Corp | 5 | 7,754 | |||||
Ventas Inc | 30 | 1,758 | |||||
Vornado Realty Trust | 19 | 1,179 | |||||
Welltower Inc | 148 | 10,273 | |||||
Weyerhaeuser Co | 262 | 5,727 | |||||
146,577 | |||||||
Food & Staples Retailing – 0.2% | |||||||
Aeon Co Ltd | 100 | 1,968 | |||||
Alimentation Couche-Tard Inc | 87 | 4,328 | |||||
Colruyt SA | 15 | 1,068 | |||||
Costco Wholesale Corp | 25 | 5,093 | |||||
Dairy Farm International Holdings Ltd | 100 | 903 | |||||
George Weston Ltd | 193 | 12,732 | |||||
J Sainsbury PLC | 1,759 | 5,931 | |||||
Kroger Co | 100 | 2,750 | |||||
Loblaw Cos Ltd | 207 | 9,267 | |||||
METRO AG | 427 | 6,564 | |||||
Metro Inc | 276 | 9,572 | |||||
Seven & i Holdings Co Ltd | 300 | 13,064 | |||||
Sysco Corp | 596 | 37,345 | |||||
Walgreens Boots Alliance Inc | 139 | 9,498 | |||||
Walmart Inc | 248 | 23,101 | |||||
Wm Morrison Supermarkets PLC | 5,195 | 14,078 | |||||
Woolworths Group Ltd | 902 | 18,686 | |||||
175,948 | |||||||
Food Products – 0.3% | |||||||
Ajinomoto Co Inc | 300 | 5,323 | |||||
Archer-Daniels-Midland Co | 130 | 5,326 | |||||
Associated British Foods PLC | 208 | 5,409 | |||||
Barry Callebaut AG (REG) | 5 | 7,779 | |||||
Calbee Inc | 100 | 3,126 | |||||
Campbell Soup Co | 204 | 6,730 | |||||
Conagra Brands Inc | 724 | 15,465 | |||||
Danone SA | 74 | 5,215 | |||||
General Mills Inc | 321 | 12,500 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 13 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Food Products – (continued) | |||||||
Hershey Co | 408 | $43,729 | |||||
Hormel Foods Corp | 148 | 6,317 | |||||
JM Smucker Co | 173 | 16,174 | |||||
Kellogg Co | 308 | 17,559 | |||||
Kikkoman Corp | 100 | 5,367 | |||||
Kraft Heinz Co | 539 | 23,199 | |||||
Marine Harvest ASA | 97 | 2,043 | |||||
McCormick & Co Inc/MD | 148 | 20,608 | |||||
Nestle SA (REG) | 64 | 5,205 | |||||
NH Foods Ltd | 100 | 3,760 | |||||
Nissin Foods Holdings Co Ltd | 100 | 6,276 | |||||
Orkla ASA | 1,449 | 11,402 | |||||
Toyo Suisan Kaisha Ltd | 100 | 3,490 | |||||
Tyson Foods Inc | 233 | 12,442 | |||||
WH Group Ltd | 500 | 381 | |||||
Wilmar International Ltd | 300 | 687 | |||||
Yamazaki Baking Co Ltd | 100 | 2,095 | |||||
247,607 | |||||||
Gas Utilities – 0% | |||||||
AltaGas Ltd | 172 | 1,752 | |||||
APA Group | 98 | 587 | |||||
Hong Kong & China Gas Co Ltd | 3,000 | 6,192 | |||||
Naturgy Energy Group SA | 137 | 3,475 | |||||
12,006 | |||||||
Health Care Equipment & Supplies – 0.3% | |||||||
Baxter International Inc | 973 | 64,043 | |||||
Becton Dickinson and Co | 66 | 14,871 | |||||
Boston Scientific Corp* | 119 | 4,205 | |||||
Cooper Cos Inc | 34 | 8,653 | |||||
Edwards Lifesciences Corp* | 21 | 3,217 | |||||
EssilorLuxottica SA | 49 | 6,186 | |||||
Hologic Inc* | 456 | 18,742 | |||||
IDEXX Laboratories Inc* | 88 | 16,370 | |||||
ResMed Inc | 203 | 23,116 | |||||
Smith & Nephew PLC | 845 | 15,713 | |||||
Sonova Holding AG (REG) | 54 | 8,808 | |||||
Straumann Holding AG | 8 | 5,062 | |||||
Stryker Corp | 68 | 10,659 | |||||
Varian Medical Systems Inc* | 72 | 8,158 | |||||
Zimmer Biomet Holdings Inc | 29 | 3,008 | |||||
210,811 | |||||||
Health Care Providers & Services – 0.1% | |||||||
Alfresa Holdings Corp | 100 | 2,587 | |||||
Centene Corp* | 49 | 5,650 | |||||
Cigna Corp | 10 | 1,899 | |||||
CVS Health Corp | 100 | 6,552 | |||||
DaVita Inc* | 39 | 2,007 | |||||
Fresenius Medical Care AG & Co KGaA | 13 | 844 | |||||
Fresenius SE & Co KGaA | 132 | 6,380 | |||||
Henry Schein Inc* | 128 | 10,051 | |||||
Humana Inc | 19 | 5,443 | |||||
Laboratory Corp of America Holdings* | 69 | 8,719 | |||||
McKesson Corp | 25 | 2,762 | |||||
Medipal Holdings Corp | 100 | 2,163 | |||||
Quest Diagnostics Inc | 65 | 5,413 | |||||
Ramsay Health Care Ltd | 216 | 8,781 | |||||
Sonic Healthcare Ltd | 669 | 10,416 | |||||
Universal Health Services Inc | 151 | 17,601 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
14 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Health Care Providers & Services – (continued) | |||||||
WellCare Health Plans Inc* | 19 | $4,486 | |||||
101,754 | |||||||
Health Care Technology – 0% | |||||||
Cerner Corp* | 85 | 4,457 | |||||
M3 Inc | 100 | 1,355 | |||||
5,812 | |||||||
Hotels, Restaurants & Leisure – 0.2% | |||||||
Accor SA | 276 | 11,703 | |||||
Carnival Corp | 383 | 18,882 | |||||
Carnival PLC | 33 | 1,583 | |||||
Chipotle Mexican Grill Inc* | 23 | 9,931 | |||||
Crown Resorts Ltd | 878 | 7,333 | |||||
Flight Centre Travel Group Ltd | 44 | 1,330 | |||||
Marriott International Inc/MD | 33 | 3,582 | |||||
McDonald's Corp | 48 | 8,523 | |||||
Merlin Entertainments PLC | 5,068 | 20,508 | |||||
MGM China Holdings Ltd | 1,600 | 2,693 | |||||
MGM Resorts International | 58 | 1,407 | |||||
Norwegian Cruise Line Holdings Ltd* | 422 | 17,889 | |||||
Paddy Power Betfair PLC | 27 | 2,212 | |||||
Sands China Ltd | 800 | 3,465 | |||||
Starbucks Corp | 376 | 24,214 | |||||
Tabcorp Holdings Ltd | 1,756 | 5,305 | |||||
Whitbread PLC | 78 | 4,540 | |||||
Wynn Resorts Ltd | 65 | 6,429 | |||||
Yum! Brands Inc | 254 | 23,348 | |||||
174,877 | |||||||
Household Durables – 0.2% | |||||||
Barratt Developments PLC | 1,459 | 8,611 | |||||
DR Horton Inc | 244 | 8,457 | |||||
Electrolux AB | 56 | 1,187 | |||||
Garmin Ltd | 985 | 62,370 | |||||
Husqvarna AB | 1,791 | 13,323 | |||||
Leggett & Platt Inc | 475 | 17,024 | |||||
Lennar Corp | 151 | 5,912 | |||||
Newell Brands Inc | 200 | 3,718 | |||||
PulteGroup Inc | 539 | 14,009 | |||||
Sekisui Chemical Co Ltd | 200 | 2,960 | |||||
Whirlpool Corp | 16 | 1,710 | |||||
139,281 | |||||||
Household Products – 0.2% | |||||||
Clorox Co | 83 | 12,794 | |||||
Colgate-Palmolive Co | 1,151 | 68,508 | |||||
Henkel AG & Co KGaA | 19 | 1,868 | |||||
Kimberly-Clark Corp | 282 | 32,131 | |||||
Lion Corp | 200 | 4,126 | |||||
Pigeon Corp | 100 | 4,319 | |||||
Reckitt Benckiser Group PLC | 70 | 5,345 | |||||
129,091 | |||||||
Independent Power and Renewable Electricity Producers – 0% | |||||||
AES Corp/VA | 78 | 1,128 | |||||
Electric Power Development Co Ltd | 100 | 2,369 | |||||
NRG Energy Inc | 27 | 1,069 | |||||
Uniper SE | 82 | 2,123 | |||||
6,689 | |||||||
Industrial Conglomerates – 0% | |||||||
CK Hutchison Holdings Ltd | 1,000 | 9,557 | |||||
Keppel Corp Ltd | 200 | 869 | |||||
Roper Technologies Inc | 28 | 7,463 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 15 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Industrial Conglomerates – (continued) | |||||||
Sembcorp Industries Ltd | 300 | $560 | |||||
Smiths Group PLC | 299 | 5,176 | |||||
23,625 | |||||||
Information Technology Services – 0.5% | |||||||
Akamai Technologies Inc* | 190 | 11,605 | |||||
Alliance Data Systems Corp | 7 | 1,051 | |||||
Amadeus IT Group SA | 70 | 4,873 | |||||
Atos SE | 158 | 12,854 | |||||
Broadridge Financial Solutions Inc | 111 | 10,684 | |||||
CGI Group Inc* | 198 | 12,112 | |||||
Computershare Ltd | 429 | 5,193 | |||||
DXC Technology Co | 162 | 8,614 | |||||
Fidelity National Information Services Inc | 703 | 72,093 | |||||
Fiserv Inc* | 693 | 50,929 | |||||
FleetCor Technologies Inc* | 63 | 11,700 | |||||
Gartner Inc* | 238 | 30,426 | |||||
Global Payments Inc | 139 | 14,335 | |||||
Jack Henry & Associates Inc | 316 | 39,980 | |||||
NTT Data Corp | 100 | 1,093 | |||||
Paychex Inc | 83 | 5,407 | |||||
PayPal Holdings Inc* | 156 | 13,118 | |||||
Shopify Inc* | 18 | 2,490 | |||||
Western Union Co | 1,786 | 30,469 | |||||
Wirecard AG | 28 | 4,262 | |||||
343,288 | |||||||
Insurance – 0.4% | |||||||
Ageas | 203 | 9,119 | |||||
AIA Group Ltd | 600 | 4,936 | |||||
Allstate Corp | 7 | 578 | |||||
Arthur J Gallagher & Co | 216 | 15,919 | |||||
Aviva PLC | 834 | 3,977 | |||||
Baloise Holding AG | 53 | 7,318 | |||||
Brighthouse Financial Inc* | 28 | 853 | |||||
Chubb Ltd | 29 | 3,746 | |||||
Cincinnati Financial Corp | 84 | 6,503 | |||||
CNP Assurances | 386 | 8,164 | |||||
Direct Line Insurance Group PLC | 4,597 | 18,616 | |||||
Everest Re Group Ltd | 52 | 11,324 | |||||
Gjensidige Forsikring ASA | 231 | 3,600 | |||||
Hannover Rueck SE | 9 | 1,213 | |||||
Hartford Financial Services Group Inc | 196 | 8,712 | |||||
Insurance Australia Group Ltd | 652 | 3,214 | |||||
Japan Post Holdings Co Ltd | 600 | 6,899 | |||||
Legal & General Group PLC | 169 | 496 | |||||
Loews Corp | 238 | 10,834 | |||||
Mapfre SA | 2,578 | 6,832 | |||||
Marsh & McLennan Cos Inc | 191 | 15,232 | |||||
Medibank Pvt Ltd | 6,239 | 11,291 | |||||
Poste Italiane SpA (144A) | 29 | 233 | |||||
Power Corp of Canada | 389 | 6,991 | |||||
Power Financial Corp | 239 | 4,523 | |||||
Principal Financial Group Inc | 206 | 9,099 | |||||
Prudential Financial Inc | 16 | 1,305 | |||||
Prudential PLC | 121 | 2,162 | |||||
QBE Insurance Group Ltd | 954 | 6,785 | |||||
RSA Insurance Group PLC | 2,040 | 13,308 | |||||
Sampo Oyj | 121 | 5,319 | |||||
SCOR SE | 299 | 13,464 | |||||
Sony Financial Holdings Inc | 500 | 9,282 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
16 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Insurance – (continued) | |||||||
Suncorp Group Ltd | 487 | $4,331 | |||||
Swiss Life Holding AG (REG)* | 10 | 3,861 | |||||
Torchmark Corp | 125 | 9,316 | |||||
Travelers Cos Inc | 19 | 2,275 | |||||
Willis Towers Watson PLC | 48 | 7,289 | |||||
258,919 | |||||||
Interactive Media & Services – 0.1% | |||||||
Alphabet Inc - Class A* | 16 | 16,719 | |||||
Facebook Inc* | 165 | 21,630 | |||||
Kakaku.com Inc | 100 | 1,759 | |||||
LINE Corp* | 100 | 3,419 | |||||
REA Group Ltd | 62 | 3,230 | |||||
TripAdvisor Inc* | 571 | 30,800 | |||||
Twitter Inc* | 579 | 16,640 | |||||
94,197 | |||||||
Internet & Direct Marketing Retail – 0.1% | |||||||
Amazon.com Inc* | 11 | 16,522 | |||||
eBay Inc* | 655 | 18,386 | |||||
Rakuten Inc | 100 | 665 | |||||
35,573 | |||||||
Leisure Products – 0% | |||||||
Hasbro Inc | 280 | 22,750 | |||||
Life Sciences Tools & Services – 0.1% | |||||||
Agilent Technologies Inc | 62 | 4,183 | |||||
Illumina Inc* | 14 | 4,199 | |||||
IQVIA Holdings Inc* | 39 | 4,531 | |||||
Lonza Group AG* | 32 | 8,323 | |||||
Mettler-Toledo International Inc* | 30 | 16,967 | |||||
Waters Corp* | 64 | 12,074 | |||||
50,277 | |||||||
Machinery – 0.1% | |||||||
ANDRITZ AG | 197 | 9,061 | |||||
Caterpillar Inc | 14 | 1,779 | |||||
CNH Industrial NV | 411 | 3,697 | |||||
Cummins Inc | 77 | 10,290 | |||||
Deere & Co | 40 | 5,967 | |||||
Dover Corp | 88 | 6,244 | |||||
Hino Motors Ltd | 200 | 1,878 | |||||
JTEKT Corp | 100 | 1,107 | |||||
KION Group AG | 24 | 1,218 | |||||
Kone OYJ | 25 | 1,191 | |||||
Metso OYJ | 111 | 2,927 | |||||
Mitsubishi Heavy Industries Ltd | 100 | 3,592 | |||||
Nabtesco Corp | 100 | 2,152 | |||||
NGK Insulators Ltd | 100 | 1,348 | |||||
PACCAR Inc | 86 | 4,914 | |||||
Pentair PLC | 256 | 9,672 | |||||
Sandvik AB | 47 | 673 | |||||
Volvo AB | 66 | 868 | |||||
Wartsila OYJ Abp | 198 | 3,142 | |||||
Weir Group PLC | 59 | 970 | |||||
72,690 | |||||||
Media – 0.4% | |||||||
Axel Springer SE | 41 | 2,318 | |||||
CBS Corp | 1,083 | 47,349 | |||||
Charter Communications Inc* | 35 | 9,974 | |||||
Comcast Corp | 268 | 9,125 | |||||
Dentsu Inc | 100 | 4,446 | |||||
Discovery Inc - Class A* | 523 | 12,939 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 17 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Media – (continued) | |||||||
Eutelsat Communications SA | 339 | $6,703 | |||||
Hakuhodo DY Holdings Inc | 300 | 4,258 | |||||
Interpublic Group of Cos Inc | 2,830 | 58,383 | |||||
ITV PLC | 5,252 | 8,334 | |||||
JCDecaux SA | 150 | 4,197 | |||||
News Corp | 2,637 | 29,930 | |||||
Omnicom Group Inc | 781 | 57,200 | |||||
Pearson PLC | 340 | 4,053 | |||||
Publicis Groupe SA | 47 | 2,690 | |||||
RTL Group SA | 126 | 6,743 | |||||
SES SA | 146 | 2,796 | |||||
Singapore Press Holdings Ltd | 2,000 | 3,437 | |||||
Telenet Group Holding NV | 61 | 2,831 | |||||
277,706 | |||||||
Metals & Mining – 0.2% | |||||||
Agnico Eagle Mines Ltd | 188 | 7,589 | |||||
Anglo American PLC | 264 | 5,835 | |||||
Antofagasta PLC | 937 | 9,285 | |||||
ArcelorMittal | 212 | 4,374 | |||||
Barrick Gold Corp# | 388 | 5,239 | |||||
BHP Group Ltd | 233 | 5,620 | |||||
BlueScope Steel Ltd | 332 | 2,562 | |||||
Boliden AB | 360 | 7,834 | |||||
Fortescue Metals Group Ltd | 1,092 | 3,200 | |||||
Freeport-McMoRan Inc | 545 | 5,619 | |||||
Fresnillo PLC | 313 | 3,420 | |||||
Glencore PLC* | 1,485 | 5,476 | |||||
Goldcorp Inc | 835 | 8,179 | |||||
Hitachi Metals Ltd | 300 | 3,116 | |||||
Newcrest Mining Ltd | 578 | 8,903 | |||||
Newmont Mining Corp | 756 | 26,195 | |||||
Norsk Hydro ASA | 1,105 | 5,005 | |||||
Nucor Corp | 114 | 5,906 | |||||
Rio Tinto Ltd | 100 | 5,530 | |||||
Rio Tinto PLC | 18 | 858 | |||||
South32 Ltd | 228 | 538 | |||||
thyssenkrupp AG | 620 | 10,640 | |||||
voestalpine AG | 19 | 568 | |||||
141,491 | |||||||
Multiline Retail – 0.1% | |||||||
Dollarama Inc | 214 | 5,091 | |||||
Harvey Norman Holdings Ltd | 2,824 | 6,289 | |||||
J Front Retailing Co Ltd | 100 | 1,156 | |||||
Kohl's Corp | 231 | 15,325 | |||||
Macy's Inc | 62 | 1,846 | |||||
Marks & Spencer Group PLC | 1,027 | 3,236 | |||||
Next PLC | 129 | 6,564 | |||||
Nordstrom Inc | 304 | 14,169 | |||||
Takashimaya Co Ltd | 100 | 1,271 | |||||
Target Corp | 563 | 37,209 | |||||
Wesfarmers Ltd | 263 | 5,971 | |||||
98,127 | |||||||
Multi-Utilities – 0.1% | |||||||
AGL Energy Ltd | 309 | 4,470 | |||||
Ameren Corp | 44 | 2,870 | |||||
Canadian Utilities Ltd | 344 | 7,893 | |||||
Centrica PLC | 6,057 | 10,414 | |||||
CMS Energy Corp | 79 | 3,922 | |||||
Consolidated Edison Inc | 28 | 2,141 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
18 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Multi-Utilities – (continued) | |||||||
Dominion Energy Inc | 64 | $4,573 | |||||
DTE Energy Co | 22 | 2,427 | |||||
E.ON SE | 67 | 662 | |||||
Public Service Enterprise Group Inc | 65 | 3,383 | |||||
RWE AG | 190 | 4,130 | |||||
Suez | 536 | 7,064 | |||||
Veolia Environnement SA | 404 | 8,286 | |||||
WEC Energy Group Inc | 62 | 4,294 | |||||
66,529 | |||||||
Oil, Gas & Consumable Fuels – 0.8% | |||||||
Anadarko Petroleum Corp | 330 | 14,467 | |||||
Apache Corp | 470 | 12,338 | |||||
BP PLC | 570 | 3,596 | |||||
Cabot Oil & Gas Corp | 2,417 | 54,020 | |||||
Caltex Australia Ltd | 401 | 7,195 | |||||
Canadian Natural Resources Ltd | 279 | 6,733 | |||||
Chevron Corp | 66 | 7,180 | |||||
Cimarex Energy Co | 138 | 8,508 | |||||
Concho Resources Inc* | 49 | 5,037 | |||||
ConocoPhillips | 164 | 10,225 | |||||
Devon Energy Corp | 282 | 6,356 | |||||
Diamondback Energy Inc | 100 | 9,270 | |||||
Enagas SA | 1,058 | 28,565 | |||||
Enbridge Inc | 21 | 652 | |||||
Encana Corp | 962 | 5,554 | |||||
EOG Resources Inc | 47 | 4,099 | |||||
Equinor ASA | 1,173 | 25,033 | |||||
Exxon Mobil Corp | 349 | 23,798 | |||||
Hess Corp | 147 | 5,954 | |||||
HollyFrontier Corp | 137 | 7,003 | |||||
Idemitsu Kosan Co Ltd | 100 | 3,296 | |||||
Inter Pipeline Ltd | 429 | 6,078 | |||||
Kinder Morgan Inc/DE | 1,951 | 30,006 | |||||
Koninklijke Vopak NV | 323 | 14,630 | |||||
Lundin Petroleum AB | 443 | 11,082 | |||||
Marathon Oil Corp | 535 | 7,672 | |||||
Marathon Petroleum Corp | 220 | 12,982 | |||||
Neste Oyj | 165 | 12,738 | |||||
Noble Energy Inc | 597 | 11,200 | |||||
Occidental Petroleum Corp | 196 | 12,030 | |||||
Oil Search Ltd | 808 | 4,074 | |||||
OMV AG | 110 | 4,810 | |||||
ONEOK Inc | 126 | 6,798 | |||||
Origin Energy Ltd* | 723 | 3,294 | |||||
Phillips 66 | 226 | 19,470 | |||||
Pioneer Natural Resources Co | 107 | 14,073 | |||||
Repsol SA | 685 | 11,010 | |||||
Santos Ltd | 1,068 | 4,121 | |||||
Snam SpA | 7,234 | 31,660 | |||||
Suncor Energy Inc | 266 | 7,430 | |||||
TransCanada Corp# | 591 | 21,107 | |||||
Valero Energy Corp | 248 | 18,593 | |||||
Vermilion Energy Inc | 235 | 4,951 | |||||
Washington H Soul Pattinson & Co Ltd | 142 | 2,476 | |||||
Williams Cos Inc | 1,168 | 25,754 | |||||
Woodside Petroleum Ltd | 207 | 4,571 | |||||
551,489 | |||||||
Paper & Forest Products – 0% | |||||||
Mondi PLC | 355 | 7,345 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 19 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Paper & Forest Products – (continued) | |||||||
Stora Enso OYJ | 443 | $5,128 | |||||
UPM-Kymmene OYJ | 496 | 12,610 | |||||
25,083 | |||||||
Personal Products – 0% | |||||||
Beiersdorf AG | 39 | 4,070 | |||||
Coty Inc | 319 | 2,093 | |||||
Pola Orbis Holdings Inc | 100 | 2,679 | |||||
Unilever NV | 62 | 3,368 | |||||
Unilever PLC | 32 | 1,675 | |||||
13,885 | |||||||
Pharmaceuticals – 0.2% | |||||||
Allergan PLC | 51 | 6,817 | |||||
Astellas Pharma Inc | 100 | 1,273 | |||||
AstraZeneca PLC | 175 | 13,085 | |||||
Aurora Cannabis Inc* | 370 | 1,838 | |||||
Bristol-Myers Squibb Co | 340 | 17,673 | |||||
Canopy Growth Corp* | 106 | 2,843 | |||||
Eli Lilly & Co | 88 | 10,183 | |||||
Kyowa Hakko Kirin Co Ltd | 100 | 1,879 | |||||
Merck KGaA | 79 | 8,150 | |||||
Mitsubishi Tanabe Pharma Corp | 100 | 1,437 | |||||
Mylan NV* | 340 | 9,316 | |||||
Novartis AG | 104 | 8,911 | |||||
Ono Pharmaceutical Co Ltd | 100 | 2,024 | |||||
Otsuka Holdings Co Ltd | 100 | 4,081 | |||||
Perrigo Co PLC | 94 | 3,643 | |||||
Roche Holding AG | 65 | 16,079 | |||||
Sanofi | 12 | 1,037 | |||||
Santen Pharmaceutical Co Ltd | 100 | 1,431 | |||||
Sumitomo Dainippon Pharma Co Ltd | 100 | 3,221 | |||||
UCB SA | 72 | 5,869 | |||||
Vifor Pharma AG | 4 | 434 | |||||
Zoetis Inc | 90 | 7,699 | |||||
128,923 | |||||||
Professional Services – 0.1% | |||||||
Bureau Veritas SA | 156 | 3,168 | |||||
Equifax Inc | 28 | 2,608 | |||||
IHS Markit Ltd* | 371 | 17,797 | |||||
Nielsen Holdings PLC | 153 | 3,569 | |||||
Persol Holdings Co Ltd | 100 | 1,469 | |||||
SEEK Ltd | 127 | 1,513 | |||||
Teleperformance | 11 | 1,761 | |||||
Verisk Analytics Inc* | 85 | 9,268 | |||||
Wolters Kluwer NV | 40 | 2,362 | |||||
43,515 | |||||||
Real Estate Management & Development – 0.1% | |||||||
Aeon Mall Co Ltd | 100 | 1,600 | |||||
CapitaLand Ltd | 2,200 | 5,005 | |||||
CK Asset Holdings Ltd | 1,000 | 7,272 | |||||
Deutsche Wohnen SE | 31 | 1,421 | |||||
Henderson Land Development Co Ltd | 2,000 | 9,915 | |||||
Hongkong Land Holdings Ltd | 600 | 3,782 | |||||
Hulic Co Ltd | 200 | 1,790 | |||||
New World Development Co Ltd | 6,000 | 7,882 | |||||
Nomura Real Estate Holdings Inc | 100 | 1,825 | |||||
Swire Pacific Ltd | 1,000 | 10,506 | |||||
Swiss Prime Site AG (REG)* | 15 | 1,216 | |||||
Tokyu Fudosan Holdings Corp | 200 | 993 | |||||
Vonovia SE | 20 | 908 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
20 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Real Estate Management & Development – (continued) | |||||||
Wharf Holdings Ltd | 4,000 | $10,378 | |||||
64,493 | |||||||
Road & Rail – 0% | |||||||
Aurizon Holdings Ltd | 1,580 | 4,762 | |||||
JB Hunt Transport Services Inc | 86 | 8,001 | |||||
Keikyu Corp | 100 | 1,648 | |||||
MTR Corp Ltd | 2,500 | 13,158 | |||||
Nagoya Railroad Co Ltd | 100 | 2,653 | |||||
Tokyu Corp | 100 | 1,625 | |||||
31,847 | |||||||
Semiconductor & Semiconductor Equipment – 0.2% | |||||||
Advanced Micro Devices Inc* | 497 | 9,175 | |||||
Applied Materials Inc | 359 | 11,754 | |||||
ASM Pacific Technology Ltd | 100 | 958 | |||||
ASML Holding NV | 33 | 5,148 | |||||
Infineon Technologies AG | 509 | 10,127 | |||||
KLA-Tencor Corp | 112 | 10,023 | |||||
Lam Research Corp | 141 | 19,200 | |||||
Microchip Technology Inc | 195 | 14,024 | |||||
Micron Technology Inc* | 236 | 7,488 | |||||
NVIDIA Corp | 59 | 7,877 | |||||
NXP Semiconductors NV | 109 | 7,988 | |||||
Qorvo Inc* | 114 | 6,923 | |||||
Skyworks Solutions Inc | 121 | 8,109 | |||||
STMicroelectronics NV | 284 | 4,052 | |||||
Xilinx Inc | 59 | 5,025 | |||||
127,871 | |||||||
Software – 0.1% | |||||||
Adobe Inc* | 17 | 3,846 | |||||
ANSYS Inc* | 126 | 18,010 | |||||
BlackBerry Ltd* | 1,452 | 10,329 | |||||
Dassault Systemes SE | 84 | 9,916 | |||||
Sage Group PLC | 580 | 4,440 | |||||
SAP SE | 152 | 15,139 | |||||
Symantec Corp | 293 | 5,536 | |||||
Temenos AG (REG)* | 65 | 7,836 | |||||
75,052 | |||||||
Specialty Retail – 0.4% | |||||||
Advance Auto Parts Inc | 139 | 21,887 | |||||
AutoZone Inc* | 47 | 39,402 | |||||
Best Buy Co Inc | 309 | 16,365 | |||||
CarMax Inc* | 386 | 24,214 | |||||
Industria de Diseno Textil SA | 184 | 4,690 | |||||
Kingfisher PLC | 7,479 | 19,783 | |||||
Lowe's Cos Inc | 62 | 5,726 | |||||
O'Reilly Automotive Inc* | 9 | 3,099 | |||||
Ross Stores Inc | 180 | 14,976 | |||||
Tiffany & Co | 16 | 1,288 | |||||
TJX Cos Inc | 666 | 29,797 | |||||
Tractor Supply Co | 699 | 58,325 | |||||
Ulta Beauty Inc* | 84 | 20,567 | |||||
USS Co Ltd | 100 | 1,669 | |||||
261,788 | |||||||
Technology Hardware, Storage & Peripherals – 0.1% | |||||||
Apple Inc | 63 | 9,938 | |||||
Brother Industries Ltd | 100 | 1,468 | |||||
Canon Inc | 100 | 2,756 | |||||
FUJIFILM Holdings Corp | 100 | 3,859 | |||||
Hewlett Packard Enterprise Co | 569 | 7,516 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 21 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Technology Hardware, Storage & Peripherals – (continued) | |||||||
HP Inc | 106 | $2,169 | |||||
Konica Minolta Inc | 100 | 898 | |||||
NEC Corp | 200 | 5,988 | |||||
NetApp Inc | 130 | 7,757 | |||||
Seagate Technology PLC | 75 | 2,894 | |||||
Xerox Corp | 1,248 | 24,660 | |||||
69,903 | |||||||
Textiles, Apparel & Luxury Goods – 0.2% | |||||||
adidas AG | 56 | 11,701 | |||||
Cie Financiere Richemont SA | 25 | 1,607 | |||||
Hanesbrands Inc | 1,394 | 17,467 | |||||
Hermes International | 12 | 6,636 | |||||
HUGO BOSS AG | 54 | 3,330 | |||||
Kering SA | 7 | 3,276 | |||||
Michael Kors Holdings Ltd* | 248 | 9,404 | |||||
Moncler SpA | 193 | 6,448 | |||||
NIKE Inc | 211 | 15,644 | |||||
Puma SE | 14 | 6,856 | |||||
Ralph Lauren Corp | 47 | 4,863 | |||||
Tapestry Inc | 435 | 14,681 | |||||
VF Corp | 121 | 8,632 | |||||
Yue Yuen Industrial Holdings Ltd | 500 | 1,596 | |||||
112,141 | |||||||
Tobacco – 0% | |||||||
Imperial Brands PLC | 183 | 5,533 | |||||
Philip Morris International Inc | 257 | 17,157 | |||||
Swedish Match AB | 88 | 3,471 | |||||
26,161 | |||||||
Trading Companies & Distributors – 0.1% | |||||||
Bunzl PLC | 151 | 4,543 | |||||
Ferguson PLC | 51 | 3,266 | |||||
ITOCHU Corp | 100 | 1,687 | |||||
Marubeni Corp | 100 | 696 | |||||
Mitsui & Co Ltd | 100 | 1,550 | |||||
Rexel SA | 271 | 2,889 | |||||
Sumitomo Corp | 100 | 1,411 | |||||
Toyota Tsusho Corp | 100 | 2,941 | |||||
United Rentals Inc* | 37 | 3,794 | |||||
WW Grainger Inc | 39 | 11,012 | |||||
33,789 | |||||||
Transportation Infrastructure – 0% | |||||||
Aena SME SA | 53 | 8,216 | |||||
Aeroports de Paris | 18 | 3,403 | |||||
Japan Airport Terminal Co Ltd | 100 | 3,454 | |||||
Sydney Airport | 882 | 4,180 | |||||
Transurban Group | 483 | 3,964 | |||||
23,217 | |||||||
Water Utilities – 0% | |||||||
American Water Works Co Inc | 166 | 15,068 | |||||
Severn Trent PLC | 263 | 6,075 | |||||
United Utilities Group PLC | 656 | 6,142 | |||||
27,285 | |||||||
Wireless Telecommunication Services – 0% | |||||||
KDDI Corp | 100 | 2,383 | |||||
Millicom International Cellular SA (SDR) | 55 | 3,492 | |||||
NTT DOCOMO Inc | 300 | 6,737 | |||||
Rogers Communications Inc | 120 | 6,150 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
22 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Wireless Telecommunication Services – (continued) | |||||||
Vodafone Group PLC | 3,432 | $6,668 | |||||
25,430 | |||||||
Total Common Stocks (cost $7,492,990) | 6,797,414 | ||||||
Preferred Stocks – 0% | |||||||
Automobiles – 0% | |||||||
Porsche Automobil Holding SE | 200 | 11,839 | |||||
Volkswagen AG | 52 | 8,274 | |||||
20,113 | |||||||
Health Care Equipment & Supplies – 0% | |||||||
Sartorius AG | 31 | 3,871 | |||||
Media – 0% | |||||||
ProSiebenSat.1 Media SE | 197 | 3,503 | |||||
Total Preferred Stocks (cost $30,037) | 27,487 | ||||||
Investment Companies – 85.4% | |||||||
Exchange-Traded Funds (ETFs) – 68.4% | |||||||
Invesco QQQ Trust Series 1 | 18,163 | 2,801,824 | |||||
iShares 20+ Year Treasury Bond# | 21,669 | 2,633,000 | |||||
iShares 7-10 Year Treasury Bond# | 34,981 | 3,645,020 | |||||
iShares Agency Bond# | 36,323 | 4,072,898 | |||||
iShares Core MSCI Emerging Markets | 48,199 | 2,272,583 | |||||
iShares FTSE/Xinhua China 25 Index Fund# | 44,512 | 1,739,529 | |||||
iShares iBoxx $ High Yield Corporate Bond# | 5,142 | 417,016 | |||||
iShares iBoxx $ Investment Grade Corporate Bond | 30,735 | 3,467,523 | |||||
iShares MSCI Canada | 7,598 | 182,048 | |||||
Vanguard Consumer Staples | 2,601 | 341,173 | |||||
Vanguard Financials | 19,924 | 1,182,689 | |||||
Vanguard FTSE All World ex-US Small-Cap# | 5,292 | 501,047 | |||||
Vanguard FTSE All-World ex-US | 53,267 | 2,427,910 | |||||
Vanguard FTSE Emerging Markets | 54,530 | 2,077,593 | |||||
Vanguard FTSE Europe | 23,355 | 1,135,520 | |||||
Vanguard FTSE Pacific# | 18,011 | 1,092,007 | |||||
Vanguard Growth | 4,042 | 542,962 | |||||
Vanguard High Dividend Yield# | 5,864 | 457,333 | |||||
Vanguard Industrials# | 9,440 | 1,136,670 | |||||
Vanguard International High Dividend Yield | 10,326 | 581,044 | |||||
Vanguard Mid-Cap | 10,001 | 1,381,938 | |||||
Vanguard Mortgage-Backed Securities# | 73,757 | 3,797,748 | |||||
Vanguard S&P 500 | 11,917 | 2,738,646 | |||||
Vanguard Small-Cap | 2,719 | 358,881 | |||||
Vanguard Total International Bond | 145,033 | 7,868,040 | |||||
Vanguard Value# | 9,137 | 894,969 | |||||
49,747,611 | |||||||
Investments Purchased with Cash Collateral from Securities Lending – 17.0% | |||||||
Janus Henderson Cash Collateral Fund LLC, 2.4428%ºº,£ | 12,345,540 | 12,345,540 | |||||
Total Investment Companies (cost $63,282,157) | 62,093,151 | ||||||
Commercial Paper – 18.2% | |||||||
FMC Technologies Inc, 0%, 1/3/19 (Section 4(2))◊ | $1,400,000 | 1,399,693 | |||||
Ford Motor Credit Co, 0%, 2/6/19 (Section 4(2))◊ | 500,000 | 498,369 | |||||
General Electric Co, 0%, 1/24/19◊ | 1,450,000 | 1,447,040 | |||||
Hyundai Capital America, 0%, 1/4/19 (Section 4(2))◊ | 1,500,000 | 1,499,559 | |||||
Intesa Sanpaolo SpA, 0%, 1/15/19◊ | 2,000,000 | 1,997,625 | |||||
Magna International Inc, 0%, 1/28/19 (Section 4(2))◊ | 250,000 | 249,440 | |||||
Nationwide Building Society, 0%, 1/28/19 (Section 4(2))◊ | 1,500,000 | 1,497,004 | |||||
Royal Bank of Canada, 0%, 1/4/19◊ | 750,000 | 749,800 | |||||
Telstra Corp Ltd, 0%, 1/14/19 (Section 4(2))◊ | 2,400,000 | 2,397,533 | |||||
VW Credit Inc, 0%, 1/7/19 (Section 4(2))◊ | 1,500,000 | 1,499,215 | |||||
Total Commercial Paper (cost $13,235,439) | 13,235,278 | ||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 23 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
U.S. Government Agency Notes – 3.9% | |||||||
Federal Home Loan Bank Discount Notes: | |||||||
0%, 1/2/19◊ (cost $2,800,981) | $2,800,000 | $2,801,308 | |||||
Total Investments (total cost $86,841,604) – 116.9% | 84,954,638 | ||||||
Liabilities, net of Cash, Receivables and Other Assets – (16.9)% | (12,252,389) | ||||||
Net Assets – 100% | $72,702,249 | ||||||
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $72,004,777 | 84.8 | % | ||
Australia | 2,726,751 | 3.2 | |||
Italy | 2,076,175 | 2.4 | |||
United Kingdom | 1,832,905 | 2.2 | |||
China | 1,739,529 | 2.1 | |||
Germany | 1,719,642 | 2.0 | |||
Canada | 1,416,091 | 1.7 | |||
Japan | 369,638 | 0.4 | |||
France | 196,478 | 0.2 | |||
Hong Kong | 184,485 | 0.2 | |||
Spain | 148,444 | 0.2 | |||
Switzerland | 134,722 | 0.2 | |||
Finland | 91,560 | 0.1 | |||
Sweden | 91,270 | 0.1 | |||
Netherlands | 79,991 | 0.1 | |||
Norway | 74,272 | 0.1 | |||
Belgium | 25,876 | 0.0 | |||
Singapore | 21,903 | 0.0 | |||
Austria | 17,917 | 0.0 | |||
Ireland | 2,212 | 0.0 | |||
Total | $84,954,638 | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 12/31/18 | |||||||
Investment Companies - 17.0% | ||||||||||
Investments Purchased with Cash Collateral from Securities Lending - 17.0% | ||||||||||
Janus Henderson Cash Collateral Fund LLC, 2.4428%ºº | $ | 61,227∆ | $ | - | $ | - | $ | 12,345,540 | ||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
24 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
Share Balance at 6/30/18 | Purchases | Sales | Share Balance at 12/31/18 | |||||||
Investment Companies - 17.0% | ||||||||||
Investments Purchased with Cash Collateral from Securities Lending - 17.0% | ||||||||||
Janus Henderson Cash Collateral Fund LLC, 2.4428%ºº | 8,252,929 | 129,124,034 | (125,031,423) | 12,345,540 | ||||||
Schedule of Forward Foreign Currency Exchange Contracts, Open |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | USD Currency Amount (Sold)/ Purchased | Market Value and Unrealized Appreciation/ (Depreciation) | ||||
Bank of America: | ||||||||
British Pound | 1/31/19 | (926,500) | $ | 1,171,772 | $ | (10,772) | ||
Canadian Dollar | 1/31/19 | (1,047,500) | 785,221 | 17,140 | ||||
Euro | 1/31/19 | (2,535,117) | 2,888,817 | (23,036) | ||||
(16,668) | ||||||||
HSBC Securities (USA) Inc: | ||||||||
Australian Dollar | 1/31/19 | (859,000) | 620,679 | 15,383 | ||||
Japanese Yen | 1/31/19 | (207,000,000) | 1,828,606 | (64,992) | ||||
Korean Won | 1/31/19 | (384,600,000) | 342,472 | (2,770) | ||||
Swedish Krona | 1/31/19 | (1,835,000) | 203,416 | (4,298) | ||||
Swiss Franc | 1/31/19 | (271,000) | 274,003 | (2,618) | ||||
Taiwan Dollar | 1/31/19 | (8,444,000) | 275,022 | (610) | ||||
(59,905) | ||||||||
Total | $ | (76,573) | ||||||
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of December 31, 2018.
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018 | |||||
|
|
|
|
| Currency |
Asset Derivatives: | |||||
Forward foreign currency exchange contracts | $ 32,523 | ||||
| |||||
Liability Derivatives: | |||||
Forward foreign currency exchange contracts | $109,096 | ||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 25 |
Janus Henderson Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2018
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended December 31, 2018.
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended December 31, 2018 | ||||||||
Amount of Realized Gain/(Loss) Recognized on Derivatives | ||||||||
Derivative |
| Currency |
| Equity |
| Total | ||
Futures contracts | $ 59,208 | $ 59,208 | ||||||
Forward foreign currency exchange contracts | 452,545 | 452,545 | ||||||
Total |
| $ 452,545 |
| $ 59,208 |
| $ 511,753 | ||
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | ||||||||
Derivative |
| Currency |
| Equity |
| Total | ||
Forward foreign currency exchange contracts | $(207,181) | $ - | $(207,181) | |||||
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
Average Ending Monthly Market Value of Derivative Instruments During the Period Ended December 31, 2018 | |
| Market Value(a) |
Forward foreign currency exchange contracts, sold | $ 9,083,637 |
Futures contracts, purchased | 246,511 |
Futures contracts, sold | 224,761 |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount sold. | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
26 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Notes to Schedule of Investments and Other Information (unaudited)
Adaptive Global Allocation 60/40 Index (Hedged) | Adaptive Global Allocation 60/40 Index (Hedged) is an internally-calculated, hypothetical combination of total returns from the MSCI All Country World IndexSM (60%) and the Bloomberg Barclays Global Aggregate Bond Index (Hedged) (40%). |
Bloomberg Barclays Global Aggregate Bond Index (Hedged) | Bloomberg Barclays Global Aggregate Bond Index (Hedged) is a broad-based measure of the global investment grade fixed-rate debt markets. |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
ADR | American Depositary Receipt |
CDI | Clearing House Electronic Subregister System Depositary Interest |
LLC | Limited Liability Company |
PLC | Public Limited Company |
REG | Registered |
SDR | Swedish Depositary Receipt |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended December 31, 2018 is $233 which represents 0.0% of net assets. |
4(2) | Securities sold under Section 4(2) of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 4(2) securities as of the period ended December 31, 2018 is $9,040,813, which represents 12.4% of net assets. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2018. |
# | Loaned security; a portion of the security is on loan at December 31, 2018. |
◊ | Zero coupon bond. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Investment Fund | 27 |
Janus Henderson Adaptive Global Allocation Fund
Notes to Schedule of Investments and Other Information (unaudited)
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of December 31, 2018. See Notes to Financial Statements for more information. | ||||||
Valuation Inputs Summary | ||||||
Level 2 - | Level 3 - | |||||
Level 1 - | Other Significant | Significant | ||||
Quoted Prices | Observable Inputs | Unobservable Inputs | ||||
Assets | ||||||
Investments in Securities: | ||||||
Common Stocks | ||||||
Aerospace & Defense | $ | 26,725 | $ | 12,175 | $ | - |
Air Freight & Logistics | 10,240 | 1,343 | - | |||
Airlines | 39,896 | 3,898 | - | |||
Auto Components | 35,510 | 30,607 | - | |||
Automobiles | 47,822 | 40,132 | - | |||
Banks | 113,099 | 201,371 | - | |||
Beverages | 47,110 | 28,428 | - | |||
Biotechnology | 55,158 | 25,490 | - | |||
Building Products | 19,918 | 1,652 | - | |||
Capital Markets | 110,898 | 57,761 | - | |||
Chemicals | 77,223 | 194,598 | - | |||
Commercial Services & Supplies | 90,128 | 14,533 | - | |||
Communications Equipment | 45,536 | 32,722 | - | |||
Construction & Engineering | 16,249 | 21,630 | - | |||
Construction Materials | 14,170 | 17,903 | - | |||
Consumer Finance | 2,534 | 1,797 | - | |||
Containers & Packaging | 54,537 | 9,218 | - | |||
Diversified Financial Services | - | 34,371 | - | |||
Diversified Telecommunication Services | 81,718 | 92,528 | - | |||
Electric Utilities | 60,514 | 49,964 | - | |||
Electrical Equipment | 10,233 | 11,577 | - | |||
Electronic Equipment, Instruments & Components | 92,780 | 26,073 | - | |||
Energy Equipment & Services | 81,895 | 9,362 | - | |||
Entertainment | 213,566 | 19,086 | - | |||
Equity Real Estate Investment Trusts (REITs) | 74,256 | 72,321 | - | |||
Food & Staples Retailing | 113,686 | 62,262 | - | |||
Food Products | 180,049 | 67,558 | - | |||
Gas Utilities | 1,752 | 10,254 | - | |||
Health Care Equipment & Supplies | 175,042 | 35,769 | - | |||
Health Care Providers & Services | 70,583 | 31,171 | - | |||
Health Care Technology | 4,457 | 1,355 | - | |||
Hotels, Restaurants & Leisure | 114,205 | 60,672 | - | |||
Household Durables | 113,200 | 26,081 | - | |||
Household Products | 113,433 | 15,658 | - | |||
Independent Power and Renewable Electricity Producers | 2,197 | 4,492 | - | |||
Industrial Conglomerates | 7,463 | 16,162 | - | |||
Information Technology Services | 315,013 | 28,275 | - | |||
Insurance | 114,499 | 144,420 | - | |||
Interactive Media & Services | 85,789 | 8,408 | - | |||
Internet & Direct Marketing Retail | 34,908 | 665 | - | |||
Life Sciences Tools & Services | 41,954 | 8,323 | - | |||
Machinery | 38,866 | 33,824 | - | |||
Media | 224,900 | 52,806 | - | |||
28 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Notes to Schedule of Investments and Other Information (unaudited)
Level 2 - | Level 3 - | |||||
Level 1 - | Other Significant | Significant | ||||
Quoted Prices | Observable Inputs | Unobservable Inputs | ||||
Metals & Mining | $ | 58,727 | $ | 82,764 | $ | - | |||||||
Multiline Retail | 73,640 | 24,487 | - | ||||||||||
Multi-Utilities | 31,503 | 35,026 | - | ||||||||||
Oil, Gas & Consumable Fuels | 379,338 | 172,151 | - | ||||||||||
Paper & Forest Products | - | 25,083 | - | ||||||||||
Personal Products | 2,093 | 11,792 | - | ||||||||||
Pharmaceuticals | 60,012 | 68,911 | - | ||||||||||
Professional Services | 33,242 | 10,273 | - | ||||||||||
Real Estate Management & Development | - | 64,493 | - | ||||||||||
Road & Rail | 8,001 | 23,846 | - | ||||||||||
Semiconductor & Semiconductor Equipment | 107,586 | 20,285 | - | ||||||||||
Software | 37,721 | 37,331 | - | ||||||||||
Specialty Retail | 235,646 | 26,142 | - | ||||||||||
Technology Hardware, Storage & Peripherals | 54,934 | 14,969 | - | ||||||||||
Textiles, Apparel & Luxury Goods | 70,691 | 41,450 | - | ||||||||||
Tobacco | 17,157 | 9,004 | - | ||||||||||
Trading Companies & Distributors | 14,806 | 18,983 | - | ||||||||||
Transportation Infrastructure | - | 23,217 | - | ||||||||||
Water Utilities | 15,068 | 12,217 | - | ||||||||||
Wireless Telecommunication Services | 6,150 | 19,280 | - | ||||||||||
All Other | 56,989 | - | - | ||||||||||
Preferred Stocks | - | 27,487 | - | ||||||||||
Investment Companies | 49,747,611 | 12,345,540 | - | ||||||||||
Commercial Paper | - | 13,235,278 | - | ||||||||||
U.S. Government Agency Notes | - | 2,801,308 | - | ||||||||||
Total Investments in Securities | $ | 54,184,626 | $ | 30,770,012 | $ | - | |||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | - | 32,523 | - | ||||||||||
Total Assets | $ | 54,184,626 | $ | 30,802,535 | $ | - | |||||||
Liabilities | |||||||||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | $ | - | $ | 109,096 | $ | - | |||||||
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. | ||||||||||||
Janus Investment Fund | 29 |
Janus Henderson Adaptive Global Allocation Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2018
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Unaffiliated investments, at value(1)(2) | $ | 72,609,098 | ||||
Affiliated investments, at value(3) | 12,345,540 | |||||
Cash | 73,891 | |||||
Forward foreign currency exchange contracts | 32,523 | |||||
Cash denominated in foreign currency(4) | 499 | |||||
Non-interested Trustees' deferred compensation | 1,757 | |||||
Receivables: | ||||||
Fund shares sold | 303,836 | |||||
Dividends | 11,096 | |||||
Foreign tax reclaims | 5,568 | |||||
Investments sold | 3,336 | |||||
Other assets | 661 | |||||
Total Assets |
|
| 85,387,805 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 3) | 12,345,540 | |||||
Forward foreign currency exchange contracts | 109,096 | |||||
Payables: | — | |||||
Fund shares repurchased | 104,916 | |||||
Professional fees | 23,097 | |||||
Custodian fees | 10,414 | |||||
Advisory fees | 5,376 | |||||
Transfer agent fees and expenses | 3,485 | |||||
12b-1 Distribution and shareholder servicing fees | 2,247 | |||||
Non-interested Trustees' deferred compensation fees | 1,757 | |||||
Non-interested Trustees' fees and expenses | 543 | |||||
Affiliated fund administration fees payable | 159 | |||||
Accrued expenses and other payables | 78,926 | |||||
Total Liabilities |
|
| 12,685,556 |
| ||
Net Assets |
| $ | 72,702,249 |
| ||
See Notes to Financial Statements. | |
30 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2018
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 76,866,026 | ||||
Total distributable earnings (loss) | (4,163,777) | |||||
Total Net Assets |
| $ | 72,702,249 |
| ||
Net Assets - Class A Shares | $ | 2,295,118 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 243,661 | |||||
Net Asset Value Per Share(5) |
| $ | 9.42 |
| ||
Maximum Offering Price Per Share(6) |
| $ | 9.99 |
| ||
Net Assets - Class C Shares | $ | 1,813,154 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 193,167 | |||||
Net Asset Value Per Share(5) |
| $ | 9.39 |
| ||
Net Assets - Class D Shares | $ | 2,367,819 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 251,241 | |||||
Net Asset Value Per Share |
| $ | 9.42 |
| ||
Net Assets - Class I Shares | $ | 15,614,785 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,653,978 | |||||
Net Asset Value Per Share |
| $ | 9.44 |
| ||
Net Assets - Class N Shares | $ | 47,065,105 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,985,214 | |||||
Net Asset Value Per Share |
| $ | 9.44 |
| ||
Net Assets - Class S Shares | $ | 1,193,466 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 126,609 | |||||
Net Asset Value Per Share |
| $ | 9.43 |
| ||
Net Assets - Class T Shares | $ | 2,352,802 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 249,539 | |||||
Net Asset Value Per Share |
| $ | 9.43 |
| ||
(1) Includes cost of $74,496,064. (2) Includes $12,087,121 of securities on loan. See Note 3 in Notes to Financial Statements. (3) Includes cost of $12,345,540. (4) Includes cost of $499. (5) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (6) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
Janus Investment Fund | 31 |
Janus Henderson Adaptive Global Allocation Fund
Statement of Operations (unaudited)
For the period ended December 31, 2018
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 952,442 | ||
Interest | 149,232 | ||||
Affiliated securities lending income, net | 61,227 | ||||
Other income | 36 | ||||
Foreign tax withheld | (3,647) | ||||
Total Investment Income |
| 1,159,290 |
| ||
Expenses: | |||||
Advisory fees | 276,736 | ||||
12b-1 Distribution and shareholder servicing fees: | |||||
Class A Shares | 2,188 | ||||
Class C Shares | 8,227 | ||||
Class S Shares | 1,575 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 1,484 | ||||
Class S Shares | 1,575 | ||||
Class T Shares | 3,168 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 477 | ||||
Class C Shares | 174 | ||||
Class I Shares | 4,335 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 78 | ||||
Class C Shares | 79 | ||||
Class D Shares | 584 | ||||
Class I Shares | 294 | ||||
Class N Shares | 706 | ||||
Class S Shares | 13 | ||||
Class T Shares | 28 | ||||
Registration fees | 50,248 | ||||
Custodian fees | 38,797 | ||||
Non-affiliated fund administration fees | 37,277 | ||||
Professional fees | 30,479 | ||||
Shareholder reports expense | 1,355 | ||||
Non-interested Trustees’ fees and expenses | 994 | ||||
Affiliated fund administration fees | 924 | ||||
Other expenses | 5,669 | ||||
Total Expenses |
| 467,464 |
| ||
Less: Excess Expense Reimbursement and Waivers |
| (180,816) |
| ||
Net Expenses |
| 286,648 |
| ||
Net Investment Income/(Loss) |
| 872,642 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (1,976,508) | ||||
Forward foreign currency exchange contracts | 452,545 | ||||
Futures contracts | 59,208 | ||||
Total Net Realized Gain/(Loss) on Investments |
| (1,464,755) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees’ deferred compensation | (2,892,608) | ||||
Forward foreign currency exchange contracts | (207,181) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (3,099,789) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (3,691,902) |
| ||
See Notes to Financial Statements. | |
32 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Statements of Changes in Net Assets
|
|
| Period ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 872,642 | $ | 972,243 | ||||
Net realized gain/(loss) on investments | (1,464,755) | 4,143,685 | ||||||
Change in unrealized net appreciation/depreciation | (3,099,789) | (1,288,278) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (3,691,902) |
|
| 3,827,650 | |||
Dividends and Distributions to Shareholders(1) | ||||||||
Class A Shares | (120,007) | N/A | ||||||
Class C Shares | (69,592) | N/A | ||||||
Class D Shares | (118,346) | N/A | ||||||
Class I Shares | (756,351) | N/A | ||||||
Class N Shares | (2,436,252) | N/A | ||||||
Class S Shares | (56,970) | N/A | ||||||
Class T Shares | (116,855) | N/A | ||||||
| Total Dividends and Distributions to Shareholders |
| (3,674,373) |
|
| N/A | ||
Dividends from Net Investment Income(1) | ||||||||
Class A Shares | N/A | (12,386) | ||||||
Class C Shares | N/A | (15,309) | ||||||
Class D Shares | N/A | (34,259) | ||||||
Class I Shares | N/A | (74,095) | ||||||
Class N Shares | N/A | (959,456) | ||||||
Class S Shares | N/A | (18,359) | ||||||
Class T Shares | N/A | (42,761) | ||||||
| Total Dividends from Net Investment Income |
| N/A |
|
| (1,156,625) | ||
Distributions from Net Realized Gain from Investment Transactions(1) | ||||||||
Class A Shares | N/A | (42,830) | ||||||
Class C Shares | N/A | (83,298) | ||||||
Class D Shares | N/A | (110,002) | ||||||
Class I Shares | N/A | (229,169) | ||||||
Class N Shares | N/A | (2,889,637) | ||||||
Class S Shares | N/A | (69,088) | ||||||
Class T Shares | N/A | (138,227) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | N/A |
|
| (3,562,251) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (3,674,373) |
|
| (4,718,876) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 1,794,796 | 32,841 | ||||||
Class C Shares | 369,584 | 409,268 | ||||||
Class D Shares | 124,280 | 916,576 | ||||||
Class I Shares | 7,198,393 | 5,453,056 | ||||||
Class N Shares | (55,144) | 3,755,002 | ||||||
Class S Shares | 56,852 | 87,770 | ||||||
Class T Shares | 37,329 | 315,716 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 9,526,090 |
|
| 10,970,229 | |||
Net Increase/(Decrease) in Net Assets |
| 2,159,815 |
|
| 10,079,003 | |||
Net Assets: | ||||||||
Beginning of period | 70,542,434 | 60,463,431 | ||||||
| End of period(2) | $ | 72,702,249 |
| $ | 70,542,434 | ||
(1) The requirement to disclose dividends and distributions paid to shareholders from net investment income and/or net realized gain from investment transactions was eliminated by the SEC (Securities Exchange Commission) in 2018. (2) Net assets - End of period includes undistributed (overdistributed) net investment income of $353,881 as of June 30, 2018. The requirement to disclose undistributed (overdistributed) net investment income was eliminated by the SEC in 2018. |
See Notes to Financial Statements. | |
Janus Investment Fund | 33 |
Janus Henderson Adaptive Global Allocation Fund
Financial Highlights
Class A Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.43 |
|
| $10.55 |
|
| $9.49 |
|
| $9.69 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.14 | 0.13 | 0.09 | 0.05 | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.65) | 0.55 | 1.06 | (0.23) | (0.32) | |||||||||||||
Total from Investment Operations |
| (0.51) |
|
| 0.68 |
|
| 1.15 |
|
| (0.18) |
|
| (0.31) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.09) | (0.18) | (0.09) | (0.02) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.50) |
|
| (0.80) |
|
| (0.09) |
|
| (0.02) |
|
| — |
| |||
Net Asset Value, End of Period | $9.42 | $10.43 | $10.55 | $9.49 | $9.69 | |||||||||||||
Total Return* |
| (4.87)% |
|
| 6.27% |
|
| 12.17% |
|
| (1.85)% |
|
| (3.10)% |
| |||
Net Assets, End of Period (in thousands) | $2,295 | $766 | $743 | $571 | $485 | |||||||||||||
Average Net Assets for the Period (in thousands) | $1,728 | $777 | $609 | $530 | $496 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.68% | 1.63% | 1.52% | 1.54% | 13.45% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.03% | 1.01% | 1.07% | 1.09% | 1.07% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.77% | 1.24% | 0.86% | 0.55% | 5.04% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
1 | ||||||||||||||||||
Class C Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.35 |
|
| $10.48 |
|
| $9.44 |
|
| $9.69 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.08 | 0.06 | 0.01 | (0.01) | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.62) | 0.54 | 1.05 | (0.23) | (0.32) | |||||||||||||
Total from Investment Operations |
| (0.54) |
|
| 0.60 |
|
| 1.06 |
|
| (0.24) |
|
| (0.31) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.01) | (0.11) | (0.02) | (0.01) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.42) |
|
| (0.73) |
|
| (0.02) |
|
| (0.01) |
|
| — |
| |||
Net Asset Value, End of Period | $9.39 | $10.35 | $10.48 | $9.44 | $9.69 | |||||||||||||
Total Return* |
| (5.23)% |
|
| 5.58% |
|
| 11.21% |
|
| (2.52)% |
|
| (3.10)% |
| |||
Net Assets, End of Period (in thousands) | $1,813 | $1,603 | $1,225 | $1,046 | $24 | |||||||||||||
Average Net Assets for the Period (in thousands) | $1,631 | $1,448 | $1,112 | $827 | $25 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.39% | 2.34% | 2.27% | 2.29% | 14.19% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.74% | 1.75% | 1.83% | 1.84% | 1.82% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 1.49% | 0.54% | 0.05% | (0.06)% | 4.29% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 23, 2015 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The increase in the portfolio turnover rate was due to a restructuring of the Fund’s portfolio as a result of a change in its principal investment strategies. |
See Notes to Financial Statements. | |
34 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Financial Highlights
Class D Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.43 |
|
| $10.54 |
|
| $9.49 |
|
| $9.70 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.12 | 0.15 | 0.09 | 0.06 | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.63) | 0.55 | 1.05 | (0.25) | (0.31) | |||||||||||||
Total from Investment Operations |
| (0.51) |
|
| 0.70 |
|
| 1.14 |
|
| (0.19) |
|
| (0.30) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.09) | (0.19) | (0.09) | (0.02) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.50) |
|
| (0.81) |
|
| (0.09) |
|
| (0.02) |
|
| — |
| |||
Net Asset Value, End of Period | $9.42 | $10.43 | $10.54 | $9.49 | $9.70 | |||||||||||||
Total Return* |
| (4.88)% |
|
| 6.51% |
|
| 12.13% |
|
| (1.93)% |
|
| (3.00)% |
| |||
Net Assets, End of Period (in thousands) | $2,368 | $2,480 | $1,619 | $1,285 | $102 | |||||||||||||
Average Net Assets for the Period (in thousands) | $2,455 | $2,139 | $1,435 | $973 | $64 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.47% | 1.84% | 2.01% | 2.59% | 20.64% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.88% | 0.86% | 0.96% | 1.10% | 0.98% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.21% | 1.39% | 0.94% | 0.69% | 5.03% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
Class I Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.46 |
|
| $10.57 |
|
| $9.51 |
|
| $9.69 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.13 | 0.19 | 0.17 | 0.09 | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.64) | 0.52 | 1.00 | (0.24) | (0.32) | |||||||||||||
Total from Investment Operations |
| (0.51) |
|
| 0.71 |
|
| 1.17 |
|
| (0.15) |
|
| (0.31) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.10) | (0.20) | (0.11) | (0.03) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.51) |
|
| (0.82) |
|
| (0.11) |
|
| (0.03) |
|
| — |
| |||
Net Asset Value, End of Period | $9.44 | $10.46 | $10.57 | $9.51 | $9.69 | |||||||||||||
Total Return* |
| (4.84)% |
|
| 6.57% |
|
| 12.42% |
|
| (1.55)% |
|
| (3.10)% |
| |||
Net Assets, End of Period (in thousands) | $15,615 | $9,959 | $4,596 | $1,090 | $48 | |||||||||||||
Average Net Assets for the Period (in thousands) | $13,025 | $4,830 | $1,802 | $854 | $50 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.27% | 1.38% | 1.40% | 1.28% | 13.19% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.78% | 0.79% | 0.80% | 0.83% | 0.82% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.56% | 1.75% | 1.69% | 0.94% | 5.29% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 23, 2015 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The increase in the portfolio turnover rate was due to a restructuring of the Fund’s portfolio as a result of a change in its principal investment strategies. |
See Notes to Financial Statements. | |
Janus Investment Fund | 35 |
Janus Henderson Adaptive Global Allocation Fund
Financial Highlights
Class N Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.46 |
|
| $10.56 |
|
| $9.51 |
|
| $9.70 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.12 | 0.16 | 0.10 | 0.07 | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.62) | 0.56 | 1.06 | (0.23) | (0.31) | |||||||||||||
Total from Investment Operations |
| (0.50) |
|
| 0.72 |
|
| 1.16 |
|
| (0.16) |
|
| (0.30) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.11) | (0.20) | (0.11) | (0.03) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.52) |
|
| (0.82) |
|
| (0.11) |
|
| (0.03) |
|
| — |
| |||
Net Asset Value, End of Period | $9.44 | $10.46 | $10.56 | $9.51 | $9.70 | |||||||||||||
Total Return* |
| (4.81)% |
|
| 6.72% |
|
| 12.43% |
|
| (1.65)% |
|
| (3.00)% |
| |||
Net Assets, End of Period (in thousands) | $47,065 | $51,921 | $48,806 | $48,423 | $53,702 | |||||||||||||
Average Net Assets for the Period (in thousands) | $50,580 | $52,068 | $48,134 | $49,786 | $9,234 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.18% | 1.27% | 1.24% | 1.27% | 67.74% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.71% | 0.73% | 0.81% | 0.83% | 0.82% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.36% | 1.52% | 1.03% | 0.73% | 6.84% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
Class S Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.42 |
|
| $10.53 |
|
| $9.48 |
|
| $9.69 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.10 | 0.12 | 0.07 | 0.05 | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.62) | 0.55 | 1.06 | (0.24) | (0.32) | |||||||||||||
Total from Investment Operations |
| (0.52) |
|
| 0.67 |
|
| 1.13 |
|
| (0.19) |
|
| (0.31) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.06) | (0.16) | (0.08) | (0.02) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.47) |
|
| (0.78) |
|
| (0.08) |
|
| (0.02) |
|
| — |
| |||
Net Asset Value, End of Period | $9.43 | $10.42 | $10.53 | $9.48 | $9.69 | |||||||||||||
Total Return* |
| (4.95)% |
|
| 6.24% |
|
| 11.95% |
|
| (1.99)% |
|
| (3.10)% |
| |||
Net Assets, End of Period (in thousands) | $1,193 | $1,256 | $1,183 | $1,057 | $24 | |||||||||||||
Average Net Assets for the Period (in thousands) | $1,250 | $1,267 | $1,110 | $831 | $25 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.91% | 1.83% | 1.75% | 1.78% | 13.69% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.21% | 1.11% | 1.17% | 1.24% | 1.32% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 1.88% | 1.14% | 0.70% | 0.53% | 4.79% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 23, 2015 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The increase in the portfolio turnover rate was due to a restructuring of the Fund’s portfolio as a result of a change in its principal investment strategies. |
See Notes to Financial Statements. | |
36 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Financial Highlights
Class T Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.43 |
|
| $10.55 |
|
| $9.50 |
|
| $9.69 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss)(2) | 0.11 | 0.14 | 0.09 | 0.07 | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | (0.62) | 0.55 | 1.06 | (0.24) | (0.32) | |||||||||||||
Total from Investment Operations |
| (0.51) |
|
| 0.69 |
|
| 1.15 |
|
| (0.17) |
|
| (0.31) |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.08) | (0.19) | (0.10) | (0.02) | — | |||||||||||||
Distributions (from capital gains) | (0.41) | (0.62) | — | — | — | |||||||||||||
Total Dividends and Distributions |
| (0.49) |
|
| (0.81) |
|
| (0.10) |
|
| (0.02) |
|
| — |
| |||
Net Asset Value, End of Period | $9.43 | $10.43 | $10.55 | $9.50 | $9.69 | |||||||||||||
Total Return* |
| (4.85)% |
|
| 6.40% |
|
| 12.17% |
|
| (1.72)% |
|
| (3.10)% |
| |||
Net Assets, End of Period (in thousands) | $2,353 | $2,557 | $2,291 | $1,085 | $48 | |||||||||||||
Average Net Assets for the Period (in thousands) | $2,515 | $2,635 | $1,204 | $856 | $50 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.54% | 1.54% | 1.51% | 1.53% | 13.44% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.96% | 0.92% | 0.94% | 1.00% | 1.07% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.13% | 1.30% | 0.95% | 0.77% | 5.04% | |||||||||||||
Portfolio Turnover Rate | 151% | 440% | 302%(3) | 122% | 10% | |||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 23, 2015 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The increase in the portfolio turnover rate was due to a restructuring of the Fund’s portfolio as a result of a change in its principal investment strategies. |
See Notes to Financial Statements. | |
Janus Investment Fund | 37 |
Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Adaptive Global Allocation Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 48 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through growth of capital and income. The Fund is classified as nondiversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares. Class D Shares are closed to certain new investors.
Class A Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds have adopted an auto-conversion police pursuant to which Class C Shares that have been held for ten years will be automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the tenth anniversary of the date of purchase. For Class C Shares held in retirement plans, omnibus accounts on intermediary platforms, and in certain other accounts, the Fund and its agents may not have transparency into how long a shareholder has held Class C Shares and therefore may not be able to determine whether such Class C Shares are eligible for automatic conversion to Class A Shares; accordingly the Funds will not be able to automatically convert Class C Shares into Class A Shares, and the financial intermediary is responsible for notifying the Fund that Class C Shares are eligible for conversion to Class A Shares. In addition, financial intermediaries may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. In these circumstances, certain Class C shareholders may not be eligible to convert their Class C Shares to Class A Shares as described above but may be permitted to convert their Class C Shares to Class A Shares pursuant to their financial intermediary’s conversion policies and procedures. Please contact your financial intermediary for additional information. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus Henderson funds. Class D Shares are available only to investors who hold accounts directly with the Janus Henderson funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary
38 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Investment Fund | 39 |
Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2018 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year. The following describes the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period.
Financial assets of $7,150 were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current period and no factor was applied at the end of the prior fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or the Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Currently, Management does not believe the bill will have a material impact on the Fund’s intention to continue to qualify as a regulated investment company, which is generally not subject to U.S. federal income tax.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended December 31, 2018 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost.
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the period, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to take a negative outlook on the related currency. These forward contracts seek to increase exposure to currency risk.
During the period, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the period, the Fund purchased futures on equity indices to increase exposure to equity risk.
During the period, the Fund sold futures on equity indices to decrease exposure to equity risk.
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
There were no futures held at December 31, 2018.
3. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Fund’s ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as “Brexit”). There is considerable uncertainty about how Brexit will be conducted, how negotiations of necessary treaties and trade agreements will proceed, or how financial markets will react. In addition, one or more other countries may also abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Exchange-Traded and Mutual Funds
The Fund may invest in exchange-traded funds (“ETFs”) and mutual funds to gain exposure to a particular portion of the market. ETFs are typically open-end investment companies, which may seek to track the performance of a specific index or be actively managed. ETFs are traded on a national securities exchange at market prices that may vary from the net asset value of their underlying investments. Accordingly, there may be times when an ETF trades at a premium or discount. When the Fund invests in an ETF or mutual fund, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF's or mutual fund’s expenses. As a result, the cost of investing in the Fund may be higher than the cost of investing directly in ETFs or mutual funds and may be higher than other mutual funds that invest directly in stocks and bonds. ETFs also involve the risk that an active trading market for an ETF's shares may not develop or be maintained. Similarly, because the value of ETF shares depends on the demand in the market, the Fund may not be able to purchase or sell an ETF at the most optimal time, which could adversely affect the Fund’s performance. In addition, ETFs that track particular indices may be unable to match the performance of such underlying indices due to the temporary unavailability of certain index securities in the secondary market or other factors, such as discrepancies with respect to the weighting of securities. Because the Fund may invest in a broad range of ETFs and mutual funds, such risks may include, but are not limited to, leverage risk, foreign exposure risk, interest rate risk, emerging markets risk, fixed-income risk, and commodity-linked investments risk. The Fund is also subject to the risks associated with the securities in which the ETF or mutual fund invests.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following table present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018” table located in the Fund’s Schedule of Investments.
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
Bank of America | $ | 17,140 | $ | (17,140) | $ | — | $ | — | |
Deutsche Bank AG | 12,087,121 | — | (12,087,121) | — | |||||
HSBC Securities (USA) Inc | 15,383 | (15,383) | — | — | |||||
Total | $ | 12,119,644 | $ | (32,523) | $ | (12,087,121) | $ | — | |
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Liabilities | or Liability(a) | Pledged(b) | Net Amount | |||||
Bank of America | $ | 33,808 | $ | (17,140) | $ | — | $ | 16,668 | |
HSBC Securities (USA) Inc | 75,288 | (15,383) | — | 59,905 | |||||
Total | $ | 109,096 | $ | (32,523) | $ | — | $ | 76,573 | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | ||||||||
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. | ||||||||
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions in accordance with the Agency Securities Lending and Repurchase Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Real Estate Investing
The Fund may invest in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. Deutsche Bank AG acts as securities lending agent and a limited
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions in accordance with the Agency Securities Lending and Repurchase Agreement. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of December 31, 2018, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $12,087,121. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2018 is $12,345,540, resulting in the net amount due to the counterparty of $258,419.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital Management LLC's (“Janus Capital”) an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $2 Billion | 0.75 |
Next $2 Billion | 0.72 |
Over $4 Billion | 0.70 |
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.71% of the Fund’s average daily net assets. In addition, Janus Capital shall additionally reimburse or waive acquired fund fees and expenses to the extent they exceed 0.10%. Janus Capital has agreed to continue the waivers until at least November 1, 2019. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund’s Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $231,481 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2018. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Effective April 1, 2018, BNP Paribas Financial Services (“BPFS”) provides certain administrative services to the Fund, including services related to Fund accounting, calculation of the Fund’s daily NAV, and Fund audit, tax, and reporting obligations, pursuant to a sub-administration agreement with Janus Capital on behalf of the Fund. Janus Capital, as administrator, oversees the provision of these services by BPFS. As compensation for such services, Janus Capital pays BPFS a fee based on a percentage of the Fund’s assets, along with a flat fee, and is reimbursed by the Fund for amounts paid to BPFS (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). These amounts are disclosed as "Non-affiliated fund administration fees" on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2018 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2018 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $250,550 were paid by the Trust to the Trustees under the Deferred Plan during the period ended December 31, 2018.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2018 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended December 31, 2018, Janus Henderson Distributors retained upfront sales charges of $511.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the period ended December 31, 2018.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended December 31, 2018, redeeming shareholders of Class C Shares paid CDSCs of $302.
As of December 31, 2018, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | 23 | % | 1 | % | |
Class C Shares | 64 | 2 | |||
Class D Shares | 52 | 2 | |||
Class I Shares | 8 | 2 | |||
Class N Shares | 97 | 63 | |||
Class S Shares | 100 | 2 | |||
Class T Shares | 52 | 2 | |||
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2018 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships and investments in passive foreign investment companies.
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ 88,317,415 | $ 152,274 | $ (3,515,051) | $ (3,362,777) |
Information on the tax components of derivatives as of December 31, 2018 is as follows:
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ - | $ 32,523 | $ (109,096) | $ (76,573) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
Period ended December 31, 2018 | Year ended June 30, 2018 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 183,548 | $1,938,297 | 19,160 | $ 204,066 | ||
Reinvested dividends and distributions | 12,794 | 120,007 | 5,219 | 55,216 | ||
Shares repurchased | (26,138) | (263,508) | (21,405) | (226,441) | ||
Net Increase/(Decrease) | 170,204 | $1,794,796 |
| 2,974 | $ 32,841 | |
Class C Shares: | ||||||
Shares sold | 36,575 | $ 357,781 | 28,828 | $ 312,302 | ||
Reinvested dividends and distributions | 7,443 | 69,592 | 9,356 | 98,607 | ||
Shares repurchased | (5,733) | (57,789) | (156) | (1,641) | ||
Net Increase/(Decrease) | 38,285 | $ 369,584 |
| 38,028 | $ 409,268 | |
Class D Shares: | ||||||
Shares sold | 17,710 | $ 178,234 | 102,858 | $1,118,070 | ||
Reinvested dividends and distributions | 12,469 | 116,956 | 13,642 | 144,192 | ||
Shares repurchased | (16,737) | (170,910) | (32,266) | (345,686) | ||
Net Increase/(Decrease) | 13,442 | $ 124,280 |
| 84,234 | $ 916,576 | |
Class I Shares: | ||||||
Shares sold | 773,795 | $8,016,173 | 628,842 | $6,660,877 | ||
Reinvested dividends and distributions | 80,463 | 756,351 | 28,637 | 303,264 | ||
Shares repurchased | (152,799) | (1,574,131) | (139,819) | (1,511,085) | ||
Net Increase/(Decrease) | 701,459 | $7,198,393 |
| 517,660 | $5,453,056 | |
Class N Shares: | ||||||
Shares sold | 60,152 | $ 619,200 | 369,834 | $4,063,452 | ||
Reinvested dividends and distributions | 259,176 | 2,436,252 | 363,465 | 3,849,093 | ||
Shares repurchased | (299,974) | (3,110,596) | (387,157) | (4,157,543) | ||
Net Increase/(Decrease) | 19,354 | $ (55,144) |
| 346,142 | $3,755,002 | |
Class S Shares: | ||||||
Shares sold | - | $ - | 4,733 | $ 50,023 | ||
Reinvested dividends and distributions | 6,067 | 56,970 | 8,273 | 87,447 | ||
Shares repurchased | (12) | (118) | (4,774) | (49,700) | ||
Net Increase/(Decrease) | 6,055 | $ 56,852 |
| 8,232 | $ 87,770 | |
Class T Shares: | ||||||
Shares sold | 8,099 | $ 84,555 | 65,840 | $ 721,009 | ||
Reinvested dividends and distributions | 12,445 | 116,855 | 17,123 | 180,988 | ||
Shares repurchased | (16,113) | (164,081) | (55,095) | (586,281) | ||
Net Increase/(Decrease) | 4,431 | $ 37,329 |
| 27,868 | $ 315,716 | |
7. Purchases and Sales of Investment Securities
For the period ended December 31, 2018, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$163,563,878 | $ 94,549,833 | $ - | $ - |
8. Recent Accounting Pronouncements
The Securities and Exchange Commission adopted amendments to Regulation S-X, for the presentation of distributable earnings and distributions to align with US Generally Accepted Accounting Principles (GAAP). The compliance date of the amendments to Regulation S-X is November 5, 2018. This report incorporates the amendments to Regulation S-X.
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Janus Henderson Adaptive Global Allocation Fund
Notes to Financial Statements (unaudited)
The FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08") to amend the amortization period for certain purchased callable debt securities held at a premium. The guidance requires certain premiums on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Management is currently evaluating the impacts of ASU 2017-08 on the financial statements.
The FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) in August 2018. The new guidance removes, modifies and enhances the disclosures to Topic 820. For public entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management is currently evaluating the impact of this new guidance on the financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2018 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
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Janus Henderson Adaptive Global Allocation Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund is required to disclose its complete holdings on Form N-Q within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to Fund shareholders. These reports (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag. Holdings are generally posted approximately two business days thereafter under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund (each, a “JIF Fund,” and collectively, the “JIF Funds”), as well as each Portfolio of Janus Aspen Series (together with the JIF Funds, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Funds that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and each subadviser in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements and the information provided, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 6, 2018, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2019 through February 1, 2020, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, refer to actual annual advisory fees (and, for the purposes of peer comparisons any administration fees excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
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Janus Henderson Adaptive Global Allocation Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with fund shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also expressed the view that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital and the subadviser to each Janus Henderson Fund that utilizes a subadviser were appropriate and consistent with the terms of the respective investment advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2018, approximately 48% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar, and for the 12 months ended September 30, 2018, approximately 56% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the JIF Funds:
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
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Janus Henderson Adaptive Global Allocation Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Strategic Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
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Janus Henderson Adaptive Global Allocation Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Small Cap Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, including the impact of waivers on comparative peer performance.
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Additional Information (unaudited)
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and the Fund’s limited performance history.
· For Janus Henderson All Asset Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital and Geneva had taken or were taking to improve performance.
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Additional Information (unaudited)
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Select Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the management fee rate (investment advisory and any administration fees, but excluding out-of-pocket costs) for many of the Janus Henderson Funds, net of waivers, was below the average management fee rate of the respective peer group of funds selected by Broadridge. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group peers and to average total expenses for its Broadridge Expense Universe.
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The independent fee consultant expressed the view that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. At the fund complex level, the independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 10% under the average total expenses for the respective Broadridge Expense Group peers and 19% under the average total expenses for the respective Broadridge Expense Universes; (3) management fees for the Janus Henderson Funds, on average, were 8% under the average management fees for the respective Expense Groups and 10% under the average for the respective Expense Universes; and (4) Janus Henderson Fund expenses by function for each asset and share class category were reasonable relative to peer benchmarks.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual share class level, Janus Henderson Fund expenses were found to be reasonable relative to peer benchmarks. Further, for certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to investors in each Janus Henderson Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such “focus list” Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances comparable subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, while subadviser fee rates charged to the Janus Henderson Funds were generally within a reasonable range of the fee rates that the subadviser charges to comparable separate account clients or non-affiliated funds. The Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to its institutional clients and to the fees Janus Capital charges to funds subadvised by Janus Capital; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson institutional and subadvised fund investors; (4) in three of five product categories, the Janus Henderson Funds receive proportionally better pricing than the industry in relation to Janus Henderson institutional clients; and (5) in six of seven strategies, Janus Capital has lower management fees than the management fees charged to funds subadvised by Janus Capital.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2017, including the JIF Funds, and noted the following with regard to each JIF Fund’s total expenses, net of applicable fee waivers (the JIF Fund’s “total expenses”):
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were
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Additional Information (unaudited)
reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the peer group comparisons did not take into account a recent management fee reduction for the Fund, effective December 14, 2018 and that Janus Capital has contractually agreed to limit the Fund’s expenses at a lower (more favorable) level.
· For Janus Henderson Strategic Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
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Additional Information (unaudited)
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Small Cap Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were above the peer group average for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson All Asset Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s total expenses.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses were equal to or exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable taking into account the limited peer group for the Fund. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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Additional Information (unaudited)
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded fund managers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, differences in product mix, differences in types of business (mutual fund, institutional and other), differences in the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provides to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant concluded that (1) the expense allocation methodology utilized by Janus Capital was reasonable and (2) the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund was reasonable. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted the independent fee consultant’s analysis of economies of scale in prior years. They also noted that, although many Janus Henderson Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints or performance fees, the independent fee consultant concluded that 74% of these Janus Henderson Funds’ share classes have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted that for those Janus Henderson Funds whose expenses are being reduced by contractual expense limitations with Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale. Moreover, as the assets of some of the Janus Henderson Funds have declined in the past few years, certain Janus Henderson Funds have benefited from having
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Additional Information (unaudited)
advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such a Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered information provided by the independent fee consultant, which concluded that, given the limitations of various analytical approaches to economies of scale it had considered in prior years, and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. The independent consultant further concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any scale economies that may exist. Further, the independent fee consultant expressed the view that Janus Henderson Fund investors are well-served by the performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information they reviewed, including past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s and each subadviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and/or the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by certain other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
Janus Investment Fund | 65 |
Janus Henderson Adaptive Global Allocation Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2018. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
66 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. Also included are ratios of expenses and net investment income to average net assets.
Janus Investment Fund | 67 |
Janus Henderson Adaptive Global Allocation Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
68 | DECEMBER 31, 2018 |
Janus Henderson Adaptive Global Allocation Fund
Notes
NotesPage1
Janus Investment Fund | 69 |
Knowledge. Shared
At Janus Henderson, we believe in the sharing of expert insight for better investment and business decisions. We call this ethos Knowledge. Shared.
Learn more by visiting janushenderson.com.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
Janus Henderson, Janus, Henderson, Perkins, Intech and Knowledge. Shared are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors | ||||||||
125-24-93059 02-19 | ||||||||
SEMIANNUAL REPORT December 31, 2018 | ||
Janus Henderson All Asset Fund | ||
Janus Investment Fund | ||
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by contacting a Janus Henderson representative. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by visiting janushenderson.com/edelivery. You may elect to receive all future reports in paper free of charge. If you do not invest directly with the Fund, you should contact your plan sponsor, broker-dealer, or financial intermediary, to request to continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-525-3713 to let the Fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Janus Henderson mutual funds where held (i.e., all Janus Henderson mutual funds held in your account if you invest through your financial intermediary or all Janus Henderson mutual funds held with the fund complex if you invest directly with a fund).
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HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics |
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Table of Contents
Janus Henderson All Asset Fund
Janus Henderson All Asset Fund (unaudited)
FUND SNAPSHOT All Asset Fund is a global, multi-asset portfolio that has the ability to invest in a broad range of both traditional and alternative asset classes. |
Paul O’Connor portfolio manager | ||||
PERFORMANCE
The Janus Henderson All Asset Fund’s Class I Shares returned -5.22% over the 6-month period from July 1, 2018 to December 31, 2018. The Fund’s primary benchmark, the 3-Month USD LIBOR, returned 1.15% and its secondary benchmark, the MSCI World IndexSM, returned -9.10%. Since inception in 2012, the Fund has returned 2.88% annualized.
Please note, the Fund is expected to be liquidated in March 2019 and currently holds the majority of assets in cash.
Thank you for your investment in Janus Henderson All Asset Fund.
Janus Investment Fund | 1 |
Janus Henderson All Asset Fund (unaudited)
Fund At A Glance
December 31, 2018
Holdings - (% of Net Assets) | |||
Fidelity Investments Money Market Treasury Portfolio | 33.7 | % | |
U.S. Treasury Note/Bond | 7.5 | ||
United States Treasury Inflation Indexed Bonds | 4.7 | ||
Janus Henderson Global Equity Income Fund - Class N Shares | 4.6 | ||
T Rowe Price US High Yield Fund | 4.4 | ||
Invesco International Dividend Achievers | 4.3 | ||
iShares JP Morgan USD Emerging Markets Bond | 4.3 | ||
iShares Edge MSCI Min Vol EAFE | 4.2 | ||
AQR Equity Market Neutral Fund | 4.1 | ||
iShares Edge MSCI Min Vol Emerging Markets | 4.0 | ||
AQR Managed Futures Strategy Fund | 3.9 | ||
Janus Henderson Emerging Markets - Class N Shares | 3.8 | ||
Janus Henderson Strategic Income Fund - Class N Shares | 3.8 | ||
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio | 3.7 | ||
Sprott Physical Gold Trust | 3.6 | ||
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund | 3.5 | ||
US Cities Fund LP USD | 0.9 |
Asset Allocation - (% of Net Assets) | |||||
Money Markets | 33.7% | ||||
Exchange-Traded Funds (ETFs) | 24.0% | ||||
Inflation-Indexed Bonds | 12.2% | ||||
Fixed Income Funds | 11.9% | ||||
Equity Funds | 9.3% | ||||
Alternative Funds | 7.9% | ||||
Other | 1.0% | ||||
100.0% | |||||
2 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund (unaudited)
Performance
See important disclosures on the next page. |
| Expense Ratios - | |||||||||
Average Annual Total Return - for the periods ended December 31, 2018 |
|
| per the October 29, 2018 prospectuses | |||||||
|
| Fiscal | One | Five | Since |
|
| Total Annual Fund | Net Annual Fund | |
Class A Shares at NAV(1) |
| -5.32% | -7.03% | 1.39% | 2.62% |
|
| 1.54% | 1.38% | |
Class A Shares at MOP(1) |
| -10.76% | -12.36% | 0.21% | 1.73% |
|
|
|
| |
Class C Shares at NAV(1) | -5.55% | -7.65% | 0.65% | 1.86% |
|
| 2.26% | 2.11% | ||
Class C Shares at CDSC(1) |
| -6.47% | -8.55% | 0.65% | 1.86% |
|
|
|
| |
Class D Shares(1) |
| -5.23% | -6.87% | 1.42% | 2.61% |
|
| 1.51% | 1.18% | |
Class I Shares(1) |
| -5.22% | -6.76% | 1.66% | 2.88% |
|
| 1.24% | 1.11% | |
Class N Shares(1) |
| -5.04% | -6.68% | 1.61% | 2.79% |
|
| 1.17% | 1.04% | |
Class S Shares(1) |
| -5.37% | -7.00% | 1.12% | 2.30% |
|
| 3.12% | 1.54% | |
Class T Shares(1) |
| -5.20% | -6.92% | 1.35% | 2.54% |
|
| 2.31% | 1.30% | |
3-Month USD LIBOR |
| 1.15% | 2.08% | 0.86% | 0.73% |
|
|
|
| |
MSCI World Index |
| -9.10% | -8.71% | 4.56% | 7.63% |
|
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| |
Morningstar Quartile - Class I Shares |
| - | 2nd | 3rd | 4th |
|
|
|
| |
Morningstar Ranking - based on total returns for World Allocation Funds |
| - | 141/471 | 254/398 | 273/366 |
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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 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to through November 1, 2019.
Janus Investment Fund | 3 |
Janus Henderson All Asset Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
See Financial Highlights for actual expense ratios during the reporting period.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson All Asset Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares, Class C Shares, and Class I Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on March 30, 2012. Class R6 Shares of the Predecessor Fund commenced operations on November 30, 2015. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2018 Morningstar, Inc. All Rights Reserved.
See important disclosures on the next page. |
4 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund (unaudited)
Performance
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
Effective July 9, 2018, the Fund is closed to new investors. The Fund will liquidate on or about March 22, 2019 and may deviate from its stated investment strategies and policies and accordingly cease being managed to meet its investment objective as it prepares for liquidation. See the prospectus supplement for further details.
*The Predecessor Fund’s inception date – March 30, 2012
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
Janus Henderson All Asset Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses |
| Beginning | Ending | Expenses | Net Annualized | ||
Class A Shares | $1,000.00 | $946.80 | $4.12 |
| $1,000.00 | $1,020.97 | $4.28 | 0.84% | ||
Class C Shares | $1,000.00 | $944.50 | $7.79 |
| $1,000.00 | $1,017.19 | $8.08 | 1.59% | ||
Class D Shares | $1,000.00 | $947.70 | $3.29 |
| $1,000.00 | $1,021.83 | $3.41 | 0.67% | ||
Class I Shares | $1,000.00 | $947.80 | $2.85 |
| $1,000.00 | $1,022.28 | $2.96 | 0.58% | ||
Class N Shares | $1,000.00 | $949.60 | $2.56 |
| $1,000.00 | $1,022.58 | $2.65 | 0.52% | ||
Class S Shares | $1,000.00 | $946.30 | $5.00 |
| $1,000.00 | $1,020.06 | $5.19 | 1.02% | ||
Class T Shares | $1,000.00 | $948.00 | $3.78 |
| $1,000.00 | $1,021.32 | $3.92 | 0.77% | ||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. | |||||||||
6 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Inflation-Indexed Bonds – 12.2% | |||||||
United States Treasury Inflation Indexed Bonds, 0.1250%, 4/15/21ÇÇ | $1,751,366 | $1,703,047 | |||||
United States Treasury Inflation Indexed Bonds, 2.5000%, 1/15/29ÇÇ | 2,402,927 | 2,735,289 | |||||
Total Inflation-Indexed Bonds (cost $4,429,482) | 4,438,336 | ||||||
Limited Partnership Interests – 0.9% | |||||||
Equity Funds – 0.9% | |||||||
US Cities Fund LP USD*,¢ (cost $307,962) | 622 | 334,569 | |||||
Investment Companies – 85.9% | |||||||
Alternative Funds – 7.9% | |||||||
AQR Equity Market Neutral Fund | 136,968 | 1,475,143 | |||||
AQR Managed Futures Strategy Fund | 168,112 | 1,415,500 | |||||
2,890,643 | |||||||
Equity Funds – 8.4% | |||||||
Janus Henderson Emerging Markets - Class N Shares£ | 160,444 | 1,397,471 | |||||
Janus Henderson Global Equity Income Fund - Class N Shares£ | 268,125 | 1,683,823 | |||||
3,081,294 | |||||||
Exchange-Traded Funds (ETFs) – 24.0% | |||||||
Invesco International Dividend Achievers | 111,942 | 1,581,740 | |||||
iShares Edge MSCI Min Vol EAFE | 23,064 | 1,537,446 | |||||
iShares Edge MSCI Min Vol Emerging Markets | 26,389 | 1,474,353 | |||||
iShares JP Morgan USD Emerging Markets Bond | 15,126 | 1,571,743 | |||||
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund | 12,708 | 1,282,873 | |||||
Sprott Physical Gold Trust* | 126,584 | 1,305,081 | |||||
8,753,236 | |||||||
Fixed Income Funds – 11.9% | |||||||
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio | 169,338 | 1,359,788 | |||||
Janus Henderson Strategic Income Fund - Class N Shares£ | 151,378 | 1,376,023 | |||||
T Rowe Price US High Yield Fund | 174,446 | 1,589,200 | |||||
4,325,011 | |||||||
Money Markets – 33.7% | |||||||
Fidelity Investments Money Market Treasury Portfolio, 2.2400%ºº | 12,297,746 | 12,297,746 | |||||
Total Investment Companies (cost $32,422,298) | 31,347,930 | ||||||
Total Investments (total cost $37,159,742) – 99.0% | 36,120,835 | ||||||
Cash, Receivables and Other Assets, net of Liabilities – 1.0% | 359,024 | ||||||
Net Assets – 100% | $36,479,859 | ||||||
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $33,532,881 | 92.8 | % | ||
Canada | 1,305,081 | 3.6 | |||
Germany | 1,282,873 | 3.6 | |||
Total | $36,120,835 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
Janus Henderson All Asset Fund
Schedule of Investments (unaudited)
December 31, 2018
Schedules of Affiliated Investments – (% of Net Assets)
Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 12/31/18 | |||||||
Investment Companies - 12.2% | ||||||||||
Equity Funds - 8.4% | ||||||||||
Janus Henderson Emerging Markets - Class N Shares | $ | 21,286 | $ | (6,675) | $ | (199,536) | $ | 1,397,471 | ||
Janus Henderson Global Equity Income Fund - Class N Shares | 56,872 | - | (253,133) | 1,683,823 | ||||||
Total Equity Funds | $ | - | $ | - | $ | (452,669) | $ | 3,081,294 | ||
Fixed Income Funds - 3.8% | ||||||||||
Janus Henderson Strategic Income Fund - Class N Shares | 53,235 | - | (33,838) | 1,376,023 | ||||||
Total Affiliated Investments - 12.2% | $ | 131,393 | $ | (6,675) | $ | (486,507) | $ | 4,457,317 | ||
(1) For securities that were affiliated for a portion of the period ended December 31, 2018, this column reflects amounts for the entire period ended December 31, 2018 and not just the period in which the security was affiliated.
Share Balance at 6/30/18 | Purchases | Sales | Share Balance at 12/31/18 | |||||||
Investment Companies - 12.2% | ||||||||||
Equity Funds - 8.4% | ||||||||||
Janus Henderson Emerging Markets - Class N Shares | 216,898 | 5,755 | (62,209) | 160,444 | ||||||
Janus Henderson Global Equity Income Fund - Class N Shares | 259,680 | 8,445 | - | 268,125 | ||||||
Fixed Income Funds - 3.8% | ||||||||||
Janus Henderson Strategic Income Fund - Class N Shares | 145,561 | 5,817 | - | 151,378 | ||||||
Schedule of Forward Foreign Currency Exchange Contracts, Open |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | USD Currency Amount (Sold)/ Purchased | Market Value and Unrealized Appreciation/ (Depreciation) | ||||
BNP Paribas: | ||||||||
British Pound | 1/30/19 | 2,170,494 | $ | (2,744,109) | $ | 26,064 | ||
British Pound | 1/30/19 | (266,354) | 338,000 | (1,944) | ||||
Euro | 1/30/19 | 1,682,077 | (1,920,941) | 10,922 | ||||
Euro | 1/30/19 | (244,088) | 278,000 | (2,335) | ||||
Japanese Yen | 1/30/19 | 292,837,405 | (2,598,425) | 80,118 | ||||
Japanese Yen | 1/30/19 | (24,877,050) | 220,000 | (7,547) | ||||
Total | $ | 105,278 | ||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Schedule of Investments (unaudited)
December 31, 2018
Schedule of Futures
Description | Number of Contracts | Expiration Date | Value and Notional Amount | Unrealized Appreciation/ (Depreciation) | Variation Margin Asset/(Liability) | ||||||||
Futures Purchased: | |||||||||||||
10-Year US Treasury | 6 | 3/20/19 | $ | 732,094 | $ | 17,625 | $ | 5,906 | |||||
EURO STOXX | 58 | 3/15/19 | 1,973,660 | (37,220) | (6,019) | ||||||||
FTSE 100 IDX FUT | 30 | 3/15/19 | 2,545,879 | (7,171) | 18,198 | ||||||||
OSE TOPIX | 18 | 3/7/19 | 2,443,197 | (156,008) | 80,966 | ||||||||
S&P 500 E-mini | 22 | 3/15/19 | 2,755,775 | (55,069) | 37,675 | ||||||||
Total | $ | (237,843) | $ | 136,726 | |||||||||
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of December 31, 2018.
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018 | |||||||||||
|
|
|
|
| Currency |
| Equity |
| Interest Rate |
| Total |
Asset Derivatives: | |||||||||||
Forward foreign currency exchange contracts | $117,104 | $ - | $ - | $117,104 | |||||||
Variation margin receivable | - | 136,839 | 5,906 | 142,745 | |||||||
Total Asset Derivatives |
|
| $117,104 |
| $136,839 |
| $ 5,906 |
| $259,849 | ||
| |||||||||||
Liability Derivatives: | |||||||||||
Forward foreign currency exchange contracts | $ 11,826 | $ - | $ - | $ 11,826 | |||||||
Variation margin payable | - | 6,019 | - | 6,019 | |||||||
Total Liability Derivatives |
|
| $ 11,826 |
| $ 6,019 |
| $ - |
| $ 17,845 | ||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
Janus Henderson All Asset Fund
Schedule of Investments (unaudited)
December 31, 2018
The following tables provides information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended December 31, 2018.
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended December 31, 2018 | ||||||||||
Amount of Realized Gain/(Loss) Recognized on Derivatives | ||||||||||
Derivative |
| Currency |
| Equity |
| Interest Rate |
| Total | ||
Futures contracts | $ - | $(1,112,125) | $ 2,075 | $(1,110,050) | ||||||
Forward foreign currency exchange contracts | (331,041) | - | - | (331,041) | ||||||
Total |
| $(331,041) |
| $(1,112,125) |
| $ 2,075 |
| $(1,441,091) | ||
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | ||||||||||
Derivative |
| Currency |
| Equity |
| Interest Rate |
| Total | ||
Futures contracts | $ - | $ (74,054) | $ (12,453) | $ (86,507) | ||||||
Forward foreign currency exchange contracts | 113,704 | - | - | 113,704 | ||||||
Total |
| $ 113,704 |
| $ (74,054) |
| $ (12,453) |
| $ 27,197 | ||
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
Average Ending Monthly Market Value of Derivative Instruments During the Period Ended December 31, 2018 | |
| Market Value(a) |
Forward foreign currency exchange contracts, purchased | $ 7,348,637 |
Forward foreign currency exchange contracts, sold | 121,118 |
Futures contracts, purchased | 14,167,174 |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes to Schedule of Investments and Other Information (unaudited)
LIBOR (London Interbank Offered Rate) | LIBOR (London Interbank Offered Rate) is a short-term interest rate that banks offer one another and generally represents current cash rates. |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
LP | Limited Partnership |
* | Non-income producing security. |
ÇÇ | Security is a U.S. Treasury Inflation-Protected Security (TIPS). |
ºº | Rate shown is the 7-day yield as of December 31, 2018. |
¢ | Security is valued using significant unobservable inputs. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
Janus Investment Fund | 11 |
Janus Henderson All Asset Fund
Notes to Schedule of Investments and Other Information (unaudited)
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of December 31, 2018. See Notes to Financial Statements for more information. | |||||||||||||
Valuation Inputs Summary | |||||||||||||
Level 2 - | Level 3 - | ||||||||||||
Level 1 - | Other Significant | Significant | |||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||||
Assets | |||||||||||||
Investments in Securities: | |||||||||||||
Inflation-Indexed Bonds | $ | - | $ | 4,438,336 | $ | - | |||||||
Limited Partnership Interests | - | - | 334,569 | ||||||||||
Investment Companies | |||||||||||||
Alternative Funds | 2,890,643 | - | - | ||||||||||
Equity Funds | 3,081,294 | - | - | ||||||||||
Exchange-Traded Funds (ETFs) | 8,753,236 | - | - | ||||||||||
Fixed Income Funds | 4,325,011 | - | - | ||||||||||
Money Markets | 12,297,746 | - | - | ||||||||||
Total Investments in Securities | $ | 31,347,930 | $ | 4,438,336 | $ | 334,569 | |||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | - | 117,104 | - | ||||||||||
Variation Margin Receivable | 142,745 | - | - | ||||||||||
Total Assets | $ | 31,490,675 | $ | 4,555,440 | $ | 334,569 | |||||||
Liabilities | |||||||||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | - | 11,826 | - | ||||||||||
Variation Margin Payable | 6,019 | - | - | ||||||||||
Total Liabilities | $ | 6,019 | $ | 11,826 | $ | - | |||||||
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. | ||||||||||||
12 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2018
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Unaffiliated investments, at value(1) | $ | 31,663,518 | ||||
Affiliated investments, at value(2) | 4,457,317 | |||||
Cash | 231,315 | |||||
Deposits with brokers for futures | 483,217 | |||||
Forward foreign currency exchange contracts | 117,104 | |||||
Cash denominated in foreign currency(3) | 70,627 | |||||
Variation margin receivable | 142,745 | |||||
Non-interested Trustees' deferred compensation | 895 | |||||
Receivables: | ||||||
Fund shares sold | 39,588 | |||||
Interest | 28,391 | |||||
Due from adviser | 21,937 | |||||
Dividends | 3,255 | |||||
Foreign tax reclaims | 570 | |||||
Other assets | 55,580 | |||||
Total Assets |
|
| 37,316,059 |
| ||
Liabilities: | ||||||
Forward foreign currency exchange contracts | 11,826 | |||||
Closed foreign currency contracts | 189,870 | |||||
Variation margin payable | 6,019 | |||||
Payables: | — | |||||
Fund shares repurchased | 454,447 | |||||
Investments purchased | 92,887 | |||||
Professional fees | 18,740 | |||||
Advisory fees | 13,319 | |||||
12b-1 Distribution and shareholder servicing fees | 2,947 | |||||
Transfer agent fees and expenses | 2,946 | |||||
Non-interested Trustees' deferred compensation fees | 895 | |||||
Custodian fees | 856 | |||||
Non-interested Trustees' fees and expenses | 335 | |||||
Affiliated fund administration fees payable | 83 | |||||
Accrued expenses and other payables | 41,030 | |||||
Total Liabilities |
|
| 836,200 |
| ||
Net Assets |
| $ | 36,479,859 |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 13 |
Janus Henderson All Asset Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2018
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 38,781,525 | ||||
Total distributable earnings (loss) | (2,301,666) | |||||
Total Net Assets |
| $ | 36,479,859 |
| ||
Net Assets - Class A Shares | $ | 1,017,225 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 107,331 | |||||
Net Asset Value Per Share(4) |
| $ | 9.48 |
| ||
Maximum Offering Price Per Share(5) |
| $ | 10.06 |
| ||
Net Assets - Class C Shares | $ | 2,589,183 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 276,628 | |||||
Net Asset Value Per Share(4) |
| $ | 9.36 |
| ||
Net Assets - Class D Shares | $ | 534,289 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 56,735 | |||||
Net Asset Value Per Share |
| $ | 9.42 |
| ||
Net Assets - Class I Shares | $ | 1,872,374 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 198,603 | |||||
Net Asset Value Per Share |
| $ | 9.43 |
| ||
Net Assets - Class N Shares | $ | 30,290,620 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,221,436 | |||||
Net Asset Value Per Share |
| $ | 9.40 |
| ||
Net Assets - Class S Shares | $ | 48,477 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,149 | |||||
Net Asset Value Per Share |
| $ | 9.41 |
| ||
Net Assets - Class T Shares | $ | 127,691 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 13,549 | |||||
Net Asset Value Per Share |
| $ | 9.42 |
| ||
(1) Includes cost of $32,270,825. (2) Includes cost of $4,888,917. (3) Includes cost of $70,267. (4) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (5) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
14 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Statement of Operations (unaudited)
For the period ended December 31, 2018
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 352,769 | ||
Interest | 201,960 | ||||
Dividends from affiliates | 131,393 | ||||
Other income | 5,288 | ||||
Total Investment Income |
| 691,410 |
| ||
Expenses: | |||||
Advisory fees | 86,469 | ||||
12b-1 Distribution and shareholder servicing fees: | |||||
Class A Shares | 2,304 | ||||
Class C Shares | 23,808 | ||||
Class S Shares | 63 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 480 | ||||
Class S Shares | 63 | ||||
Class T Shares | 167 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 630 | ||||
Class C Shares | 1,815 | ||||
Class I Shares | 1,078 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 108 | ||||
Class C Shares | 245 | ||||
Class D Shares | 155 | ||||
Class I Shares | 128 | ||||
Class N Shares | 524 | ||||
Registration fees | 111,896 | ||||
Non-affiliated fund administration fees | 33,376 | ||||
Professional fees | 22,358 | ||||
Shareholder reports expense | 3,017 | ||||
Custodian fees | 2,391 | ||||
Affiliated fund administration fees | 541 | ||||
Non-interested Trustees’ fees and expenses | 521 | ||||
Other expenses | 7,852 | ||||
Total Expenses |
| 299,989 |
| ||
Less: Excess Expense Reimbursement and Waivers |
| (157,171) |
| ||
Net Expenses |
| 142,818 |
| ||
Net Investment Income/(Loss) |
| 548,592 |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 15 |
Janus Henderson All Asset Fund
Statement of Operations (unaudited)
For the period ended December 31, 2018
|
|
|
|
|
|
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | $ | (100,044) | |||
Investments in affiliates | (6,675) | ||||
Forward foreign currency exchange contracts | (331,041) | ||||
Futures contracts | (1,110,050) | ||||
Capital gain distributions from underlying funds | 28,551 | ||||
Total Net Realized Gain/(Loss) on Investments |
| (1,519,259) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees’ deferred compensation | (691,099) | ||||
Investments in affiliates | (486,507) | ||||
Forward foreign currency exchange contracts | 113,704 | ||||
Futures contracts | (86,507) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (1,150,409) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (2,121,076) |
| ||
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Statements of Changes in Net Assets
|
|
| Period ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 548,592 | $ | 728,840 | ||||
Net realized gain/(loss) on investments | (1,519,259) | 1,510,079 | ||||||
Change in unrealized net appreciation/depreciation | (1,150,409) | (568,331) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (2,121,076) |
|
| 1,670,588 | |||
Dividends and Distributions to Shareholders(1) | ||||||||
Class A Shares | (40,575) | N/A | ||||||
Class C Shares | (50,277) | N/A | ||||||
Class D Shares | (16,544) | N/A | ||||||
Class I Shares | (72,236) | N/A | ||||||
Class N Shares | (971,975) | N/A | ||||||
Class S Shares | (1,479) | N/A | ||||||
Class T Shares | (3,994) | N/A | ||||||
| Total Dividends and Distributions to Shareholders |
| (1,157,080) |
|
| N/A | ||
Dividends from Net Investment Income(1) | ||||||||
Class A Shares | N/A | (29,769) | ||||||
Class C Shares | N/A | (40,622) | ||||||
Class D Shares | N/A | (14,536) | ||||||
Class I Shares | N/A | (156,220) | ||||||
Class N Shares | N/A | (667,439) | ||||||
Class S Shares | N/A | (905) | ||||||
Class T Shares | N/A | (974) | ||||||
| Total Dividends from Net Investment Income |
| N/A |
|
| (910,465) | ||
Distributions from Net Realized Gain from Investment Transactions(1) | ||||||||
Class A Shares | N/A | (100,034) | ||||||
Class C Shares | N/A | (413,271) | ||||||
Class D Shares | N/A | (37,421) | ||||||
Class I Shares | N/A | (400,627) | ||||||
Class N Shares | N/A | (1,696,854) | ||||||
Class S Shares | N/A | (2,726) | ||||||
Class T Shares | N/A | (2,726) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | N/A |
|
| (2,653,659) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (1,157,080) |
|
| (3,564,124) | |||
Capital Share Transactions: | ||||||||
Class A Shares | (502,921) | (137,827) | ||||||
Class C Shares | (4,368,372) | (502,747) | ||||||
Class D Shares | (345,045) | 910,048 | ||||||
Class I Shares | (3,934,224) | (1,028,520) | ||||||
Class N Shares | 971,975 | 2,364,293 | ||||||
Class S Shares | 1,479 | 3,631 | ||||||
Class T Shares | 3,994 | 88,264 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| (8,173,114) |
|
| 1,697,142 | |||
Net Increase/(Decrease) in Net Assets |
| (11,451,270) |
|
| (196,394) | |||
Net Assets: | ||||||||
Beginning of period | 47,931,129 | 48,127,523 | ||||||
| End of period(2) | $ | 36,479,859 |
| $ | 47,931,129 | ||
(1) The requirement to disclose dividends and distributions paid to shareholders from net investment income and/or net realized gain from investment transactions was eliminated by the SEC (Securities Exchange Commission) in 2018. (2) Net assets - End of period includes undistributed (overdistributed) net investment income of $487,008 as of June 30, 2018. The requirement to disclose undistributed (overdistributed) net investment income was eliminated by the SEC in 2018. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
Janus Henderson All Asset Fund
Financial Highlights
Class A Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.30 |
|
| $10.70 |
|
| $10.12 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.11 | 0.14 | 0.09 | |||||||||
Net realized and unrealized gain/(loss) | (0.64) | 0.22 | 0.53 | |||||||||
Total from Investment Operations |
| (0.53) |
|
| 0.36 |
|
| 0.62 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.12) | (0.17) | (0.04) | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.29) |
|
| (0.76) |
|
| (0.04) |
| |||
Net Asset Value, End of Period | $9.48 | $10.30 | $10.70 | |||||||||
Total Return* |
| (5.13)% |
|
| 3.25% |
|
| 6.18% |
| |||
Net Assets, End of Period (in thousands) | $1,017 | $1,658 | $1,862 | |||||||||
Average Net Assets for the Period (in thousands) | $1,830 | $1,885 | �� | $3,232 | ||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 1.74% | 1.01% | 1.01% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 0.84% | 0.87% | 0.85% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 2.20% | 1.30% | 0.91% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
Class C Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.10 |
|
| $10.46 |
|
| $9.93 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.08 | 0.06 | 0.02 | |||||||||
Net realized and unrealized gain/(loss) | (0.65) | 0.23 | 0.51 | |||||||||
Total from Investment Operations |
| (0.57) |
|
| 0.29 |
|
| 0.53 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | —(4) | (0.06) | — | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.17) |
|
| (0.65) |
|
| — |
| |||
Net Asset Value, End of Period | $9.36 | $10.10 | $10.46 | |||||||||
Total Return* |
| (5.55)% |
|
| 2.59% |
|
| 5.34% |
| |||
Net Assets, End of Period (in thousands) | $2,589 | $7,222 | $7,979 | |||||||||
Average Net Assets for the Period (in thousands) | $4,748 | $7,524 | $8,949 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 2.33% | 1.70% | 1.78% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 1.59% | 1.58% | 1.60% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 1.49% | 0.61% | 0.22% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (4) Less than $0.005 on a per share basis. |
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Financial Highlights
Class A Shares | |||||||||||||||
For a share outstanding during the year ended July 31 |
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| |||
Net Asset Value, Beginning of Period |
| $10.55 |
|
| $10.76 |
|
| $10.52 |
|
| $9.93 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||
Net investment income/(loss)(1) | 0.08 | 0.09 | 0.10 | 0.09 | |||||||||||
Net realized and unrealized gain/(loss) | (0.17) | 0.12 | 0.56 | 0.61 | |||||||||||
Total from Investment Operations |
| (0.09) |
|
| 0.21 |
|
| 0.66 |
|
| 0.70 |
| |||
Less Dividends and Distributions: | |||||||||||||||
Dividends (from net investment income) | (0.03) | (0.14) | (0.11) | (0.09) | |||||||||||
Distributions (from capital gains) | (0.31) | (0.28) | (0.31) | (0.02) | |||||||||||
Total Dividends and Distributions |
| (0.34) |
|
| (0.42) |
|
| (0.42) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $10.12 | $10.55 | $10.76 | $10.52 | |||||||||||
Total Return* |
| (0.71)% |
|
| 1.94% |
|
| 6.44% |
|
| 7.05% |
| |||
Net Assets, End of Period (in thousands) | $4,011 | $6,396 | $8,929 | $12,023 | |||||||||||
Average Net Assets for the Period (in thousands) | $4,935 | $7,122 | $10,041 | $10,644 | |||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(2) | 0.95%(3) | 0.91% | 0.93% | 1.10% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | 0.85% | 0.85% | 0.85% | 0.85% | |||||||||||
Ratio of Net Investment Income/(Loss)(2) | 0.84% | 0.88% | 0.94% | 0.86% | |||||||||||
Portfolio Turnover Rate | 44% | 19% | 52% | 37% | |||||||||||
1 | |||||||||||||||
Class C Shares | |||||||||||||||
For a share outstanding during the year ended July 31 |
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| |||
Net Asset Value, Beginning of Period |
| $10.39 |
|
| $10.63 |
|
| $10.43 |
|
| $9.91 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||
Net investment income/(loss)(1) | 0.01 | 0.02 | 0.02 | 0.02 | |||||||||||
Net realized and unrealized gain/(loss) | (0.16) | 0.10 | 0.56 | 0.59 | |||||||||||
Total from Investment Operations |
| (0.15) |
|
| 0.12 |
|
| 0.58 |
|
| 0.61 |
| |||
Less Dividends and Distributions: | |||||||||||||||
Dividends (from net investment income) | — | (0.08) | (0.07) | (0.07) | |||||||||||
Distributions (from capital gains) | (0.31) | (0.28) | (0.31) | (0.02) | |||||||||||
Total Dividends and Distributions |
| (0.31) |
|
| (0.36) |
|
| (0.38) |
|
| (0.09) |
| |||
Net Asset Value, End of Period | $9.93 | $10.39 | $10.63 | $10.43 | |||||||||||
Total Return* |
| (1.37)% |
|
| 1.14% |
|
| 5.61% |
|
| 6.18% |
| |||
Net Assets, End of Period (in thousands) | $9,247 | $10,824 | $11,094 | $9,357 | |||||||||||
Average Net Assets for the Period (in thousands) | $9,422 | $11,557 | $10,389 | $5,333 | |||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(2) | 1.71%(3) | 1.68% | 1.67% | 1.80% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | 1.60% | 1.60% | 1.60% | 1.60% | |||||||||||
Ratio of Net Investment Income/(Loss)(2) | 0.09% | 0.18% | 0.20% | 0.20% | |||||||||||
Portfolio Turnover Rate | 44% | 19% | 52% | 37% | |||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (3) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.01% higher had the custodian not reimbursed the Fund. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
Janus Henderson All Asset Fund
Financial Highlights
Class D Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.25 |
|
| $10.67 |
|
| $10.76 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.12 | 0.17 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (0.65) | 0.23 | (0.12) | |||||||||
Total from Investment Operations |
| (0.53) |
|
| 0.40 |
|
| (0.09) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.13) | (0.23) | — | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.82) |
|
| — |
| |||
Net Asset Value, End of Period | $9.42 | $10.25 | $10.67 | |||||||||
Total Return* |
| (5.14)% |
|
| 3.57% |
|
| (0.84)% |
| |||
Net Assets, End of Period (in thousands) | $534 | $937 | $79 | |||||||||
Average Net Assets for the Period (in thousands) | $796 | $615 | $77 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 1.90% | 0.98% | 0.86% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 0.67% | 0.66% | 0.69% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 2.40% | 1.64% | 3.79% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
Class I Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(4) |
| ||||
Net Asset Value, Beginning of Period |
| $10.25 |
|
| $10.67 |
|
| $10.10 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.13 | 0.17 | 0.11 | |||||||||
Net realized and unrealized gain/(loss) | (0.65) | 0.23 | 0.53 | |||||||||
Total from Investment Operations |
| (0.52) |
|
| 0.40 |
|
| 0.64 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.13) | (0.23) | (0.07) | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.82) |
|
| (0.07) |
| |||
Net Asset Value, End of Period | $9.43 | $10.25 | $10.67 | |||||||||
Total Return* |
| (5.03)% |
|
| 3.58% |
|
| 6.38% |
| |||
Net Assets, End of Period (in thousands) | $1,872 | $6,036 | $7,334 | |||||||||
Average Net Assets for the Period (in thousands) | $3,904 | $7,343 | $8,349 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 1.33% | 0.71% | 0.79% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 0.58% | 0.60% | 0.59% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 2.54% | 1.59% | 1.19% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (4) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Financial Highlights
Class I Shares | |||||||||||||||
For a share outstanding during the year ended July 31 |
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| |||
Net Asset Value, Beginning of Period |
| $10.55 |
|
| $10.77 |
|
| $10.54 |
|
| $9.94 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||
Net investment income/(loss)(1) | 0.07 | 0.13 | 0.13 | 0.11 | |||||||||||
Net realized and unrealized gain/(loss) | (0.13) | 0.10 | 0.56 | 0.61 | |||||||||||
Total from Investment Operations |
| (0.06) |
|
| 0.23 |
|
| 0.69 |
|
| 0.72 |
| |||
Less Dividends and Distributions: | �� | ||||||||||||||
Dividends (from net investment income) | (0.08) | (0.17) | (0.15) | (0.10) | |||||||||||
Distributions (from capital gains) | (0.31) | (0.28) | (0.31) | (0.02) | |||||||||||
Total Dividends and Distributions |
| (0.39) |
|
| (0.45) |
|
| (0.46) |
|
| (0.12) |
| |||
Net Asset Value, End of Period | $10.10 | $10.55 | $10.77 | $10.54 | |||||||||||
Total Return* |
| (0.45)% |
|
| 2.20% |
|
| 6.72% |
|
| 7.28% |
| |||
Net Assets, End of Period (in thousands) | $10,750 | $44,333 | $46,867 | $43,221 | |||||||||||
Average Net Assets for the Period (in thousands) | $22,035 | $45,011 | $52,153 | $35,799 | |||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(2) | 0.68%(3) | 0.63% | 0.62% | 0.79% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | 0.60% | 0.60% | 0.60% | 0.60% | |||||||||||
Ratio of Net Investment Income/(Loss)(2) | 0.69% | 1.18% | 1.22% | 1.10% | |||||||||||
Portfolio Turnover Rate | 44% | 19% | 52% | 37% | |||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (3) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.01% higher had the custodian not reimbursed the Fund. |
See Notes to Financial Statements. | |
Janus Investment Fund | 21 |
Janus Henderson All Asset Fund
Financial Highlights
Class N Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.23 |
|
| $10.65 |
|
| $10.09 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.14 | 0.18 | 0.12 | |||||||||
Net realized and unrealized gain/(loss) | (0.66) | 0.22 | 0.52 | |||||||||
Total from Investment Operations |
| (0.52) |
|
| 0.40 |
|
| 0.64 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.14) | (0.23) | (0.08) | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.31) |
|
| (0.82) |
|
| (0.08) |
| |||
Net Asset Value, End of Period | $9.40 | $10.23 | $10.65 | |||||||||
Total Return* |
| (5.05)% |
|
| 3.61% |
|
| 6.43% |
| |||
Net Assets, End of Period (in thousands) | $30,291 | $31,893 | $30,774 | |||||||||
Average Net Assets for the Period (in thousands) | $31,481 | $32,052 | $29,638 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 1.20% | 0.64% | 0.71% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 0.52% | 0.53% | 0.60% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 2.71% | 1.65% | 1.24% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
Class S Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(4) |
| ||||
Net Asset Value, Beginning of Period |
| $10.25 |
|
| $10.67 |
|
| $10.76 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.11 | 0.14 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (0.66) | 0.22 | (0.12) | |||||||||
Total from Investment Operations |
| (0.55) |
|
| 0.36 |
|
| (0.09) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.12) | (0.19) | — | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.29) |
|
| (0.78) |
|
| — |
| |||
Net Asset Value, End of Period | $9.41 | $10.25 | $10.67 | |||||||||
Total Return* |
| (5.29)% |
|
| 3.26% |
|
| (0.84)% |
| |||
Net Assets, End of Period (in thousands) | $48 | $51 | $50 | |||||||||
Average Net Assets for the Period (in thousands) | $50 | $51 | $50 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 7.64% | 2.55% | 1.26% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 1.02% | 0.86% | 1.09% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 2.21% | 1.32% | 3.31% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (4) Period from June 5, 2017 (inception date) through June 30, 2017. |
See Notes to Financial Statements. | |
22 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Financial Highlights
Class N Shares | ||||||
For a share outstanding during the period ended July 31 |
| 2016(1) |
| |||
Net Asset Value, Beginning of Period |
| $10.25 |
| |||
Income/(Loss) from Investment Operations: | ||||||
Net investment income/(loss)(2) | 0.12 | |||||
Net realized and unrealized gain/(loss) | 0.11 | |||||
Total from Investment Operations |
| 0.23 |
| |||
Less Dividends and Distributions: | ||||||
Dividends (from net investment income) | (0.08) | |||||
Distributions (from capital gains) | (0.31) | |||||
Total Dividends and Distributions |
| (0.39) |
| |||
Net Asset Value, End of Period | $10.09 | |||||
Total Return* |
| 2.37% |
| |||
Net Assets, End of Period (in thousands) | $29,020 | |||||
Average Net Assets for the Period (in thousands) | $27,943 | |||||
Ratios to Average Net Assets**: |
|
|
| |||
Ratio of Gross Expenses(3) | 0.64%(4) | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 0.60% | |||||
Ratio of Net Investment Income/(Loss)(3) | 1.88% | |||||
Portfolio Turnover Rate | 44% | |||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from November 30, 2015 (inception date) through July 31, 2016. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (4) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.01% higher had the custodian not reimbursed the Fund. |
See Notes to Financial Statements. | |
Janus Investment Fund | 23 |
Janus Henderson All Asset Fund
Financial Highlights
Class T Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.26 |
|
| $10.67 |
|
| $10.76 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.13 | 0.15 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (0.67) | 0.24 | (0.12) | |||||||||
Total from Investment Operations |
| (0.54) |
|
| 0.39 |
|
| (0.09) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.13) | (0.21) | — | |||||||||
Distributions (from capital gains) | (0.17) | (0.59) | — | |||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.80) |
|
| — |
| |||
Net Asset Value, End of Period | $9.42 | $10.26 | $10.67 | |||||||||
Total Return* |
| (5.21)% |
|
| 3.50% |
|
| (0.84)% |
| |||
Net Assets, End of Period (in thousands) | $128 | $135 | $50 | |||||||||
Average Net Assets for the Period (in thousands) | $133 | $84 | $50 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses(3) | 3.70% | 1.78% | 0.99% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets)(3) | 0.77% | 0.69% | 0.82% | |||||||||
Ratio of Net Investment Income/(Loss)(3) | 2.46% | 1.43% | 3.58% | |||||||||
Portfolio Turnover Rate | 28% | 16% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements. | |
24 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson All Asset Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Fund operates as a “fund of funds,” meaning substantially all of the Fund’s assets will be invested in other underlying funds (the “underlying funds”). The Trust offers 48 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks to provide total return by investing in a broad range of asset classes. The Fund is classified as diversified, as defined in the 1940 Act.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson All Asset Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. Subsequent to July 31, 2016, the Fund changed its fiscal year end to June 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares. Class D Shares are closed to certain new investors.
Class A Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds have adopted an auto-conversion police pursuant to which Class C Shares that have been held for ten years will be automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the tenth anniversary of the date of purchase. For Class C Shares held in retirement plans, omnibus accounts on intermediary platforms, and in certain other accounts, the Fund and its agents may not have transparency into how long a shareholder has held Class C Shares and therefore may not be able to determine whether such Class C Shares are eligible for automatic conversion to Class A Shares; accordingly the Funds will not be able to automatically convert Class C Shares into Class A Shares, and the financial intermediary is responsible for notifying the Fund that Class C Shares are eligible for conversion to Class A Shares. In addition, financial intermediaries may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. In these circumstances, certain Class C shareholders may not be eligible to convert their Class C Shares to Class A Shares as described above but may be permitted to convert their Class C Shares to Class A Shares pursuant to their financial intermediary’s conversion policies and procedures. Please contact your financial intermediary for additional information. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus Henderson funds. Class D Shares are available only to investors who hold accounts directly with the Janus Henderson funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
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Notes to Financial Statements (unaudited)
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Underlying Funds
The Fund may seek exposure to both traditional asset classes (such as equity and fixed-income investments) and alternative asset classes (such as real estate, commodities, currencies, private equity, and absolute return strategies) by investing in other investment companies or investment pools, by investing directly in securities and other investments or through the use of derivatives. Such investment companies and investment pools might include, for example, other open-end or closed-end investment companies (including investment companies that concentrate their investments in one or more industries or economic or market sectors), exchange-traded funds (“ETFs”, which are open-end investment companies whose shares may be bought or sold by investors in transactions on major stock exchanges), unit investment trusts, and domestic or foreign private investment pools (including investment companies not registered under the 1940 Act, such as “hedge funds”) or indexes of investment pools. Additional details and descriptions of the investment objectives and strategies of each of the underlying funds are available in the underlying funds’ prospectuses. The Trustees of the underlying funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to the Fund’s shareholders.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
The Fund’s net asset value (“NAV”) is calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of the underlying funds is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
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Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The Fund classifies each of its investments in the underlying funds without consideration as to the classification level of the specific investments held by the underlying funds.There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2018 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year. The following describes the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period.
Financial assets of $524,428 were transferred out of Level 2 to Level 3 since certain security’s prices were determined using significant unobservable inputs at the end of the current fiscal year and other significant observable inputs at the end of the prior fiscal year.
The Fund did not hold a significant amount of Level 3 securities as of December 31, 2018.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities held by the underlying funds will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Any distributions from the underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Additionally, the Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
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Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or the Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The underlying funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the underlying funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Currently, Management does not believe the bill will have a material impact on the Fund’s intention to continue to qualify as a regulated investment company, which is generally not subject to U.S. federal income tax.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future
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Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended December 31, 2018 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
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Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital Management LLC's ("Janus Capital") ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
The Fund may enter into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund and/or in order to take a positive outlook on the related currency to increase exposure to currency risk.
The Fund may enter into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund and/or in order to take a negative outlook on the related currency to increase exposure to currency risk.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on
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Notes to Financial Statements (unaudited)
the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
The Fund may purchase or sell futures on equity indices to increase or decrease exposure to equity risk.
The Fund may purchase or sell futures on interest rates to increase or decrease exposure to interest rate risk.
3. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Fund’s ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as “Brexit”). There is considerable uncertainty about how Brexit will be conducted, how negotiations of necessary treaties and trade agreements will proceed, or how financial markets will react. In addition, one or more other countries may also abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or
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Notes to Financial Statements (unaudited)
economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Exchange-Traded and Mutual Funds
The Fund may invest in exchange-traded funds (“ETFs”) and mutual funds to gain exposure to a particular portion of the market. ETFs are typically open-end investment companies, which may seek to track the performance of a specific index or be actively managed. ETFs are traded on a national securities exchange at market prices that may vary from the net asset value of their underlying investments. Accordingly, there may be times when an ETF trades at a premium or discount. When the Fund invests in an ETF or mutual fund, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF's or mutual fund’s expenses. As a result, the cost of investing in the Fund may be higher than the cost of investing directly in ETFs or mutual funds and may be higher than other mutual funds that invest directly in stocks and bonds. ETFs also involve the risk that an active trading market for an ETF's shares may not develop or be maintained. Similarly, because the value of ETF shares depends on the demand in the market, the Fund may not be able to purchase or sell an ETF at the most optimal time, which could adversely affect the Fund’s performance. In addition, ETFs that track particular indices may be unable to match the performance of such underlying indices due to the temporary unavailability of certain index securities in the secondary market or other factors, such as discrepancies with respect to the weighting of securities. Because the Fund may invest in a broad range of ETFs and mutual funds, such risks may include, but are not limited to, leverage risk, foreign exposure risk, interest rate risk, emerging markets risk, fixed-income risk, and commodity-linked investments risk. The Fund is also subject to the risks associated with the securities in which the ETF or mutual fund invests.
Inflation-Linked Securities
The Fund may invest in inflation-indexed bonds, including municipal inflation-indexed bonds and corporate inflation-indexed bonds, or in derivatives that are linked to these securities. Inflation-linked bonds are fixed-income securities that have a principal value that is periodically adjusted according to the rate of inflation. If an index measuring inflation falls, the principal value of inflation-indexed bonds will typically be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Because of their inflation adjustment feature, inflation-linked bonds typically have lower yields than conventional fixed-rate bonds. In addition, inflation-linked bonds also normally decline in price when real interest rates rise. In the event of deflation, when prices decline over time, the principal and income of inflation-linked bonds would likely decline, resulting in losses to the Fund.
In the case of Treasury Inflation-Protected Securities, also known as TIPS, repayment of original bond principal upon maturity (as adjusted for inflation) is guaranteed by the U.S. Treasury. For inflation-linked bonds that do not provide a similar guarantee, the adjusted principal value of the inflation-linked bond repaid at maturity may be less than the original principal. Other non-U.S. sovereign governments also issue inflation-linked securities (sometimes referred to as “linkers”) that are tied to their own local consumer price indices. In certain of these non-U.S. jurisdictions, the repayment
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Notes to Financial Statements (unaudited)
of the original bond principal upon the maturity of an inflation-linked bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Inflation-linked bonds may also be issued by, or related to, sovereign governments of other developed countries, emerging market countries, or companies or other entities not affiliated with governments.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following table present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018” table located in the Fund’s Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
BNP Paribas | $ | 117,104 | $ | (11,826) | $ | — | $ | 105,278 | |
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Liabilities | or Liability(a) | Pledged(b) | Net Amount | |||||
BNP Paribas | $ | 11,826 | $ | (11,826) | $ | — | $ | — | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | ||||||||
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. | ||||||||
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be
Janus Investment Fund | 33 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
affected by various factors including, but not limited to, its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.40% of its average daily net assets.
Effective December 31, 2017, the Fund’s subadvisory agreement with Henderson Investment Management Limited (“HIML”) was terminated. HIML served as subadviser to the Fund. As subadviser, HIML provided day-to-day management of the investment operations of the Fund subject to the general oversight of the Board of Trustees and Janus Capital. HIML was an affiliate of Janus Capital through a common parent company.
Janus Capital paid HIML a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of Janus Capital. In this capacity, such employees of HGIL are subject to the oversight and supervision of Janus Capital and may provide portfolio management, research, and related services to the Fund on behalf of Janus Capital.
Janus Capital has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses but excluding the 12b-1 distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares) such as transfer agency fees (including out-of-pocket costs), administrative services fees, and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses) exceed the annual rate of 0.51% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waiver until November 1, 2019. Class R shares, If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the underlying funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
34 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
The Fund’s Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution fees and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $231,481 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2018. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Investment Fund | 35 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
Effective April 1, 2018, BNP Paribas Financial Services (“BPFS”) provides certain administrative services to the Fund, including services related to Fund accounting, calculation of the Fund’s daily NAV, and Fund audit, tax, and reporting obligations, pursuant to a sub-administration agreement with Janus Capital on behalf of the Fund. Janus Capital, as administrator, oversees the provision of these services by BPFS. As compensation for such services, Janus Capital pays BPFS a fee based on a percentage of the Fund’s assets, along with a flat fee, and is reimbursed by the Fund for amounts paid to BPFS (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). These amounts are disclosed as "Non-affiliated fund administration fees" on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2018 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2018 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $250,550 were paid by the Trust to the Trustees under the Deferred Plan during the period ended December 31, 2018.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2018 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended December 31, 2018, Janus Henderson Distributors retained upfront sales charges of $51.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the period ended December 31, 2018.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended December 31, 2018, redeeming shareholders of Class C Shares paid CDSCs of $8.
As of December 31, 2018, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| ||
Class A Shares | - | %* | - | %* | ||
Class C Shares | -* | -* | ||||
Class D Shares | 9 | -* | ||||
Class I Shares | -* | -* | ||||
Class N Shares | -* | -* | ||||
Class S Shares | 100 | -* | ||||
Class T Shares | 38 | -* | ||||
* | Less than 0.50% | |||||
36 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2018 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ 37,161,301 | $ 278,403 | $ (1,318,869) | $ (1,040,466) |
Information on the tax components of derivatives as of December 31, 2018 is as follows:
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ - | $ 134,729 | $ (267,294) | $ (132,565) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Investment Fund | 37 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
Period ended December 31, 2018 | Year ended June 30, 2018 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 119,085 | $ 1,224,985 | 48,201 | $ 525,233 | ||
Reinvested dividends and distributions | 4,191 | 39,484 | 12,312 | 129,155 | ||
Shares repurchased | (176,914) | (1,767,390) | (73,546) | (792,215) | ||
Net Increase/(Decrease) | (53,638) | $ (502,921) |
| (13,033) | $ (137,827) | |
Class C Shares: | ||||||
Shares sold | 1,339 | $ 16,082 | 97,146 | $ 1,023,851 | ||
Reinvested dividends and distributions | 4,180 | 38,871 | 35,136 | 362,603 | ||
Shares repurchased | (443,995) | (4,423,325) | (179,801) | (1,889,201) | ||
Net Increase/(Decrease) | (438,476) | $(4,368,372) |
| (47,519) | $ (502,747) | |
Class D Shares: | ||||||
Shares sold | 3,724 | $ 38,461 | 81,664 | $ 885,173 | ||
Reinvested dividends and distributions | 1,767 | 16,544 | 4,981 | 51,957 | ||
Shares repurchased | (40,203) | (400,050) | (2,604) | (27,082) | ||
Net Increase/(Decrease) | (34,712) | $ (345,045) |
| 84,041 | $ 910,048 | |
Class I Shares: | ||||||
Shares sold | 9,693 | $ 98,934 | 80,322 | $ 867,578 | ||
Reinvested dividends and distributions | 7,698 | 72,129 | 51,183 | 533,836 | ||
Shares repurchased | (407,572) | (4,105,287) | (229,868) | (2,429,934) | ||
Net Increase/(Decrease) | (390,181) | $(3,934,224) |
| (98,363) | $(1,028,520) | |
Class N Shares: | ||||||
Shares sold | - | $ - | - | $ - | ||
Reinvested dividends and distributions | 104,066 | 971,975 | 227,336 | 2,364,293 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 104,066 | $ 971,975 |
| 227,336 | $ 2,364,293 | |
Class S Shares: | ||||||
Shares sold | - | $ - | - | $ - | ||
Reinvested dividends and distributions | 158 | 1,479 | 347 | 3,631 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 158 | $ 1,479 |
| 347 | $ 3,631 | |
Class T Shares: | ||||||
Shares sold | - | $ - | 8,479 | $ 88,275 | ||
Reinvested dividends and distributions | 427 | 3,994 | 330 | 3,700 | ||
Shares repurchased | - | - | (331) | (3,711) | ||
Net Increase/(Decrease) | 427 | $ 3,994 |
| 8,478 | $ 88,264 | |
7. Purchases and Sales of Investment Securities
For the period ended December 31, 2018, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$ 2,018,574 | $ 8,789,309 | $ 5,051,843 | $ 642,550 |
8. Recent Accounting Pronouncements
The Securities and Exchange Commission adopted amendments to Regulation S-X, for the presentation of distributable earnings and distributions to align with US Generally Accepted Accounting Principles (GAAP). The compliance date of the amendments to Regulation S-X is November 5, 2018. This report incorporates the amendments to Regulation S-X.
38 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes to Financial Statements (unaudited)
The FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08") to amend the amortization period for certain purchased callable debt securities held at a premium. The guidance requires certain premiums on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Management is currently evaluating the impacts of ASU 2017-08 on the financial statements.
The FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) in August 2018. The new guidance removes, modifies and enhances the disclosures to Topic 820. For public entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management is currently evaluating the impact of this new guidance on the financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2018 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements other than the following:
The Board of Trustees of the Trust has approved plan to liquidate and terminate the Fund with such liquidation effective on or about March 22, 2019, or at such other time as may be authorized by the Board of Trustees ("Liquidation Date"). Termination of the Fund is expected to occur as soon as practicable following the Liquidation Date.
Janus Investment Fund | 39 |
Janus Henderson All Asset Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund is required to disclose its complete holdings on Form N-Q within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to Fund shareholders. These reports (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag. Holdings are generally posted approximately two business days thereafter under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund (each, a “JIF Fund,” and collectively, the “JIF Funds”), as well as each Portfolio of Janus Aspen Series (together with the JIF Funds, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Funds that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and each subadviser in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements and the information provided, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 6, 2018, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2019 through February 1, 2020, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, refer to actual annual advisory fees (and, for the purposes of peer comparisons any administration fees excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
40 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with fund shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also expressed the view that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital and the subadviser to each Janus Henderson Fund that utilizes a subadviser were appropriate and consistent with the terms of the respective investment advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2018, approximately 48% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar, and for the 12 months ended September 30, 2018, approximately 56% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the JIF Funds:
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Investment Fund | 41 |
Janus Henderson All Asset Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Strategic Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
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Janus Henderson All Asset Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Small Cap Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, including the impact of waivers on comparative peer performance.
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Janus Henderson All Asset Fund
Additional Information (unaudited)
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and the Fund’s limited performance history.
· For Janus Henderson All Asset Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital and Geneva had taken or were taking to improve performance.
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Janus Henderson All Asset Fund
Additional Information (unaudited)
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Select Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the management fee rate (investment advisory and any administration fees, but excluding out-of-pocket costs) for many of the Janus Henderson Funds, net of waivers, was below the average management fee rate of the respective peer group of funds selected by Broadridge. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group peers and to average total expenses for its Broadridge Expense Universe.
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Janus Henderson All Asset Fund
Additional Information (unaudited)
The independent fee consultant expressed the view that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. At the fund complex level, the independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 10% under the average total expenses for the respective Broadridge Expense Group peers and 19% under the average total expenses for the respective Broadridge Expense Universes; (3) management fees for the Janus Henderson Funds, on average, were 8% under the average management fees for the respective Expense Groups and 10% under the average for the respective Expense Universes; and (4) Janus Henderson Fund expenses by function for each asset and share class category were reasonable relative to peer benchmarks.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual share class level, Janus Henderson Fund expenses were found to be reasonable relative to peer benchmarks. Further, for certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to investors in each Janus Henderson Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such “focus list” Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances comparable subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, while subadviser fee rates charged to the Janus Henderson Funds were generally within a reasonable range of the fee rates that the subadviser charges to comparable separate account clients or non-affiliated funds. The Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to its institutional clients and to the fees Janus Capital charges to funds subadvised by Janus Capital; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson institutional and subadvised fund investors; (4) in three of five product categories, the Janus Henderson Funds receive proportionally better pricing than the industry in relation to Janus Henderson institutional clients; and (5) in six of seven strategies, Janus Capital has lower management fees than the management fees charged to funds subadvised by Janus Capital.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2017, including the JIF Funds, and noted the following with regard to each JIF Fund’s total expenses, net of applicable fee waivers (the JIF Fund’s “total expenses”):
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were
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Janus Henderson All Asset Fund
Additional Information (unaudited)
reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the peer group comparisons did not take into account a recent management fee reduction for the Fund, effective December 14, 2018 and that Janus Capital has contractually agreed to limit the Fund’s expenses at a lower (more favorable) level.
· For Janus Henderson Strategic Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Investment Fund | 47 |
Janus Henderson All Asset Fund
Additional Information (unaudited)
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Small Cap Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were above the peer group average for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson All Asset Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s total expenses.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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Janus Henderson All Asset Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses were equal to or exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable taking into account the limited peer group for the Fund. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Janus Investment Fund | 49 |
Janus Henderson All Asset Fund
Additional Information (unaudited)
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded fund managers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, differences in product mix, differences in types of business (mutual fund, institutional and other), differences in the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provides to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant concluded that (1) the expense allocation methodology utilized by Janus Capital was reasonable and (2) the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund was reasonable. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted the independent fee consultant’s analysis of economies of scale in prior years. They also noted that, although many Janus Henderson Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints or performance fees, the independent fee consultant concluded that 74% of these Janus Henderson Funds’ share classes have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted that for those Janus Henderson Funds whose expenses are being reduced by contractual expense limitations with Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale. Moreover, as the assets of some of the Janus Henderson Funds have declined in the past few years, certain Janus Henderson Funds have benefited from having
50 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Additional Information (unaudited)
advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such a Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered information provided by the independent fee consultant, which concluded that, given the limitations of various analytical approaches to economies of scale it had considered in prior years, and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. The independent consultant further concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any scale economies that may exist. Further, the independent fee consultant expressed the view that Janus Henderson Fund investors are well-served by the performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information they reviewed, including past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s and each subadviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and/or the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by certain other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
Janus Investment Fund | 51 |
Janus Henderson All Asset Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2018. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
52 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. Also included are ratios of expenses and net investment income to average net assets.
Janus Investment Fund | 53 |
Janus Henderson All Asset Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
54 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes
NotesPage1
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Janus Henderson All Asset Fund
Notes
NotesPage2
56 | DECEMBER 31, 2018 |
Janus Henderson All Asset Fund
Notes
NotesPage3
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Knowledge. Shared
At Janus Henderson, we believe in the sharing of expert insight for better investment and business decisions. We call this ethos Knowledge. Shared.
Learn more by visiting janushenderson.com.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
Janus Henderson, Janus, Henderson, Perkins, Intech and Knowledge. Shared are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors | ||||||||
125-24-93074 02-19 | ||||||||
SEMIANNUAL REPORT December 31, 2018 | ||
Janus Henderson Diversified Alternatives Fund | ||
Janus Investment Fund | ||
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by contacting a Janus Henderson representative. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by visiting janushenderson.com/edelivery. You may elect to receive all future reports in paper free of charge. If you do not invest directly with the Fund, you should contact your plan sponsor, broker-dealer, or financial intermediary, to request to continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-525-3713 to let the Fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Janus Henderson mutual funds where held (i.e., all Janus Henderson mutual funds held in your account if you invest through your financial intermediary or all Janus Henderson mutual funds held with the fund complex if you invest directly with a fund).
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HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics |
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Table of Contents
Janus Henderson Diversified Alternatives Fund
Investments | |
Information | |
Janus Henderson Diversified Alternatives Fund (unaudited)
PERFORMANCE SUMMARY
For the six-month period ended December 31, 2018, Janus Henderson Diversified Alternatives Fund’s Class I Shares returned -4.11%, compared with a return of 1.65% for its primary benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, and 2.70% for its secondary benchmark, LIBOR + 3%.
MARKET ENVIRONMENT
The period started with riskier assets on the ascendency as steady growth in the U.S. seemed to offset brewing economic weakness in other pockets of the global economy. While many regions struggled, several U.S. equity benchmarks reached record highs mid-period. The same heightened growth expectations, however, fueled concerns of an overheating economy with a spike in inflation being a potential side effect. Those fears pushed up U.S. Treasury yields, which in turn negatively impacted stocks as investors feared elevated levels of corporate debt would weigh on earnings in a higher interest rate environment. Consequently, stocks sold off midway through the period and never regained their footing. All the while, the deleterious effects of a global trade war further caused investors to downgrade their growth expectations.
Benefiting from the shift toward a more cautious environment were safer asset classes, including U.S. Treasuries. After hitting an intra-period high of 3.24%, the yield on the U.S. 10-year note finished at 2.68%, 16 basis points below where it began. This produced a flattening yield curve as the 2-year note rose on the back of two rate hikes by the Federal Reserve (Fed). A broad bond market benchmark gained, driven by lower interest rates. Similarly, investment-grade credits delivered positive returns, while their high-yield peers suffered losses. Energy and materials led stocks lower. Historically defensive sectors health care and utilities eked out positive returns. In commodities, crude oil prices fell considerably on concerns of excess supply and natural gas prices registered a significant spike on fears of a colder-than-expected winter.
PERFORMANCE DISCUSSION
The Fund underperformed its primary benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, and its secondary benchmark, LIBOR + 3%, during the six-month period. Over time, the Fund seeks to provide positive absolute returns and offer true diversification with low correlation to stocks and bonds by investing in a portfolio of risk premia strategies.
Two of the leading individual detractors were the equity momentum and equity size risk premia. Midway through the period, stocks sold off, but then remained range-bound for much of October and November as investors sought additional insight on the direction of the global economy. This lack of a pronounced trend did not enable the equity momentum strategy to contribute to performance as an established trajectory is necessary for returns to be generated. Later, initial reports out of the Group of 20 summit in Argentina hinted at a resolution in the U.S.-China trade spat. This ignited a push upward in stocks, sending a signal to our model to position itself for a rally. When the news on trade negotiations proved overly optimistic, markets quickly reversed and slid precipitously over the remainder of the period, leading to losses in the equity momentum strategy.
The equity size risk premium weighed on performance as rising volatility caused investors to shed what they considered the riskiest portions of their portfolios, including smaller-cap stocks. This behavior runs counter to the tendency upon which this premium strategy is based: smaller-cap stocks outperforming large caps over time. We believe that this downdraft was more of a knee-jerk reaction rather than being fundamentally driven. We, therefore, would not be surprised if the small-cap underperformance subsides once portfolio underweights to small companies become meaningful.
Janus Investment Fund | 1 |
Janus Henderson Diversified Alternatives Fund (unaudited)
The commodity roll yield risk premium also detracted. This strategy is aimed at capitalizing on the price differentials that tend to exist between shorter-dated and deferred futures contracts. These differences can generate excess returns, but the strategy’s structure does expose it to supply shocks. This is what occurred during the period, when a combination of inventory shortages and a fierce start to the winter led to a substantial spike in natural gas prices. While this resulted in a loss, the strategy’s risk-management protocol reduced the leverage to this risk premium, potentially mitigating additional losses.
A leading contributor for the period was the equity value risk premium as value stocks fell less than companies with richer multiples, which aligns with the tendency underpinning this risk premium. Also contributing was the currency momentum risk premium. This the strategy aims to capture persistent moves in the U.S. dollar relative to a basket of foreign currencies. In the case of 2018, due to the Fed’s policy of raising rates – in contrast to other major central banks – the dollar outperformed a basket of its developed markets peers, thus generating a positive return on the strategy.
The credit risk premium contributed, largely due to the duration – or interest rate risk – component of its risk premium. The late-period rapid decrease in interest rates more than compensated for widening credit spreads, which proved to be a headwind for this risk premium.
DERIVATIVES USAGE
The Fund makes extensive use of derivatives because they are generally the most efficient and liquid way to gain our desired exposures. Swaps are used to take exposures in equity, fixed income and commodity indices. Futures are used to take exposures in commodities, currencies and long-end fixed income markets. Forwards are employed to take exposures in foreign currencies, generally one week in length. In aggregate, these positions detracted from performance during the period.
Please see the Derivative Instruments section in the “Notes to Consolidated Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
The recent market events, in our view, are likely the consequence of liquidity being drained from the system as global central banks shift from quantitative easing to quantitative tightening. The risk premia upon which the strategy is based have been evident in markets for decades. The distortions caused by highly accommodative monetary policy – and now its reversal – have sent shock waves through financial markets, thus impacting the historical relationships underlying many of these risk premia.
We do not believe this will last. Over time we expect these relationships to reestablish themselves. Over the near term, however, elevated volatility and the high amount of leverage in the system may result in additional idiosyncratic movements. Therefore, we believe risk premia strategies that emphasize dampening volatility across the portfolio and within each component are better positioned to weather any additional storms.
Thank you for investing in the Janus Henderson Diversified Alternative Fund.
2 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund (unaudited)
Fund At A Glance
December 31, 2018
Asset Allocation |
|
Equity | 34.5% |
Fixed Income | 32.5% |
Commodity | 19.2% |
Currency | 11.3% |
Cash & Cash Equivalents | 2.5% |
100.0% | |
The allocations shown reflect absolute notional exposures to various asset classes. The allocations are calculated net of cash segregated for future obligations. | |
Janus Investment Fund | 3 |
Janus Henderson Diversified Alternatives Fund (unaudited)
Performance
See important disclosures on the next page. |
| Expense Ratios - | |||||||||
Average Annual Total Return - for the periods ended December 31, 2018 |
|
| per the October 29, 2018 prospectuses | |||||||
|
| Fiscal | One | Five | Since |
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| Total Annual Fund | Net Annual Fund | |
Class A Shares at NAV |
| -4.22% | -4.60% | 0.88% | 0.57% |
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| 1.56% | 1.39% | |
Class A Shares at MOP |
| -9.70% | -10.12% | -0.30% | -0.42% |
|
|
|
| |
Class C Shares at NAV | -4.58% | -5.26% | 0.24% | -0.08% |
|
| 2.32% | 2.13% | ||
Class C Shares at CDSC |
| -5.54% | -6.20% | 0.24% | -0.08% |
|
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Class D Shares(1) |
| -4.16% | -4.54% | 0.97% | 0.67% |
|
| 1.63% | 1.24% | |
Class I Shares |
| -4.11% | -4.39% | 1.09% | 0.78% |
|
| 1.33% | 1.18% | |
Class N Shares |
| -4.06% | -4.34% | 1.15% | 0.83% |
|
| 1.24% | 1.09% | |
Class S Shares |
| -4.31% | -4.79% | 0.79% | 0.45% |
|
| 1.80% | 1.59% | |
Class T Shares |
| -4.26% | -4.55% | 0.98% | 0.65% |
|
| 1.50% | 1.34% | |
Bloomberg Barclays U.S. Aggregate Bond Index |
| 1.65% | 0.01% | 2.52% | 1.73% |
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London Interbank Offered Rate (LIBOR) + 3% Index |
| 2.70% | 4.86% | 3.98% | 3.97%** |
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Morningstar Quartile - Class I Shares |
| - | 3rd | 2nd | 4th |
|
|
|
| |
Morningstar Ranking - based on total returns for Multialternative Funds |
| - | 207/377 | 83/215 | 133/173 |
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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 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to through November 1, 2019.
4 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
There is a risk that the Fund’s investments will correlate with stocks and bonds to a greater degree than anticipated, and the investment process may not achieve the desired results. The Fund may underperform during up markets and be negatively affected in down markets. Diversification does not assure a profit or eliminate the risk of loss.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
See Consolidated Financial Highlights for actual expense ratios during the reporting period.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2018 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Consolidated Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 28, 2012
** The London Interbank Offered Rate (LIBOR) + 3% since inception returns are calculated from December 31, 2012.
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
Janus Henderson Diversified Alternatives Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses |
| Beginning | Ending | Expenses | Net Annualized | ||
Class A Shares | $1,000.00 | $957.80 | $7.06 |
| $1,000.00 | $1,018.00 | $7.27 | 1.43% | ||
Class C Shares | $1,000.00 | $954.20 | $10.54 |
| $1,000.00 | $1,014.42 | $10.87 | 2.14% | ||
Class D Shares | $1,000.00 | $958.40 | $6.22 |
| $1,000.00 | $1,018.85 | $6.41 | 1.26% | ||
Class I Shares | $1,000.00 | $958.90 | $6.02 |
| $1,000.00 | $1,019.06 | $6.21 | 1.22% | ||
Class N Shares | $1,000.00 | $959.40 | $5.43 |
| $1,000.00 | $1,019.66 | $5.60 | 1.10% | ||
Class S Shares | $1,000.00 | $956.90 | $7.89 |
| $1,000.00 | $1,017.14 | $8.13 | 1.60% | ||
Class T Shares | $1,000.00 | $957.40 | $6.66 |
| $1,000.00 | $1,018.40 | $6.87 | 1.35% | ||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Consolidated Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. | |||||||||
6 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Investment Companies – 6.5% | |||||||
Money Markets – 6.5% | |||||||
Janus Henderson Cash Liquidity Fund LLC, 2.4621%(d),ºº,£ (cost $6,489,296) | 6,489,296 | $6,489,296 | |||||
U.S. Government Agency Notes – 90.4% | |||||||
United States Treasury Bill: | |||||||
0%, 1/10/19◊ | $15,000,000 | 14,992,379 | |||||
0%, 2/7/19◊ | 10,500,000 | 10,474,776 | |||||
0%, 3/14/19◊ | 17,000,000 | 16,918,585 | |||||
0%, 4/11/19†,◊ | 20,000,000 | 19,871,019 | |||||
0%, 5/9/19◊ | 13,000,000 | 12,885,678 | |||||
0%, 6/6/19◊ | 16,000,000 | 15,827,411 | |||||
Total U.S. Government Agency Notes (cost $90,975,436) | 90,969,848 | ||||||
Total Investments (total cost $97,464,732) – 96.9% | 97,459,144 | ||||||
Cash, Receivables and Other Assets, net of Liabilities – 3.1% | 3,120,724 | ||||||
Net Assets – 100% | $100,579,868 | ||||||
Schedules of Affiliated Investments – (% of Net Assets)
Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 12/31/18 | |||||||
Investment Companies - 6.5% | ||||||||||
Money Markets - 6.5% | ||||||||||
Janus Henderson Cash Liquidity Fund LLC, 2.4621%(a),ºº | $ | 76,149 | $ | - | $ | - | $ | 6,489,296 | ||
Share Balance at 6/30/18 | Purchases | Sales | Share Balance at 12/31/18 | |||||||
Investment Companies - 6.5% | ||||||||||
Money Markets - 6.5% | ||||||||||
Janus Henderson Cash Liquidity Fund LLC, 2.4621%(a),ºº | 6,988,466 | 68,504,555 | (69,003,725) | 6,489,296 | ||||||
| �� | ||||||
Schedule of Forward Foreign Currency Exchange Contracts, Open |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | USD Currency Amount (Sold)/ Purchased | Market Value and Unrealized Appreciation/ (Depreciation) | ||||
HSBC Securities (USA) Inc: | ||||||||
Australian Dollar | 1/11/19 | 5,079,000 | $ | (3,576,124) | $ | 1,166 | ||
Canadian Dollar | 1/11/19 | (2,402,000) | 1,762,768 | 2,615 | ||||
Euro | 1/11/19 | 1,296,000 | (1,478,503) | 7,300 | ||||
Japanese Yen | 1/11/19 | (241,200,000) | 2,178,744 | (23,106) | ||||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements. | |
Janus Investment Fund | 7 |
Janus Henderson Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
December 31, 2018
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | USD Currency Amount (Sold)/ Purchased | Market Value and Unrealized Appreciation/ (Depreciation) | ||||
Norwegian Krone | 1/11/19 | 21,470,000 | $ | (2,450,200) | 35,684 | |||
Swedish Krona | 1/11/19 | (30,960,000) | 3,436,438 | (61,359) | ||||
Swiss Franc | 1/11/19 | (6,290,000) | 6,366,203 | (40,600) | ||||
Total | $ | (78,300) | ||||||
Schedule of Futures
Description | Number of Contracts | Expiration Date | Value and Notional Amount | Unrealized Appreciation/ (Depreciation) | Variation Margin Asset/(Liability) | ||||||||
Futures Purchased: | |||||||||||||
10-Year US Treasury Note | 193 | 3/20/19 | $ | 23,549,016 | $ | 481,922 | $ | 75,391 | |||||
Brent Crude(d) | 62 | 2/20/19 | 2,834,640 | 7,440 | 7,440 | ||||||||
Cooper(d) | 42 | 5/29/19 | 2,768,850 | (150,469) | (51,975) | ||||||||
Euro-Bund | 193 | 3/7/19 | 36,158,619 | 221,149 | - | ||||||||
Gold 100 Oz(d) | 14 | 4/26/19 | 1,802,780 | 60,969 | (2,240) | ||||||||
Live Cattle(d) | 60 | 6/28/19 | 2,809,800 | 62,047 | 3,000 | ||||||||
Silver(d) | 23 | 5/29/19 | 1,796,990 | 124,749 | 12,075 | ||||||||
Sugar #11(d) | 203 | 4/30/19 | 2,751,056 | (74,899) | (77,038) | ||||||||
US Dollar Index | 78 | 3/18/19 | 7,467,330 | (54,482) | (17,940) | ||||||||
Total - Futures Purchased | 678,426 | (51,287) | |||||||||||
Futures Sold: | |||||||||||||
Brent Crude(d) | 71 | 1/31/19 | (3,819,800) | (41,890) | (41,890) | ||||||||
Coffee 'C'(d) | 96 | 5/20/19 | (3,778,200) | 165,500 | (32,146) | ||||||||
Corn(d) | 197 | 5/14/19 | (3,772,550) | 34,257 | 2,463 | ||||||||
Cotton #2(d) | 102 | 5/8/19 | (3,748,500) | 286,745 | (510) | ||||||||
Soybean(d) | 84 | 5/14/19 | (3,812,550) | 106,738 | 2,100 | ||||||||
Sugar #11(d) | 69 | 6/28/19 | (945,907) | 22,411 | 23,912 | ||||||||
Wheat(d) | 106 | 7/12/19 | (2,748,050) | 41,075 | 41,075 | ||||||||
WTI Crude(d) | 21 | 4/22/19 | (976,710) | 88,691 | (5,040) | ||||||||
Total - Futures Sold | 703,527 | (10,036) | |||||||||||
Total | $ | 1,381,953 | $ | (61,323) | |||||||||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements. | |
8 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
December 31, 2018
Schedule of Total Return Swaps | |||||||||||
Counterparty/ Return Paid by the Fund | Return Received by the Fund | Payment Frequency | Termination Date | Notional Amount | Value and Unrealized Appreciation/ (Depreciation) | ||||||
Barclays Capital Inc:
3 month USD LIBOR plus 20 basis points | Bloomberg Barclays U.S. Credit RBI Series-1 Index | Monthly | 2/1/19 | 23,300,000 | USD | $ | 10,396 |
BNP Paribas:
Plus 40 basis points | A long/short basket of equity indices(1) | Monthly | 2/4/19 | 19,000,000 | USD | (84,996) | |||||
Minus 20 basis points | A long/short basket of equity indices(2) | Monthly | 2/4/19 | 22,900,000 | USD | (24,055) | |||||
(109,051) |
Goldman Sachs International:
MSCI Daily Total Return Gross World USD | 1 month USD LIBOR Plus 12 basis points | Monthly | 7/5/19 | (23,437,973) | USD | 278,079 | |||||
1 month USD LIBOR plus 70 basis points | MSCI Daily Total Return Net Emerging Markets | Monthly | 7/5/19 | 23,062,624 | USD | 10,297 | |||||
288,376 |
JPMorgan Chase & Co:
Plus 13 basis points(d) | A long/short basket of commodity indices(3) | Monthly | 1/31/19 | 10,600,000 | USD | 64,268 | |||||
Total | $ | 253,989 |
(1) Long Index – S&P 500 Pure Value TR Index, Short Index – S&P 500 Pure Growth TR Index
(2) Long Index – Russell 2000 Total Return Index, Short Index – Russell 1000 Total Return Index
(3) Long Index – Bloomberg Commodity Index 2-4-6 Forward Blend, Short Index – Bloomberg Commodity Index
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Consolidated Statement of Assets and Liabilities as of December 31, 2018.
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018 | ||||||||||||||
|
|
|
| Commodity |
| Credit |
| Currency |
| Equity |
| Interest Rate |
| Total |
Asset Derivatives: | ||||||||||||||
Forward foreign currency exchange contracts | $ - | $ - | $ 46,765 | $ - | $ - | $ 46,765 | ||||||||
Outstanding swap contracts, at value | 64,268 | 10,396 | - | 288,376 | - | 363,040 | ||||||||
Variation margin receivable | 92,065 | - | - | - | 75,391 | 167,456 | ||||||||
Total Asset Derivatives |
| $ 156,333 |
| $ 10,396 |
| $ 46,765 |
| $288,376 |
| $ 75,391 |
| $577,261 | ||
| ||||||||||||||
Liability Derivatives: | ||||||||||||||
Forward foreign currency exchange contracts | $ - | $ - | $125,065 | $ - | $ - | $125,065 | ||||||||
Outstanding swap contracts, at value | - | - | - | 109,051 | - | 109,051 | ||||||||
Variation margin payable | 210,839 | - | 17,940 | - | - | 228,779 | ||||||||
Total Liability Derivatives |
| $ 210,839 |
| $ - |
| $143,005 |
| $109,051 |
| $ - |
| $462,895 | ||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements. | |
Janus Investment Fund | 9 |
Janus Henderson Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
December 31, 2018
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Consolidated Statement of Operations for the period ended December 31, 2018.
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Consolidated Statement of Operations for the period ended December 31, 2018 | |||||||||||||
Amount of Realized Gain/(Loss) Recognized on Derivatives | |||||||||||||
Derivative | Commodity |
| Credit |
| Currency |
| Equity |
| Interest Rate |
| Total | ||
Futures contracts | $(1,497,034) | $ - | $ 622,964 | $(1,147,986) | $ (1,016,469) | $(3,038,525) | |||||||
Forward foreign currency exchange contracts | - | - | (327,937) | - | - | (327,937) | |||||||
Swap contracts | (681,518) | 476,904 | - | (2,711,149) | - | (2,915,763) | |||||||
Total | $(2,178,552) |
| $476,904 |
| $ 295,027 |
| $(3,859,135) |
| $ (1,016,469) |
| $(6,282,225) | ||
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | |||||||||||||
Derivative | Commodity |
| Credit |
| Currency |
| Equity |
| Interest Rate |
| Total | ||
Futures contracts | $ 769,329 | $ - | $(311,410) | $ 12,605 | $ 595,075 | $ 1,065,599 | |||||||
Forward foreign currency exchange contracts | - | - | (60,178) | - | - | (60,178) | |||||||
Swap contracts | 57,868 | 14,045 | - | 179,100 | - | 251,013 | |||||||
Total | $ 827,197 |
| $ 14,045 |
| $(371,588) |
| $ 191,705 |
| $ 595,075 |
| $ 1,256,434 | ||
Please see the “Net Realized Gain/(Loss) on Investments” and “Change in Unrealized Net Appreciation/Depreciation” sections of the Fund’s Consolidated Statement of Operations.
Average Ending Monthly Market Value of Derivative Instruments During the Period Ended December 31, 2018 | |
| Market Value(a) |
Forward foreign currency exchange contracts, purchased | $ 9,751,529 |
Forward foreign currency exchange contracts, sold | 13,838,737 |
Futures contracts, purchased | 77,340,663 |
Futures contracts, sold | 23,228,190 |
Total return swaps, long | (116,386) |
Total return swaps, short | (50,446) |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. | |
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements. | |
10 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Schedule of Investments and Other Information (unaudited)
Bloomberg Barclays U.S. Aggregate Bond Index | Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. |
London Interbank Offered Rate (LIBOR) | LIBOR (London Interbank Offered Rate) is a short-term interest rate that banks offer one another and generally represents current cash rates. |
LLC | Limited Liability Company |
(d) | All or a portion of this security is owned by Janus Diversified Alternatives Subsidiary, Ltd. See Note 1 in Notes to Consolidated Financial Statements. |
† | All or a portion of this security has been segregated at the Fund’s custodian or counterparty to cover forward foreign currency exchange contracts, exchange-traded derivatives, centrally cleared derivatives, short sales, and/or securities with extended settlement dates. Assets segregated at the Fund’s custodian or counterparty are evaluated daily to ensure their cover and/or market value equals or exceeds the current market value of the Fund’s corresponding obligation value. |
ºº | Rate shown is the 7-day yield as of December 31, 2018. |
◊ | Zero coupon bond. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
Janus Investment Fund | 11 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Schedule of Investments and Other Information (unaudited)
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of December 31, 2018. See Notes to Consolidated Financial Statements for more information. | |||||||||||||
Valuation Inputs Summary | |||||||||||||
Level 2 - | Level 3 - | ||||||||||||
Level 1 - | Other Significant | Significant | |||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||||
Assets | |||||||||||||
Investments in Securities: | |||||||||||||
Investment Companies | $ | - | $ | 6,489,296 | $ | - | |||||||
U.S. Government Agency Notes | - | 90,969,848 | - | ||||||||||
Total Investments in Securities | $ | - | $ | 97,459,144 | $ | - | |||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | - | 46,765 | - | ||||||||||
Outstanding Swap Contracts, at Value | - | 363,040 | - | ||||||||||
Variation Margin Receivable | 167,456 | - | - | ||||||||||
Total Assets | $ | 167,456 | $ | 97,868,949 | $ | - | |||||||
Liabilities | |||||||||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | $ | - | $ | 125,065 | $ | - | |||||||
Outstanding Swap Contracts, at Value | - | 109,051 | - | ||||||||||
Variation Margin Payable | 228,779 | - | - | ||||||||||
Total Liabilities | $ | 228,779 | $ | 234,116 | $ | - | |||||||
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. | ||||||||||||
12 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Consolidated Statement of Assets and Liabilities (unaudited)
December 31, 2018
See footnotes at the end of the Consolidated Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Unaffiliated investments, at value(1) | $ | 90,969,848 | ||||
Affiliated investments, at value(2) | 6,489,296 | |||||
Deposits with brokers for futures | 3,830,000 | |||||
Forward foreign currency exchange contracts | 46,765 | |||||
Outstanding swap contracts, at value | 363,040 | |||||
Variation margin receivable | 167,456 | |||||
Receivables: | ||||||
Fund shares sold | 88,624 | |||||
Investments sold | 85,853 | |||||
Dividends from affiliates | 13,479 | |||||
Dividends and interest on swap contracts | 3,013 | |||||
Foreign tax reclaims | 454 | |||||
Other assets | 56,220 | |||||
Total Assets |
|
| 102,114,048 |
| ||
Liabilities: | ||||||
Due to custodian | 106,985 | |||||
Forward foreign currency exchange contracts | 125,065 | |||||
Outstanding swap contracts, at value | 109,051 | |||||
Variation margin payable | 228,779 | |||||
Payables: | — | |||||
Fund shares repurchased | 676,299 | |||||
Dividends and interest on swap contracts | 64,906 | |||||
Registration fees | 64,494 | |||||
Non-affiliated fund administration fees payable | 60,909 | |||||
Professional fees | 28,207 | |||||
Advisory fees | 22,933 | |||||
Printing fees | 22,790 | |||||
Transfer agent fees and expenses | 6,632 | |||||
12b-1 Distribution and shareholder servicing fees | 2,854 | |||||
Custodian fees | 1,853 | |||||
Non-interested Trustees' fees and expenses | 824 | |||||
Affiliated fund administration fees payable | 222 | |||||
Accrued expenses and other payables | 11,377 | |||||
Total Liabilities |
|
| 1,534,180 |
| ||
Net Assets |
| $ | 100,579,868 |
| ||
See Notes to Consolidated Financial Statements. | |
Janus Investment Fund | 13 |
Janus Henderson Diversified Alternatives Fund
Consolidated Statement of Assets and Liabilities (unaudited)
December 31, 2018
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 106,124,157 | ||||
Total distributable earnings (loss) | (5,544,289) | |||||
Total Net Assets |
| $ | 100,579,868 |
| ||
Net Assets - Class A Shares | $ | 3,717,123 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 388,124 | |||||
Net Asset Value Per Share(3) |
| $ | 9.58 |
| ||
Maximum Offering Price Per Share(4) |
| $ | 10.16 |
| ||
Net Assets - Class C Shares | $ | 1,998,123 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 212,687 | |||||
Net Asset Value Per Share(3) |
| $ | 9.39 |
| ||
Net Assets - Class D Shares | $ | 3,884,140 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 403,679 | |||||
Net Asset Value Per Share |
| $ | 9.62 |
| ||
Net Assets - Class I Shares | $ | 16,122,176 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,673,142 | |||||
Net Asset Value Per Share |
| $ | 9.64 |
| ||
Net Assets - Class N Shares | $ | 67,819,834 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,014,022 | |||||
Net Asset Value Per Share |
| $ | 9.67 |
| ||
Net Assets - Class S Shares | $ | 1,409,112 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 148,038 | |||||
Net Asset Value Per Share |
| $ | 9.52 |
| ||
Net Assets - Class T Shares | $ | 5,629,360 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 588,185 | |||||
Net Asset Value Per Share |
| $ | 9.57 |
| ||
(1) Includes cost of $90,975,436. (2) Includes cost of $6,489,296. (3) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (4) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Consolidated Financial Statements. | |
14 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Consolidated Statement of Operations (unaudited)
For the period ended December 31, 2018
|
|
|
|
|
|
Investment Income: | |||||
| Interest | $ | 1,041,468 | ||
Dividends from affiliates | 76,149 | ||||
Other income | 20,619 | ||||
Total Investment Income |
| 1,138,236 |
| ||
Expenses: | |||||
Advisory fees | 601,148 | ||||
12b-1 Distribution and shareholder servicing fees: | |||||
Class A Shares | 4,768 | ||||
Class C Shares | 10,576 | ||||
Class S Shares | 1,820 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 2,798 | ||||
Class S Shares | 1,820 | ||||
Class T Shares | 7,578 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 1,338 | ||||
Class C Shares | 340 | ||||
Class I Shares | 10,988 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 177 | ||||
Class C Shares | 89 | ||||
Class D Shares | 966 | ||||
Class I Shares | 497 | ||||
Class N Shares | 943 | ||||
Class S Shares | 10 | ||||
Class T Shares | 93 | ||||
Registration fees | 97,162 | ||||
Non-affiliated fund administration fees | 65,391 | ||||
Professional fees | 32,214 | ||||
Shareholder reports expense | 7,015 | ||||
Custodian fees | 5,148 | ||||
Non-interested Trustees’ fees and expenses | 1,620 | ||||
Affiliated fund administration fees | 1,375 | ||||
Other expenses | 1,813 | ||||
Total Expenses |
| 857,687 |
| ||
Less: Excess Expense Reimbursement and Waivers |
| (208,193) |
| ||
Net Expenses |
| 649,494 |
| ||
Net Investment Income/(Loss) |
| 488,742 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | 9,403 | ||||
Forward foreign currency exchange contracts | (327,937) | ||||
Futures contracts | (3,038,525) | ||||
Swap contracts | (2,915,763) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (6,272,822) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees’ deferred compensation | (17,991) | ||||
Forward foreign currency exchange contracts | (60,178) | ||||
Futures contracts | 1,065,599 | ||||
Swap contracts | 251,013 | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| 1,238,443 |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (4,545,637) |
| ||
See Notes to Consolidated Financial Statements. | |
Janus Investment Fund | 15 |
Janus Henderson Diversified Alternatives Fund
Consolidated Statements of Changes in Net Assets
|
|
| Period ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 488,742 | $ | 67,164 | ||||
Net realized gain/(loss) on investments | (6,272,822) | 880,912 | ||||||
Change in unrealized net appreciation/depreciation | 1,238,443 | 322,258 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (4,545,637) |
|
| 1,270,334 | |||
Dividends and Distributions to Shareholders(1) | ||||||||
Class A Shares | (20,991) | N/A | ||||||
Class C Shares | (3,697) | N/A | ||||||
Class D Shares | (26,367) | N/A | ||||||
Class I Shares | (109,709) | N/A | ||||||
Class N Shares | (473,861) | N/A | ||||||
Class S Shares | (8,529) | N/A | ||||||
Class T Shares | (35,660) | N/A | ||||||
| Total Dividends and Distributions to Shareholders |
| (678,814) |
|
| N/A | ||
Dividends from Net Investment Income(1) | ||||||||
Class A Shares | N/A | (39,665) | ||||||
Class C Shares | N/A | (3,459) | ||||||
Class D Shares | N/A | (62,629) | ||||||
Class I Shares | N/A | (208,324) | ||||||
Class N Shares | N/A | (1,223,347) | ||||||
Class S Shares | N/A | (13,853) | ||||||
Class T Shares | N/A | (77,225) | ||||||
| Total Dividends from Net Investment Income |
| N/A |
|
| (1,628,502) | ||
Distributions from Net Realized Gain from Investment Transactions(1) | ||||||||
Class A Shares | N/A | (43,076) | ||||||
Class C Shares | N/A | (28,894) | ||||||
Class D Shares | N/A | (62,973) | ||||||
Class I Shares | N/A | (172,208) | ||||||
Class N Shares | N/A | (1,013,987) | ||||||
Class S Shares | N/A | (19,521) | ||||||
Class T Shares | N/A | (70,833) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | N/A |
|
| (1,411,492) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (678,814) |
|
| (3,039,994) | |||
Capital Share Transactions: | ||||||||
Class A Shares | (44,825) | 1,696,051 | ||||||
Class C Shares | (89,952) | 137,371 | ||||||
Class D Shares | (1,067,313) | 361,550 | ||||||
Class I Shares | (2,635,740) | 13,307,958 | ||||||
Class N Shares | (4,377,049) | 26,406,111 | ||||||
Class S Shares | 7,540 | 34,374 | ||||||
Class T Shares | (432,089) | 2,750,667 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| (8,639,428) |
|
| 44,694,082 | |||
Net Increase/(Decrease) in Net Assets |
| (13,863,879) |
|
| 42,924,422 | |||
Net Assets: | ||||||||
Beginning of period | 114,443,747 | 71,519,325 | ||||||
| End of period(2) | $ | 100,579,868 |
| $ | 114,443,747 | ||
(1) The requirement to disclose dividends and distributions paid to shareholders from net investment income and/or net realized gain from investment transactions was eliminated by the SEC (Securities Exchange Commission) in 2018. (2) Net assets - End of period includes undistributed (overdistributed) net investment income of $676,199 as of June 30, 2018. The requirement to disclose undistributed (overdistributed) net investment income was eliminated by the SEC in 2018. |
See Notes to Consolidated Financial Statements. | |
16 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Consolidated Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 | |||||
Net Asset Value, Beginning of Period |
| $10.05 |
|
| $10.16 |
|
| $9.92 |
|
| $9.98 |
|
| $9.84 |
|
| $9.82 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | 0.04 | (0.02) | (0.11) | (0.14) | (0.15) | (0.13) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.46) | 0.18 | 0.63 | 0.18 | 0.37 | 0.15 | |||||||||||||||
Total from Investment Operations |
| (0.42) |
|
| 0.16 |
|
| 0.52 |
|
| 0.04 |
|
| 0.22 |
|
| 0.02 |
| |||
Less Dividends and Distributions: | �� | ||||||||||||||||||||
Dividends (from net investment income) | (0.05) | (0.13) | (0.28) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.05) |
|
| (0.27) |
|
| (0.28) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.58 | $10.05 | $10.16 | $9.92 | $9.98 | $9.84 | |||||||||||||||
Total Return* |
| (4.13)% |
|
| 1.46% |
|
| 5.29% |
|
| 0.42% |
|
| 2.22% |
|
| 0.20% |
| |||
Net Assets, End of Period (in thousands) | $3,717 | $3,941 | $2,297 | $2,882 | $2,740 | $4,055 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $3,785 | $3,110 | $2,737 | $2,730 | $2,048 | $3,752 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.87% | 1.68% | 1.83% | 1.89% | 1.84% | 1.70% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.43% | 1.44% | 1.54% | 1.53% | 1.52% | 1.46% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.81% | (0.23)% | (1.13)% | (1.42)% | (1.51)% | (1.34)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
1 | |||||||||||||||||||||
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
| ||||
Net Asset Value, Beginning of Period |
| $9.86 |
|
| $9.94 |
|
| $9.72 |
|
| $9.84 |
|
| $9.79 |
|
| $9.78 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | —(2) | (0.14) | (0.18) | (0.21) | (0.23) | (0.15) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.45) | 0.22 | 0.61 | 0.19 | 0.36 | 0.16 | |||||||||||||||
Total from Investment Operations |
| (0.45) |
|
| 0.08 |
|
| 0.43 |
|
| (0.02) |
|
| 0.13 |
|
| 0.01 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.02) | (0.02) | (0.21) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.02) |
|
| (0.16) |
|
| (0.21) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.39 | $9.86 | $9.94 | $9.72 | $9.84 | $9.79 | |||||||||||||||
Total Return* |
| (4.59)% |
|
| 0.71% |
|
| 4.48% |
|
| (0.19)% |
|
| 1.31% |
|
| 0.10% |
| |||
Net Assets, End of Period (in thousands) | $1,998 | $2,188 | $2,071 | $1,749 | $1,709 | $3,516 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $2,099 | $2,162 | $1,885 | $1,685 | $1,752 | $3,551 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.64% | 2.44% | 2.56% | 2.63% | 2.59% | 1.89% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 2.14% | 2.18% | 2.29% | 2.27% | 2.26% | 1.64% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.00%(3) | (1.42)% | (1.85)% | (2.15)% | (2.26)% | (1.52)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Less than 0.005%. |
See Notes to Consolidated Financial Statements. | |
Janus Investment Fund | 17 |
Janus Henderson Diversified Alternatives Fund
Consolidated Financial Highlights
Class D Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 | |||||
Net Asset Value, Beginning of Period |
| $10.10 |
|
| $10.20 |
|
| $9.96 |
|
| $10.00 |
|
| $9.85 |
|
| $9.82 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | 0.04 | (0.06) | (0.10) | (0.13) | (0.14) | (0.13) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.46) | 0.24 | 0.63 | 0.19 | 0.37 | 0.16 | |||||||||||||||
Total from Investment Operations |
| (0.42) |
|
| 0.18 |
|
| 0.53 |
|
| 0.06 |
|
| 0.23 |
|
| 0.03 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.06) | (0.14) | (0.29) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.06) |
|
| (0.28) |
|
| (0.29) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.62 | $10.10 | $10.20 | $9.96 | $10.00 | $9.85 | |||||||||||||||
Total Return* |
| (4.16)% |
|
| 1.66% |
|
| 5.38% |
|
| 0.62% |
|
| 2.32% |
|
| 0.31% |
| |||
Net Assets, End of Period (in thousands) | $3,884 | $5,169 | $4,857 | $4,758 | $3,060 | $6,170 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $4,632 | $5,034 | $4,638 | $3,829 | $3,281 | $5,964 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.75% | 1.75% | 1.87% | 2.05% | 1.96% | 1.66% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.26% | 1.30% | 1.41% | 1.42% | 1.43% | 1.41% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.77% | (0.60)% | (0.97)% | (1.30)% | (1.42)% | (1.28)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
| ||||
Net Asset Value, Beginning of Period |
| $10.11 |
|
| $10.24 |
|
| $10.00 |
|
| $10.02 |
|
| $9.87 |
|
| $9.83 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | 0.03 | 0.02 | (0.08) | (0.11) | (0.13) | (0.11) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.44) | 0.15 | 0.63 | 0.19 | 0.36 | 0.15 | |||||||||||||||
Total from Investment Operations |
| (0.41) |
|
| 0.17 |
|
| 0.55 |
|
| 0.08 |
|
| 0.23 |
|
| 0.04 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.06) | (0.16) | (0.31) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.06) |
|
| (0.30) |
|
| (0.31) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.64 | $10.11 | $10.24 | $10.00 | $10.02 | $9.87 | |||||||||||||||
Total Return* |
| (4.01)% |
|
| 1.64% |
|
| 5.51% |
|
| 0.82% |
|
| 2.32% |
|
| 0.41% |
| |||
Net Assets, End of Period (in thousands) | $16,122 | $19,707 | $6,713 | $2,383 | $2,265 | $5,727 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $19,152 | $12,386 | $4,396 | $2,318 | $2,586 | $6,201 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.59% | 1.45% | 1.55% | 1.63% | 1.59% | 1.50% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.22% | 1.22% | 1.31% | 1.27% | 1.26% | 1.25% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.59% | 0.24% | (0.81)% | (1.16)% | (1.26)% | (1.13)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Consolidated Financial Statements. | |
18 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Consolidated Financial Highlights
Class N Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 | |||||
Net Asset Value, Beginning of Period |
| $10.15 |
|
| $10.26 |
|
| $10.01 |
|
| $10.04 |
|
| $9.87 |
|
| $9.83 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | 0.05 | 0.02 | (0.08) | (0.11) | (0.13) | (0.11) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.46) | 0.17 | 0.63 | 0.18 | 0.38 | 0.15 | |||||||||||||||
Total from Investment Operations |
| (0.41) |
|
| 0.19 |
|
| 0.55 |
|
| 0.07 |
|
| 0.25 |
|
| 0.04 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.07) | (0.16) | (0.30) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.07) |
|
| (0.30) |
|
| (0.30) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.67 | $10.15 | $10.26 | $10.01 | $10.04 | $9.87 | |||||||||||||||
Total Return* |
| (4.06)% |
|
| 1.83% |
|
| 5.58% |
|
| 0.72% |
|
| 2.52% |
|
| 0.41% |
| |||
Net Assets, End of Period (in thousands) | $67,820 | $75,615 | $50,421 | $47,367 | $52,478 | $57,190 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $72,073 | $68,132 | $47,482 | $48,364 | $54,416 | $57,130 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.46% | 1.36% | 1.53% | 1.62% | 1.60% | 1.49% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.10% | 1.14% | 1.26% | 1.25% | 1.25% | 1.25% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.02% | 0.17% | (0.83)% | (1.14)% | (1.24)% | (1.13)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
| ||||
Net Asset Value, Beginning of Period |
| $10.00 |
|
| $10.10 |
|
| $9.89 |
|
| $9.92 |
|
| $9.82 |
|
| $9.81 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | 0.03 | (0.08) | (0.12) | (0.12) | (0.18) | (0.14) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.45) | 0.22 | 0.63 | 0.19 | 0.36 | 0.15 | |||||||||||||||
Total from Investment Operations |
| (0.42) |
|
| 0.14 |
|
| 0.51 |
|
| 0.07 |
|
| 0.18 |
|
| 0.01 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.06) | (0.10) | (0.30) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.06) |
|
| (0.24) |
|
| (0.30) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.52 | $10.00 | $10.10 | $9.89 | $9.92 | $9.82 | |||||||||||||||
Total Return* |
| (4.22)% |
|
| 1.29% |
|
| 5.17% |
|
| 0.72% |
|
| 1.82% |
|
| 0.10% |
| |||
Net Assets, End of Period (in thousands) | $1,409 | $1,473 | $1,453 | $1,381 | $1,371 | $3,506 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $1,444 | $1,480 | $1,425 | $1,340 | $1,578 | $3,492 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.17% | 1.92% | 2.04% | 2.12% | 2.07% | 1.95% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.60% | 1.53% | 1.64% | 1.33% | 1.75% | 1.58% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.66% | (0.79)% | (1.21)% | (1.22)% | (1.74)% | (1.46)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Consolidated Financial Statements. | |
Janus Investment Fund | 19 |
Janus Henderson Diversified Alternatives Fund
Consolidated Financial Highlights
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year ended June 30 | 2018 |
|
| 2018 |
|
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 | |||||
Net Asset Value, Beginning of Period |
| $10.05 |
|
| $10.17 |
|
| $9.95 |
|
| $9.98 |
|
| $9.85 |
|
| $9.82 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss)(1) | 0.04 | —(2) | (0.10) | (0.10) | (0.15) | (0.13) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.46) | 0.17 | 0.63 | 0.17 | 0.36 | 0.16 | |||||||||||||||
Total from Investment Operations |
| (0.42) |
|
| 0.17 |
|
| 0.53 |
|
| 0.07 |
|
| 0.21 |
|
| 0.03 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.06) | (0.15) | (0.31) | — | — | — | |||||||||||||||
Distributions (from capital gains) | — | (0.14) | — | (0.10) | (0.08) | — | |||||||||||||||
Total Dividends and Distributions |
| (0.06) |
|
| (0.29) |
|
| (0.31) |
|
| (0.10) |
|
| (0.08) |
|
| — |
| |||
Net Asset Value, End of Period | $9.57 | $10.05 | $10.17 | $9.95 | $9.98 | $9.85 | |||||||||||||||
Total Return* |
| (4.17)% |
|
| 1.59% |
|
| 5.39% |
|
| 0.72% |
|
| 2.12% |
|
| 0.31% |
| |||
Net Assets, End of Period (in thousands) | $5,629 | $6,350 | $3,708 | $1,579 | $2,517 | $3,809 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $6,017 | $5,110 | $2,556 | $1,689 | $2,162 | $3,773 | |||||||||||||||
Ratios to Average Net Assets**: |
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Ratio of Gross Expenses | 1.76% | 1.62% | 1.77% | 1.87% | 1.83% | 1.75% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.35% | 1.33% | 1.45% | 1.18% | 1.51% | 1.40% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.74% | (0.03)% | (0.97)% | (1.08)% | (1.50)% | (1.28)% | |||||||||||||||
Portfolio Turnover Rate | 0% | 0% | 16% | 0% | 0% | 59% | |||||||||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
See Notes to Consolidated Financial Statements. | |
20 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Diversified Alternatives Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 48 funds which include multiple series of shares, with differing investment objectives and policies. The Fund seeks absolute return with low correlation to stocks and bonds. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares. Class D Shares are closed to certain new investors.
Class A Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds have adopted an auto-conversion police pursuant to which Class C Shares that have been held for ten years will be automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the tenth anniversary of the date of purchase. For Class C Shares held in retirement plans, omnibus accounts on intermediary platforms, and in certain other accounts, the Fund and its agents may not have transparency into how long a shareholder has held Class C Shares and therefore may not be able to determine whether such Class C Shares are eligible for automatic conversion to Class A Shares; accordingly the Funds will not be able to automatically convert Class C Shares into Class A Shares, and the financial intermediary is responsible for notifying the Fund that Class C Shares are eligible for conversion to Class A Shares. In addition, financial intermediaries may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. In these circumstances, certain Class C shareholders may not be eligible to convert their Class C Shares to Class A Shares as described above but may be permitted to convert their Class C Shares to Class A Shares pursuant to their financial intermediary’s conversion policies and procedures. Please contact your financial intermediary for additional information. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus Henderson funds. Class D Shares are available only to investors who hold accounts directly with the Janus Henderson funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary
Janus Investment Fund | 21 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Investment in Subsidiary
To qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended (the “Code”), 90% of the Fund’s income must be from certain qualified sources. Direct investment in many commodities-related investments generates income that is not from a qualifying source for purposes of meeting this 90% test. The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments in the Janus Diversified Alternatives Subsidiary, Ltd., a wholly-owned subsidiary of the Fund (”Subsidiary”) organized under the laws of the Cayman Islands, which is generally subject to the same investment policies and restrictions as the Fund. The Subsidiary may invest without limitation in commodity index-linked swaps, commodity futures, commodity swaps, commodity-linked notes, and other commodity-linked derivative instruments. The Subsidiary may also invest in fixed-income securities and other investments which may serve as margin or collateral for the Subsidiary’s derivatives positions. The Fund may invest 25% or less of its total assets in the Subsidiary. Income or net capital gains from the Fund’s investment in the Subsidiary would be treated as ordinary income to the Fund. Janus Capital is the adviser to the Subsidiary. The Subsidiary will not be subject to U.S. laws (including securities laws) and their protections. The Subsidiary is subject to the laws of a foreign jurisdiction, which can be affected by developments in that jurisdiction.
By investing in the Subsidiary, the Fund will be indirectly exposed to the risks associated with the Subsidiary’s investments, which are generally similar to those that are permitted to be held by the Fund. The Subsidiary is not registered under the 1940 Act, and is not subject to all of the provisions of the 1940 Act. The IRS has previously issued a number of private letter rulings to mutual funds (but not the Fund) in which it ruled that income from a fund’s investment in a wholly-owned foreign subsidiary that invests in commodity-linked derivatives, such as the Subsidiary, constitutes qualifying income. The IRS has suspended issuance of any further private letter rulings pending a review of its position. A change in the IRS’ position or changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate and could adversely affect the Fund. In particular, unfavorable treatment of the income derived from the Fund’s investment in the Subsidiary could jeopardize the Fund’s status as a regulated investment company under the Code, which in turn may subject the Fund to higher tax rates and/or penalties. Additionally, the Commodity Futures Trading Commission (“CFTC”) adopted changes to Rule 4.5 under the Commodity Exchange Act in 2012 that required Janus Capital to register with the CFTC, and operation of the Fund and Subsidiary is subject to certain CFTC rules and regulations. Existing or new CFTC regulation may increase the costs of implementing the Fund’s strategies, which could negatively affect the Fund’s returns.
The Subsidiary was incorporated on December 28, 2012 as a wholly-owned subsidiary of Janus Diversified Alternatives Fund. As of December 31, 2018, the Fund owns 688,356 shares of the Subsidiary, with a market value of $7,148,681. This represents 7% of the Fund’s net assets. The Fund’s Consolidated Schedule of Investments, Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations, Consolidated Statements of Changes in Net Assets, and Consolidated Financial Highlights include the accounts of both the Fund and the Subsidiary. All inter-company transactions and balances have been eliminated in consolidation.
As of December 31, 2018, Subsidiary information included in the Consolidated Financial Statements is as follows:
Net assets | $ 7,148,681 |
Market value of investments | 2,855,096 |
Net income/(loss) | 61,028 |
Net realized gain/(loss) | (2,178,460) |
Net change in unrealized appreciation/depreciation | 1,314,456 |
22 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Information on the valuation of certain derivatives is contained in Note 2 below.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be
Janus Investment Fund | 23 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2018 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Consolidated Schedule of Investments and Other Information.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class. Additionally, the Fund, as a shareholder in the Subsidiary, will also indirectly bear its pro rata share of the expenses incurred by the Subsidiary.
Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the consolidated financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the consolidated financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
24 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or the Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s consolidated financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Currently, Management does not believe the bill will have a material impact on the Fund’s intention to continue to qualify as a regulated investment company, which is generally not subject to U.S. federal income tax.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended December 31, 2018 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Consolidated Statement of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
Janus Investment Fund | 25 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital Management LLC's (“Janus Capital”) ability to establish and maintain appropriate systems and trading.
Commodity-Linked Investments
The Fund may invest in commodity index-linked swap agreements, commodity options and futures, and options on futures that provide exposure to the investment returns of the commodities markets. The Fund may also invest in other commodity-linked derivative instruments, such as commodity-linked notes (“structured notes”). The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments in the Subsidiary which is generally subject to the same investment policies and restrictions as the Fund. The Subsidiary invests in commodity-linked investments and other investments which may serve as margin or collateral for the Subsidiary’s derivative positions. Such exposure may subject the Fund to greater volatility than investments in traditional securities. The value of a given commodity-linked derivative investment typically is based upon the price movements of a physical commodity (such as heating oil, livestock, or agricultural products), a commodity futures contract or commodity index, or some other readily measurable economic variable. The value of commodity-linked derivative instruments may therefore be affected by changes in overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
26 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Consolidated Statement of Assets and Liabilities as a receivable or payable and in the Consolidated Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Consolidated Statement of Operations (if applicable).
During the period, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to take a positive outlook on the related currency. These forward contracts seek to increase exposure to currency risk.
During the period, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to take a negative outlook on the related currency. These forward contracts seek to increase exposure to currency risk.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used. Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Consolidated Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Consolidated Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Consolidated Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Consolidated Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the period, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the period, the Fund sold interest rate futures to decrease exposure to interest rate risk.
During the period, the Fund purchased commodity futures to increase exposure to commodity risk.
During the period, the Fund sold commodity futures to decrease exposure to commodity risk.
Janus Investment Fund | 27 |
Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
During the period, the Fund purchased futures on equity indices to increase exposure to equity risk.
During the period, the Fund purchased futures on currency indices to increase exposure to currency risk.
Swaps
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one year to exchange one set of cash flows for another. The most significant factor in the performance of swap agreements is the change in value of the specific index, security, or currency, or other factors that determine the amounts of payments due to and from the Fund. The use of swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Swap transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap. If the other party to a swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. Swap agreements entail the risk that a party will default on its payment obligations to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.
Swap agreements also bear the risk that the Fund will not be able to meet its obligation to the counterparty. Swap agreements are typically privately negotiated and entered into in the OTC market. However, certain swap agreements are required to be cleared through a clearinghouse and traded on an exchange or swap execution facility. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. Regulations enacted require the Fund to centrally clear certain interest rate and credit default index swaps through a clearinghouse or central counterparty (“CCP”). To clear a swap with a CCP, the Fund will submit the swap to, and post collateral with, a futures clearing merchant (“FCM”) that is a clearinghouse member. Alternatively, the Fund may enter into a swap with a financial institution other than the FCM (the “Executing Dealer”) and arrange for the swap to be transferred to the FCM for clearing. The Fund may also enter into a swap with the FCM itself. The CCP, the FCM, and the Executing Dealer are all subject to regulatory oversight by the U.S. Commodity Futures Trading Commission (“CFTC”). A default or failure by a CCP or an FCM, or the failure of a swap to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral, or fully implementing its investment strategies. The regulatory requirement to clear certain swaps could, either temporarily or permanently, reduce the liquidity of cleared swaps or increase the costs of entering into those swaps.
Index swaps, interest rate swaps, and credit default swaps are valued using an approved vendor supplied price. Basket swaps are valued using a broker supplied price. Equity swaps that consist of a single underlying equity are valued either at the closing price, the latest bid price, or the last sale price on the primary market or exchange it trades. The market value of swap contracts are aggregated by positive and negative values and are disclosed separately as an asset or liability on the Fund’s Consolidated Statement of Assets and Liabilities (if applicable). Realized gains and losses are reported on the Fund’s Consolidated Statement of Operations (if applicable). The change in unrealized net appreciation or depreciation during the period is included in the Consolidated Statement of Operations (if applicable).
The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period. A fixed-income total return swap may be written on many different kinds of underlying reference assets, and may include different indices for various kinds of debt securities (e.g., U.S. investment grade bonds, high-yield bonds, or emerging market bonds).
During the period, the Fund entered into total return swaps on equity indices or custom baskets of equity indices to increase exposure to equity risk. These total return swaps require the Fund to pay a floating reference interest rate, and an amount equal to the negative price movement of securities or an index multiplied by the notional amount of the contract. The Fund will receive payments equal to the positive price movement of the same securities or index multiplied by the notional amount of the contract and, in some cases, dividends paid on the securities.
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
During the period, the Fund entered into total return swaps on equity indices to decrease exposure to equity risk. These total return swaps require the Fund to pay an amount equal to the positive price movement of securities or an index multiplied by the notional amount of the contract and, in some cases, dividends paid on the securities. The Fund will receive payments of a floating reference interest rate and an amount equal to the negative price movement of the same securities or index multiplied by the notional amount of the contract.
During the period, the Fund entered into total return swaps on a custom basket of commodity indices to increase exposure to commodity risk. These total return swaps require the Fund to pay a fixed or a floating reference interest rate, and an amount equal to the negative price movement of an index multiplied by the notional amount of the contract. The Fund will receive payments equal to the positive price movement of the same index multiplied by the notional amount of the contract.
During the period, the Fund entered into total return swaps on credit indices to increase exposure to credit risk. These total return swaps require the Fund to pay a floating reference interest rate, and an amount equal to the negative price movement of an index multiplied by the notional amount of the contract. The Fund will receive payments equal to the positive price movement of the same index multiplied by the notional amount of the contract.
3. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Fund’s ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as “Brexit”). There is considerable uncertainty about how Brexit will be conducted, how negotiations of necessary treaties and trade
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
agreements will proceed, or how financial markets will react. In addition, one or more other countries may also abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the consolidated financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Consolidated Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following table present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018” table located in the Fund’s Consolidated Schedule of Investments.
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
Barclays Capital Inc | $ | 10,396 | $ | — | $ | — | $ | 10,396 | |
Goldman Sachs International | 288,376 | — | (288,376) | — | |||||
HSBC Securities (USA) Inc | 46,765 | (46,765) | — | — | |||||
JPMorgan Chase & Co | 64,268 | — | — | 64,268 | |||||
Total | $ | 409,805 | $ | (46,765) | $ | (288,376) | $ | 74,664 | |
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Liabilities | or Liability(a) | Pledged(b) | Net Amount | |||||
BNP Paribas | $ | 109,051 | $ | — | $ | — | $ | 109,051 | |
HSBC Securities (USA) Inc | 125,065 | (46,765) | — | 78,300 | |||||
Total | $ | 234,116 | $ | (46,765) | $ | — | $ | 187,351 | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | ||||||||
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. | ||||||||
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Consolidated Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
The Fund may require the counterparty to pledge securities as collateral daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized gain on OTC derivative contracts with a particular counterparty. The Fund may deposit cash as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. The collateral amounts are subject to minimum exposure requirements and initial margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral may reduce the risk of loss.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund and the Subsidiary each pay Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s and the Subsidiary's contractual investment advisory fee rate (expressed as an annual rate).
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $1 Billion | 1.00 |
Over $1 Billion | 0.95 |
Janus Capital has contractually agreed to waive a portion of the Fund’s management fee in an amount equal to the management fee paid to Janus Capital by the Subsidiary. The management fee waiver arrangement related to the Subsidiary may not be discontinued by Janus Capital as long as its contract with the Subsidiary is in place.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, which include the other expenses of the Subsidiary, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 1.09% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers until at least November 1, 2019. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Consolidated Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the Subsidiary's transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Consolidated Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Consolidated Statement of Operations.
The Fund’s Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Consolidated Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Consolidated Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Consolidated Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Consolidated Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Consolidated Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Consolidated Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $231,481 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2018. The Fund's portion is reported as part of “Other expenses” on the Consolidated Statement of Operations.
Effective April 1, 2018, BNP Paribas Financial Services (“BPFS”) provides certain administrative services to the Fund, including services related to Fund accounting, calculation of the Fund’s daily NAV, and Fund audit, tax, and reporting obligations, pursuant to a sub-administration agreement with Janus Capital on behalf of the Fund. Janus Capital, as administrator, oversees the provision of these services by BPFS. As compensation for such services, Janus Capital pays BPFS a fee based on a percentage of the Fund’s assets, along with a flat fee, and is reimbursed by the Fund for amounts paid to BPFS (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). These amounts are disclosed as "Non-affiliated fund administration fees" on the Consolidated Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2018 on the Consolidated Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Consolidated Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2018 are included in “Non-interested Trustees’ fees and expenses” on the Consolidated Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $250,550 were paid by the Trust to the Trustees under the Deferred Plan during the period ended December 31, 2018.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Henderson Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered product compliant with Rule 2a-7 under the 1940 Act. There are no restrictions on the Fund's ability to withdraw investments from Janus Henderson Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Henderson Cash Liquidity Fund LLC. The units of Janus Henderson Cash Liquidity Fund LLC are not charged any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2018 can be found in the “Schedules of Affiliated Investments” located in the Consolidated Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. There were no upfront sales charges retained by Janus Henderson Distributors during the period ended December 31, 2018.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the period ended December 31, 2018.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended December 31, 2018.
As of December 31, 2018, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | 30 | % | 1 | % | |
Class C Shares | 68 | 1 | |||
Class D Shares | - | - | |||
Class I Shares | - | - | |||
Class N Shares | 98 | 66 | |||
Class S Shares | 100 | 1 | |||
Class T Shares | 23 | 1 | |||
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2018, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
Capital Loss Carryover Schedule | |||||
For the year ended June 30, 2018 | |||||
No Expiration | |||||
| Short-Term | Long-Term | Accumulated | ||
| $ (332,257) | $ - | $ (332,257) | ||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2018 are noted below. The primary difference between book and tax appreciation or depreciation of investments is investments in partnerships.
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ 97,464,732 | $ 1,236 | $ (6,824) | $ (5,588) |
Information on the tax components of derivatives as of December 31, 2018 is as follows:
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ - | $ 2,113,498 | $ (555,856) | $ 1,557,642 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
6. Capital Share Transactions
Period ended December 31, 2018 | Year ended June 30, 2018 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 22,805 | $ 220,695 | 178,367 | $ 1,824,059 | ||
Reinvested dividends and distributions | 2,200 | 20,991 | 8,168 | 82,741 | ||
Shares repurchased | (28,929) | (286,511) | (20,563) | (210,749) | ||
Net Increase/(Decrease) | (3,924) | $ (44,825) |
| 165,972 | $ 1,696,051 | |
Class C Shares: | ||||||
Shares sold | 1,529 | $ 15,000 | 18,346 | $ 184,332 | ||
Reinvested dividends and distributions | 395 | 3,697 | 3,245 | 32,353 | ||
Shares repurchased | (11,212) | (108,649) | (7,945) | (79,314) | ||
Net Increase/(Decrease) | (9,288) | $ (89,952) |
| 13,646 | $ 137,371 | |
Class D Shares: | ||||||
Shares sold | 20,539 | $ 203,887 | 200,339 | $ 2,054,582 | ||
Reinvested dividends and distributions | 2,712 | 25,985 | 12,180 | 123,867 | ||
Shares repurchased | (131,512) | (1,297,185) | (176,901) | (1,816,899) | ||
Net Increase/(Decrease) | (108,261) | $(1,067,313) |
| 35,618 | $ 361,550 | |
Class I Shares: | ||||||
Shares sold | 665,142 | $ 6,648,303 | 1,581,941 | $16,285,667 | ||
Reinvested dividends and distributions | 11,428 | 109,709 | 37,380 | 380,532 | ||
Shares repurchased | (952,065) | (9,393,752) | (326,472) | (3,358,241) | ||
Net Increase/(Decrease) | (275,495) | $(2,635,740) |
| 1,292,849 | $13,307,958 | |
Class N Shares: | ||||||
Shares sold | 78,237 | $ 779,051 | 2,978,018 | $30,971,228 | ||
Reinvested dividends and distributions | 49,207 | 473,861 | 219,132 | 2,237,334 | ||
Shares repurchased | (566,005) | (5,629,961) | (659,996) | (6,802,451) | ||
Net Increase/(Decrease) | (438,561) | $(4,377,049) |
| 2,537,154 | $26,406,111 | |
Class S Shares: | ||||||
Shares sold | - | $ - | 98 | $ 1,000 | ||
Reinvested dividends and distributions | 900 | 8,529 | 3,311 | 33,374 | ||
Shares repurchased | (99) | (989) | - | - | ||
Net Increase/(Decrease) | 801 | $ 7,540 |
| 3,409 | $ 34,374 | |
Class T Shares: | ||||||
Shares sold | 33,919 | $ 333,056 | 435,554 | $ 4,472,608 | ||
Reinvested dividends and distributions | 3,742 | 35,660 | 14,630 | 148,058 | ||
Shares repurchased | (81,412) | (800,805) | (182,986) | (1,869,999) | ||
Net Increase/(Decrease) | (43,751) | $ (432,089) |
| 267,198 | $ 2,750,667 | |
7. Purchases and Sales of Investment Securities
For the period ended December 31, 2018, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$ - | $ - | $ - | $ - |
8. Recent Accounting Pronouncements
The Securities and Exchange Commission adopted amendments to Regulation S-X, for the presentation of distributable earnings and distributions to align with US Generally Accepted Accounting Principles (GAAP). The compliance date of the amendments to Regulation S-X is November 5, 2018. This report incorporates the amendments to Regulation S-X.
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Janus Henderson Diversified Alternatives Fund
Notes to Consolidated Financial Statements (unaudited)
The FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08") to amend the amortization period for certain purchased callable debt securities held at a premium. The guidance requires certain premiums on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Management is currently evaluating the impacts of ASU 2017-08 on the financial statements.
The FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) in August 2018. The new guidance removes, modifies and enhances the disclosures to Topic 820. For public entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management is currently evaluating the impact of this new guidance on the financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2018 and through the date of issuance of the Fund’s consolidated financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s consolidated financial statements.
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Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund is required to disclose its complete holdings on Form N-Q within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to Fund shareholders. These reports (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag. Holdings are generally posted approximately two business days thereafter under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund (each, a “JIF Fund,” and collectively, the “JIF Funds”), as well as each Portfolio of Janus Aspen Series (together with the JIF Funds, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Funds that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and each subadviser in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements and the information provided, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 6, 2018, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2019 through February 1, 2020, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, refer to actual annual advisory fees (and, for the purposes of peer comparisons any administration fees excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
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Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with fund shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also expressed the view that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital and the subadviser to each Janus Henderson Fund that utilizes a subadviser were appropriate and consistent with the terms of the respective investment advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2018, approximately 48% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar, and for the 12 months ended September 30, 2018, approximately 56% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the JIF Funds:
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Investment Fund | 39 |
Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Strategic Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
40 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Small Cap Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, including the impact of waivers on comparative peer performance.
Janus Investment Fund | 41 |
Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and the Fund’s limited performance history.
· For Janus Henderson All Asset Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital and Geneva had taken or were taking to improve performance.
42 | DECEMBER 31, 2018 |
Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Select Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the management fee rate (investment advisory and any administration fees, but excluding out-of-pocket costs) for many of the Janus Henderson Funds, net of waivers, was below the average management fee rate of the respective peer group of funds selected by Broadridge. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group peers and to average total expenses for its Broadridge Expense Universe.
Janus Investment Fund | 43 |
Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
The independent fee consultant expressed the view that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. At the fund complex level, the independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 10% under the average total expenses for the respective Broadridge Expense Group peers and 19% under the average total expenses for the respective Broadridge Expense Universes; (3) management fees for the Janus Henderson Funds, on average, were 8% under the average management fees for the respective Expense Groups and 10% under the average for the respective Expense Universes; and (4) Janus Henderson Fund expenses by function for each asset and share class category were reasonable relative to peer benchmarks.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual share class level, Janus Henderson Fund expenses were found to be reasonable relative to peer benchmarks. Further, for certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to investors in each Janus Henderson Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such “focus list” Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances comparable subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, while subadviser fee rates charged to the Janus Henderson Funds were generally within a reasonable range of the fee rates that the subadviser charges to comparable separate account clients or non-affiliated funds. The Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to its institutional clients and to the fees Janus Capital charges to funds subadvised by Janus Capital; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson institutional and subadvised fund investors; (4) in three of five product categories, the Janus Henderson Funds receive proportionally better pricing than the industry in relation to Janus Henderson institutional clients; and (5) in six of seven strategies, Janus Capital has lower management fees than the management fees charged to funds subadvised by Janus Capital.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2017, including the JIF Funds, and noted the following with regard to each JIF Fund’s total expenses, net of applicable fee waivers (the JIF Fund’s “total expenses”):
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were
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Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the peer group comparisons did not take into account a recent management fee reduction for the Fund, effective December 14, 2018 and that Janus Capital has contractually agreed to limit the Fund’s expenses at a lower (more favorable) level.
· For Janus Henderson Strategic Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
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Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Small Cap Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were above the peer group average for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson All Asset Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s total expenses.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses were equal to or exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable taking into account the limited peer group for the Fund. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded fund managers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, differences in product mix, differences in types of business (mutual fund, institutional and other), differences in the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provides to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant concluded that (1) the expense allocation methodology utilized by Janus Capital was reasonable and (2) the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund was reasonable. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted the independent fee consultant’s analysis of economies of scale in prior years. They also noted that, although many Janus Henderson Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints or performance fees, the independent fee consultant concluded that 74% of these Janus Henderson Funds’ share classes have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted that for those Janus Henderson Funds whose expenses are being reduced by contractual expense limitations with Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale. Moreover, as the assets of some of the Janus Henderson Funds have declined in the past few years, certain Janus Henderson Funds have benefited from having
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Janus Henderson Diversified Alternatives Fund
Additional Information (unaudited)
advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such a Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered information provided by the independent fee consultant, which concluded that, given the limitations of various analytical approaches to economies of scale it had considered in prior years, and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. The independent consultant further concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any scale economies that may exist. Further, the independent fee consultant expressed the view that Janus Henderson Fund investors are well-served by the performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information they reviewed, including past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s and each subadviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and/or the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by certain other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
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Janus Henderson Diversified Alternatives Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2018. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Consolidated Financial Highlights” in this report.
Consolidated Schedule of Investments
Following the performance overview section is the Fund’s Consolidated Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Consolidated Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Consolidated Schedule of Investments (if applicable).
Consolidated Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
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Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Consolidated Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Consolidated Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Consolidated Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Consolidated Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. Also included are ratios of expenses and net investment income to average net assets.
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Janus Henderson Diversified Alternatives Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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Janus Henderson Diversified Alternatives Fund
Notes
NotesPage1
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Knowledge. Shared
At Janus Henderson, we believe in the sharing of expert insight for better investment and business decisions. We call this ethos Knowledge. Shared.
Learn more by visiting janushenderson.com.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||||||||
Janus Henderson, Janus, Henderson, Perkins, Intech and Knowledge. Shared are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors | ||||||||
125-24-93018 02-19 | ||||||||
SEMIANNUAL REPORT December 31, 2018 | ||
Janus Henderson Dividend & Income Builder Fund | ||
Janus Investment Fund | ||
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by contacting a Janus Henderson representative. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your plan sponsor, broker-dealer, or financial intermediary, or if you invest directly with the Fund, by visiting janushenderson.com/edelivery. You may elect to receive all future reports in paper free of charge. If you do not invest directly with the Fund, you should contact your plan sponsor, broker-dealer, or financial intermediary, to request to continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-525-3713 to let the Fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Janus Henderson mutual funds where held (i.e., all Janus Henderson mutual funds held in your account if you invest through your financial intermediary or all Janus Henderson mutual funds held with the fund complex if you invest directly with a fund).
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HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics |
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Table of Contents
Janus Henderson Dividend & Income Builder Fund
Janus Henderson Dividend & Income Builder Fund (unaudited)
PERFORMANCE
The Janus Henderson Dividend & Income Builder Fund Class I Shares returned -6.88% over the six-month reporting period ended December 31, 2018. The Fund’s primary benchmark, the MSCI World IndexSM returned -9.10%. The Fund’s secondary benchmark, 75% MSCI World Index/25% Bloomberg Barclays Global Aggregate Credit (USD Hedged) Index, returned -6.53%. The secondary benchmark is an internally-calculated, hypothetical combination of total returns from the MSCI World Index (75%) and the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) (25%).
INVESTMENT ENVIRONMENT
While investors began 2018 with confidence, they spent most of the year reappraising their expectations as more challenging news emerged on the growth, policy and political fronts. This process gathered momentum into the final months of the year, with some hair-raising moves in the fourth quarter, including a near 20% drawdown in the S&P 500® Index and more than a 40% decline in crude oil prices. By December, after a grueling year in all risk assets, evidence of investor capitulation was widespread. That month saw the greatest ever week of redemptions from global equities and bonds, confirming the consensus mood had swung from January’s unusually bullish readings to deep gloom by year-end.
PERFORMANCE DISCUSSION
Over the reporting period, the Fund outperformed its primary benchmark, the MSCI World Index, on the back of an increased fixed income allocation and a defensive equity income bias. The Fund was also successful in meeting its annual dividend growth goal.
By region, the Fund’s overweight position in Europe (ex-UK) was a positive contributor to relative performance as was stock selection in the Fund’s allocation to the U.S.; this partially offset very disappointing performance from the overweight UK allocation where uncertainty over Brexit continued to worry investors. There is considerable value available in the UK for the patient investor, as many global stocks that trade there sold off with the wider market.
By sector, the Fund’s largest relative performance came from strong stock selection in technology, while avoiding large e-services stocks in the communication services sector was also beneficial to relative performance, as was the overweight exposure to telecommunications companies. These positions helped to offset disappointing stock performance in the consumer discretionary,
Janus Investment Fund | 1 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
financials and industrials sectors, which sold off with the general market.
Through the quarter profits were taken in a number of long-held positions, including Best Buy, Blackstone and J.P. Morgan. Toward the end of the period, we made a small allocation shift from equities into U.S. government bonds, specifically in maturities in the two- to seven-year part of the sovereign curve. U.S. yields have risen significantly over the year, making them more attractive as an investment to diversify the portfolio.
DERIVATIVE USAGE
The Fund utilizes currency forwards to hedge the Fund’s foreign currency back to the U.S. dollar in order to manage the risk of overweight currency allocations. In aggregate, these positions contributed to performance during the period.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While we have reduced the equity exposure in response to evaluation of some of the portfolio, particularly in the U.S., our view hasn’t changed dramatically; global economic fundamentals remain in good shape, interest rates are likely to remain low and valuations on equities have improved over the past year. While valuations in some equity markets became more attractive over the last 12 months, the political outlook in many regions is uncertain, and 2019 will hopefully bring resolution to the U.S.-China trade war and Brexit. In the meantime, we will continue with our existing strategy of identifying companies that pay an attractive dividend that we believe have the capacity to grow over the medium to long term.
Within the bond market, the slowing global economy has the attention of the Federal Reserve. We believe the circularity of tightening credit conditions will continue. A lot of damage has been done in equity and credit valuations, and the liquidity of credit markets is now disappearing. We are positioned long of developed world sovereign bond risk and are fairly light in credit interest-rate sensitivity, having significantly reduced the latter. We believe 3.26% will be the top for 10-year treasuries this cycle.
Thank you for your investment in Janus Henderson Dividend & Income Builder Fund.
2 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Fund At A Glance
December 31, 2018
5 Top Performers - Holdings |
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| 5 Bottom Performers - Holdings |
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Contribution | Contribution | |||||
Pfizer Inc | 0.54% | Occidental Petroleum Corp | -0.49% | |||
Novartis AG | 0.20% | BAE Systems PLC | -0.43% | |||
Verizon Communications Inc | 0.16% | BNP Paribas SA | -0.40% | |||
Roche Holding AG | 0.14% | BASF SE | -0.38% | |||
Microsoft Corp | 0.13% | Hammerson PLC | -0.35% | |||
5 Top Performers - Sectors* |
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Fund | Fund Weighting | MSCI World Index | ||||
Contribution | (Average % of Equity) | Weighting | ||||
Information Technology | 0.86% | 10.30% | 17.02% | |||
Communication Services | 0.72% | 5.98% | 5.43% | |||
Health Care | 0.57% | 11.50% | 12.93% | |||
Consumer Staples | 0.13% | 10.68% | 8.35% | |||
Other** | 0.06% | 4.46% | 0.00% | |||
5 Bottom Performers - Sectors* |
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Fund | Fund Weighting | MSCI World Index | ||||
Contribution | (Average % of Equity) | Weighting | ||||
Consumer Discretionary | -0.55% | 5.39% | 11.42% | |||
Financials | -0.47% | 17.17% | 16.54% | |||
Real Estate | -0.46% | 3.96% | 3.01% | |||
Industrials | -0.39% | 8.92% | 11.14% | |||
Utilities | -0.23% | 3.14% | 3.10% | |||
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||||||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |||||
Janus Investment Fund | 3 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Fund At A Glance
December 31, 2018
5 Largest Equity Holdings - (% of Net Assets) | |
Microsoft Corp | |
Software | 3.5% |
Pfizer Inc | |
Pharmaceuticals | 2.7% |
Nestle SA (REG) | |
Food Products | 2.6% |
RELX PLC | |
Professional Services | 1.8% |
Novartis AG | |
Pharmaceuticals | 1.6% |
12.2% | |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 71.9% | ||||
Corporate Bonds | 17.6% | ||||
United States Treasury Notes/Bonds | 5.2% | ||||
Investment Companies | 4.1% | ||||
Other | 1.2% | ||||
100.0% | |||||
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2018
| As of June 30, 2018
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4 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Performance
See important disclosures on the next page. |
| Expense Ratios - | |||||||||
Average Annual Total Return - for the periods ended December 31, 2018 |
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| per the October 29, 2018 prospectuses | |||||||
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| Fiscal | One | Five | Since |
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| Total Annual Fund | Net Annual Fund | |
Class A Shares at NAV |
| -7.01% | -9.32% | 2.58% | 6.13% |
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| 1.14% | 1.14% | |
Class A Shares at MOP |
| -12.33% | -14.56% | 1.54% | 5.28% |
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Class C Shares at NAV | -7.34% | -10.02% | 1.81% | 5.33% |
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| 1.91% | 1.90% | ||
Class C Shares at CDSC |
| -8.25% | -10.89% | 1.81% | 5.33% |
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Class D Shares(1) |
| -6.86% | -9.13% | 2.73% | 6.28% |
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| 1.02% | 0.98% | |
Class I Shares |
| -6.88% | -9.07% | 2.83% | 6.38% |
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| 0.91% | 0.90% | |
Class N Shares |
| -6.85% | -9.03% | 2.77% | 6.31% |
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| 0.99% | 0.85% | |
Class S Shares |
| -7.05% | -9.40% | 2.40% | 5.93% |
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| 2.79% | 1.34% | |
Class T Shares |
| -6.90% | -9.19% | 2.63% | 6.17% |
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| 1.13% | 1.09% | |
MSCI World Index |
| -9.10% | -8.71% | 4.56% | 8.74% |
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75% MSCI World / 25% BBgBarc Global Agg Credit (USD Hedged) Index |
| -6.53% | -6.55% | 4.41% | 7.42% |
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Morningstar Quartile - Class I Shares |
| - | 3rd | 1st | 1st |
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Morningstar Ranking - based on total returns for World Allocation Funds |
| - | 333/471 | 103/398 | 26/381 |
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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 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Janus Investment Fund | 5 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Performance
Net expense ratios reflect the expense waiver, if any, contractually agreed to through November 1, 2019.
Performance may be affected by risks that include those associated with non-diversification, portfolio turnover, short sales, potential conflicts of interest, foreign and emerging markets, initial public offerings (IPOs), high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), derivatives, and commodity-linked investments. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
See Financial Highlights for actual expense ratios during the reporting period.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson Dividend & Income Builder Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares, Class C Shares, and Class I Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on August 1, 2012. Class R6 Shares of the Predecessor Fund commenced operations on November 30, 2015. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2018 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See important disclosures on the next page. |
6 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Performance
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – August 1, 2012
(1) Closed to certain new investors.
Janus Investment Fund | 7 |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses |
| Beginning | Ending | Expenses | Net Annualized | ||
Class A Shares | $1,000.00 | $929.90 | $5.69 |
| $1,000.00 | $1,019.31 | $5.96 | 1.17% | ||
Class C Shares | $1,000.00 | $926.60 | $9.28 |
| $1,000.00 | $1,015.58 | $9.70 | 1.91% | ||
Class D Shares | $1,000.00 | $931.40 | $4.92 |
| $1,000.00 | $1,020.11 | $5.14 | 1.01% | ||
Class I Shares | $1,000.00 | $931.20 | $4.43 |
| $1,000.00 | $1,020.62 | $4.63 | 0.91% | ||
Class N Shares | $1,000.00 | $931.50 | $4.09 |
| $1,000.00 | $1,020.97 | $4.28 | 0.84% | ||
Class S Shares | $1,000.00 | $929.50 | $6.57 |
| $1,000.00 | $1,018.40 | $6.87 | 1.35% | ||
Class T Shares | $1,000.00 | $931.00 | $5.31 |
| $1,000.00 | $1,019.71 | $5.55 | 1.09% | ||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. | |||||||||
8 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Corporate Bonds – 17.6% | |||||||
Banking – 1.8% | |||||||
Barclays Bank PLC, ICE LIBOR USD 3 Month + 1.5500%, 6.2780%µ | $910,000 | $879,288 | |||||
HBOS Capital Funding LP, 6.8500%µ | 100,000 | 99,627 | |||||
Lloyds Banking Group PLC, ICE LIBOR USD 3 Month + 1.2700%, 6.6570% (144A)µ | 412,000 | 405,045 | |||||
Royal Bank of Scotland Group PLC, 6.1000%, 6/10/23 | 1,000,000 | 1,015,734 | |||||
Wachovia Capital Trust III, ICE LIBOR USD 3 Month + 0.9300%, 5.5698%µ | 937,000 | 847,517 | |||||
3,247,211 | |||||||
Capital Goods – 1.3% | |||||||
Berry Global Inc, 5.1250%, 7/15/23 | 433,000 | 428,259 | |||||
Crown Americas LLC / Crown Americas Capital Corp IV, 4.5000%, 1/15/23 | 1,000,000 | 976,250 | |||||
Lockheed Martin Corp, 3.5500%, 1/15/26 | 1,000,000 | 992,770 | |||||
2,397,279 | |||||||
Communications – 4.6% | |||||||
AT&T Inc, 2.4500%, 6/30/20 | 1,000,000 | 986,831 | |||||
CCO Holdings LLC / CCO Holdings Capital Corp, 5.8750%, 5/1/27 (144A) | 500,000 | 485,000 | |||||
Comcast Corp, 3.9500%, 10/15/25 | 283,000 | 286,480 | |||||
Comcast Corp, 4.1500%, 10/15/28 | 201,000 | 204,227 | |||||
Crown Castle International Corp, 3.8000%, 2/15/28 | 1,000,000 | 938,490 | |||||
Deutsche Telekom International Finance BV, 1.9500%, 9/19/21 (144A) | 1,000,000 | 959,429 | |||||
Sirius XM Radio Inc, 6.0000%, 7/15/24 (144A) | 1,000,000 | 1,002,500 | |||||
T-Mobile USA Inc, 4.5000%, 2/1/26 | 91,000 | 83,493 | |||||
T-Mobile USA Inc, 4.7500%, 2/1/28 | 215,000 | 194,575 | |||||
Verizon Communications Inc, 1.7500%, 8/15/21 | 1,000,000 | 965,607 | |||||
Virgin Media Secured Finance PLC, 5.2500%, 1/15/26 (144A) | 600,000 | 549,750 | |||||
Vodafone Group PLC, 2.9500%, 2/19/23 | 1,000,000 | 962,691 | |||||
Zayo Group LLC / Zayo Capital Inc, 5.7500%, 1/15/27 (144A) | 500,000 | 446,250 | |||||
8,065,323 | |||||||
Consumer Cyclical – 0.7% | |||||||
Amazon.com Inc, 3.1500%, 8/22/27 | 1,000,000 | 965,436 | |||||
Service Corp International/US, 8.0000%, 11/15/21 | 200,000 | 213,000 | |||||
1,178,436 | |||||||
Consumer Non-Cyclical – 4.3% | |||||||
Anheuser-Busch InBev Finance Inc, 2.6500%, 2/1/21 | 489,000 | 480,641 | |||||
Aramark Services Inc, 5.1250%, 1/15/24 | 715,000 | 707,850 | |||||
Aramark Services Inc, 4.7500%, 6/1/26 | 291,000 | 273,540 | |||||
Constellation Brands Inc, 4.7500%, 11/15/24 | 381,000 | 392,945 | |||||
Elanco Animal Health Inc, 4.9000%, 8/28/28 (144A) | 1,000,000 | 1,018,172 | |||||
HCA Inc, 5.2500%, 6/15/26 | 1,000,000 | 992,500 | |||||
Johnson & Johnson, 2.9000%, 1/15/28 | 1,000,000 | 959,034 | |||||
Philip Morris International Inc, 1.8750%, 2/25/21 | 1,000,000 | 971,645 | |||||
Sysco Corp, 3.5500%, 3/15/25 | 732,000 | 721,148 | |||||
Tesco PLC, 6.1500%, 11/15/37 (144A) | 1,024,000 | 1,058,916 | |||||
7,576,391 | |||||||
Insurance – 0.5% | |||||||
Prudential PLC, 5.2500%µ | 900,000 | 814,500 | |||||
Real Estate Investment Trusts (REITs) – 0.8% | |||||||
CyrusOne LP / CyrusOne Finance Corp, 5.3750%, 3/15/27 | 1,000,000 | 970,000 | |||||
Digital Realty Trust LP, 4.7500%, 10/1/25 | 450,000 | 459,971 | |||||
1,429,971 | |||||||
Technology – 3.6% | |||||||
Adobe Inc, 3.2500%, 2/1/25 | 1,000,000 | 981,824 | |||||
Alphabet Inc, 1.9980%, 8/15/26 | 1,000,000 | 909,590 | |||||
Apple Inc, 3.3500%, 2/9/27 | 500,000 | 489,158 | |||||
Dell International LLC / EMC Corp, 5.4500%, 6/15/23 (144A) | 1,105,000 | 1,124,428 | |||||
Equinix Inc, 5.3750%, 4/1/23 | 600,000 | 597,000 | |||||
Equinix Inc, 5.7500%, 1/1/25 | 400,000 | 403,000 | |||||
Microsoft Corp, 3.3000%, 2/6/27 | 1,000,000 | 991,048 | |||||
salesforce.com Inc, 3.7000%, 4/11/28 | 500,000 | 502,942 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Corporate Bonds – (continued) | |||||||
Technology – (continued) | |||||||
VMware Inc, 3.9000%, 8/21/27 | $353,000 | $313,291 | |||||
6,312,281 | |||||||
Total Corporate Bonds (cost $32,130,705) | 31,021,392 | ||||||
United States Treasury Notes/Bonds – 5.2% | |||||||
2.7500%, 11/30/20 | 2,000,000 | 2,008,686 | |||||
2.8750%, 11/15/21 | 2,000,000 | 2,022,129 | |||||
2.8750%, 10/31/23 | 1,000,000 | 1,016,591 | |||||
2.8750%, 11/30/23 | 2,000,000 | 2,034,721 | |||||
2.8750%, 11/30/25 | 2,000,000 | 2,036,794 | |||||
Total United States Treasury Notes/Bonds (cost $8,992,855) | 9,118,921 | ||||||
Common Stocks – 71.9% | |||||||
Aerospace & Defense – 0.9% | |||||||
BAE Systems PLC | 273,827 | 1,597,953 | |||||
Air Freight & Logistics – 0.8% | |||||||
Deutsche Post AG | 51,007 | 1,396,835 | |||||
Automobiles – 0.4% | |||||||
General Motors Co | 22,704 | 759,449 | |||||
Banks – 8.1% | |||||||
BAWAG Group AG | 29,107 | 1,195,221 | |||||
BNP Paribas SA | 36,176 | 1,629,080 | |||||
ING Groep NV | 145,777 | 1,562,054 | |||||
JPMorgan Chase & Co | 13,684 | 1,335,832 | |||||
Lloyds Banking Group PLC | 1,517,960 | 1,002,877 | |||||
Mitsubishi UFJ Financial Group Inc | 366,000 | 1,805,044 | |||||
Nordea Bank Abp | 126,310 | 1,065,890 | |||||
Societe Generale SA | 27,631 | 877,136 | |||||
Standard Chartered PLC | 229,509 | 1,773,759 | |||||
Swedbank AB | 96,348 | 2,148,965 | |||||
14,395,858 | |||||||
Beverages – 2.9% | |||||||
Carlsberg A/S | 11,626 | 1,237,120 | |||||
Coca-Cola Co | 33,148 | 1,569,558 | |||||
Diageo PLC | 65,155 | 2,315,484 | |||||
5,122,162 | |||||||
Chemicals – 2.8% | |||||||
BASF SE | 22,129 | 1,531,131 | |||||
DowDuPont Inc | 32,965 | 1,762,968 | |||||
Nutrien Ltd | 36,429 | 1,712,163 | |||||
5,006,262 | |||||||
Commercial Services & Supplies – 0.8% | |||||||
Prosegur Cash SA | 608,377 | 1,340,130 | |||||
Communications Equipment – 1.4% | |||||||
Cisco Systems Inc | 56,319 | 2,440,302 | |||||
Diversified Telecommunication Services – 3.4% | |||||||
BT Group PLC | 690,588 | 2,090,110 | |||||
Orange SA | 115,422 | 1,867,547 | |||||
Verizon Communications Inc | 35,562 | 1,999,296 | |||||
5,956,953 | |||||||
Electric Utilities – 2.0% | |||||||
Enel SpA | 359,228 | 2,072,129 | |||||
SSE PLC | 101,324 | 1,392,914 | |||||
3,465,043 | |||||||
Electrical Equipment – 0.7% | |||||||
ABB Ltd | 62,953 | 1,200,724 | |||||
Equity Real Estate Investment Trusts (REITs) – 2.5% | |||||||
Crown Castle International Corp | 13,946 | 1,514,954 | |||||
CyrusOne Inc | 23,567 | 1,246,223 | |||||
Eurocommercial Properties NV | 25,673 | 793,419 | |||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | |||||||
Hammerson PLC | 208,802 | $874,277 | |||||
4,428,873 | |||||||
Food Products – 2.6% | |||||||
Nestle SA (REG) | 56,200 | 4,570,968 | |||||
Health Care Equipment & Supplies – 1.4% | |||||||
Medtronic PLC | 26,683 | 2,427,086 | |||||
Health Care Providers & Services – 0.4% | |||||||
CVS Health Corp | 11,472 | 751,645 | |||||
Hotels, Restaurants & Leisure – 1.8% | |||||||
Carnival Corp | 40,925 | 2,017,602 | |||||
Las Vegas Sands Corp | 22,036 | 1,146,974 | |||||
3,164,576 | |||||||
Industrial Conglomerates – 1.3% | |||||||
Siemens AG | 21,211 | 2,365,325 | |||||
Information Technology Services – 0.6% | |||||||
Sabre Corp | 48,985 | 1,060,035 | |||||
Insurance – 2.2% | |||||||
AXA SA | 49,896 | 1,074,894 | |||||
Manulife Financial Corp | 64,941 | 921,544 | |||||
Prudential PLC | 102,017 | 1,822,466 | |||||
3,818,904 | |||||||
Leisure Products – 0.5% | |||||||
Hasbro Inc | 11,788 | 957,775 | |||||
Metals & Mining – 2.4% | |||||||
BHP Group PLC | 114,337 | 2,389,975 | |||||
Rio Tinto PLC | 38,766 | 1,848,114 | |||||
4,238,089 | |||||||
Multi-Utilities – 0.3% | |||||||
National Grid PLC | 48,958 | 473,379 | |||||
Oil, Gas & Consumable Fuels – 8.2% | |||||||
BP PLC | 448,441 | 2,828,972 | |||||
Chevron Corp | 26,091 | 2,838,440 | |||||
Eni SpA | 82,499 | 1,299,029 | |||||
Occidental Petroleum Corp | 35,269 | 2,164,811 | |||||
Royal Dutch Shell PLC | 93,907 | 2,753,868 | |||||
TOTAL SA | 50,193 | 2,651,235 | |||||
14,536,355 | |||||||
Paper & Forest Products – 0.6% | |||||||
UPM-Kymmene OYJ | 41,152 | 1,046,245 | |||||
Personal Products – 1.2% | |||||||
Unilever NV | 38,853 | 2,110,789 | |||||
Pharmaceuticals – 8.0% | |||||||
GlaxoSmithKline PLC | 115,126 | 2,184,717 | |||||
Johnson & Johnson | 8,601 | 1,109,959 | |||||
Novartis AG | 33,690 | 2,886,669 | |||||
Novo Nordisk A/S | 23,123 | 1,063,123 | |||||
Pfizer Inc | 108,461 | 4,734,323 | |||||
Roche Holding AG | 8,774 | 2,170,467 | |||||
14,149,258 | |||||||
Professional Services – 1.8% | |||||||
RELX PLC* | 154,392 | 3,177,933 | |||||
Real Estate Management & Development – 0.4% | |||||||
Nexity SA | 14,616 | 659,644 | |||||
Semiconductor & Semiconductor Equipment – 2.9% | |||||||
Lam Research Corp | 5,128 | 698,280 | |||||
Maxim Integrated Products Inc | 28,604 | 1,454,513 | |||||
Taiwan Semiconductor Manufacturing Co Ltd (ADR) | 62,081 | 2,291,410 | |||||
Tokyo Electron Ltd | 5,700 | 654,047 | |||||
5,098,250 | |||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments (unaudited)
December 31, 2018
Shares or | Value | ||||||
Common Stocks – (continued) | |||||||
Software – 3.8% | |||||||
Microsoft Corp | 60,284 | $6,123,011 | |||||
Sage Group PLC | 79,726 | 610,303 | |||||
6,733,314 | |||||||
Textiles, Apparel & Luxury Goods – 0.6% | |||||||
Hanesbrands Inc | 52,236 | 654,517 | |||||
Pandora A/S | 11,220 | 456,478 | |||||
1,110,995 | |||||||
Tobacco – 2.0% | |||||||
British American Tobacco PLC | 21,969 | 700,466 | |||||
Imperial Brands PLC | 66,809 | 2,019,994 | |||||
Philip Morris International Inc | 11,928 | 796,313 | |||||
3,516,773 | |||||||
Trading Companies & Distributors – 0.5% | |||||||
Watsco Inc | 6,703 | 932,655 | |||||
Wireless Telecommunication Services – 1.7% | |||||||
Tele2 AB | 157,770 | 2,017,069 | |||||
Vodafone Group PLC | 489,453 | 950,925 | |||||
2,967,994 | |||||||
Total Common Stocks (cost $131,300,685) | 126,978,531 | ||||||
Investment Companies – 4.1% | |||||||
Money Markets – 4.1% | |||||||
Fidelity Investments Money Market Treasury Portfolio, 2.2400%ºº (cost $7,246,065) | 7,246,065 | 7,246,065 | |||||
Total Investments (total cost $179,670,310) – 98.8% | 174,364,909 | ||||||
Cash, Receivables and Other Assets, net of Liabilities – 1.2% | 2,117,176 | ||||||
Net Assets – 100% | $176,482,085 | ||||||
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $82,657,278 | 47.4 | % | ||
United Kingdom | 35,416,104 | 20.3 | |||
Switzerland | 10,828,828 | 6.2 | |||
France | 8,759,536 | 5.0 | |||
Netherlands | 7,644,195 | 4.4 | |||
Germany | 6,252,720 | 3.6 | |||
Sweden | 4,166,034 | 2.4 | |||
Italy | 3,371,158 | 1.9 | |||
Denmark | 2,756,721 | 1.6 | |||
Canada | 2,633,707 | 1.5 | |||
Japan | 2,459,091 | 1.4 | |||
Taiwan | 2,291,410 | 1.3 | |||
Finland | 2,112,135 | 1.2 | |||
Spain | 1,340,130 | 0.8 | |||
Austria | 1,195,221 | 0.7 | |||
Belgium | 480,641 | 0.3 | |||
Total | $174,364,909 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments (unaudited)
December 31, 2018
Schedule of Forward Foreign Currency Exchange Contracts, Open |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | USD Currency Amount (Sold)/ Purchased | Market Value and Unrealized Appreciation/ (Depreciation) | ||||
BNP Paribas: | ||||||||
British Pound | 1/30/19 | (5,277,849) | $ | 6,675,008 | $ | (61,041) | ||
Euro | 1/30/19 | (7,099,267) | 8,110,567 | (42,933) | ||||
Total | $ | (103,974) | ||||||
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of December 31, 2018.
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018 | |||||
|
|
|
|
| Currency |
| |||||
Liability Derivatives: | |||||
Forward foreign currency exchange contracts | $103,974 | ||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended December 31, 2018.
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended December 31, 2018 | ||||
Amount of Realized Gain/(Loss) Recognized on Derivatives | ||||
Derivative |
| Currency | ||
Forward foreign currency exchange contracts | $633,347 | |||
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | ||||
Derivative |
| Currency | ||
Forward foreign currency exchange contracts | $ (62,066) | |||
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
Average Ending Monthly Market Value of Derivative Instruments During the Period Ended December 31, 2018 | |
| Market Value(a) |
Forward foreign currency exchange contracts, sold | $ 15,036,767 |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount sold. | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 13 |
Janus Henderson Dividend & Income Builder Fund
Notes to Schedule of Investments and Other Information (unaudited)
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
75% MSCI World / 25% BBgBarc Global Agg Credit (USD Hedged) Index | 75% MSCI World / 25% BBgBarc Global Agg Credit (USD Hedged) Index is an internally-calculated, hypothetical combination of total returns from the MSCI World IndexSM (75%) and the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) (25%). |
S&P 500 Index® | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
ADR | American Depositary Receipt |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
REG | Registered |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended December 31, 2018 is $7,049,490, which represents 4.0% of net assets. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2018. |
µ | This variable rate security is a perpetual bond. Perpetual bonds have no contractual maturity date, are not redeemable, and pay an indefinite stream of interest. The coupon rate shown represents the current interest rate. |
14 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Schedule of Investments and Other Information (unaudited)
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of December 31, 2018. See Notes to Financial Statements for more information. | |||||||||||||
Valuation Inputs Summary | |||||||||||||
Level 2 - | Level 3 - | ||||||||||||
Level 1 - | Other Significant | Significant | |||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||||
Assets | |||||||||||||
Investments in Securities: | |||||||||||||
Corporate Bonds | $ | - | $ | 31,021,392 | $ | - | |||||||
United States Treasury Notes/Bonds | - | 9,118,921 | - | ||||||||||
Common Stocks | |||||||||||||
Aerospace & Defense | - | 1,597,953 | - | ||||||||||
Air Freight & Logistics | - | 1,396,835 | - | ||||||||||
Banks | 1,335,832 | 13,060,026 | - | ||||||||||
Beverages | 1,569,558 | 3,552,604 | - | ||||||||||
Chemicals | 3,475,131 | 1,531,131 | - | ||||||||||
Commercial Services & Supplies | - | 1,340,130 | - | ||||||||||
Diversified Telecommunication Services | 1,999,296 | 3,957,657 | - | ||||||||||
Electric Utilities | - | 3,465,043 | - | ||||||||||
Electrical Equipment | - | 1,200,724 | - | ||||||||||
Equity Real Estate Investment Trusts (REITs) | 2,761,177 | 1,667,696 | - | ||||||||||
Food Products | - | 4,570,968 | - | ||||||||||
Industrial Conglomerates | - | 2,365,325 | - | ||||||||||
Insurance | 921,544 | 2,897,360 | - | ||||||||||
Metals & Mining | - | 4,238,089 | - | ||||||||||
Multi-Utilities | - | 473,379 | - | ||||||||||
Oil, Gas & Consumable Fuels | 5,003,251 | 9,533,104 | - | ||||||||||
Paper & Forest Products | - | 1,046,245 | - | ||||||||||
Personal Products | - | 2,110,789 | - | ||||||||||
Pharmaceuticals | 5,844,282 | 8,304,976 | - | ||||||||||
Professional Services | - | 3,177,933 | - | ||||||||||
Real Estate Management & Development | - | 659,644 | - | ||||||||||
Semiconductor & Semiconductor Equipment | 4,444,203 | 654,047 | - | ||||||||||
Software | 6,123,011 | 610,303 | - | ||||||||||
Textiles, Apparel & Luxury Goods | 654,517 | 456,478 | - | ||||||||||
Tobacco | 796,313 | 2,720,460 | - | ||||||||||
Wireless Telecommunication Services | - | 2,967,994 | - | ||||||||||
All Other | 12,493,523 | - | - | ||||||||||
Investment Companies | 7,246,065 | - | - | ||||||||||
Total Assets | $ | 54,667,703 | $ | 119,697,206 | $ | - | |||||||
Liabilities | |||||||||||||
Other Financial Instruments(a): | |||||||||||||
Forward Foreign Currency Exchange Contracts | $ | - | $ | 103,974 | $ | - | |||||||
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. | ||||||||||||
Janus Investment Fund | 15 |
Janus Henderson Dividend & Income Builder Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2018
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Investments, at value(1) | $ | 174,364,909 | ||||
Cash denominated in foreign currency(2) | 55,734 | |||||
Closed foreign currency contracts | 189,870 | |||||
Non-interested Trustees' deferred compensation | 4,244 | |||||
Receivables: | ||||||
Fund shares sold | 2,635,318 | |||||
Interest | 394,239 | |||||
Dividends | 253,861 | |||||
Foreign tax reclaims | 243,090 | |||||
Investments sold | 164,519 | |||||
Other assets | 19,240 | |||||
Total Assets |
|
| 178,325,024 |
| ||
Liabilities: | ||||||
Due to custodian | 189,868 | |||||
Forward foreign currency exchange contracts | 103,974 | |||||
Payables: | — | |||||
Fund shares repurchased | 1,326,861 | |||||
Advisory fees | 98,565 | |||||
12b-1 Distribution and shareholder servicing fees | 32,400 | |||||
Transfer agent fees and expenses | 22,640 | |||||
Professional fees | 19,972 | |||||
Non-interested Trustees' deferred compensation fees | 4,244 | |||||
Non-interested Trustees' fees and expenses | 1,324 | |||||
Custodian fees | 960 | |||||
Affiliated fund administration fees payable | 394 | |||||
Accrued expenses and other payables | 41,737 | |||||
Total Liabilities |
|
| 1,842,939 |
| ||
Net Assets |
| $ | 176,482,085 |
| ||
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2018
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 181,739,449 | ||||
Total distributable earnings (loss) | (5,257,364) | |||||
Total Net Assets |
| $ | 176,482,085 |
| ||
Net Assets - Class A Shares | $ | 30,957,019 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,585,347 | |||||
Net Asset Value Per Share(3) |
| $ | 11.97 |
| ||
Maximum Offering Price Per Share(4) |
| $ | 12.70 |
| ||
Net Assets - Class C Shares | $ | 32,607,562 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,760,396 | |||||
Net Asset Value Per Share(3) |
| $ | 11.81 |
| ||
Net Assets - Class D Shares | $ | 6,804,239 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 568,461 | |||||
Net Asset Value Per Share |
| $ | 11.97 |
| ||
Net Assets - Class I Shares | $ | 94,485,306 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,886,289 | |||||
Net Asset Value Per Share |
| $ | 11.98 |
| ||
Net Assets - Class N Shares | $ | 707,477 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 59,201 | |||||
Net Asset Value Per Share |
| $ | 11.95 |
| ||
Net Assets - Class S Shares | $ | 47,933 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,021 | |||||
Net Asset Value Per Share |
| $ | 11.92 |
| ||
Net Assets - Class T Shares | $ | 10,872,549 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 908,998 | |||||
Net Asset Value Per Share |
| $ | 11.96 |
| ||
(1) Includes cost of $179,670,310. (2) Includes cost of $55,734. (3) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (4) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
Janus Henderson Dividend & Income Builder Fund
Statement of Operations (unaudited)
For the period ended December 31, 2018
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 2,358,764 | ||
Interest | 670,889 | ||||
Other income | 84,361 | ||||
Foreign tax withheld | (104,701) | ||||
Total Investment Income |
| 3,009,313 |
| ||
Expenses: | |||||
Advisory fees | 684,638 | ||||
12b-1 Distribution and shareholder servicing fees: | |||||
Class A Shares | 36,820 | ||||
Class C Shares | 145,792 | ||||
Class S Shares | 64 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 4,735 | ||||
Class S Shares | 64 | ||||
Class T Shares | 13,509 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 10,269 | ||||
Class C Shares | 9,169 | ||||
Class I Shares | 35,099 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 1,294 | ||||
Class C Shares | 1,384 | ||||
Class D Shares | 1,955 | ||||
Class I Shares | 2,256 | ||||
Class N Shares | 19 | ||||
Class T Shares | 149 | ||||
Registration fees | 114,313 | ||||
Professional fees | 28,298 | ||||
Shareholder reports expense | 7,526 | ||||
Custodian fees | 3,404 | ||||
Non-interested Trustees’ fees and expenses | 2,567 | ||||
Affiliated fund administration fees | 2,283 | ||||
Other expenses | 45,716 | ||||
Total Expenses |
| 1,151,323 |
| ||
Less: Excess Expense Reimbursement and Waivers |
| (122,088) |
| ||
Net Expenses |
| 1,029,235 |
| ||
Net Investment Income/(Loss) |
| 1,980,078 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (401,763) | ||||
Forward foreign currency exchange contracts | 633,347 | ||||
Total Net Realized Gain/(Loss) on Investments |
| 231,584 |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees’ deferred compensation | (14,818,489) | ||||
Forward foreign currency exchange contracts | (62,066) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (14,880,555) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (12,668,893) |
| ||
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Statements of Changes in Net Assets
|
|
| Period ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 1,980,078 | $ | 4,379,075 | ||||
Net realized gain/(loss) on investments | 231,584 | 1,853,498 | ||||||
Change in unrealized net appreciation/depreciation | (14,880,555) | (870,507) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (12,668,893) |
|
| 5,362,066 | |||
Dividends and Distributions to Shareholders(1) | ||||||||
Class A Shares | (668,513) | N/A | ||||||
Class C Shares | (596,023) | N/A | ||||||
Class D Shares | (184,177) | N/A | ||||||
Class I Shares | (2,550,885) | N/A | ||||||
Class N Shares | (19,817) | N/A | ||||||
Class S Shares | (1,305) | N/A | ||||||
Class T Shares | (252,521) | N/A | ||||||
| Total Dividends and Distributions to Shareholders |
| (4,273,241) |
|
| N/A | ||
Dividends from Net Investment Income(1) | ||||||||
Class A Shares | N/A | (748,523) | ||||||
Class C Shares | N/A | (676,819) | ||||||
Class D Shares | N/A | (143,927) | ||||||
Class I Shares | N/A | (2,652,024) | ||||||
Class N Shares | N/A | (18,014) | ||||||
Class S Shares | N/A | (1,333) | ||||||
Class T Shares | N/A | (133,759) | ||||||
| Total Dividends from Net Investment Income |
| N/A |
|
| (4,374,399) | ||
Net Decrease from Dividends and Distributions to Shareholders |
| (4,273,241) |
|
| (4,374,399) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 4,276,938 | 3,156,214 | ||||||
Class C Shares | 6,130,913 | (1,992,556) | ||||||
Class D Shares | (552,411) | 7,890,598 | ||||||
Class I Shares | 3,473,649 | 21,418,407 | ||||||
Class N Shares | (72,211) | 830,295 | ||||||
Class S Shares | 1,305 | 1,333 | ||||||
Class T Shares | 2,108,832 | 10,009,996 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 15,367,015 |
|
| 41,314,287 | |||
Net Increase/(Decrease) in Net Assets |
| (1,575,119) |
|
| 42,301,954 | |||
Net Assets: | ||||||||
Beginning of period | 178,057,204 | 135,755,250 | ||||||
| End of period(2) | $ | 176,482,085 |
| $ | 178,057,204 | ||
(1) The requirement to disclose dividends and distributions paid to shareholders from net investment income and/or net realized gain from investment transactions was eliminated by the SEC (Securities Exchange Commission) in 2018. (2) Net assets - End of period includes undistributed (overdistributed) net investment income of $808,414 as of June 30, 2018. The requirement to disclose undistributed (overdistributed) net investment income was eliminated by the SEC in 2018. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class A Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $13.18 |
|
| $12.94 |
|
| $12.16 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.14 | 0.36 | 0.38 | |||||||||
Net realized and unrealized gain/(loss) | (1.05) | 0.24 | 0.75 | |||||||||
Total from Investment Operations |
| (0.91) |
|
| 0.60 |
|
| 1.13 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.19) | (0.36) | (0.35) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.36) |
|
| (0.35) |
| |||
Net Asset Value, End of Period | $11.97 | $13.18 | $12.94 | |||||||||
Total Return* |
| (7.01)% |
|
| 4.63% |
|
| 9.44% |
| |||
Net Assets, End of Period (in thousands) | $30,957 | $29,294 | $25,824 | |||||||||
Average Net Assets for the Period (in thousands) | $29,209 | $27,827 | $29,932 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.30% | 1.14% | 1.23% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.17% | 1.14% | 1.23% | |||||||||
Ratio of Net Investment Income/(Loss) | 2.14% | 2.71% | 3.36% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
Class C Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $13.01 |
|
| $12.81 |
|
| $12.05 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.09 | 0.25 | 0.30 | |||||||||
Net realized and unrealized gain/(loss) | (1.04) | 0.24 | 0.73 | |||||||||
Total from Investment Operations |
| (0.95) |
|
| 0.49 |
|
| 1.03 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.14) | (0.29) | (0.27) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.25) |
|
| (0.29) |
|
| (0.27) |
| |||
Net Asset Value, End of Period | $11.81 | $13.01 | $12.81 | |||||||||
Total Return* |
| (7.34)% |
|
| 3.85% |
|
| 8.62% |
| |||
Net Assets, End of Period (in thousands) | $32,608 | $29,203 | $30,671 | |||||||||
Average Net Assets for the Period (in thousands) | $28,908 | $31,115 | $32,821 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.05% | 1.91% | 2.01% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.91% | 1.91% | 2.01% | |||||||||
Ratio of Net Investment Income/(Loss) | 1.40% | 1.85% | 2.68% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class A Shares | |||||||||||||||
For a share outstanding during the year or period ended July 31 |
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013(1) |
| |||
Net Asset Value, Beginning of Period |
| $12.50 |
|
| $12.57 |
|
| $11.40 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||
Net investment income/(loss)(2) | 0.40 | 0.35 | 0.40 | 0.33 | |||||||||||
Net realized and unrealized gain/(loss) | (0.40) | 0.11 | 1.10 | 1.33 | |||||||||||
Total from Investment Operations |
| — |
|
| 0.46 |
|
| 1.50 |
|
| 1.66 |
| |||
Less Dividends and Distributions: | |||||||||||||||
Dividends (from net investment income) | (0.34) | (0.33) | (0.31) | (0.26) | |||||||||||
Distributions (from capital gains) | — | (0.20) | (0.02) | — | |||||||||||
Total Dividends and Distributions |
| (0.34) |
|
| (0.53) |
|
| (0.33) |
|
| (0.26) |
| |||
Net Asset Value, End of Period | $12.16 | $12.50 | $12.57 | $11.40 | |||||||||||
Total Return* |
| 0.19% |
|
| 3.81% |
|
| 13.26% |
|
| 16.79% |
| |||
Net Assets, End of Period (in thousands) | $40,869 | $15,959 | $14,308 | $1,891 | |||||||||||
Average Net Assets for the Period (in thousands) | $30,357 | $15,010 | $12,099 | $327 | |||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.27%(3) | 1.46% | 1.94% | 7.35% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.27%(4) | 1.30% | 1.30% | 1.30% | |||||||||||
Ratio of Net Investment Income/(Loss) | 3.37%(5) | 2.84% | 3.20% | 2.98% | |||||||||||
Portfolio Turnover Rate | 39% | 26% | 78% | 188% | |||||||||||
1 | |||||||||||||||
Class C Shares | |||||||||||||||
For a share outstanding during the year or period ended July 31 |
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013(1) |
| |||
Net Asset Value, Beginning of Period |
| $12.40 |
|
| $12.49 |
|
| $11.35 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||
Net investment income/(loss)(2) | 0.30 | 0.26 | 0.30 | 0.25 | |||||||||||
Net realized and unrealized gain/(loss) | (0.39) | 0.10 | 1.10 | 1.33 | |||||||||||
Total from Investment Operations |
| (0.09) |
|
| 0.36 |
|
| 1.40 |
|
| 1.58 |
| |||
Less Dividends and Distributions: | |||||||||||||||
Dividends (from net investment income) | (0.26) | (0.25) | (0.24) | (0.23) | |||||||||||
Distributions (from capital gains) | — | (0.20) | (0.02) | — | |||||||||||
Total Dividends and Distributions |
| (0.26) |
|
| (0.45) |
|
| (0.26) |
|
| (0.23) |
| |||
Net Asset Value, End of Period | $12.05 | $12.40 | $12.49 | $11.35 | |||||||||||
Total Return* |
| (0.58)% |
|
| 3.00% |
|
| 12.45% |
|
| 15.94% |
| |||
Net Assets, End of Period (in thousands) | $33,327 | $13,846 | $4,525 | $463 | |||||||||||
Average Net Assets for the Period (in thousands) | $24,477 | $10,077 | $2,561 | $128 | |||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.04%(3) | 2.23% | 2.68% | 8.17% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 2.03%(4) | 2.05% | 2.05% | 2.05% | |||||||||||
Ratio of Net Investment Income/(Loss) | 2.55%(5) | 2.15% | 2.38% | 2.32% | |||||||||||
Portfolio Turnover Rate | 39% | 26% | 78% | 188% | |||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2012 (inception date) through July 31, 2013. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.02% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (5) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
See Notes to Financial Statements. | |
Janus Investment Fund | 21 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class D Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $13.17 |
|
| $12.93 |
|
| $13.18 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.15 | 0.46 | 0.04 | |||||||||
Net realized and unrealized gain/(loss) | (1.04) | 0.16 | (0.17) | |||||||||
Total from Investment Operations |
| (0.89) |
|
| 0.62 |
|
| (0.13) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.20) | (0.38) | (0.12) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.31) |
|
| (0.38) |
|
| (0.12) |
| |||
Net Asset Value, End of Period | $11.97 | $13.17 | $12.93 | |||||||||
Total Return* |
| (6.86)% |
|
| 4.77% |
|
| (0.96)% |
| |||
Net Assets, End of Period (in thousands) | $6,804 | $8,072 | $472 | |||||||||
Average Net Assets for the Period (in thousands) | $7,834 | $4,665 | $343 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.20% | 1.02% | 1.10% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.01% | 0.99% | 1.05% | |||||||||
Ratio of Net Investment Income/(Loss) | 2.29% | 3.47% | 4.27% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
Class I Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(3) |
| ||||
Net Asset Value, Beginning of Period |
| $13.19 |
|
| $12.94 |
|
| $12.16 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.16 | 0.40 | 0.45 | |||||||||
Net realized and unrealized gain/(loss) | (1.06) | 0.23 | 0.71 | |||||||||
Total from Investment Operations |
| (0.90) |
|
| 0.63 |
|
| 1.16 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.20) | (0.38) | (0.38) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.31) |
|
| (0.38) |
|
| (0.38) |
| |||
Net Asset Value, End of Period | $11.98 | $13.19 | $12.94 | |||||||||
Total Return* |
| (6.88)% |
|
| 4.86% |
|
| 9.70% |
| |||
Net Assets, End of Period (in thousands) | $94,485 | $100,825 | $78,630 | |||||||||
Average Net Assets for the Period (in thousands) | $103,531 | $92,797 | $66,190 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.03% | 0.91% | 1.00% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.91% | 0.91% | 1.00% | |||||||||
Ratio of Net Investment Income/(Loss) | 2.38% | 2.94% | 3.97% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements. | |
22 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class I Shares | |||||||||||||||
For a share outstanding during the year or period ended July 31 |
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013(1) |
| |||
Net Asset Value, Beginning of Period |
| $12.49 |
|
| $12.57 |
|
| $11.39 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||
Net investment income/(loss)(2) | 0.40 | 0.39 | 0.44 | 0.46 | |||||||||||
Net realized and unrealized gain/(loss) | (0.37) | 0.09 | 1.09 | 1.22 | |||||||||||
Total from Investment Operations |
| 0.03 |
|
| 0.48 |
|
| 1.53 |
|
| 1.68 |
| |||
Less Dividends and Distributions: | |||||||||||||||
Dividends (from net investment income) | (0.36) | (0.36) | (0.33) | (0.29) | |||||||||||
Distributions (from capital gains) | — | (0.20) | (0.02) | — | |||||||||||
Total Dividends and Distributions |
| (0.36) |
|
| (0.56) |
|
| (0.35) |
|
| (0.29) |
| |||
Net Asset Value, End of Period | $12.16 | $12.49 | $12.57 | $11.39 | |||||||||||
Total Return* |
| 0.48% |
|
| 3.97% |
|
| 13.56% |
|
| 17.01% |
| |||
Net Assets, End of Period (in thousands) | $46,454 | $24,356 | $8,156 | $1,463 | |||||||||||
Average Net Assets for the Period (in thousands) | $36,087 | $14,987 | $4,251 | $1,982 | |||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.04%(3) | 1.24% | 1.66% | 7.11% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.04%(4) | 1.05% | 1.05% | 1.05% | |||||||||||
Ratio of Net Investment Income/(Loss) | 3.37%(5) | 3.13% | 3.50% | 4.18% | |||||||||||
Portfolio Turnover Rate | 39% | 26% | 78% | 188% | |||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2012 (inception date) through July 31, 2013. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.02% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (5) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
See Notes to Financial Statements. | |
Janus Investment Fund | 23 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class N Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $13.16 |
|
| $12.91 |
|
| $12.17 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.16 | 0.45 | 0.40 | |||||||||
Net realized and unrealized gain/(loss) | (1.05) | 0.19 | 0.73 | |||||||||
Total from Investment Operations |
| (0.89) |
|
| 0.64 |
|
| 1.13 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.21) | (0.39) | (0.39) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.32) |
|
| (0.39) |
|
| (0.39) |
| |||
Net Asset Value, End of Period | $11.95 | $13.16 | $12.91 | |||||||||
Total Return* |
| (6.85)% |
|
| 4.94% |
|
| 9.44% |
| |||
Net Assets, End of Period (in thousands) | $707 | $857 | $50 | |||||||||
Average Net Assets for the Period (in thousands) | $841 | $557 | $281 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.32% | 0.99% | 1.12% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.84% | 0.86% | 1.06% | |||||||||
Ratio of Net Investment Income/(Loss) | 2.45% | 3.40% | 3.58% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
Class S Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(3) |
| ||||
Net Asset Value, Beginning of Period |
| $13.17 |
|
| $12.93 |
|
| $13.18 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.13 | 0.34 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (1.05) | 0.25 | (0.16) | |||||||||
Total from Investment Operations |
| (0.92) |
|
| 0.59 |
|
| (0.13) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.22) | (0.35) | (0.12) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.33) |
|
| (0.35) |
|
| (0.12) |
| |||
Net Asset Value, End of Period | $11.92 | $13.17 | $12.93 | |||||||||
Total Return* |
| (7.05)% |
|
| 4.52% |
|
| (0.97)% |
| |||
Net Assets, End of Period (in thousands) | $48 | $52 | $49 | |||||||||
Average Net Assets for the Period (in thousands) | $51 | $52 | $50 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 7.33% | 2.77% | 1.44% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.35% | 1.21% | 1.44% | |||||||||
Ratio of Net Investment Income/(Loss) | 1.95% | 2.56% | 3.22% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Period from June 5, 2017 (inception date) through June 30, 2017. |
See Notes to Financial Statements. | |
24 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class N Shares | ||||||
For a share outstanding during the period ended July 31 |
| 2016(1) |
| |||
Net Asset Value, Beginning of Period |
| $11.95 |
| |||
Income/(Loss) from Investment Operations: | ||||||
Net investment income/(loss)(2) | 0.28 | |||||
Net realized and unrealized gain/(loss) | 0.17 | |||||
Total from Investment Operations |
| 0.45 |
| |||
Less Dividends and Distributions: | ||||||
Dividends (from net investment income) | (0.23) | |||||
Total Dividends and Distributions |
| (0.23) |
| |||
Net Asset Value, End of Period | $12.17 | |||||
Total Return* |
| 3.93% |
| |||
Net Assets, End of Period (in thousands) | $403 | |||||
Average Net Assets for the Period (in thousands) | $406 | |||||
Ratios to Average Net Assets**: |
|
|
| |||
Ratio of Gross Expenses | 1.09%(3) | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.03%(4) | |||||
Ratio of Net Investment Income/(Loss) | 3.51%(5) | |||||
Portfolio Turnover Rate | 39% | |||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from November 30, 2015 (inception date) through July 31, 2016. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.02% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (5) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
See Notes to Financial Statements. | |
Janus Investment Fund | 25 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
Class T Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2018 (unaudited) and the year or period ended June 30 | 2018 |
|
| 2018 |
|
| 2017(1) |
| ||||
Net Asset Value, Beginning of Period |
| $13.16 |
|
| $12.93 |
|
| $13.18 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.14 | 0.49 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (1.04) | 0.11 | (0.16) | |||||||||
Total from Investment Operations |
| (0.90) |
|
| 0.60 |
|
| (0.13) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.19) | (0.37) | (0.12) | |||||||||
Distributions (from capital gains) | (0.11) | — | — | |||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.37) |
|
| (0.12) |
| |||
Net Asset Value, End of Period | $11.96 | $13.16 | $12.93 | |||||||||
Total Return* |
| (6.90)% |
|
| 4.66% |
|
| (0.96)% |
| |||
Net Assets, End of Period (in thousands) | $10,873 | $9,755 | $59 | |||||||||
Average Net Assets for the Period (in thousands) | $10,712 | $3,644 | $52 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.24% | 1.13% | 1.20% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.09% | 1.11% | 1.19% | |||||||||
Ratio of Net Investment Income/(Loss) | 2.21% | 3.75% | 3.48% | |||||||||
Portfolio Turnover Rate | 16% | 36% | 55% | |||||||||
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
26 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Dividend & Income Builder Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 48 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks to provide current income from a portfolio of securities that exceeds the average yield on global stocks, and aims to provide a growing stream of income per share over time. The Fund's secondary objective is to seek to provide long-term capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson Dividend & Income Builder Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. Subsequent to July 31, 2016, the Fund changed its fiscal year end to June 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares. Class D shares are closed to new investors.
Class A Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds have adopted an auto-conversion police pursuant to which Class C Shares that have been held for ten years will be automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the tenth anniversary of the date of purchase. For Class C Shares held in retirement plans, omnibus accounts on intermediary platforms, and in certain other accounts, the Fund and its agents may not have transparency into how long a shareholder has held Class C Shares and therefore may not be able to determine whether such Class C Shares are eligible for automatic conversion to Class A Shares; accordingly the Funds will not be able to automatically convert Class C Shares into Class A Shares, and the financial intermediary is responsible for notifying the Fund that Class C Shares are eligible for conversion to Class A Shares. In addition, financial intermediaries may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. In these circumstances, certain Class C shareholders may not be eligible to convert their Class C Shares to Class A Shares as described above but may be permitted to convert their Class C Shares to Class A Shares pursuant to their financial intermediary’s conversion policies and procedures. Please contact your financial intermediary for additional information. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus Henderson funds. Class D Shares are available only to investors who hold accounts directly with the Janus Henderson funds, to immediate family members or members of the same household of an eligible individual
Janus Investment Fund | 27 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what
28 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2018 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a
Janus Investment Fund | 29 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends are declared and distributed quarterly for the fund. Realized capital gains, if any are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Funds’ equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Currently, Management does not believe the bill will have a material impact on the Fund’s intention to continue to qualify as a regulated investment company, which is generally not subject to U.S. federal income tax.
30 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended December 31, 2018 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Janus Investment Fund | 31 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
The Fund may enter into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund and/or in order to take a positive outlook on the related currency to increase exposure to currency risk.
The Fund may enter into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund and/or in order to take a negative outlook on the related currency to increase exposure to currency risk.
3. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Fund’s ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
32 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as “Brexit”). There is considerable uncertainty about how Brexit will be conducted, how negotiations of necessary treaties and trade agreements will proceed, or how financial markets will react. In addition, one or more other countries may also abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
Janus Investment Fund | 33 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of December 31, 2018” table located in the Fund’s Schedule of Investments.
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Liabilities | or Liability(a) | Pledged(b) | Net Amount | |||||
BNP Paribas | $ | 103,974 | $ | — | $ | — | $ | 103,974 | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | ||||||||
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. | ||||||||
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Real Estate Investing
The Fund may invest in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such
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Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital Management LLC ("Janus Capital") an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
Average Daily Net Assets of the Portfolio | Contractual Investment Advisory Fee (%) |
First $1 Billion | 0.75 |
Next $1 Billion | 0.65 |
Above $2 Billion | 0.55 |
Effective December 31, 2017, the Fund’s subadvisory agreement with Henderson Investment Management Limited (“HIML”) was terminated. HIML served as subadviser to the Fund. As subadviser, HIML provided day-to-day management of the investment operations of the Fund subject to the general oversight of the Board of Trustees and Janus Capital. HIML was an affiliate of Janus Capital through a common parent company.
Janus Capital paid HIML a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of Janus Capital. In this capacity, such employees of HGIL are subject to the oversight and supervision of Janus Capital and may provide portfolio management, research, and related services to the Fund on behalf of Janus Capital.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.84% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers until at least November 1, 2019. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund’s Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for
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Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution fees and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $231,481 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2018. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
36 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
Effective April 1, 2018, BNP Paribas Financial Services (“BPFS”) provides certain administrative services to the Fund, including services related to Fund accounting, calculation of the Fund’s daily NAV, and Fund audit, tax, and reporting obligations, pursuant to a sub-administration agreement with Janus Capital on behalf of the Fund. Janus Capital, as administrator, oversees the provision of these services by BPFS. As compensation for such services, Janus Capital pays BPFS a fee based on a percentage of the Fund’s assets, along with a flat fee, and is reimbursed by the Fund for amounts paid to BPFS (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). These amounts are disclosed as part of "Other expenses" on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2018 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2018 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $250,550 were paid by the Trust to the Trustees under the Deferred Plan during the period ended December 31, 2018.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended December 31, 2018, Janus Henderson Distributors retained upfront sales charges of $1,935.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the period ended December 31, 2018.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended December 31, 2018, redeeming shareholders of Class C Shares paid CDSCs of $1,019.
As of December 31, 2018, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| ||
Class A Shares | - | %* | - | %* | ||
Class C Shares | -* | -* | ||||
Class D Shares | 1 | -* | ||||
Class I Shares | -* | -* | ||||
Class N Shares | 7 | -* | ||||
Class S Shares | 100 | -* | ||||
Class T Shares | -* | -* | ||||
* | Less than 0.50% | |||||
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Notes to Financial Statements (unaudited)
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2018 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships and investments in passive foreign investment companies.
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ 179,730,428 | $10,784,148 | $(16,149,667) | $ (5,365,519) |
Information on the tax components of derivatives as of December 31, 2018 is as follows:
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/ |
$ - | $ - | $ (103,974) | $ (103,974) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
38 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
Period ended December 31, 2018 | Year ended June 30, 2018 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 761,340 | $ 9,341,316 | 543,059 | $ 7,403,270 | ||
Reinvested dividends and distributions | 52,103 | 648,358 | 54,015 | 721,102 | ||
Shares repurchased | (450,949) | (5,712,736) | (369,556) | (4,968,158) | ||
Net Increase/(Decrease) | 362,494 | $ 4,276,938 |
| 227,518 | $ 3,156,214 | |
Class C Shares: | ||||||
Shares sold | 1,113,468 | $13,534,750 | 380,888 | $ 5,093,663 | ||
Reinvested dividends and distributions | 44,636 | 544,964 | 45,669 | 602,726 | ||
Shares repurchased | (642,616) | (7,948,801) | (575,138) | (7,688,945) | ||
Net Increase/(Decrease) | 515,488 | $ 6,130,913 |
| (148,581) | $ (1,992,556) | |
Class D Shares: | ||||||
Shares sold | 71,596 | $ 923,788 | 673,703 | $ 9,216,467 | ||
Reinvested dividends and distributions | 14,396 | 179,550 | 10,502 | 139,614 | ||
Shares repurchased | (130,227) | (1,655,749) | (107,995) | (1,465,483) | ||
Net Increase/(Decrease) | (44,235) | $ (552,411) |
| 576,210 | $ 7,890,598 | |
Class I Shares: | ||||||
Shares sold | 2,690,120 | $33,893,786 | 2,365,953 | $32,242,372 | ||
Reinvested dividends and distributions | 204,133 | 2,540,013 | 195,765 | 2,614,379 | ||
Shares repurchased | (2,654,301) | (32,960,150) | (992,173) | (13,438,344) | ||
Net Increase/(Decrease) | 239,952 | $ 3,473,649 |
| 1,569,545 | $21,418,407 | |
Class N Shares: | ||||||
Shares sold | 2,000 | $ 26,312 | 61,316 | $ 830,926 | ||
Reinvested dividends and distributions | 1,590 | 19,817 | 1,355 | 18,014 | ||
Shares repurchased | (9,545) | (118,340) | (1,371) | (18,645) | ||
Net Increase/(Decrease) | (5,955) | $ (72,211) |
| 61,300 | $ 830,295 | |
Class S Shares: | ||||||
Shares sold | - | $ - | - | $ - | ||
Reinvested dividends and distributions | 105 | 1,305 | 100 | 1,333 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 105 | $ 1,305 |
| 100 | $ 1,333 | |
Class T Shares: | ||||||
Shares sold | 488,395 | $ 6,281,627 | 787,984 | $10,711,487 | ||
Reinvested dividends and distributions | 20,372 | 251,949 | 10,086 | 133,524 | ||
Shares repurchased | (340,839) | (4,424,744) | (61,586) | (835,015) | ||
Net Increase/(Decrease) | 167,928 | $ 2,108,832 |
| 736,484 | $10,009,996 | |
7. Purchases and Sales of Investment Securities
For the period ended December 31, 2018, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$32,716,191 | $ 27,604,478 | $ 8,992,734 | $ - |
8. Recent Accounting Pronouncements
The Securities and Exchange Commission adopted amendments to Regulation S-X, for the presentation of distributable earnings and distributions to align with US Generally Accepted Accounting Principles (GAAP). The compliance date of the amendments to Regulation S-X is November 5, 2018. This report incorporates the amendments to Regulation S-X.
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Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements (unaudited)
The FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08") to amend the amortization period for certain purchased callable debt securities held at a premium. The guidance requires certain premiums on callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Management is currently evaluating the impacts of ASU 2017-08 on the financial statements.
The FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) in August 2018. The new guidance removes, modifies and enhances the disclosures to Topic 820. For public entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management is currently evaluating the impact of this new guidance on the financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2018 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
40 | DECEMBER 31, 2018 |
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund is required to disclose its complete holdings on Form N-Q within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to Fund shareholders. These reports (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag. Holdings are generally posted approximately two business days thereafter under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund (each, a “JIF Fund,” and collectively, the “JIF Funds”), as well as each Portfolio of Janus Aspen Series (together with the JIF Funds, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Funds that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and each subadviser in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements and the information provided, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 6, 2018, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2019 through February 1, 2020, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, refer to actual annual advisory fees (and, for the purposes of peer comparisons any administration fees excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
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Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with fund shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also expressed the view that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital and the subadviser to each Janus Henderson Fund that utilizes a subadviser were appropriate and consistent with the terms of the respective investment advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2018, approximately 48% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar, and for the 12 months ended September 30, 2018, approximately 56% of the Janus Henderson Funds were in the top two quartiles of performance, as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the JIF Funds:
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
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Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Strategic Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
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Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Small Cap Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, including the impact of waivers on comparative peer performance.
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Additional Information (unaudited)
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and the Fund’s limited performance history.
· For Janus Henderson All Asset Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Growth Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital and Geneva had taken or were taking to improve performance.
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Additional Information (unaudited)
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the second Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2018 and the first Broadridge quartile for the 12 months ended May 31, 2018.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the third Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Select Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2018 and the bottom Broadridge quartile for the 12 months ended May 31, 2018.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the management fee rate (investment advisory and any administration fees, but excluding out-of-pocket costs) for many of the Janus Henderson Funds, net of waivers, was below the average management fee rate of the respective peer group of funds selected by Broadridge. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group peers and to average total expenses for its Broadridge Expense Universe.
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Additional Information (unaudited)
The independent fee consultant expressed the view that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. At the fund complex level, the independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 10% under the average total expenses for the respective Broadridge Expense Group peers and 19% under the average total expenses for the respective Broadridge Expense Universes; (3) management fees for the Janus Henderson Funds, on average, were 8% under the average management fees for the respective Expense Groups and 10% under the average for the respective Expense Universes; and (4) Janus Henderson Fund expenses by function for each asset and share class category were reasonable relative to peer benchmarks.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual share class level, Janus Henderson Fund expenses were found to be reasonable relative to peer benchmarks. Further, for certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to investors in each Janus Henderson Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such “focus list” Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances comparable subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, while subadviser fee rates charged to the Janus Henderson Funds were generally within a reasonable range of the fee rates that the subadviser charges to comparable separate account clients or non-affiliated funds. The Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to its institutional clients and to the fees Janus Capital charges to funds subadvised by Janus Capital; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson institutional and subadvised fund investors; (4) in three of five product categories, the Janus Henderson Funds receive proportionally better pricing than the industry in relation to Janus Henderson institutional clients; and (5) in six of seven strategies, Janus Capital has lower management fees than the management fees charged to funds subadvised by Janus Capital.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2017, including the JIF Funds, and noted the following with regard to each JIF Fund’s total expenses, net of applicable fee waivers (the JIF Fund’s “total expenses”):
Alternative Fund
· For Janus Henderson Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were
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Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
Fixed-Income Funds
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Unconstrained Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for all share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the peer group comparisons did not take into account a recent management fee reduction for the Fund, effective December 14, 2018 and that Janus Capital has contractually agreed to limit the Fund’s expenses at a lower (more favorable) level.
· For Janus Henderson Strategic Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
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Additional Information (unaudited)
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Technology Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Small Cap Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were above the peer group average for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson All Asset Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s total expenses.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.