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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
Stephanie Grauerholz-Lofton, 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: 9/30
Date of reporting period: 3/31/10
Item 1 — Reports to Shareholders
2010 SEMIANNUAL REPORT
Janus Alternative Funds
Janus Long/Short Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278janus.gif)
Table of Contents
Janus Alternative Funds
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65 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus Capital). You can also visit janus.com/info (or janus.com/reports if you hold Shares directly with Janus Capital). Read it carefully before you invest or send money.
Co-Chief Investment Officers’ Market Perspective
![(JONATHAN COLEMAN PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278pcolemaj.jpg)
Jonathan Coleman
Co-Chief Investment Officer
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278psmithgi.jpg)
Gibson Smith
Co-Chief Investment Officer
Thank you for your investment with Janus. In recent months, improvements in the U.S. and global economies have persisted. And, while market and economic conditions continue to change, our research-driven investment philosophy has remained constant. As a result, we are pleased to continue to deliver strong results relative to many of our peers.
For the 12-month period ended March 31, 2010, 71% of Janus funds, Class T Shares, ranked within Lipper’s top two quartiles based on total returns. Longer term, 89% of our funds achieved first- or second-quartile Lipper rankings for the three-year period and 88% ranked in Lipper’s top two quartiles for the five-year period ended March 31, 2010. (Lipper rankings are based on total returns. See complete rankings on page 3.)
Equity and Fixed Income Markets
U.S. equity markets rose during the six-month period to finish near 17-month highs amid upward momentum in the U.S. and global economies and better-than-expected corporate earnings. The S&P 500® Index gained 11.75%, posting its fourth consecutive quarterly gain. Non-U.S. markets also finished close to their highest levels in nearly 18 months.
On the credit and fixed income side, corporate credit markets delivered against strong expectations for the period. The U.S. investment grade credit market (Barclays Capital U.S. Credit Index) rose 3.7% and the U.S. High Yield market (Barclays Capital U.S. High Yield Bond Index) was up 11.1% for the six month period ended March 31, 2010.
A rebound in consumer spending helped drive upward momentum in the U.S. economy during the period, while restructurings in the airline and automobile industries helped strengthen the service and manufacturing sectors. U.S. corporations continued to focus on cost controls instead of ramping up spending and hiring. As a result, we have seen a tremendous recovery in earnings. The U.S. labor market also demonstrated modest progress in March with private payrolls showing their largest monthly increase in two years.
Looking Ahead
While the strength in the U.S. and global economies is encouraging, we believe the potential magnitude of economic growth for the remainder of 2010 remains uncertain. The political environment and overall business confidence remain two key macro themes to watch, given that companies need to invest again in order for sustained economic growth to materialize.
Looking ahead, we do not think the next phase of any market movement will be as broad as the one we saw coming off of the lows of roughly a year ago. This, along with the likelihood of slower or uneven economic growth worldwide, leads us to believe the key to success going forward will largely be dependent on security selection.
As fundamental researchers throughout our 40-year history, our goal has always been to identify those companies going through positive fundamental transition. We take a long-term view of investment opportunities and believe a well-balanced and diversified approach is important to achieving long-term investment success. We look at a potential investment from every angle and believe this is a vital component to successful security selection in both the fixed income and equity markets. This approach forms the foundation of our commitment to deliver strong long-term relative performance.
Once again, we thank you for your business and your continued confidence in Janus.
Janus Alternative Funds | 1
Continued
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or download the file from janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital). Read it carefully before investing or sending money.
The opinions are those of the authors as of March 31, 2010 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes.
Past performance is no guarantee of future results.
All current and potential holdings in Janus products are subject to risks that individuals need to address.
There is no assurance that the investment process will consistently lead to successful investing.
The S&P 500® Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.
The Barclays Capital U.S. Credit Index is comprised of the Barclays Capital U.S. Corporate Index and the non-native currency subcomponent of the Barclays Capital U.S. Government-Related Index. It includes publicly issued U.S. corporates, specified foreign debentures and secured notes denominated in U.S. dollars. It is a subset of the Barclays Capital U.S. Government/Credit Index and the Barclays Capital U.S. Aggregate Bond Index.
Barclays Capital U.S Corporate High-Yield Bond Index is composed of fixed-rate, publicly issued, non-investment grade debt.
A Fund’s portfolio may differ significantly from the securities held in an index. Indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
In preparing this document, Janus has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a Fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
Funds distributed by Janus Distributors LLC (5/10)
2 | MARCH 31, 2010
Lipper Rankings (unaudited)
Lipper Rankings – Based on total returns as of 3/31/10 | ||||||||||||||||||||||||||
One Year | Three Year | Five Year | Ten Year | Since Inception | Since PM Inception | |||||||||||||||||||||
Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | |||||||||||||||
Lipper Category | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | ||||||||||||||
Janus Investment Fund (Inception date) | ||||||||||||||||||||||||||
Growth & Core | ||||||||||||||||||||||||||
Janus Balanced Fund(1)(9/92) | Mixed-Asset Target Allocation–Moderate Funds | 80 | 428/537 | 1 | 3/457 | 2 | 5/347 | 23 | 42/183 | 4 | 1/32 | 2 | 5/368 | |||||||||||||
Janus Contrarian Fund(2/00) | Multi-Cap Core Funds | 6 | 41/805 | 57 | 395/698 | 3 | 16/539 | 15 | 34/234 | 17 | 37/230 | 17 | 37/230 | |||||||||||||
Janus Enterprise Fund(1)(9/92) | Mid-Cap Growth Funds | 26 | 110/425 | 27 | 99/377 | 17 | 54/321 | 90 | 156/173 | 43 | 14/32 | 27 | 106/393 | |||||||||||||
Janus Fund(2/70) | Large-Cap Growth Funds | 32 | 267/834 | 49 | 357/729 | 41 | 245/611 | 69 | 227/330 | 15 | 3/20 | 42 | 316/769 | |||||||||||||
Janus Growth and Income Fund(1)(5/91) | Large-Cap Core Funds | 48 | 438/930 | 46 | 364/799 | 44 | 288/664 | 77 | 296/387 | 7 | 5/78 | 56 | 461/828 | |||||||||||||
Janus Orion Fund(6/00) | Multi-Cap Growth Funds | 2 | 5/456 | 14 | 53/384 | 2 | 4/298 | – | – | 18 | 32/186 | 53 | 214/408 | |||||||||||||
Janus Research Core Fund(1)(6/96) | Large-Cap Core Funds | 19 | 170/930 | 49 | 389/799 | 19 | 123/664 | 42 | 160/387 | 4 | 7/203 | 68 | 562/828 | |||||||||||||
Janus Research Fund(1)(5/93) | Large-Cap Growth Funds | 4 | 28/834 | 35 | 255/729 | 12 | 71/611 | 79 | 261/330 | 6 | 5/86 | 9 | 54/671 | |||||||||||||
Janus Triton Fund(1)(2/05) | Small-Cap Growth Funds | 37 | 196/536 | 3 | 14/472 | 2 | 6/396 | – | – | 2 | 6/392 | 2 | 5/440 | |||||||||||||
Janus Twenty Fund*(4/85) | Large-Cap Growth Funds | 31 | 255/834 | 2 | 8/729 | 1 | 6/611 | 39 | 128/330 | 6 | 2/37 | 35 | 268/781 | |||||||||||||
Janus Venture Fund*(4/85) | Small-Cap Growth Funds | 11 | 59/536 | 50 | 232/472 | 25 | 99/396 | 76 | 169/223 | 9 | 1/11 | 22 | 28/129 | |||||||||||||
Risk-Managed | ||||||||||||||||||||||||||
INTECH Risk-Managed Core Fund(2/03) | Multi-Cap Core Funds | 76 | 605/805 | 70 | 488/698 | 69 | 368/539 | – | – | 49 | 191/393 | 49 | 191/393 | |||||||||||||
Value | ||||||||||||||||||||||||||
Perkins Mid Cap Value Fund(8/98) | Mid-Cap Value Funds | 93 | 203/219 | 8 | 15/192 | 10 | 14/143 | 7 | 4/57 | 3 | 1/43 | 3 | 1/43 | |||||||||||||
Perkins Small Cap Value Fund(2/97) | Small-Cap Core Funds | 37 | 270/733 | 1 | 6/621 | 6 | 28/508 | 10 | 27/272 | 5 | 6/126 | 5 | 6/126 | |||||||||||||
Global & International | ||||||||||||||||||||||||||
Janus Global Life Sciences Fund(12/98) | Global Health/Biotechnology Funds | 45 | 21/46 | 16 | 7/43 | 48 | 18/37 | 75 | 15/19 | 16 | 2/12 | 12 | 5/43 | |||||||||||||
Janus Global Opportunities Fund(1)(6/01) | Global Funds | 36 | 199/556 | 32 | 128/399 | 65 | 198/304 | – | – | 15 | 27/185 | 62 | 195/315 | |||||||||||||
Janus Global Research Fund(1)(2/05) | Global Funds | 20 | 111/556 | 14 | 56/399 | 3 | 9/304 | – | – | 4 | 9/294 | 4 | 9/294 | |||||||||||||
Janus Global Technology Fund(12/98) | Global Science/Technology Funds | 38 | 26/68 | 37 | 21/56 | 36 | 18/50 | 85 | 17/19 | 36 | 6/16 | 42 | 23/54 | |||||||||||||
Janus Overseas Fund(1)(5/94) | International Funds | 1 | 9/1278 | 1 | 6/988 | 1 | 1/721 | 19 | 73/395 | 1 | 1/100 | 1 | 2/607 | |||||||||||||
Janus Worldwide Fund(1)(5/91) | Global Funds | 27 | 145/556 | 61 | 244/399 | 70 | 212/304 | 95 | 145/152 | 34 | 6/17 | 18 | 99/556 | |||||||||||||
Fixed Income | ||||||||||||||||||||||||||
Janus Flexible Bond Fund(1)(7/87) | Intermediate Investment Grade Debt Funds | 59 | 320/544 | 7 | 28/453 | 8 | 28/387 | 18 | 40/224 | 10 | 2/20 | 8 | 34/459 | |||||||||||||
Janus High-Yield Fund(1)(12/95) | High Current Yield Funds | 74 | 338/460 | 23 | 90/399 | 19 | 64/343 | 30 | 66/222 | 7 | 6/91 | 26 | 81/313 | |||||||||||||
Janus Short-Term Bond Fund(1)(9/92) | Short Investment Grade Debt Funds | 64 | 163/257 | 5 | 10/238 | 4 | 6/184 | 18 | 18/99 | 26 | 7/26 | 6 | 14/240 | |||||||||||||
Asset Allocation | ||||||||||||||||||||||||||
Janus Smart Portfolio – Growth(12/05) | Mixed-Asset Target Allocation Growth Funds | 14 | 79/583 | 7 | 33/497 | – | – | – | – | 2 | 5/434 | 2 | 5/434 | |||||||||||||
Janus Smart Portfolio – Moderate(12/05) | Mixed-Asset Target Allocation Moderate Funds | 24 | 124/537 | 2 | 8/457 | – | – | – | – | 3 | 9/401 | 3 | 9/401 | |||||||||||||
Janus Smart Portfolio – Conservative(12/05) | Mixed-Asset Target Allocation Conservative Funds | 29 | 133/462 | 4 | 12/381 | – | – | – | – | 2 | 5/310 | 2 | 5/310 | |||||||||||||
(1) | The date of the Lipper ranking is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception. |
*Closed to new investors.
Past performance is no guarantee of future results. For current month-end performance, call 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus Capital). You can also visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital).
Ranking is for Class T Shares 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 or yield, and therefore the ranking for the period.
Lipper, Inc., a wholly-owned subsidiary of Reuters, is a nationally recognized organization that ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Ratings are historical with capital gains and dividends reinvested.
Janus Alternative Funds | 3
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ managers as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If a Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Funds’ managers may allocate a company 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 by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the managers’ best judgment at the time this report was compiled, which was March 31, 2010. As the investing environment changes, so could the managers’ opinions. These views are unique to each manager and aren’t necessarily shared by fellow employees or by Janus in general.
Fund Expenses
We believe it’s important for our shareholders to have a clear understanding of Fund expenses and the impact they have on investment return.
The following is important information regarding each Fund’s Expense Example, which appears in each Fund’s Management Commentary within this Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); redemption fees, where applicable (and any related exchange fees); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares only); administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares only); administrative fees (applicable to Class A Shares, Class C Shares and Class I Shares only); and other Fund expenses. The 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-month period from October 1, 2009 to March 31, 2010.
Actual Expenses
The first line of the table in each example provides information about actual account values and actual expenses. You may use the information in this line, 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 first line 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 second line of the table in each example provides information about hypothetical account values and hypothetical expenses based upon each 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 each 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.
Janus Capital Management LLC (“Janus Capital”) has contractually agreed to waive each Fund’s total operating expenses, excluding any performance adjustments to management fees (if applicable), class-specific distribution and shareholder servicing (12b-1) fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares only), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares only), brokerage commissions, interest, dividends, taxes and extraordinary expenses, including, but not limited to, acquired fund fees and expenses, to certain limits until at least February 16, 2011. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Funds’ prospectuses.
4 | MARCH 31, 2010
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees (where applicable) and any related exchange fees. These fees are fully described in the prospectus. Therefore, the second line of each table is 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.
Janus Alternative Funds | 5
Janus Global Real Estate Fund (unaudited)
Fund Snapshot We believe that strategic, well-managed global real estate investments can generate attractive current income and substantial long-term capital appreciation over time. Our integrated equity and fixed income research team works together to identify companies that we feel practice disciplined capital allocation and have a clear ability to grow income and create value. | ![]() Patrick Brophy portfolio manager |
Economic Overview
Rising equity indices and further indications of economic recovery in the developed markets have certainly been encouraging, but we still see a looming need for substantial deleveraging, as it appears that much of the debt that was crushing the private sector has simply been transferred to the public sector. This is likely to have far-reaching implications for everything from fiscal policy and job growth to interest rates and commodities prices. In general, while they were hardly immune, many emerging markets weathered the crisis relatively well, particularly those with solid sovereign balance sheets like China and Brazil. This has reinforced our more sanguine view on the prospects for many of these markets, although it’s difficult to imagine that these burgeoning economies can sustain their ascent without some sort of rebound in demand from consumers in the developed world. Given this cautious and somewhat bifurcated world view, we continue to position the Fund for a turbulent environment, maintaining a disciplined bottom-up approach while keeping a wary eye on divergent macro issues ranging from potential tightening in China to sovereign debt crises in Europe.
Global Real Estate Overview
For the property sector, positives like clear signs of a significant thawing in the debt markets, stabilizing asset values and an uptick in transactions were offset by continued pressure on operating fundamentals in developed markets and concerns about over-heating in emerging markets. In the developed markets, primarily the U.S. and Europe, a series of successful equity raises and numerous refinancings at surprisingly attractive terms further shifted the focus away from balance sheets to operating fundamentals and growth prospects, both of which still appear tenuous. Looking at the key geographies, there were several pronounced changes in performance in the six-month period, as several of the strongest markets in the first three quarters of 2009, most notably China and Brazil, finished at the back of the pack. North America continued its winning ways, and one of the early 2009 laggards, Australia, turned in a solid six months.
Strategy Overview
A defensive posture and the selective participation in the re-equitization of the property sector were key strategies for the six-month period. Re-equitization is really just a nicer way of saying dilution, which is what happened to many shareholders of real estate companies in the developed markets throughout 2009 and into 2010. Perhaps more important, however, was how often these dilutive equity issuances proved positive catalysts for the stocks. In hindsight, the thesis was fairly straight-forward: the removal of the bankruptcy overhang brought investors back into the fold, pushing share prices from substantial discounts to closer to net asset value. A critical component of our defensive posture was an over-weighting of the regional malls; it was somewhat counter-intuitive, as a weakened consumer suggested a rocky retail environment, but our belief was that these cash flows would prove surprisingly resilient, which so far has played out.
The Fund’s outperformance relative to its primary benchmark, the FTSE EPRA/NAREIT Developed Index, was driven by its geographic allocation in the six-month period, with its significant overweighting of the U.S. providing the most upside. On the negative side, an overweight position in India had the most detrimental impact. For the period, approximately 46% of the Fund’s outperformance resulted from stock selection, and retail real estate investment trusts (REITs) accounted for nearly one-third of the outperformance.
As we work to position the Fund in these turbulent markets, we continue to seek out opportunistic investments, concentrating, as always, on the key characteristics of our long-established investment philosophy: focused businesses, disciplined allocation of capital, compelling valuation, high barrier-to-entry markets, attractive/irreplaceable real estate assets, development expertise, and quality management.
6 | MARCH 31, 2010
(unaudited)
Due to certain circumstances and market conditions, we initiated positions in put and call options in order to mitigate the risks and potentially enhance the performance of the Fund. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Outlook
While it finally seems safe to declare an end to the recession, we lack the same level of confidence in predicting a robust recovery. In fact, we worry that any number of macro mishaps could derail a still fragile global economy. Is Greece an isolated incident, or the first of many sovereign debt crises? Is the developed world transitioning to a muted and jobless recovery? Can emerging markets, China in particular, pick up the slack for the U.S. consumer and backstop global growth? We certainly don’t have the answers, but we will keep a watchful eye on the macro environment as we pursue our bottom-up approach to investing. As always, we will anchor the Fund with a geographically diverse mix of what we view as the most productive commercial real estate on the listed markets, and we will continue to work diligently to uncover those unique growth opportunities with the potential to enhance shareholder returns.
Thank you for your continued investment.
Janus Global Real Estate Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
Macerich Co. | 1.10% | |||
Jones Lang LaSalle, Inc. | 1.09% | |||
CBL & Associates Properties, Inc. | 1.08% | |||
Alexandria Real Estate Equities, Inc. | 0.75% | |||
Boston Properties, Inc. | 0.57% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Unibail-Rodamco | –0.32% | |||
CapitaLand, Ltd. | –0.22% | |||
China Resources Land, Ltd. | –0.11% | |||
Sun Hung Kai Properties, Ltd. | –0.05% | |||
Land Securities Group PLC | –0.02% |
4 Top Performers – Sectors†
Fund Weighting | FTSE EPRA/NAREIT Developed | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | 16.64% | 90.54% | 99.38% | |||||||||
Consumer Discretionary | 0.67% | 4.52% | 0.14% | |||||||||
Materials | 0.58% | 2.32% | 0.00% | |||||||||
Industrials | 0.27% | 2.01% | 0.42% |
4 Bottom Performers – Sectors†
Fund Weighting | FTSE EPRA/NAREIT Developed | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Health Care | 0.00% | 0.00% | 0.06% | |||||||||
Utilities | 0.00% | 0.01% | 0.00% | |||||||||
Other* | 0.04% | 0.13% | 0.00% | |||||||||
Telecommunication Services | 0.08% | 0.47% | 0.00% |
† | 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. | |
* | Not a GICS classified sector. |
Janus Alternative Funds | 7
Janus Global Real Estate Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Hang Lung Properties, Ltd. Real Estate Operating/Development | 2.8% | |||
CapitaLand, Ltd. Real Estate Operating/Development | 2.6% | |||
Westfield Group REIT – Shopping Centers | 2.4% | |||
Macerich Co. REIT – Regional Malls | 2.3% | |||
Alexandria Real Estate Equities, Inc. REIT – Office Property | 2.2% | |||
12.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24p01.gif)
Emerging markets comprised 5.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24c01.gif)
8 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24m01.gif)
Expense Ratios – | |||||||||||
per the February 16, 2010 and | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | November 27, 2009 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Global Real Estate Fund – Class A Shares | |||||||||||
NAV | 14.34% | 95.36% | –4.37% | 6.22% | 1.59% | ||||||
MOP | 7.72% | 84.07% | –6.76% | ||||||||
Janus Global Real Estate Fund – Class C Shares | |||||||||||
NAV | 13.78% | 95.01% | –4.83% | 6.86% | 2.34% | ||||||
CDSC | 12.67% | 93.10% | –4.83% | ||||||||
Janus Global Real Estate Fund – Class D Shares(1) | 12.37% | 87.73% | –8.01% | 5.81% | 1.46% | ||||||
Janus Global Real Estate Fund – Class I Shares | 14.34% | 95.25% | –4.22% | 5.69% | 1.34% | ||||||
Janus Global Real Estate Fund – Class S Shares | 14.09% | 95.46% | –4.50% | 6.35% | 1.84% | ||||||
Janus Global Real Estate Fund – Class T Shares | 14.36% | 92.55% | –6.49% | 6.11% | 1.59% | ||||||
FTSE EPRA/NAREIT Developed Index | 8.54% | 84.50% | –12.51% | ||||||||
FTSE EPRA/NAREIT Global Index | 7.67% | 85.06% | –12.50% | ||||||||
Lipper Quartile – Class I Shares | – | 1st | 1st | ||||||||
Lipper Ranking – based on total return for Global Real Estate Funds | – | 4/85 | 1/67 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Alternative Funds | 9
Janus Global Real Estate Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The fees and expenses shown for all share classes except Class D Shares and Class T Shares were determined based on net assets as of the fiscal year ended July 31, 2009. Expense information shown for Class D Shares and Class T Shares reflects estimated annualized expenses that the Fund share classes expect to incur during the fiscal year. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund invests in real estate investment trusts (REITs) which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Due to certain investment strategies, the Fund may have an increased position in cash.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Global Real Estate Fund (the “JAD predecessor fund”) into corresponding shares of Janus Global Real Estate Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the JAD predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund respectively, net of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class may have been different.
Class D Shares commenced operations on February 16, 2010. The performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s Class I Shares. The performance shown reflects the fees and expenses of Class D Shares, without the effect of any fee and expense limitations or waivers. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class T Shares commenced operations on July 6, 2009, after the reorganization of the JAD predecessor fund into Janus Global Real Estate Fund. Performance shown for Class T Shares for periods prior to July 6, 2009, reflects the historical performance of the JAD predecessor fund’s Class I
10 | MARCH 31, 2010
(unaudited)
Shares prior to the reorganization, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense limitations or waivers. If Class T Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for the Class I Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – November 28, 2007 |
1) Closed to new investors.
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,141.90 | $ | 8.33 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.15 | $ | 7.85 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,137.80 | $ | 12.31 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.41 | $ | 11.60 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,103.40 | $ | 1.71 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.20 | $ | 6.79 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,143.40 | $ | 7.16 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.25 | $ | 6.74 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,140.90 | $ | 9.61 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.96 | $ | 9.05 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,143.60 | $ | 8.34 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.15 | $ | 7.85 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.56% for Class A Shares, 2.31% for Class C Shares, 1.34% for Class I Shares, 1.80% for Class S Shares, and 1.56% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half period). Expenses include effect of contractual waivers by Janus Capital. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 1.35% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Alternative Funds | 11
Janus Global Real Estate Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Common Stock – 80.3% | ||||||||||||
Building – Mobile Home and Manufactured Homes – 0.1% | ||||||||||||
645 | Maisons France Confort | $ | 29,094 | |||||||||
Building – Residential and Commercial – 1.1% | ||||||||||||
40,600 | MRV Engenharia e Participacoes S.A. | 283,458 | ||||||||||
Building and Construction – Miscellaneous – 0.4% | ||||||||||||
6,500 | Multiplan Empreendimentos Imobiliarios S.A. | 107,730 | ||||||||||
Diversified Operations – 2.2% | ||||||||||||
54,000 | China Merchants Holdings International Co., Ltd. | 198,918 | ||||||||||
64,000 | Wharf Holdings, Ltd. | 360,639 | ||||||||||
559,557 | ||||||||||||
Electric – Transmission – 0% | ||||||||||||
108 | Brookfield Infrastructure Partners L.P. | 1,900 | ||||||||||
Forestry – 2.2% | ||||||||||||
2,680 | Deltic Timber Corp. | 118,054 | ||||||||||
3,960 | Plum Creek Timber Co., Inc. | 154,084 | ||||||||||
14,295 | Sino-Forest Corp.* | 280,156 | ||||||||||
552,294 | ||||||||||||
Hotels and Motels – 0.2% | ||||||||||||
3,200 | Orient-Express Hotel, Ltd. – Class A | 45,376 | ||||||||||
Real Estate Management/Services – 7.3% | ||||||||||||
8,330 | Castellum A.B. | 83,959 | ||||||||||
12,075 | CB Richard Ellis Group, Inc. – Class A* | 191,389 | ||||||||||
1,341 | Deutsche Euroshop A.G. | 44,225 | ||||||||||
12,365 | E-House China Holdings, Ltd. (ADR) | 235,306 | ||||||||||
11,536 | First Capital Realty, Inc. | 251,761 | ||||||||||
6,370 | Jones Lang LaSalle, Inc. | 464,309 | ||||||||||
2,700 | LPS Brasil Consultoria de Imoveis S.A. | 39,038 | ||||||||||
32,000 | Mitsubishi Estate Co., Ltd. | 523,804 | ||||||||||
331 | Orco Property Group | 3,353 | ||||||||||
1,837,144 | ||||||||||||
Real Estate Operating/Development – 17.6% | ||||||||||||
4,365 | Ablon Group | 4,471 | ||||||||||
21,000 | BR Properties S.A. | 152,641 | ||||||||||
17,665 | Brookefield Asset Management, Inc. – Class A (U.S. Shares) | 449,044 | ||||||||||
227,500 | CapitaLand, Ltd. | 645,771 | ||||||||||
80,725 | China Resources Land, Ltd. | 175,507 | ||||||||||
37,600 | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes. | 255,743 | ||||||||||
11,843 | DB Realty, Ltd. | 120,963 | ||||||||||
7,598 | Forestar Group, Inc.* | 143,450 | ||||||||||
12,921 | GAGFAH S.A. | 115,604 | ||||||||||
175,000 | Hang Lung Properties, Ltd. | 705,501 | ||||||||||
659,450 | HKC Holdings, Ltd. | 57,757 | ||||||||||
15,000 | Hysan Development Co., Ltd. | 43,373 | ||||||||||
24,000 | Mitsui Fudosan Co., Ltd. | 407,489 | ||||||||||
100,000 | New World Development, Ltd. | 195,775 | ||||||||||
8,000 | PDG Realty S.A. Empreendimentos e Participacoes | 66,655 | ||||||||||
20,300 | PDG Realty S.A. Empreendimentos e Participacoes (144A) | 169,138 | ||||||||||
26,300 | Phoenix Mills, Ltd. | 108,885 | ||||||||||
804,000 | Renhe Commercial Holdings Co., Ltd. | 186,399 | ||||||||||
2,470 | St. Joe Co. | 79,905 | ||||||||||
22,000 | Sun Hung Kai Properties, Ltd. | 330,963 | ||||||||||
4,415,034 | ||||||||||||
REIT – Apartments – 3.0% | ||||||||||||
2,255 | American Campus Communities | 62,373 | ||||||||||
6,000 | Associated Estates Realty Corp. | 82,740 | ||||||||||
1,430 | Boardwalk Real Estate Investment Trust | 56,685 | ||||||||||
2,000 | BRE Properties, Inc. – Class A | 71,500 | ||||||||||
2,990 | Camden Property Trust | 124,474 | ||||||||||
12,000 | Canadian Apartment Properties REIT | 169,588 | ||||||||||
1,200 | Essex Property Trust, Inc. | 107,940 | ||||||||||
1,415 | Home Properties, Inc. | 66,222 | ||||||||||
741,522 | ||||||||||||
REIT – Diversified – 13.9% | ||||||||||||
5,260 | CapLease, Inc. | 29,193 | ||||||||||
1,003 | Corio N.V. | 66,962 | ||||||||||
2,262 | Corio N.V. (144A) | 151,015 | ||||||||||
64,636 | Dexus Property Group | 48,030 | ||||||||||
8,390 | Digital Realty Trust, Inc.** | 454,738 | ||||||||||
25,390 | Duke Realty Corp. | 314,836 | ||||||||||
5,620 | Entertainment Properties Trust | 231,151 | ||||||||||
4,275 | Eurocommercial Properties N.V. | 171,757 | ||||||||||
15,776 | Goodman Group | 9,480 | ||||||||||
17,136 | Land Securities Group PLC | 176,282 | ||||||||||
31,466 | Lexington Realty Trust | 204,844 | ||||||||||
7,000 | Liberty Property Trust | 237,580 | ||||||||||
245,000 | Mapletree Logistics Trust | 148,899 | ||||||||||
205,000 | Mapletree Logistics Trust (144A) | 124,589 | ||||||||||
11,200 | Morguard Real Estate Trust Unit | 150,451 | ||||||||||
804 | Segro PLC | 3,899 | ||||||||||
2,504 | Unibail-Rodamco | 507,244 | ||||||||||
4,172 | Vornado Realty Trust | 315,820 | ||||||||||
11,000 | Winthrop Realty Trust | 132,440 | ||||||||||
3,479,210 | ||||||||||||
REIT – Health Care – 3.6% | ||||||||||||
13,655 | HCP, Inc. | 450,615 | ||||||||||
4,835 | Heath Care REIT, Inc. | 218,687 | ||||||||||
4,820 | Ventas, Inc. | 228,854 | ||||||||||
898,156 | ||||||||||||
REIT – Hotels – 0.1% | ||||||||||||
545 | LaSalle Hotel Properties | 12,699 | ||||||||||
REIT – Mortgage – 0.6% | ||||||||||||
7,930 | Annaly Mortgage Management, Inc. | 136,238 | ||||||||||
380 | Crystal River Capital, Inc.* | 251 | ||||||||||
3,452 | Gramercy Capital Corp.* | 9,631 | ||||||||||
340 | JER Investors Trust, Inc.* | 44 | ||||||||||
640 | Resource Capital Corp. | 4,326 | ||||||||||
150,490 | ||||||||||||
REIT – Office Property – 7.8% | ||||||||||||
8,070 | Alexandria Real Estate Equities, Inc.** | 545,532 | ||||||||||
6,255 | Boston Properties, Inc. | 471,877 | ||||||||||
6,220 | Douglas Emmett, Inc. | 95,601 | ||||||||||
39,356 | Great Portland Estates PLC | 187,742 | ||||||||||
1,685 | Highwoods Properties, Inc. | 53,465 | ||||||||||
7,355 | Kilroy Realty Corp. | 226,828 | ||||||||||
13,870 | Piedmont Office Realty Trust, Inc. | 275,320 | ||||||||||
20 | Tokyu REIT, Inc. | 105,167 | ||||||||||
1,961,532 | ||||||||||||
REIT – Regional Malls – 5.3% | ||||||||||||
17,130 | CBL & Associates Properties, Inc. | 234,681 | ||||||||||
1,850 | Feldman Mall Properties, Inc.* | 172 |
See Notes to Schedules of Investments and Financial Statements.
12 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
REIT – Regional Malls – (continued) | ||||||||||||
8,515 | General Growth Properties, Inc. | $ | 137,006 | |||||||||
15,216 | Macerich Co.** | 582,925 | ||||||||||
4,432 | Simon Property Group, Inc.** | 371,845 | ||||||||||
1,326,629 | ||||||||||||
REIT – Shopping Centers – 7.8% | ||||||||||||
7,999 | Acadia Realty Trust | 142,862 | ||||||||||
5,100 | Equity One, Inc. | 96,339 | ||||||||||
4,100 | Federal Realty Investment Trust | 298,521 | ||||||||||
24,783 | Kimco Realty Corp.** | 387,606 | ||||||||||
5,745 | Kite Realty Group Trust | 27,174 | ||||||||||
40,000 | Link REIT | 98,609 | ||||||||||
3,900 | Tangar Factory Outlet Center | 168,324 | ||||||||||
5,915 | Weingarten Realty Investors | 127,527 | ||||||||||
54,684 | Westfield Group* | 605,014 | ||||||||||
1,951,976 | ||||||||||||
REIT – Single Tenant – 0.8% | ||||||||||||
6,630 | Realty Income Corp. | 203,475 | ||||||||||
REIT – Storage – 0.7% | ||||||||||||
6,765 | Extra Space Storage, Inc. | 85,780 | ||||||||||
1,000 | Public Storage | 91,990 | ||||||||||
177,770 | ||||||||||||
REIT – Warehouse/Industrial – 2.6% | ||||||||||||
4,455 | AMB Property Corp. | 121,354 | ||||||||||
3,130 | First Potomac Realty Trust | 47,044 | ||||||||||
36,952 | ProLogis** | 487,767 | ||||||||||
656,165 | ||||||||||||
Resorts and Theme Parks – 1.1% | ||||||||||||
6,825 | Vail Resorts, Inc. | 273,614 | ||||||||||
Retail – Restaurants – 0.7% | ||||||||||||
7,590 | Whitbread PLC | 169,749 | ||||||||||
Transportation – Marine – 0.4% | ||||||||||||
2,980 | Alexander & Baldwin, Inc. | 98,489 | ||||||||||
Wireless Equipment – 0.8% | ||||||||||||
5,200 | Crown Castle International Corp.* | 198,796 | ||||||||||
Total Common Stock (cost $16,471,011) | 20,131,859 | |||||||||||
Corporate Bond – 0.2% | ||||||||||||
REIT – Warehouse/Industrial – 0.2% | ||||||||||||
$ | 50,000 | ProLogis, 2.2500%, 4/1/37 (cost $25,473) | 48,625 | |||||||||
Preferred Stock – 2.0% | ||||||||||||
REIT – Office Property – 1.1% | ||||||||||||
4,000 | Kilroy Realty Corp. | 95,125 | ||||||||||
8,000 | SL Green Realty Corp. | 192,160 | ||||||||||
287,285 | ||||||||||||
REIT – Regional Malls – 0.9% | ||||||||||||
10,200 | CBL & Associates Properties, Inc. | 217,566 | ||||||||||
Total Preferred Stock (cost $484,995) | 504,851 | |||||||||||
Warrant – 0% | ||||||||||||
Energy – Alternate Sources – 0% | ||||||||||||
3,758 | Hong Kong Energy Holding – expires 5/13/11 (cost $0) | 189 | ||||||||||
Money Market – 15.6% | ||||||||||||
3,924,707 | Janus Cash Liquidity Fund LLC, 0% (cost $3,924,707) | 3,924,707 | ||||||||||
Total Investments (total cost $20,906,186) – 98.1% | 24,610,231 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities** – 1.9% | 479,628 | |||||||||||
Net Assets – 100% | $ | 25,089,859 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 662,524 | 2.7% | |||||
Bermuda | 105,033 | 0.4% | ||||||
Brazil | 1,074,404 | 4.4% | ||||||
Canada | 1,357,685 | 5.5% | ||||||
Cayman Islands | 597,212 | 2.4% | ||||||
France | 536,339 | 2.2% | ||||||
Germany | 44,225 | 0.2% | ||||||
Guernsey | 4,470 | 0.0% | ||||||
Hong Kong | 1,933,966 | 7.9% | ||||||
India | 229,848 | 0.9% | ||||||
Japan | 1,036,461 | 4.2% | ||||||
Luxembourg | 118,957 | 0.5% | ||||||
Netherlands | 389,734 | 1.6% | ||||||
Singapore | 919,259 | 3.7% | ||||||
Sweden | 83,959 | 0.3% | ||||||
United Kingdom | 537,672 | 2.2% | ||||||
United States†† | 14,978,483 | 60.9% | ||||||
Total | $ | 24,610,231 | 100.0% |
†† | Includes Cash Equivalents (44.9% excluding Cash Equivalents) |
Schedule of Written Options – Calls | Value | |||
Kimco Realty Corp. expires July 2010 180 contracts exercise price $17.50 | $ | (6,669) | ||
Simon Property Group, Inc. expires July 2010 40 contracts exercise price $100.00 | (2,759) | |||
Total Written Options – Calls | ||||
(Premiums received $9,700) | $ | (9,428) | ||
Schedule of Written Options – Puts | ||||
Avalonbay Communities, Inc. expires April 2010 65 contracts exercise price $65.00 | (54) | |||
Prologis expires July 2010 200 contracts exercise price $10.00 | (5,444) | |||
Simon Property Group, Inc. expires April 2010 60 contracts exercise price $60.00 | (29) |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 13
Janus Global Real Estate Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Value | ||||
Schedule of Written Options – Puts – (continued) | ||||
Vornado Realty Trust expires June 2010 50 contracts exercise price $50.00 | (524) | |||
Total Written Options – Puts | ||||
(Premiums received $36,775) | $ | (6,051) | ||
See Notes to Schedules of Investments and Financial Statements.
14 | MARCH 31, 2010
Janus Long/Short Fund (unaudited)
Fund Snapshot We believe a bottom-up process, focused on non-consensus long and short investment ideas, will drive strong risk-adjusted returns over time. Through our deep fundamental analysis, we seek to buy value-creating companies at pessimistic valuations and to short value-destroying companies at optimistic valuations. The portfolio is 40-60% net long, on average, over a full market cycle. | ![]() David Decker lead co-portfolio manager | ![]() Daniel Riff co-portfolio manager |
Performance Summary
For the six-month period ended March 31, 2010, Janus Long/Short Fund Class T Shares captured roughly 41% of the S&P 500 Index’s strong 11.75% gain. Our long positions performed approximately 68 basis points (bps) better than the index return and our short positions in aggregate performed nearly 9 bps better than the index.
What happened?
Equity markets continued to climb a wall of worry over the last six months. Economic data released during the fourth quarter 2009 continued to suggest that a recovery was underway in most major economies worldwide. The sustainability of this recovery remains in question, however, given the weak labor markets and various structural challenges facing many economies.
Entering 2010, equity prices finished the first quarter near 17-month highs amid upward momentum in the global economy and better-than-expected corporate earnings. Concerns that sovereign debt problems in Europe could spread elsewhere provided for some volatility during the period, but government responses helped settle some of those fears. However, the fading affects of government stimulus, large fiscal deficits and weak labor markets remained key concerns for investors.
Looking at our own performance, some of the biggest contributors to our outperformance on the long side were names we felt had the steepest walls of worry to climb. These included the mortgage insurer Radian Group, Inc., UAL Corp. and the commercial real estate broker CB Richard Ellis Group, Inc. The portfolio was also helped by strong Indian performers, specifically JSW Steel, Ltd. and ICICI Bank, Ltd. The detractors from our long book included SandRidge Energy, Inc., which sold off as natural gas prices stayed depressed; A123 Systems, an advanced auto battery manufacturer which gave back some of its post-IPO gains; and Agnico-Eagle Mines, Ltd., which traded down as gold sold off some.
On the short side, we had success shorting high-cost solar producers but got hurt some by strong rallies in consumer discretionary and for-profit education names. We have high conviction that our short themes in these areas are still sound though, and remain positioned with that in mind.
How are we positioned?
Long
A good portion of the long portfolio is biased toward large, diversified companies that we believe can succeed in a range of macroeconomic outcomes.
Financials: As we emerge from this economic downturn, credit has begun to improve and many financial companies are beginning to extend very profitable loans. We own a number of U.S. and international banks and financial services companies that we believe will thrive in this environment. Basically, we believe a good time to invest in banks is when credit is at its worst because its reserves and stock valuations already reflect this condition. In addition new loans tend to have the best pricing and credit standards and are therefore generally highly profitable.
Consumer Staples: Within the consumer space, we believe that brand power will persist, whereas many valuations reflect a permanent cyclical trade-down and destocking. This pessimistic view has driven dominant, irreplaceable branded franchises to record low valuations in our view. Some examples are Nestle S.A., Anheuser Busch InBev N.V., Daimler A.G., and Diageo PLC.
Health Care: We also believe that health-care reform has pushed many leading medical device and pharmaceutical franchises to very low entry prices. In addition, we also have a very optimistic view of generic pharmaceuticals, both over-the-counter (Perrigo Co. is a new addition to the portfolio) and prescription (Mylan, Inc.).
Janus Alternative Funds | 15
Janus Long/Short Fund (unaudited)
Short
On the short side, we continue to believe that for-profit education companies will not escape the cross-hairs of the Obama administration. We believe growth will slow by restrictions on enrollment, recruiter incentives and restrictions on allowable debt levels for programs. We also expect lower revenues as the economy recovers, but on a larger invested capital base, thereby depressing returns. The Fund is also short managed care franchises, as we think reform harms them more than it helps and they are not priced with this negative long-term outcome in mind. The Fund is also short certain gaming companies with primary exposure in Las Vegas due to our view that long-term fundamentals are not supportive of current market values. We continue to look for companies which have weakening fundamentals and excessively strong valuations.
We employed options strategies during the reporting period including index puts and spreads as hedges, as well as strategic synthetic long and short positions. Our use of spreads helps to reduce the overall cost of hedging as it involves simultaneously buying and selling put or call options on an index or stock at different strike prices with the premium received from selling an option offsetting some or all of the costs of purchasing another option on the same underlying stock or index. In terms of creating synthetic positions, we use derivatives, such as options, in an attempt to replicate inexpensively the return characteristics of either a long or short position in a stock instead of outright taking a long or short position in the stock. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
In conclusion, while the global economy looks substantially better than it did a year ago, risk and uncertainty still exist. Debt levels remain high in the U.S. and Europe, and the crisis in Greece is increasingly concerning. Moreover, inflation in Asia continues to rise, and economic growth in the U.S. is by no means self-sustaining given persistently high unemployment (though we do expect employment to improve in the coming quarters). However, with Global markets well off their lows, we believe the environment for pure stock-picking – both long and short – is actually more attractive because we believe that company fundamentals will likely be a bigger driver of outperformance and underperformance than was the case during the market crash, and subsequent rally.
Thank you for your continued investment in Janus Long/Short Fund.
16 | MARCH 31, 2010
(unaudited)
Janus Long/Short Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Radian Group, Inc. | 2.70% | |||
UAL Corp. | 1.67% | |||
ICICI Bank, Ltd. (ADR) | 1.45% | |||
CB Richard Ellis Group, Inc. – Class A | 1.38% | |||
SolarWorld AG | 1.09% |
5 Bottom Performers – Holdings
Contribution | ||||
Green Mountain Coffee Roasters, Inc. | –2.19% | |||
Amedisys, Inc. | –1.03% | |||
DineEquity, Inc. | –0.92% | |||
Career Education Corp. | –0.79% | |||
Sears Holdings Corp. | –0.76% |
5 Top Performers – Sectors†
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | 8.14% | 21.54% | 14.97% | |||||||||
Industrials | 3.44% | –0.59% | 10.34% | |||||||||
Materials | 2.04% | 10.88% | 3.52% | |||||||||
Energy | 1.40% | 5.74% | 11.56% | |||||||||
Information Technology | 0.31% | 1.59% | 19.12% |
5 Bottom Performers – Sectors†
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Consumer Staples | –1.53% | 3.01% | 11.52% | |||||||||
Health Care | –0.83% | 0.77% | 12.68% | |||||||||
Other* | 0.06% | 0.29% | 0.00% | |||||||||
Telecommunication Services | 0.07% | –0.47% | 2.99% | |||||||||
Utilities | 0.24% | 3.82% | 3.62% |
† | 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. | |
* | Not a GICS classified sector. |
Janus Alternative Funds | 17
Janus Long/Short Fund (unaudited)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24t02.gif)
Emerging markets comprised 22.3% of total net assets.
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24c02.gif)
Emerging markets comprised 18.5% of total net assets.
Top Country Allocations – Short Positions (% of Securities Sold Short)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jifshort1.gif)
Emerging markets comprised 2.3% of total net assets.
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jifshort2.gif)
Emerging markets comprised 1.2% of total net assets.
18 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif24m02.gif)
Expense Ratios – | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the November 27, 2009 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Long/Short Fund – Class A Shares | |||||||||||
NAV | 4.53% | 21.97% | 1.26% | 4.06% | 4.06% | ||||||
MOP | –1.45% | 14.93% | –0.36% | ||||||||
Janus Long/Short Fund – Class C Shares | |||||||||||
NAV | 4.18% | 21.26% | 0.52% | 4.81% | 4.81% | ||||||
CDSC | 3.13% | 20.05% | 0.52% | ||||||||
Janus Long/Short Fund – Class I Shares | 4.81% | 22.63% | 1.61% | 3.75% | 3.75% | ||||||
Janus Long/Short Fund – Class R Shares | 4.48% | 21.94% | –0.62% | 4.51% | 4.51% | ||||||
Janus Long/Short Fund – Class S Shares | 4.58% | 21.95% | 1.15% | 4.22% | 4.22% | ||||||
Janus Long/Short Fund – Class T Shares | 4.70% | 22.63% | 1.61% | 3.97% | 3.97% | ||||||
S&P 500® Index | 11.75% | 49.77% | –0.08% | ||||||||
London Interbank Offered Rate (LIBOR) | 0.13% | 0.41% | 2.97% | ||||||||
Lipper Quartile – Class I Shares | – | 3rd | 2nd | ||||||||
Lipper Ranking – based on total return for Long/Short Equity Funds | – | 80/127 | 12/40 | ||||||||
Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | |||||||||||
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class I Shares, Class R Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
See important disclosures on the next page.
Janus Alternative Funds | 19
Janus Long/Short Fund (unaudited)
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement (applicable to Class R Shares, Class S Shares, and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The fees and expenses shown for all share classes except Class T Shares were determined based on net assets as of the fiscal year ended July 31, 2009. Expense information shown for Class T Shares reflects estimated annualized expenses that the Fund share class expects to incur during the fiscal year. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, and derivatives. Please see a Janus prospectus or janus.com/info for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs) which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund held approximately 20.1% of its total investments in Indian securities as of March 31, 2010 and the Fund may have experienced significant gains or losses due, in part, to its investments in India. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in India.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Class A Shares, Class C Shares, Class I Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Long/Short Fund (the “JAD predecessor fund”) into corresponding shares of Janus Long/Short Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the JAD predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund respectively, net of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class may have been different.
Class T Shares commenced operations on July 6, 2009, after the reorganization of the JAD predecessor fund into Janus Long/Short Fund. Performance shown for Class T Shares for periods prior to July 6, 2009, reflects the historical performance of the JAD predecessor fund’s Class I Shares prior to the reorganization, calculated using the fees and expenses of Class I Shares, without the effect of any fee and expense limitations or waivers. If Class T Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for the Class I Shares 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.
20 | MARCH 31, 2010
(unaudited)
August 3, 2006 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – August 1, 2006 |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning | Ending Account | Expenses Paid | ||||||||||||
Account Value | Value | During Period | ||||||||||||
Expense Example – Class A Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,045.30 | $ | 21.06 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,004.34 | $ | 20.64 | ||||||||
Beginning Account | Ending Account | Expenses Paid | ||||||||||||
Value | Value | During Period | ||||||||||||
Expense Example – Class C Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,041.80 | $ | 24.59 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,000.85 | $ | 24.09 | ||||||||
Beginning Account | Ending Account | Expenses Paid | ||||||||||||
Value | Value | During Period | ||||||||||||
Expense Example – Class I Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,048.10 | $ | 19.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,006.13 | $ | 18.86 | ||||||||
Beginning Account | Ending Account | Expenses Paid | ||||||||||||
Value | Value | During Period | ||||||||||||
Expense Example – Class R Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,043.70 | $ | 22.62 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,002.79 | $ | 22.17 | ||||||||
Beginning Account | Ending Account | Expenses Paid | ||||||||||||
Value | Value | During Period | ||||||||||||
Expense Example – Class S Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,045.80 | $ | 21.32 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,004.09 | $ | 20.89 | ||||||||
Beginning Account | Ending Account | Expenses Paid | ||||||||||||
Value | Value | During Period | ||||||||||||
Expense Example – Class T Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,046.00 | $ | 18.11 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,007.23 | $ | 17.77 | ||||||||
† | Expenses are equal to the annualized expense ratio of 4.13% for Class A Shares, 4.83% for Class C Shares, 3.77% for Class I Shares, 4.44% for Class R Shares, 4.18% for Class S Shares and 3.55% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Alternative Funds | 21
Janus Long/Short Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Closed-End Fund – 0% | ||||||||||||
35 | Calamos Convertible Opportunities & Income Fund (cost $391) | $ | 445 | |||||||||
Common Stock± – 91.5% | ||||||||||||
Airlines – 2.4% | ||||||||||||
145,884 | UAL Corp.* | 2,852,032 | ||||||||||
Automotive – Cars and Light Trucks – 1.3% | ||||||||||||
32,938 | Daimler A.G.* | 1,550,440 | ||||||||||
Automotive – Medium and Heavy Duty Trucks – 1.0% | ||||||||||||
98,816 | Mahindra & Mahindra Ltd. | 1,191,670 | ||||||||||
Beverages – Wine and Spirits – 1.2% | ||||||||||||
84,131 | Diageo PLC | 1,411,821 | ||||||||||
Brewery – 1.6% | ||||||||||||
36,942 | Anheuser-Busch InBev N.V. | 1,860,645 | ||||||||||
359,335 | Anheuser-Busch InBev N.V. – VVPR Strip* | 3,397 | ||||||||||
1,864,042 | ||||||||||||
Building – Residential and Commercial – 0.9% | ||||||||||||
73,225 | M/I Homes, Inc.* | 1,072,746 | ||||||||||
Cable Television – 0.3% | ||||||||||||
11,947 | DIRECTV – Class A* | 403,928 | ||||||||||
Commercial Banks – 6.7% | ||||||||||||
115,457 | ICICI Bank, Ltd. (ADR) | 4,930,013 | ||||||||||
76,055 | Jammu & Kashmir Bank, Ltd. | 1,154,972 | ||||||||||
22,700 | Sumitomo Mitsui Financial Group, Inc. | 750,433 | ||||||||||
30,800 | Sumitomo Mitsui Financial Group, Inc. (144A) | 1,018,209 | ||||||||||
7,853,627 | ||||||||||||
Computers – 1.2% | ||||||||||||
10,760 | International Business Machines Corp. | 1,379,970 | ||||||||||
Diversified Banking Inst – 2.0% | ||||||||||||
130,958 | Bank of America Corp. | 2,337,600 | ||||||||||
Diversified Minerals – 0.4% | ||||||||||||
11,558 | Angiodynamics, Inc.* | 504,009 | ||||||||||
Diversified Operations – 1.8% | ||||||||||||
452,000 | China Merchants Holdings International Co., Ltd. | 1,665,018 | ||||||||||
12,085 | Tyco International, Ltd. (U.S. Shares) | 462,251 | ||||||||||
2,127,269 | ||||||||||||
E-Commerce/Services – 0.4% | ||||||||||||
16,765 | eBay, Inc.* | 451,817 | ||||||||||
Electric – Generation – 1.9% | ||||||||||||
52,400 | MPX Energia SA | 701,615 | ||||||||||
339,600 | NTPC, Ltd. | 1,567,879 | ||||||||||
2,269,494 | ||||||||||||
Electric – Integrated – 0.4% | ||||||||||||
32,300 | Light S.A. | 437,390 | ||||||||||
Electric – Transmission – 1.2% | ||||||||||||
604,358 | Power Grid Corp. of India, Ltd. | 1,442,570 | ||||||||||
Electronic Components – Semiconductors – 0.4% | ||||||||||||
18,540 | Texas Instruments, Inc. | 453,675 | ||||||||||
Finance – Auto Loans – 2.0% | ||||||||||||
98,335 | AmeriCredit Corp.* | 2,336,440 | ||||||||||
Finance – Investment Bankers/Brokers – 1.1% | ||||||||||||
69,580 | Charles Schwab Corp. | 1,300,450 | ||||||||||
Financial Guarantee Insurance – 6.1% | ||||||||||||
157,073 | Assured Guaranty, Ltd. | 3,450,894 | ||||||||||
236,303 | Radian Group, Inc. | 3,695,778 | ||||||||||
7,146,672 | ||||||||||||
Food – Miscellaneous/Diversified – 1.4% | ||||||||||||
32,617 | Nestle S.A. | 1,670,921 | ||||||||||
Food – Retail – 1.9% | ||||||||||||
341,650 | Tesco PLC | 2,257,294 | ||||||||||
Gold Mining – 1.3% | ||||||||||||
17,885 | Agnico-Eagle Mines, Ltd. (U.S. Shares) | 995,658 | ||||||||||
18,000 | Franco-Nevada Corp. | 483,061 | ||||||||||
1,478,719 | ||||||||||||
Industrial Gases – 1.1% | ||||||||||||
10,607 | Linde A.G. | 1,265,443 | ||||||||||
Medical – Biomedical and Genetic – 0.6% | ||||||||||||
14,275 | Genzyme Corp.* | 739,873 | ||||||||||
Medical – Drugs – 4.0% | ||||||||||||
21,265 | Abbott Laboratories | 1,120,240 | ||||||||||
36,960 | Forest Laboratories, Inc.* | 1,159,066 | ||||||||||
10,910 | Novartis A.G. | 590,231 | ||||||||||
12,568 | Novo Nordisk A/S | 969,244 | ||||||||||
48,385 | Pfizer, Inc. | 829,803 | ||||||||||
4,668,584 | ||||||||||||
Medical – Generic Drugs – 3.4% | ||||||||||||
65,815 | Mylan, Inc.* | 1,494,659 | ||||||||||
42,850 | Perrigo Co. | 2,516,152 | ||||||||||
4,010,811 | ||||||||||||
Medical Products – 1.6% | ||||||||||||
36,690 | Covidien PLC (U.S. Shares) | 1,844,773 | ||||||||||
Metal – Diversified – 0.7% | ||||||||||||
49,790 | Ivanhoe Mines, Ltd.* | 870,369 | ||||||||||
Metal Processors and Fabricators – 2.6% | ||||||||||||
128,843 | AIA Engineering Ltd. | 1,150,804 | ||||||||||
338,378 | Bharat Forge, Ltd. | 1,917,275 | ||||||||||
3,068,079 | ||||||||||||
Oil Companies – Exploration and Production – 1.6% | ||||||||||||
21,900 | Occidental Petroleum Corp. | 1,851,426 | ||||||||||
Oil Companies – Integrated – 0.7% | ||||||||||||
44,179 | BG Group PLC | 764,504 | ||||||||||
Pipelines – 1.8% | ||||||||||||
35,806 | Kinder Morgan Management LLC* | 2,098,948 | ||||||||||
Real Estate Management/Services – 2.6% | ||||||||||||
189,110 | CB Richard Ellis Group, Inc. – Class A* | 2,997,394 | ||||||||||
Real Estate Operating/Development – 5.4% | ||||||||||||
256,000 | CapitaLand, Ltd. | 726,670 | ||||||||||
60,016 | DB Realty Ltd.* | 612,995 | ||||||||||
73,566 | DB Realty Ltd., (144A)* | 751,393 | ||||||||||
577,000 | Hang Lung Properties, Ltd. | 2,326,132 | ||||||||||
59,768 | St. Joe Co.* | 1,933,494 | ||||||||||
6,350,684 | ||||||||||||
REIT – Mortgage – 0.6% | ||||||||||||
231,705 | Gramercy Capital Corp.* | 646,457 | ||||||||||
REIT – Warehouse/Industrial – 1.5% | ||||||||||||
134,034 | ProLogis | 1,769,249 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
22 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Resorts and Theme Parks – 1.2% | ||||||||||||
36,150 | Vail Resorts, Inc.* | $ | 1,449,254 | |||||||||
Retail – Apparel and Shoe – 0.3% | ||||||||||||
623,530 | Trinity, Ltd. – Private Placementß,°° | 367,179 | ||||||||||
Retail – Drug Store – 0.8% | ||||||||||||
26,795 | Walgreen Co. | 993,827 | ||||||||||
Retail – Major Department Stores – 2.7% | ||||||||||||
261,220 | Pantaloon Retail India, Ltd. | 2,294,186 | ||||||||||
10,103 | Pantaloon Retail India, Ltd. – Class B | 58,066 | ||||||||||
6,262 | PPR | 833,586 | ||||||||||
3,185,838 | ||||||||||||
Schools – 1.1% | ||||||||||||
109,000 | Estacio Participacoes S.A. | 1,324,557 | ||||||||||
Steel – Producers – 6.3% | ||||||||||||
147,962 | Jindal Steel & Power, Ltd. | 2,317,489 | ||||||||||
154,403 | JSW Steel, Ltd. | 4,247,200 | ||||||||||
19,140 | Nucor Corp. | 868,573 | ||||||||||
7,433,262 | ||||||||||||
Television – 1.1% | ||||||||||||
93,870 | CBS Corp. – Class B | 1,308,548 | ||||||||||
Tobacco – 5.5% | ||||||||||||
86,719 | British American Tobacco PLC | 2,988,789 | ||||||||||
608 | Japan Tobacco, Inc. | 2,263,657 | ||||||||||
22,060 | Philip Morris International, Inc. | 1,150,650 | ||||||||||
6,403,096 | ||||||||||||
Water – 1.5% | ||||||||||||
80,215 | American Water Works Co., Inc. | 1,745,478 | ||||||||||
Web Portals/Internet Service Providers – 2.6% | ||||||||||||
358,275 | EarthLink, Inc. | 3,059,669 | ||||||||||
Wireless Equipment – 1.2% | ||||||||||||
193,145 | Motorola, Inc.* | 1,355,878 | ||||||||||
Total Common Stock (cost $92,534,920) | 107,367,776 | |||||||||||
Exchange-Traded Funds – 3.9% | ||||||||||||
Commodity – 0.9% | ||||||||||||
9,525 | SPDR Gold Trust (ETF)* | 1,037,749 | ||||||||||
Country Fund-Indonesia – 0.4% | ||||||||||||
7,055 | Market Vectors Indonesia (ETF) | 492,651 | ||||||||||
Government/Agency-LT – 0.7% | ||||||||||||
16,460 | ProShares UltraShort 20+ Year Treasury (ETF)* | 801,437 | ||||||||||
Health and Biotechnology – 0.1% | ||||||||||||
1,897 | iShares Dow Jones U.S. Pharmaceuticals Index (ETF) | 113,270 | ||||||||||
Precious Metals – 0.8% | ||||||||||||
22,010 | Market Vectors – Gold Miners (ETF) | 977,463 | ||||||||||
Sector Fund – Utility – 1.0% | ||||||||||||
67,330 | PowerShares Water Resources Portfolio (ETF) | 1,173,561 | ||||||||||
Total Exchange-Traded Funds (cost $3,934,050) | 4,596,131 | |||||||||||
Purchased Options – Calls – 4.4% | ||||||||||||
1,307 | Delta Air Lines expires June 2010 exercise price $13.00 | 303,397 | ||||||||||
2,780 | Denbury Resources, Inc. expires June 2010 exercise price $17.50 | 259,227 | ||||||||||
2,867 | Ford Motor Company expires September 2010 exercise price $16.00 | 115,384 | ||||||||||
243 | Genzyme Corp. expires July 2010 exercise price $57.50 | 36,713 | ||||||||||
7,193,201 | Kospi 200 Index expires June 2010 exercise price KRW 232.00 | 23,457 | ||||||||||
14,581,578 | Kospi 200 Index expires December 2010 exercise price KRW 228.50 | 146,836 | ||||||||||
994 | Motorola, Inc. expires January 2011 exercise price $2.50 | 451,661 | ||||||||||
5,467 | Motorola, Inc. expires January 2011 exercise price $5.00 | 1,225,677 | ||||||||||
1,206 | PowerShares DB US Dollar Index Bullish Fund expires June 2010 exercise price $23.00 | 120,532 | ||||||||||
787 | Radian Group, Inc. expires August 2010 exercise price $10.00 | 508,252 | ||||||||||
5,070 | UAL Corp. expires June 2010 exercise price $21.00 | 796,957 | ||||||||||
358 | Walt Disney Co. (LEAPS) expires January 2012 exercise price $25.00 | 392,859 | ||||||||||
286 | Weyerhaeuser Co. expires January 2011 exercise price $20.00 | 717,569 | ||||||||||
Total Purchased Options – Calls (premiums paid $5,415,301) | 5,098,521 | |||||||||||
Purchased Options – Puts – 0.5% | ||||||||||||
540 | Green Mountain Coffee Roasters, Inc. expires June 2010 exercise price $75.00 | 93,275 | ||||||||||
1,000 | iShares Russell 2000 Index expires April 2010 exercise price $55.00 | 57 | ||||||||||
2,720 | iShares Russell 2000 Index expires April 2010 exercise price $67.00 | 209,766 | ||||||||||
1,001 | iShares Russell 2000 Index expires June 2010 exercise price $75.00 | 194,796 |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 23
Janus Long/Short Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Purchased Options – Puts – (continued) | ||||||||||||
900 | S&P CNX Nifty Index expires April 2010 exercise price INR 5,154.58 | $ | 53,455 | |||||||||
Total Purchased Options – Puts (premiums paid) $921,680) | 551,349 | |||||||||||
Total Investments (total cost $102,806,343) – 100.3% | 117,614,222 | |||||||||||
Securities Sold Short – (51.0)% | ||||||||||||
Closed-End Fund – (1.7)% | ||||||||||||
67,200 | Morgan Stanley China A Share Fund, Inc. (proceeds $1,805,184) | (1,948,800) | ||||||||||
Common Stock – (41.9)% | ||||||||||||
Agricultural Operations – (0.4)% | ||||||||||||
7,455 | Bunge, Ltd. | (459,452) | ||||||||||
Applications Software – (0.9)% | ||||||||||||
72,890 | NetSuite, Inc.* | (1,059,821) | ||||||||||
Casino Hotels – (4.3)% | ||||||||||||
243,680 | Boyd Gaming Corp.* | (2,407,558) | ||||||||||
216,220 | MGM Mirage* | (2,594,640) | ||||||||||
(5,002,198) | ||||||||||||
Cellular Telecommunications – (0.3)% | ||||||||||||
352,000 | China Unicom Hong Kong, Ltd. | (396,249) | ||||||||||
Coffee – (3.4)% | ||||||||||||
40,635 | Green Mountain Coffee Roasters, Inc.* | (3,934,281) | ||||||||||
Commercial Services – Finance – (1.9)% | ||||||||||||
74,775 | Moody’s Corp. | (2,224,556) | ||||||||||
Computers – Memory Devices – (0.6)% | ||||||||||||
59,200 | STEC, Inc.* | (709,216) | ||||||||||
Distribution/Wholesale – (2.2)% | ||||||||||||
112,030 | Pool Corp. | (2,536,359) | ||||||||||
Electronic Components – Semiconductors – (1.7)% | ||||||||||||
5,085 | Cree, Inc.* | (357,069) | ||||||||||
61,525 | Renewable Energy Corp. A.S.* | (287,989) | ||||||||||
90,922 | Solarworld A.G. | (1,370,946) | ||||||||||
(2,016,004) | ||||||||||||
E-Marketing/Information – (0.3)% | ||||||||||||
21,290 | comScore, Inc.* | (355,330) | ||||||||||
Engineering – Research and Development Services – (0.6)% | ||||||||||||
31,355 | ABB, Ltd. (ADR) | (684,793) | ||||||||||
Hotels and Motels – (0.4)% | ||||||||||||
16,070 | Wyndham Worldwide Corp. | (413,481) | ||||||||||
Independent Power Producer – (0.2)% | ||||||||||||
9,200 | Ormat Technologies, Inc. | (258,888) | ||||||||||
Leisure Industry – (0.4)% | ||||||||||||
32,900 | PowerShares Dynamic Leisure and Entertainment Portfolio | (516,497) | ||||||||||
Life and Health Insurance – (0.5)% | ||||||||||||
307,507 | Old Mutual PLC | (571,557) | ||||||||||
Medical – HMO – (1.7)% | ||||||||||||
15,365 | CIGNA Corp. | (562,052) | ||||||||||
31,560 | Health Net, Inc.* | (784,897) | ||||||||||
14,790 | Humana, Inc.* | (691,728) | ||||||||||
(2,038,677) | ||||||||||||
Medical Instruments – (0.7)% | ||||||||||||
108,930 | Boston Scientific Corp.* | (786,475) | ||||||||||
Metal – Copper – (1.0)% | ||||||||||||
14,500 | Freeport-McMoRan Copper & Gold, Inc. – Class B | (1,211,330) | ||||||||||
Multimedia – (1.3)% | ||||||||||||
43,200 | Thomson Reuters Corp. | (1,572,456) | ||||||||||
Oil Companies – Exploration and Production – (2.5)% | ||||||||||||
98,485 | Chesapeake Energy Corp. | (2,328,185) | ||||||||||
71,990 | SandRidge Energy, Inc.* | (554,323) | ||||||||||
(2,882,508) | ||||||||||||
Power Converters and Power Supply Equipment – (0.5)% | ||||||||||||
543,516 | Evergreen Solar, Inc.* | (614,173) | ||||||||||
Recreational Centers – (0.7)% | ||||||||||||
27,245 | Life Time Fitness, Inc.* | (765,584) | ||||||||||
REIT – Diversified – 0% | ||||||||||||
99 | British Land Co. PLC | (723) | ||||||||||
Retail – Consumer Electronics – (2.3)% | ||||||||||||
53,945 | Grupo Elektra S.A. de C.V. | (2,740,559) | ||||||||||
Retail – Restaurants – (4.2)% | ||||||||||||
17,415 | BJ’s Restaurants, Inc.* | (405,770) | ||||||||||
10,140 | Buffalo Wild Wings, Inc.* | (487,835) | ||||||||||
19,115 | DineEquity, Inc.* | (756,189) | ||||||||||
69,550 | Sonic Corp.* | (768,528) | ||||||||||
65,120 | Yum! Brands, Inc. | (2,496,050) | ||||||||||
(4,914,371) | ||||||||||||
Retail – Sporting Goods – (1.9)% | ||||||||||||
84,125 | Dick’s Sporting Goods, Inc.* | (2,196,504) | ||||||||||
Schools – (4.8)% | ||||||||||||
52,875 | Bridgepoint Education Inc.* | (1,299,668) | ||||||||||
75,240 | Career Education Corp.* | (2,380,594) | ||||||||||
53,980 | Corinthian Colleges, Inc.* | (949,508) | ||||||||||
9,287 | ITT Educational Services, Inc.* | (1,044,602) | ||||||||||
(5,674,371) | ||||||||||||
Semiconductor Components/Integrated Circuits – (0.2)% | ||||||||||||
15,750 | Emulex Corp.* | (209,160) | ||||||||||
Transactional Software – (1.0)% | ||||||||||||
230,485 | Innerworkings, Inc.* | (1,198,522) | ||||||||||
Wireless Equipment – (1.0)% | ||||||||||||
75,102 | Nokia OYJ | (1,167,085) | ||||||||||
Total Common Stock (proceeds $47,482,397) | (49,111,182) | |||||||||||
Exchange-Traded Funds – (6.8)% | ||||||||||||
Corp/Pref-High Yield – (0.7)% | ||||||||||||
9,947 | iShares iBoxx $ High Yield Corporate Bond (ETF) | (879,016) | ||||||||||
Country Fund-China – (1.7)% | ||||||||||||
28,300 | iShares FTSE/Xinhua China 25 Index Fund (ETF) | (1,191,430) | ||||||||||
10,675 | SPDR S&P China (ETF) | (768,920) | ||||||||||
(1,960,350) | ||||||||||||
See Notes to Schedules of Investments and Financial Statements.
24 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Financial Services – (0.7)% | ||||||||||||
21,853 | Direxion Daily Financial Bear 3X Shares (ETF)* | $ | (294,141) | |||||||||
27,409 | UltraShort Financials ProShares (ETF)* | (527,075) | ||||||||||
(821,216) | ||||||||||||
Internet and Telecommunication – (0.9)% | ||||||||||||
52,550 | iShares Dow Jones U.S. Telecommunication (ETF) | (1,052,051) | ||||||||||
Sector Fund – Real Estate – (1.5)% | ||||||||||||
124,472 | Proshares Ultra Real Estate (ETF) | (1,013,202) | ||||||||||
124,360 | ProShares UltraShort Real Estate (ETF)* | (751,134) | ||||||||||
(1,764,336) | ||||||||||||
Undefined Equity – (1.3)% | ||||||||||||
24,410 | iShares S&P Global Materials Sector Index Fund (ETF) | (1,552,232) | ||||||||||
Total Exchange-Traded Funds (proceeds $10,274,220) | (8,029,201) | |||||||||||
Exchange-Traded Note – (0.6)% | ||||||||||||
Undefined Equity – (0.6)% | ||||||||||||
32,570 | iPATH S&P 500 VIX Short-Term Futures (ETN)*(proceeds $1,261,332) | (684,947) | ||||||||||
Total Securities Sold Short (proceeds $60,823,133) – (51.0)% | (59,774,130) | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 50.7% | 59,460,903 | |||||||||||
Net Assets – 100% | 117,300,995 | |||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 1,864,042 | 1.6% | |||||
Bermuda | 3,818,073 | 3.3% | ||||||
Brazil | 2,463,562 | 2.1% | ||||||
Canada | 2,349,088 | 2.0% | ||||||
Denmark | 969,244 | 0.8% | ||||||
France | 833,586 | 0.7% | ||||||
Germany | 2,815,882 | 2.4% | ||||||
Hong Kong | 3,991,151 | 3.4% | ||||||
India | 23,636,511 | 20.1% | ||||||
Ireland | 1,844,773 | 1.6% | ||||||
Japan | 4,032,299 | 3.4% | ||||||
Singapore | 726,670 | 0.6% | ||||||
Switzerland | 2,723,403 | 2.3% | ||||||
United Kingdom | 7,926,418 | 6.7% | ||||||
United States | 57,619,520 | 49.0% | ||||||
Total | $ | 117,614,222 | 100.0% |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
Bermuda | $ | (459,452) | 0.8% | |||||
Canada | (1,572,456) | 2.6% | ||||||
Finland | (1,167,085) | 2.0% | ||||||
Germany | (1,370,945) | 2.3% | ||||||
Hong Kong | (396,249) | 0.7% | ||||||
Mexico | (2,740,559) | 4.6% | ||||||
Norway | (287,989) | 0.4% | ||||||
Switzerland | (684,793) | 1.1% | ||||||
United Kingdom | (572,280) | 1.0% | ||||||
United States | (50,522,322) | 84.5% | ||||||
Total | $ | (59,774,130) | 100.0% |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 25
Janus Long/Short Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Financial Futures – Long | ||||||
8 Contracts | U.S. Treasury Note 2 year expires June 2010, principal amount $1,739,600, value $1,735,600 cumulative depreciation | $ | (4,000) | |||
Financial Futures – Short | ||||||
15 Contracts | U.S. Treasury Note 10 year expires June 2010, principal amount $1,761,157, value $1,743,750 cumulative appreciation | $ | 17,407 | |||
Schedule of Written Options – Calls | Value | |||
Green Mountain Coffee Roasters, Inc. expires June 2010 432 contracts exercise price $90.00 | $ | (517,898) | ||
ICICI Bank Ltd. expires April 2010 142 contracts exercise price $43.00 | (17,907) | |||
iShares Russell 2000 Index Fund expires April 2010 250 contracts exercise price $69.00 | (15,868) | |||
iShares Russell 2000 Index Fund expires May 2010 575 contracts exercise price $67.00 | (148,342) | |||
iShares Russell 2000 Index Fund expires May 2010 575 contracts exercise price $68.00 | (114,681) | |||
PowerShares DB US Dollar Index Bullish Fund expires June 2010 1,206 contracts exercise price $26.00 | (1,539) | |||
Total Written Options – Calls | ||||
(Premiums received $676,504) | $ | (816,235) | ||
Schedule of Written Options – Puts | ||||
Bank of America Corp. expires January 2011 2,685 contracts exercise price $15.00 | $ | (300,177) | ||
Denbury Resources, Inc. expires June 2010 2,780 contracts exercise price $15.00 | (146,587) | |||
Ford Motor Co. expires June 2010 1,720 contracts exercise price $10.00 | (42,347) | |||
Genzyme Corp. expires July 2010 364 contracts exercise price $47.50 | $ | (64,074) | ||
Green Mountain Coffee Roasters, Inc. expires June 2010 540 contracts exercise price $60.00 | (28,115) | |||
iShares Russell 2000 Index Fund expires April 2010 2,720 contracts exercise price $62.00 | (27,200) | |||
iShares Russell 2000 Index Fund expires June 2010 2,002 contracts exercise price $60.00 | (182,980) | |||
S&P CNX Nifty Index expires April 2010 900 contracts exercise price INR 4,782.60 | (11,443) | |||
Prologis expires July 2010 635 contracts exercise price $11.00 | (27,933) | |||
Prologis expires July 2010 619 contracts exercise price $12.00 | (43,202) | |||
Radian Group, Inc. expires May 2010 700 contracts exercise price $7.50 | (5,668) | |||
Research in Motion Ltd. expires June 2010 415 contracts exercise price $55.00 | (23,365) | |||
UAL Corp. expires January 2011 3,634 contracts exercise price $10.00 | (297,558) | |||
Vail Resorts, Inc. expires April 2010 184 contracts exercise price $40.00 | (19,577) | |||
Total Written Options – Puts | ||||
(Premiums received $2,672,136) | $ | (1,220,226) | ||
Total Return Swaps outstanding at March 31, 2010
Notional | Return Paid | Return Received | Unrealized | ||||||||||||
Counterparty | Amount | by the Fund | by the Fund | Termination Date | Depreciation | ||||||||||
Morgan Stanley | $ | (855,854) | Natura Cosmetics SA | FED Funds Effective minus 750 basis points | 1/17/2012 | $ | (55,489) |
See Notes to Schedules of Investments and Financial Statements.
26 | MARCH 31, 2010
Statements of Assets and Liabilities
As of March 31, 2010 (unaudited) | Janus Global | Janus | ||||||
(all numbers in thousands except net asset value per share) | Real Estate Fund | Long/Short Fund | ||||||
Assets: | ||||||||
Investments at cost | $ | 20,906 | $ | 102,806 | ||||
Unaffiliated investments at value | $ | 20,685 | $ | 117,614 | ||||
Affiliated money market investments | 3,925 | - | ||||||
Cash | 107 | 838 | ||||||
Cash denominated in foreign currency(1) | - | 197 | ||||||
Restricted cash (Note 1) | 378 | 684 | ||||||
Deposits with broker for short sales | - | 60,788 | ||||||
Receivables: | ||||||||
Investments sold | - | 6,981 | ||||||
Fund shares sold | 129 | 70 | ||||||
Dividends | 87 | 483 | ||||||
Interest | - | 22 | ||||||
Non-interested Trustees’ deferred compensation | 1 | 3 | ||||||
Due from adviser | - | - | ||||||
Other assets | - | 11 | ||||||
Total Assets | 25,312 | 187,691 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Short sales, at value(2) | - | 59,774 | ||||||
Options written, at value(3) | 15 | 2,036 | ||||||
Investments purchased | 133 | 7,464 | ||||||
Fund shares repurchased | - | 579 | ||||||
Dividends and distributions | - | 1 | ||||||
Advisory fees | 49 | 123 | ||||||
Printing fees | 12 | - | ||||||
Swap Contract | - | 55 | ||||||
Administrative fees - Class D Shares | - | N/A | ||||||
Administrative fees - Class R Shares | N/A | - | ||||||
Administrative fees - Class S Shares | - | - | ||||||
Administrative fees - Class T Shares | - | - | ||||||
Distribution fees and shareholder servicing fees - Class A Shares | 1 | 7 | ||||||
Distribution fees and shareholder servicing fees - Class C Shares | 1 | 42 | ||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | - | ||||||
Distribution fees and shareholder servicing fees - Class S Shares | - | 1 | ||||||
Networking fees - Class A Shares | - | - | ||||||
Networking fees - Class C Shares | - | - | ||||||
Networking fees - Class I Shares | - | 1 | ||||||
Non-interested Trustees’ fees and expenses | - | 7 | ||||||
Non-interested Trustees’ deferred compensation fees | 1 | 3 | ||||||
Foreign tax liability | 1 | 99 | ||||||
Accrued expenses and other payables | 9 | 195 | ||||||
Variation Margin | - | 3 | ||||||
Total Liabilities | 222 | 70,390 | ||||||
Net Assets | $ | 25,090 | $ | 117,301 |
Janus Alternative Funds | 27
See footnotes at the end of the statement.
See Notes to Financial Statements.
As of March 31, 2010 (unaudited) | Janus Global | Janus | ||||||
(all numbers in thousands except net asset value per share) | Real Estate Fund | Long/Short Fund | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in-surplus)* | $ | 23,091 | $ | 354,890 | ||||
Undistributed net investment income/(loss)* | (23) | (1,858) | ||||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions* | (1,711) | (252,819) | ||||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(4) | 3,733 | 17,088 | ||||||
Total Net Assets | $ | 25,090 | $ | 117,301 | ||||
Net Assets - Class A Shares | $ | 2,902 | $ | 29,098 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 346 | 2,864 | ||||||
Net Asset Value Per Share(5) | $ | 8.40 | $ | 10.16 | ||||
Maximum Offering Price Per Share(6) | $ | 8.91 | $ | 10.78 | ||||
Net Assets - Class C Shares | $ | 888 | $ | 48,701 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 106 | 4,880 | ||||||
Net Asset Value Per Share(5) | $ | 8.40 | $ | 9.98 | ||||
Net Assets - Class D Shares | $ | 1,583 | N/A | |||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 188 | N/A | ||||||
Net Asset Value Per Share | $ | 8.43 | N/A | |||||
Net Assets - Class I Shares | $ | 18,822 | $ | 36,218 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,232 | 3,538 | ||||||
Net Asset Value Per Share | $ | 8.43 | $ | 10.24 | ||||
Net Assets - Class R Shares | N/A | $ | 199 | |||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 21 | ||||||
Net Asset Value Per Share | N/A | $ | 9.55 | |||||
Net Assets - Class S Shares | $ | 513 | $ | 1,866 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 61 | 182 | ||||||
Net Asset Value Per Share | $ | 8.40 | $ | 10.27 | ||||
Net Assets - Class T Shares | $ | 382 | $ | 1,219 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 45 | 119 | ||||||
Net Asset Value Per Share | $ | 8.42 | $ | 10.24 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of $196,877 for Janus Long/Short Fund. | |
(2) | Includes proceeds of $60,857,272 on short sales for Janus Long/Short Fund. | |
(3) | Includes premiums of $46,475 and $3,348,640 on written options for Janus Global Real Estate Fund and Janus Long/Short Fund, respectively. | |
(4) | Net of foreign tax on investments of $1,015 and $99,363 for Janus Global Real Estate Fund and Janus Long/Short Fund, respectively. | |
(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. |
28 | MARCH 31, 2010
See Notes to Financial Statements.
Statements of Operations
For the six-month period ended March 31, 2010 (unaudited) | Janus Global | Janus | ||||||
(all numbers in thousands) | Real Estate Fund | Long/Short Fund | ||||||
Investment Income: | ||||||||
Interest | $ | 1 | $ | 516 | ||||
Interest proceeds from short sales | - | 197 | ||||||
Dividends | 330 | 711 | ||||||
Dividends from affiliates | 2 | - | ||||||
Foreign tax withheld | (9) | (13) | ||||||
Total Investment Income | 324 | 1,411 | ||||||
Expenses: | ||||||||
Advisory fees | 76 | 907 | ||||||
Transfer agent fees and expenses | 3 | 22 | ||||||
Registration fees | 38 | 58 | ||||||
Custodian fees | 5 | 63 | ||||||
Audit fees | 23 | 21 | ||||||
System fees | 12 | 12 | ||||||
Non-interested Trustees’ fees and expenses | 1 | 9 | ||||||
Short sales dividend expense | - | 336 | ||||||
Short sales interest expense | - | 1 | ||||||
Stock loan fees | - | 1,201 | ||||||
Administrative fees - Class D Shares | - | N/A | ||||||
Administrative fees - Class R Shares | N/A | - | ||||||
Administrative fees - Class S Shares | 1 | 3 | ||||||
Administrative fees - Class T Shares | - | - | ||||||
Distribution fees and shareholder servicing fees - Class A Shares | 3 | 49 | ||||||
Distribution fees and shareholder servicing fees - Class C Shares | 3 | 297 | ||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | - | ||||||
Distribution fees and shareholder servicing fees - Class S Shares | 1 | 3 | ||||||
Networking fees - Class A Shares | - | 49 | ||||||
Networking fees - Class C Shares | - | 44 | ||||||
Networking fees - Class I Shares | 1 | 15 | ||||||
Other expenses | 14 | 46 | ||||||
Total Expenses | 181 | 3,136 | ||||||
Expense and Fee Offset | - | (3) | ||||||
Net Expenses | 181 | 3,133 | ||||||
Less: Excess Expense Reimbursement | (49) | (7) | ||||||
Net Expenses after Expense Reimbursement | 132 | 3,126 | ||||||
Net Investment Income/(Loss) | 192 | (1,715) | ||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||
Net realized gain/(loss) from investment transactions and foreign currency transactions | 132 | 25,069 | ||||||
Net realized gain/(loss) from futures contracts | - | (245) | ||||||
Net realized gain/(loss) from short sales | - | (9,645) | ||||||
Net realized gain/(loss from swap contracts | - | 19 | ||||||
Net realized gain/(loss) from options contracts | 6 | (949) | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(1) | 2,221 | (6,567) | ||||||
Net Gain/(Loss) on Investments | 2,359 | 7,682 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 2,551 | $ | 5,967 |
(1) | Net of foreign tax on investments of $1,015 and $99,363 for Janus Global Real Estate Fund and Janus Long/Short Fund, respectively. |
Janus Alternative Funds | 29
See Notes to Financial Statements.
Statements of Changes in Net Assets
For the six-month period ended March 31, 2010 (unaudited), | ||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 | Janus Global | Janus | ||||||||||||||||||||||
and the fiscal year ended July 31, 2009 | Real Estate Fund | Long/Short Fund | ||||||||||||||||||||||
(all numbers in thousands) | 2010 | 2009(1) | 2009(2) | 2010 | 2009(1) | 2009(2) | ||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income/(loss) | $ | 192 | $ | 55 | $ | 109 | $ | (1,715) | $ | (1,394) | $ | (10,130)(3) | ||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 132 | (39) | (1,888) | 25,069 | 1,351 | (309,672)(3) | ||||||||||||||||||
Net realized gain/(loss) from futures contracts | - | - | - | (245) | - | - | ||||||||||||||||||
Net realized gain/(loss) from short sales | - | - | - | (9,645) | (17,753) | 106,629 | ||||||||||||||||||
Net realized gain/(loss) from swap contracts | - | - | - | 19 | (403) | 1,364 | ||||||||||||||||||
Net realized gain/(loss) from options contracts | 6 | 25 | 68 | (949) | (1,128) | 19,326 | ||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 2,221 | 1,772 | 576 | (6,567) | 35,666 | 37,285(3) | ||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 2,551 | 1,813 | (1,135) | 5,967 | 16,339 | (155,198) | ||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||
Net investment income * | ||||||||||||||||||||||||
Class A Shares | (35) | - | (19) | - | - | (3,286) | ||||||||||||||||||
Class C Shares | (10) | - | (10) | - | - | (1,577) | ||||||||||||||||||
Class D Shares | - | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I Shares | (263) | - | (117) | - | - | (2,173) | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | - | - | (2) | ||||||||||||||||||
Class S Shares | (8) | - | (12) | - | - | (43) | ||||||||||||||||||
Class T Shares | (1) | - | - | - | - | - | ||||||||||||||||||
Net realized gain from investment transactions* | ||||||||||||||||||||||||
Class A Shares | - | - | (1) | - | - | - | ||||||||||||||||||
Class C Shares | - | - | - | - | - | - | ||||||||||||||||||
Class D Shares | - | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I Shares | - | - | (2) | - | - | - | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | - | - | - | ||||||||||||||||||
Class S Shares | - | - | - | - | - | - | ||||||||||||||||||
Class T Shares | - | - | - | - | - | - | ||||||||||||||||||
Net Decrease from Dividends and Distributions | (317) | - | (161) | - | - | (7,081) | ||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||
Class A Shares | 1,097 | 870 | 310 | 2,132 | 872 | 21,134 | ||||||||||||||||||
Class C Shares | 337 | 12 | 60 | 926 | 286 | 9,321 | ||||||||||||||||||
Class D Shares | 1,563 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I Shares | 4,975 | 1,119 | 7,389 | 16,719 | 3,699 | 44,479 | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | 23 | 4 | 165 | ||||||||||||||||||
Class S Shares | 48 | 1 | 9 | 204 | 62 | 1,867 | ||||||||||||||||||
Class T Shares | 377 | - | 1 | 1,208 | - | 1 | ||||||||||||||||||
Redemption fees | ||||||||||||||||||||||||
Class A Shares | - | - | - | - | - | 130 | ||||||||||||||||||
Class C Shares | - | - | - | - | - | 119 | ||||||||||||||||||
Class D Shares | - | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I Shares | - | - | 1 | 6 | 3 | 128 | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | - | - | - | ||||||||||||||||||
Class S Shares | - | - | - | 1 | - | 17 | ||||||||||||||||||
Class T Shares | - | - | - | - | - | - |
30 | MARCH 31, 2010
See Notes to Financial Statements.
For the six-month period ended March 31, 2010 (unaudited), | ||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 | Janus Global | Janus | ||||||||||||||||||||||
and the fiscal year ended July 31, 2009 | Real Estate Fund | Long/Short Fund | ||||||||||||||||||||||
(all numbers in thousands) | 2010 | 2009(1) | 2009(2) | 2010 | 2009(1) | 2009(2) | ||||||||||||||||||
Reinvested dividends and distributions | ||||||||||||||||||||||||
Class A Shares | 35 | - | 17 | - | - | 2,358 | ||||||||||||||||||
Class C Shares | 9 | - | 11 | - | - | 846 | ||||||||||||||||||
Class D Shares | - | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I Shares | 261 | - | 118 | - | - | 1,541 | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | - | - | 2 | ||||||||||||||||||
Class S Shares | 8 | - | 13 | - | - | 40 | ||||||||||||||||||
Class T Shares | 1 | - | - | - | - | - | ||||||||||||||||||
Shares repurchased | ||||||||||||||||||||||||
Class A Shares | (194) | (8) | (18) | (33,037) | (17,349) | (292,617) | ||||||||||||||||||
Class C Shares | - | (8) | (27) | (26,526) | (14,243) | (110,797) | ||||||||||||||||||
Class D Shares | (4) | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I Shares | (643) | (43) | (2,038) | (26,556) | (8,987) | (187,426) | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | (1) | (26) | (40) | ||||||||||||||||||
Class S Shares | (4) | - | - | (1,142) | (1,316) | (24,768) | ||||||||||||||||||
Class T Shares | (11) | - | - | (10) | - | - | ||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 7,855 | 1,943 | 5,846 | (66,053) | (36,995) | (533,500) | ||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 10,089 | 3,756 | 4,550 | (60,086) | (20,656) | (695,779) | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 15,001 | 11,245 | 6,695 | 177,387 | 198,043 | 893,822 | ||||||||||||||||||
End of period | $ | 25,090 | $ | 15,001 | $ | 11,245 | $ | 117,301 | $ | 177,387 | $ | 198,043 | ||||||||||||
Undistributed net investment income/(loss)* | $ | (23) | $ | 102 | $ | 49 | $ | (1,858) | $ | (143) | $ | (1,318)(3) |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Prior year amounts have been reclassified due to the recharacterization of dividend income to return of capital with no impact to net assets. |
Janus Alternative Funds | 31
See Notes to Financial Statements.
Financial Highlights
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Global Real Estate Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(2) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.49 | $6.50 | $8.65 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .09 | .03 | .12 | .13 | ||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .96 | .96 | (2.00) | (1.48) | ||||||||||||||||||
Total from Investment Operations | 1.05 | .99 | (1.88) | (1.35) | ||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.14) | – | (.27) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||||||
Total Distributions | (.14) | – | (.27) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.40 | $7.49 | $6.50 | $8.65 | ||||||||||||||||||
Total Return** | 14.19% | 15.23% | (20.87)% | (13.50)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,902 | $1,716 | $701 | $471 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,122 | $1,218 | $423 | $444 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.56% | 1.64% | 1.39% | 1.50% | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.56% | 1.63% | 1.39% | 1.50% | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.88% | 2.30% | 2.22% | 2.31% | ||||||||||||||||||
Portfolio Turnover Rate*** | 10% | 19% | 78% | 8% |
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Long/Short Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.72 | $8.93 | $11.54 | $12.69 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.08) | .07 | .07 | .04 | .13 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .52 | .72 | (2.52) | (1.11) | 2.62 | |||||||||||||||||
Total from Investment Operations | .44 | .79 | (2.45) | (1.07) | 2.75 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.17) | (.02) | (.06) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | (.06) | – | |||||||||||||||||
Redemption fees | –(4) | – | .01 | – | – | |||||||||||||||||
Total Distributions and Other | – | – | (.16) | (.08) | (.06) | |||||||||||||||||
Net Asset Value, End of Period | $10.16 | $9.72 | $8.93 | $11.54 | $12.69 | |||||||||||||||||
Total Return** | 4.53% | 8.85% | (21.22)% | (8.47)% | 27.62% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $29,098 | $58,152 | $68,971 | $409,082 | $67,879 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $39,059 | $64,709 | $184,762 | $327,208 | $18,205 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 4.14%(5) | 5.61%(5) | 4.00%(5) | 3.38%(5) | 3.46%(5) | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 4.13%(5) | 5.60%(5) | 4.00%(5) | 3.38%(5) | 3.45%(5) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (2.14)% | (3.79)% | (2.08)%(6) | 0.41% | 1.46% | |||||||||||||||||
Portfolio Turnover Rate*** | 139% | 148% | 261% | 156% | 94% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Redemption fees aggregated less than $.01 on a per share basis. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.03% and 2.03%, respectively, in 2010, 1.92% and 1.92%, respectively, for the two-month fiscal period ended September 30, 2009, 2.99% and 2.99%, respectively, for the fiscal year ended July 31, 2009, 2.68% and 2.68%, respectively, in 2008 and 1.96% and 1.95%, respectively, in 2007 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03% for Class A Shares. The adjustment had no impact on total net assets or total return of the class. |
32 | MARCH 31, 2010
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Global Real Estate Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(2) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.52 | $6.53 | $8.61 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .06 | .02 | .14 | .09 | ||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .96 | .97 | (2.01) | (1.48) | ||||||||||||||||||
Total from Investment Operations | 1.02 | .99 | (1.87) | (1.39) | ||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.14) | – | (.21) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||||||
Total Distributions | (.14) | – | (.21) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.40 | $7.52 | $6.53 | $8.61 | ||||||||||||||||||
Total Return** | 13.78% | 15.16% | (21.06)% | (13.90)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $888 | $469 | $405 | $459 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $630 | $443 | $309 | $441 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 2.31% | 2.37% | 1.34%(4) | 2.25% | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 2.31% | 2.36% | 1.34%(4) | 2.25% | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.16% | 1.52% | 2.47% | 1.56% | ||||||||||||||||||
Portfolio Turnover Rate*** | 10% | 19% | 78% | 8% |
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Long/Short Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.58 | $8.81 | $11.40 | $12.62 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.33) | – | (.18) | (.01) | .08 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .73 | .77 | (2.31) | (1.13) | 2.58 | |||||||||||||||||
Total from Investment Operations | .40 | .77 | (2.49) | (1.14) | 2.66 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.11) | (.02) | (.04) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | (.06) | – | |||||||||||||||||
Redemption fees | –(5) | – | .01 | – | – | |||||||||||||||||
Total Distributions and Other | – | – | (.10) | (.08) | (.04) | |||||||||||||||||
Net Asset Value, End of Period | $9.98 | $9.58 | $8.81 | $11.40 | $12.62 | |||||||||||||||||
Total Return** | 4.18% | 8.74% | (21.81)% | (9.11)% | 26.62% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $48,701 | $71,942 | $79,412 | $225,517 | $26,945 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $59,603 | $76,074 | $134,956 | $158,175 | $7,707 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 4.84%(6) | 6.36%(6) | 4.85%(6) | 4.18%(6) | 4.20%(6) | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 4.83%(6) | 6.36%(6) | 4.85%(6) | 4.17%(6) | 4.20%(6) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (2.90)% | (4.89)% | (2.99)%(7) | (0.37)% | 0.62% | |||||||||||||||||
Portfolio Turnover Rate*** | 139% | 148% | 261% | 156% | 94% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 2.26% and 2.26%, respectively, for the fiscal year ended July 31, 2009 without the waivers of these fees and expenses. | |
(5) | Redemption fees aggregated less than $.01 on a per share basis. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.72% and 2.71%, respectively, in 2010, 2.65% and 2.65%, respectively, for the two-month fiscal period ended September 30, 2009, 3.79% and 3.79%, respectively, for the fiscal year ended July 31, 2009, 3.48% and 3.47%, respectively, in 2008 and 2.75% and 2.74%, respectively, in 2007 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(7) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03% for Class C Shares. The adjustment had no impact on total net assets or total return of the class. |
Janus Alternative Funds | 33
Financial Highlights (continued)
Class D Shares
Janus Global | ||||||
For a share outstanding during the period | Real Estate Fund | |||||
ended March 31, 2010 (unaudited) | 2010(1) | |||||
Net Asset Value, Beginning of Period | $7.64 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | .02 | |||||
Net gain/(loss) on investments (both realized and unrealized) | .77 | |||||
Total from Investment Operations | .79 | |||||
Less Distributions and Other: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Redemption fees | –(2) | |||||
Total Distributions and Other | – | |||||
Net Asset Value, End of Period | $8.43 | |||||
Total Return** | 10.34% | |||||
Net Assets, End of Period (in thousands) | $1,583 | |||||
Average Net Assets for the Period (in thousands) | $567 | |||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.37% | |||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.35% | |||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 5.09% | |||||
Portfolio Turnover Rate*** | 10% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through March 31, 2010. | |
(2) | Redemption fees aggregated less than $.01 on a per share basis. | |
(3) | See Note 6 in Notes to Financial Statements. |
34 | MARCH 31, 2010
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Global Real Estate Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(2) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.51 | $6.52 | $8.66 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .08 | .03 | .17 | .13 | ||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .98 | .96 | (2.04) | (1.47) | ||||||||||||||||||
Total from Investment Operations | 1.06 | .99 | (1.87) | (1.34) | ||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.14) | – | (.27) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||||||
Redemption fees | –(3) | –(3) | –(3) | – | ||||||||||||||||||
Total Distributions and Other | (.14) | – | (.27) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.43 | $7.51 | $6.52 | $8.66 | ||||||||||||||||||
Total Return** | 14.34% | 15.18% | (20.73)% | (13.40)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $18,822 | $12,406 | $9,784 | $5,331 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $15,435 | $11,312 | $4,284 | $4,778 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.34% | 1.39% | 1.26% | 1.25% | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.34% | 1.39% | 1.26% | 1.25% | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.08% | 2.51% | 1.98% | 2.48% | ||||||||||||||||||
Portfolio Turnover Rate*** | 10% | 19% | 78% | 8% |
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Long/Short Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.77 | $8.97 | $11.60 | $12.72 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.04) | .08 | .24 | .09 | .14 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .51 | .72 | (2.68) | (1.13) | 2.65 | |||||||||||||||||
Total from Investment Operations | .47 | .80 | (2.44) | (1.04) | 2.79 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.20) | (.03) | (.07) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | (.06) | – | |||||||||||||||||
Redemption fees | –(3) | –(3) | .01 | .01 | – | |||||||||||||||||
Total Distributions and Other | – | – | (.19) | (.08) | (.07) | |||||||||||||||||
Net Asset Value, End of Period | $10.24 | $9.77 | $8.97 | $11.60 | $12.72 | |||||||||||||||||
Total Return** | 4.81% | 8.92% | (20.96)% | (8.19)% | 27.98% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $36,218 | $44,422 | $45,805 | $227,446 | $62,987 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $44,258 | $44,992 | $107,265 | $212,623 | $16,632 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 3.77%(5) | 5.31%(5) | 3.75%(5) | 3.12%(5) | 3.21%(5) | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 3.77%(5) | 5.30%(5) | 3.75%(5) | 3.12%(5) | 3.21%(5) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.85)% | (4.67)% | (1.84)%(6) | 0.72% | 1.67% | |||||||||||||||||
Portfolio Turnover Rate*** | 139% | 148% | 261% | 156% | 94% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.64% and 1.64%, respectively, in 2010, 1.58% and 1.58%, respectively, for the two-month fiscal period ended September 30, 2009, 2.72% and 2.72%, respectively, for the fiscal year ended July 31, 2009, 2.42% and 2.42%, respectively, in 2008 and 1.75% and 1.74%, respectively, in 2007 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03% for Class I Shares. The adjustment had no impact on total net assets or total return of the class. |
Janus Alternative Funds | 35
Financial Highlights (continued)
Class R Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Long/Short Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.15 | $8.40 | $10.89 | $12.65 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.13) | .06 | (.56) | .78 | .10 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .53 | .69 | (1.82) | (2.48) | 2.59 | |||||||||||||||||
Total from Investment Operations | .40 | .75 | (2.38) | (1.70) | 2.69 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.12) | – | (.04) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | (.06) | – | |||||||||||||||||
Redemption fees | –(2) | – | .01 | – | – | |||||||||||||||||
Total Distributions and Other | – | – | (.11) | (.06) | (.04) | |||||||||||||||||
Net Asset Value, End of Period | $9.55 | $9.15 | $8.40 | $10.89 | $12.65 | |||||||||||||||||
Total Return** | 4.37% | 8.93% | (21.76)% | (13.49)% | 26.90% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $199 | $168 | $175 | $86 | $1,280 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $181 | $178 | $148 | $601 | $1,142 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 4.45%(4) | 5.93%(4) | 4.93%(4) | 4.89%(4) | 3.67%(4) | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 4.44%(4) | 5.93%(4) | 4.93%(4) | 4.89%(4) | 3.67%(4) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (2.47)% | (5.90)% | (3.25)%(5) | (0.47)% | 0.36% | |||||||||||||||||
Portfolio Turnover Rate*** | 139% | 148% | 261% | 156% | 94% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Redemption fees aggregated less than $.01 on a per share basis. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.33% and 2.33%, respectively, in 2010, 2.25% and 2.25%, respectively, for the two-month fiscal period ended September 30, 2009, 3.81% and 3.81%, respectively, for the fiscal year ended July 31, 2009, 4.19% and 4.19%, respectively, in 2008 and 2.49% and 2.49%, respectively, in 2007 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03% for Class R Shares. The adjustment had no impact on total net assets or total return of the class. |
36 | MARCH 31, 2010
Class S Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Global Real Estate Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(2) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.50 | $6.51 | $8.63 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .07 | .02 | .15 | .12 | ||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .97 | .97 | (2.02) | (1.49) | ||||||||||||||||||
Total from Investment Operations | 1.04 | .99 | (1.87) | (1.37) | ||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.14) | – | (.25) | – | ||||||||||||||||||
Distributions (from capital gains)* | �� | – | – | – | – | |||||||||||||||||
Total Distributions | (.14) | – | (.25) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.40 | $7.50 | $6.51 | $8.63 | ||||||||||||||||||
Total Return** | 14.09% | 15.21% | (20.84)% | (13.70)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $513 | $409 | $354 | $434 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $445 | $389 | $299 | $437 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.81% | 1.86% | 1.29%(4) | 1.75% | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.80% | 1.86% | 1.29%(4) | 1.75% | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.58% | 2.02% | 2.51% | 2.08% | ||||||||||||||||||
Portfolio Turnover Rate*** | 10% | 19% | 78% | 8% |
Class S Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Long/Short Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.82 | $9.04 | $11.52 | $12.69 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .80 | .67 | 1.00 | .16 | .09 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | (.35) | .11 | (3.46) | (1.26) | 2.65 | |||||||||||||||||
Total from Investment Operations | .45 | .78 | (2.46) | (1.10) | 2.74 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.03) | (.02) | (.05) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | (.06) | – | |||||||||||||||||
Redemption fees | –(5) | –(5) | .01 | .01 | – | |||||||||||||||||
Total Distributions and Other | – | – | (.02) | (.07) | (.05) | |||||||||||||||||
Net Asset Value, End of Period | $10.27 | $9.82 | $9.04 | $11.52 | $12.69 | |||||||||||||||||
Total Return** | 4.58% | 8.63% | (21.23)% | (8.65)% | 27.43% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,866 | $2,702 | $3,679 | $31,691 | $40,590 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,271 | $3,189 | $12,978 | $59,260 | $6,865 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 4.19%(6) | 5.68%(6) | 4.18%(6) | 3.66%(6) | 3.99%(6) | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 4.18%(6) | 5.68%(6) | 4.18%(6) | 3.66%(6) | 3.98%(6) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (2.14)% | (1.80)% | (2.22)%(7) | 0.30% | 1.67% | |||||||||||||||||
Portfolio Turnover Rate*** | 139% | 148% | 261% | 156% | 94% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 1.76% and 1.76%, respectively, for the fiscal year ended July 31, 2009 without the waivers of these fees and expenses. | |
(5) | Redemption fees aggregated less than $.01 on a per share basis. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.07% and 2.07%, respectively, in 2010, 2.01% and 2.01%, respectively, for the two-month fiscal period ended September 30, 2009, 3.16% and 3.16%, respectively, for the fiscal year ended July 31, 2009, 2.96% and 2.96%, respectively, in 2008 and 2.25% and 2.24%, respectively, in 2007 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(7) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% for Class S Shares. The adjustment had no impact on total net assets or total return of the class. |
Janus Alternative Funds | 37
Financial Highlights (continued)
Class T Shares
For a share outstanding during the six-month period ended | ||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Global Real Estate Fund | |||||||||||||
September 30, 2009 and the fiscal period ended July 31, 2009 | 2010 | 2009(1) | 2009(2) | |||||||||||
Net Asset Value, Beginning of Period | $7.50 | $6.51 | $5.80 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | .12 | .03 | – | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .94 | .96 | .71 | |||||||||||
Total from Investment Operations | 1.06 | .99 | .71 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (.14) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | (.14) | – | – | |||||||||||
Net Asset Value, End of Period | $8.42 | $7.50 | $6.51 | |||||||||||
Total Return** | 14.36% | 15.21% | 12.24% | |||||||||||
Net Assets, End of Period (in thousands) | $382 | $1 | $1 | |||||||||||
Average Net Assets for the Period (in thousands) | $83 | $1 | $1 | |||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.56% | 1.61% | 1.54% | |||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.56% | 1.61% | 1.54% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.97% | 2.25% | 0.79% | |||||||||||
Portfolio Turnover Rate*** | 10% | 19% | 78% |
Class T Shares
For a share outstanding during the six-month period ended | ||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Janus Long/Short Fund | |||||||||||||
September 30, 2009 and the fiscal period ended July 31, 2009 | 2010 | 2009(1) | 2009(2) | |||||||||||
Net Asset Value, Beginning of Period | $9.79 | $8.98 | $8.88 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (.21) | .04 | .17 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | .66 | .77 | (.07) | |||||||||||
Total from Investment Operations | .45 | .81 | .10 | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Redemption fees | –(4) | – | – | |||||||||||
Total Distributions and Other | – | – | – | |||||||||||
Net Asset Value, End of Period | $10.24 | $9.79 | $8.98 | |||||||||||
Total Return** | 4.60% | 9.02% | 1.13% | |||||||||||
Net Assets, End of Period (in thousands) | $1,219 | $1 | $1 | |||||||||||
Average Net Assets for the Period (in thousands) | $155 | $1 | $1 | |||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 3.60%(5) | 5.35%(5) | 2.04%(5) | |||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 3.55%(5) | 5.35%(5) | 2.00%(5) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.90)% | (5.61)% | (2.61)%(6) | |||||||||||
Portfolio Turnover Rate*** | 139% | 148% | 261% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Redemption fees aggregated less than $.01 on a per share basis. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.93% and 1.89%, respectively, in 2010, 1.66% and 1.65%, respectively, for the two-month fiscal period ended September 30, 2009 and 1.87% and 1.83%, respectively, for the fiscal period ended July 31, 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.90% for Class T Shares. The adjustment had no impact on total net assets or total return of the class. |
38 | MARCH 31, 2010
Notes to Schedules of Investments (unaudited)
FTSE EPRA/NAREIT Developed Index | (Formerly named FTSE EPRA/NAREIT Global Real Estate Index) A global market capitalization weighted index composed of listed real estate securities from developed market countries in North America, Europe, and Asia. | |
FTSE EPRA/NAREIT Global Index | A global market capitalization weighted index composed of listed real estate securities in the North American, European, Asian, and South American real estate markets including both developed and emerging markets. | |
Lipper Global Real Estate Funds | Funds that invest at least 25% but less than 75% of their equity portfolio in shares of companies engaged in the real estate industry that are strictly outside of the U.S. or whose securities are principally traded outside of the U.S. | |
Lipper Long/Short Equity Funds | Funds that employ portfolio strategies combining long holdings of equities with short sales of equity, equity options, or equity index options. The funds may be either net long or net short, depending on the portfolio manager’s view of the market. | |
London Interbank Offered Rate (LIBOR) | A daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). | |
S&P 500® Index | The Standard & Poor’s (“S&P”) 500® Index is a commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. Equity performance. | |
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. | |
ADR | American Depositary Receipt | |
ETF | Exchange-Traded Fund | |
ETN | Exchange-Traded Note | |
LEAPS | Long-Term Equity Anticipation Securities | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
SPDR | Standard & Poor’s Depositary Receipt | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. | |
VVPR Strip | The Voter Verified Paper Record (VVPR) strip is a coupon which, if presented along with the dividend coupon of the ordinary share, allows the benefit of a reduced withholding tax on the dividends paid by the company. This strip is quoted separately from the ordinary share and is freely negotiable. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements and/or securities with extended settlement dates. | |
± | All or a portion of liquid common stock positions have been segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, option contracts, short sales, swap agreements and/or securities with extended settlement dates. | |
ß | Security is illiquid. |
∞ Schedule of Fair Valued Securities (as of March 31, 2010)
Value as a % | |||||||
Value | of Net Assets | ||||||
Janus Long/Short Fund | |||||||
Trinity, Ltd – Private Placement | $ | 367,179 | 0.3% | ||||
$ | 367,179 | 0.3% | |||||
Securities are valued at “fair value” pursuant to procedures adopted by the Funds’ Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to a systematic fair valuation model. Securities are restricted as to resale and may not have a readily available market. Not included in amount listed for segregation requirements.
Janus Alternative Funds | 39
Notes to Schedules of Investments (unaudited) (continued)
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2010. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2010)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||||||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
Janus Global Real Estate Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Real Estate Management/Services | $ | 1,601,838 | $ | 235,306 | $ | – | |||||||||||||||||
All Other | 18,294,715 | – | – | ||||||||||||||||||||
Corporate Bond | – | 48,625 | – | ||||||||||||||||||||
Preferred Stock | – | 504,851 | – | ||||||||||||||||||||
Warrant | – | 189 | – | ||||||||||||||||||||
Money Market | – | 3,924,707 | – | ||||||||||||||||||||
Total Investments in Securities | $ | 19,896,553 | $ | 4,713,678 | $ | – | |||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
Janus Long/Short Fund | |||||||||||||||||||||||
Closed-End Fund | $ | 445 | $ | – | $ | – | |||||||||||||||||
Common Stock | |||||||||||||||||||||||
Commercial Banks | 2,923,614 | 4,930,013 | – | ||||||||||||||||||||
Medical – Drugs | 3,109,109 | 1,559,475 | – | ||||||||||||||||||||
Retail – Apparel and Shoe | – | – | 367,179 | ||||||||||||||||||||
All Other | 94,478,386 | – | – | ||||||||||||||||||||
Exchange-Traded Funds | 4,596,131 | – | – | ||||||||||||||||||||
Total Investments in Securities | $ | 105,107,685 | $ | 6,489,488 | $ | 367,179 | |||||||||||||||||
Investments in Securities Sold Short: | |||||||||||||||||||||||
Janus Long/Short Fund | |||||||||||||||||||||||
Closed-End Fund | $ | (1,948,800) | $ | – | $ | – | |||||||||||||||||
Common Stock | |||||||||||||||||||||||
Engineering – Research and Development Services | – | (684,793) | – | ||||||||||||||||||||
Wireless Equipment | – | (1,167,085) | – | ||||||||||||||||||||
All Other | (47,259,304) | – | – | ||||||||||||||||||||
Exchange-Traded Funds | (8,029,201) | – | – | ||||||||||||||||||||
Exchange-Traded Note | (684,947) | – | – | ||||||||||||||||||||
Total Investments in Securities Sold Short | $ | (57,922,252) | $ | (1,851,878) | $ | – | |||||||||||||||||
Investments in Purchased Options: | |||||||||||||||||||||||
Janus Long/Short Fund | $ | 3,105,090 | $ | 2,544,780 | $ | – | |||||||||||||||||
Other Financial Instruments(b): | |||||||||||||||||||||||
Janus Global Real Estate Fund | $ | (9,457) | $ | (6,022) | $ | – | |||||||||||||||||
Janus Long/Short Fund | (633,925) | (1,461,463) | – | ||||||||||||||||||||
(a) | Includes fair value factors. | |
(b) | Other financial instruments include futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options are reported at their market value at measurement date. |
40 | MARCH 31, 2010
Level 3 Valuation Reconciliation of Assets (for the six-month period ended March 31, 2010)
Change in | |||||||||||||||||||||||
Accrued | Unrealized | Net | Transfers In | ||||||||||||||||||||
Balance as of | Discounts/ | Realized | Appreciation/ | Purchases/ | and/or Out of | Balance as of | |||||||||||||||||
September 30, 2009 | Premiums | Gain/(Loss) | Depreciation(a) | (Sales) | Level 3 | March 31, 2010 | |||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
Janus Long/Short Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Retail – Apparel and Shoe | $ | 126,557 | $ | – | $ | 4,760 | $ | 333,845 | $ | (97,983) | $ | – | $ | 367,179 | |||||||||
(a) | Included in “Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Operations. |
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements and/or securities with extended settlement dates as of March 31, 2010 is noted below.
Fund | Aggregate Value | ||||
Janus Global Real Estate Fund | $ | 2,638,930 | |||
Janus Long/Short Fund | 104,518,140 | ||||
Janus Alternative Funds | 41
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus Global Real Estate Fund and Janus Long/Short Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part 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. The Trust offers thirty-eight funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as nondiversified, as defined in the 1940 Act.
Each Fund in this report 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 A Shares and Class C 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. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who held accounts directly with the Janus funds as of July 6, 2009 and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
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, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
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 Management LLC (“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, and 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 Funds and are in conformity with accounting principles generally accepted in the United States of America within the investment management industry.
Investment Valuation
Securities are valued at the last sales price or the official closing price for securities traded on a principal securities exchange (U.S. or foreign) and on the NASDAQ National Market. Securities traded on over-the-counter markets and listed securities for which no sales are reported are 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 Funds’ Trustees. Short-term securities with maturities of 60 days or less may be valued at amortized cost, which approximates market value. Debt securities with a remaining maturity of greater than 60 days are valued in accordance with the evaluated bid price supplied by the pricing service. The evaluated bid price supplied by the pricing service is an evaluation that reflects such factors as security prices, yields, maturities and ratings. Short positions shall be valued in accordance with the same methodologies, except that in the event that a last sale price is not available, the latest ask price shall be used instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Funds are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Funds’ Trustees. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a
42 | MARCH 31, 2010
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 non-significant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a non-valued security and a restricted or non-public security. The Funds may use a systematic fair valuation model provided by an independent pricing service to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Funds’ Trustees.
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 Trust 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
Each Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to each Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class 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.
Foreign Currency Translations
The Funds do 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.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and market risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Funds may be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
The 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 REIT’s taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements, as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
Janus Alternative Funds | 43
Notes to Financial Statements (unaudited) (continued)
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Funds adopted the provisions of “Income Taxes.” These provisions require an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statements of Operations.
These provisions require management of the Funds to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the six-month period ended March 31, 2010, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examinations in progress and are 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.
Restricted Cash
As of March 31, 2010, Janus Global Real Estate Fund and Janus Long/Short Fund had restricted cash in the amounts of $378,000 and $684,048, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at March 31, 2010. The restricted cash is held at the Fund’s custodian, State Street Bank and Trust Company. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with FASB guidance, the Funds utilize the “Fair Value Measurements and Disclosures” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit 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. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the security and would be based on the best information available under the circumstances.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2010 to value the Funds’ investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and “Level 3 Valuation Reconciliation of Assets” (if applicable) in the Notes to Schedules of Investments.
In April 2009, FASB issued “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” which provides additional guidance for estimating fair value in accordance with Fair Value Measurements when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly. Additionally, it amends the Fair Value Measurement Standard by expanding disclosure requirements for reporting entities surrounding the major categories of assets and liabilities carried at fair value. The required disclosures have been incorporated into the “Valuation Inputs Summary” in the Notes to Schedules of Investments. Management believes applying this guidance does not have a material impact on the financial statements.
44 | MARCH 31, 2010
2. | Derivative Instruments |
The Funds 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 Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the cost of the derivative. The Funds may not use any derivative to gain exposure to an asset or class of assets prohibited by their investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives are generally 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 Funds to additional risks that they would not be subject to if they 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, including counterparty risk, currency risk, leverage risk, liquidity risk, and index risk.
Derivatives may generally be traded over-the-counter (“OTC”) or on an exchange. Derivatives traded OTC, such as structured notes, 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 counterparty credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a 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. 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.
Equity-Linked Structured Notes
The Funds may invest in equity-linked structured notes. Equity-linked structured notes are derivative securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, an equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked structured notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked structured notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is a commitment to purchase or sell a foreign currency at a future date at a negotiated rate. The Funds 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 Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Funds are subject to foreign currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
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 contract is included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statements of Operations (if applicable).
Forward currency contracts held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
Janus Alternative Funds | 45
Notes to Financial Statements (unaudited) (continued)
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 Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, market risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds 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 are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds may purchase or write covered and uncovered put and call options on futures contracts and on portfolio securities for hedging purposes or as a substitute for an investment. The Funds are subject to interest rate risk, liquidity risk, market risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use option contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Funds may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Funds may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Funds may also invest in long-term equity anticipation securities, which are long-term option contracts that can be maintained for a period of up to three years. The Funds generally invest in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Funds may also purchase and write exchange-listed and over-the-counter put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded over-the-counter expose the Funds to counterparty risk in
46 | MARCH 31, 2010
the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by having the counterparty post collateral to cover the Funds’ exposure to the counterparty.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments (if applicable). Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written at value” (if applicable).
Realized gains and losses are reported as “Net realized gain/(loss) from options contracts” on the Statements of Operations (if applicable).
The following Funds recognized realized gains/(losses) from written options contracts during the six-month period ended March 31, 2010 as indicated in the tables below:
Fund | Gains/(Losses) | ||||
Janus Global Real Estate Fund | $ | 6,120 | |||
Janus Long/Short Fund | 417,217 | ||||
The risk in writing call options is that the Funds give up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Funds may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Funds pay a premium whether or not the options are exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Funds’ hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. There is no limit to the loss the Funds may recognize due to written call options.
Written option activity for the six-month period ended March 31, 2010 is indicated in the table below:
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Global Real Estate Fund | ||||||||
Options outstanding at September 30, 2009 | – | $ | – | |||||
Options written | 220 | 9,700 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 220 | $ | 9,700 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Global Real Estate Fund | ||||||||
Options outstanding at September 30, 2009 | 60 | $ | 2,640 | |||||
Options written | 435 | 40,255 | ||||||
Options closed | – | – | ||||||
Options expired | (120) | (6,120) | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 375 | $ | 36,775 | |||||
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Long/Short Fund | ||||||||
Options outstanding at September 30, 2009 | 11,437 | $ | 1,325,021 | |||||
Options written | 20,783 | 2,826,160 | ||||||
Options closed | (19,298) | (2,571,291) | ||||||
Options expired | (8,287) | (781,813) | ||||||
Options exercised | (1,455) | (121,573) | ||||||
Options outstanding at March 31, 2010 | 3,180 | $ | 676,504 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Long/Short Fund | ||||||||
Options outstanding at September 30, 2009 | 9,571 | $ | 1,368,641 | |||||
Options written | 45,653 | 4,661,990 | ||||||
Options closed | (15,250) | (1,603,463) | ||||||
Options expired | (17,514) | (1,442,368) | ||||||
Options exercised | (2,562) | (312,664) | ||||||
Options outstanding at March 31, 2010 | 19,898 | $ | 2,672,136 | |||||
Other Options
In addition to the option strategies described above, the Funds may purchase and sell a variety of options with non-standard payout structures or other features (“exotic options”). Exotic options are traded OTC and typically have price movements that can vary markedly from simple put or call options. The risks associated with exotic options are that they cannot be as easily priced and may be subject to liquidity risk. While some exotic options have fairly active markets others are mostly thinly traded instruments. Some options are pure two-party transactions and may have no liquidity. The Funds may treat such instruments as illiquid and will limit their investments in such instruments to no more than 15% of a Fund’s net assets, when combined with all other illiquid investments of a Fund. The Funds may use exotic options to the extent that they are consistent with the Funds’ investment objectives and investment policies, and applicable regulations.
The Funds may purchase and sell exotic options that have values which are determined by the correlation of two or more underlying assets. These types of options include, but are not limited to, outperformance options, yield curve options or other spread options.
Janus Alternative Funds | 47
Notes to Financial Statements (unaudited) (continued)
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Funds may utilize swap agreements as a means to gain exposure to certain common stocks and/or to “hedge” or protect their portfolios from adverse movements in securities prices or interest rates. The Funds are subject to market risk and interest rate risk in the normal course of pursuing their investment objectives through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a 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 contracts of the Funds are reported as an asset or liability on the Statements of Assets and Liabilities (if applicable). Realized gains and losses of the Funds are reported in “Net realized gain/(loss) from swap contracts” on the Statements of Operations (if applicable).
Various types of swaps such as credit default (funded and unfunded), equity, interest rate, and total return swaps are described below.
Credit default swaps are a specific kind of counterparty agreement that allows the transfer of third-party credit risk from one party to the other. The Funds are subject to credit risk in the normal course of pursuing their investment objectives through their investments in credit default swap contracts. The Funds may enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which they are not otherwise exposed. With a credit default swap, one party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange for regular periodic payments. The Funds’ maximum risk of loss from counterparty risk, either as protection sellers or as protection buyers (undiscounted), is the notional value of the agreement. The risk is mitigated by having a netting arrangement between the Funds and the counterparty and by posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.
Funded (notional value of contract paid up front) or unfunded (notional value only paid in case of default) credit default swaps are based on an index of credit default swaps (“CDXs”) or other similarly structured products. CDXs are designed to track segments of the credit default swap market and provide investors with exposure to specific reference baskets of issuers of bonds or loans. These instruments have the potential to allow an investor to obtain the same investment exposure as an investor who invests in an individual credit default swap, but with the potential added benefit of diversification. The CDX reference baskets are normally priced daily and rebalanced every six months in conjunction with leading market makers in the credit industry. The liquidity of the market for CDXs is normally subject to liquidity in the secured loan and credit derivatives markets. A fund investing in CDXs is normally only permitted to take long positions in these instruments.
Equity swaps involve the exchange by two parties of future cash flow (e.g., one cash flow based on a referenced interest rate and the other based on the performance of stock or a stock index).
Interest rate swaps involve the exchange by two parties of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments).
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.
The Funds’ maximum risk of loss for equity swaps, interest rate swaps and total return swaps 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 Funds and the counterparty and by the posting of collateral to the Funds to cover the Funds’ exposure to the counterparty.
In accordance with FASB guidance, the Funds adopted the provisions for “Derivatives and Hedging”, which require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
48 | MARCH 31, 2010
Fair Value of Derivative Instruments as of March 31, 2010
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Global Real Estate Fund | ||||||||||||
Equity Contracts | Options written, at value | $ | 15,479 | |||||||||
Total | $ | 15,479 | ||||||||||
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Long/Short Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 5,649,870 | Options written, at value | $ | 2,036,461 | ||||||
Equity Contracts | Swap Contract | 55,489 | ||||||||||
Futures Contracts(a) | Variation Margin | 3,438 | ||||||||||
Total | $ | 5,649,870 | $ | 2,095,388 | ||||||||
(a) | Includes cumulative appreciation/(depreciation) of futures contracts as reported on the Schedule of Investments. Only the current day’s variation margin is reported on the Statement of Assets and Liabilities. |
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2010
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Real Estate Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 6,120 | $ | – | $ | 6,120 | ||||||||||
Total | $ | – | $ | – | $ | 6,120 | $ | – | $ | 6,120 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Real Estate Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 29,556 | $ | – | $ | 29,556 | ||||||||||
Total | $ | – | $ | – | $ | 29,556 | $ | – | $ | 29,556 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Long/Short Fund | ||||||||||||||||||||
Interest Rate Contracts | $ | (245,049 | ) | $ | – | $ | – | $ | – | $ | (245,049 | ) | ||||||||
Equity Contracts | – | 19,252 | (949,211 | ) | – | (929,959 | ) | |||||||||||||
Foreign Exchange Contracts | – | – | – | 417,037 | 417,037 | |||||||||||||||
Total | $ | (245,049 | ) | $ | 19,252 | $ | (949,211 | ) | $ | 417,037 | $ | (757,971 | ) | |||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Long/Short Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | (55,489 | ) | $ | 1,684,620 | $ | – | $ | 1,629,131 | |||||||||
Interest Rate Contracts | 13,407 | – | – | – | $ | 13,407 | ||||||||||||||
Total | $ | 13,407 | $ | (55,489 | ) | $ | 1,684,620 | $ | – | $ | 1,642,538 | |||||||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
Janus Alternative Funds | 49
Notes to Financial Statements (unaudited) (continued)
3. | Other investments and strategies |
Additional Investment Risk
Unforeseen events in the equity and fixed-income markets may at times result in an unusually high degree of volatility in the markets, both domestic and international. These events and the resulting market upheavals may have an adverse effect on the Funds such as a decline in the value and liquidity of many securities held by the Funds, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in net asset value, and an increase in Fund expenses. Such unforeseen events may make it unusually difficult to identify both investment risks and opportunities and could limit or preclude each Fund’s ability to achieve its investment objective. The market’s behavior may at times be unpredictable. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
Bank Loans
Janus Long/Short Fund may invest no more than 5% of the Fund’s net assets in bank loans, which include institutionally-traded floating rate securities generally acquired as an assignment from another holder of, or participation interest in, loans originated by a bank or financial institution (the “Lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender selling the loan agreement and only upon receipt by the Lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. Assignments and participations involve credit, interest rate, and liquidity risk. Interest rates on floating rate securities adjust with general interest rate changes and/or issuer credit quality. The interest rates paid on a floating rate security in which the Fund invests generally are readjusted periodically to an increment over a designated benchmark rate, such as the one-month, three-month, six-month, or one-year London Interbank Offered Rate (“LIBOR”). LIBOR is a short-term interest rate that banks charge one another and is generally representative of the most competitive and current cash rates.
The Fund may have difficulty trading assignments and participations to third parties. There may be restrictions on transfer and only limited opportunities may exist to sell such securities in secondary markets. As a result, the Fund may be unable to sell assignments or participations at the desired time or may be able to sell only at a price less than fair market value. The Fund utilizes an independent third party to value individual bank loans on a daily basis.
The average monthly value of borrowings outstanding under bank loan arrangements and the related rate range during the six-month period ended March 31, 2010 are indicated in the table below:
Average Monthly | ||||||||
Fund | Value | Rates | ||||||
Janus Long/Short Fund | $ | 3,023,629 | 0% | |||||
Borrowing
Janus Long/Short Fund may borrow money from banks for investment purposes to the extent permitted by the 1940 Act. This practice is known as leverage. Currently, under the 1940 Act, the Fund may borrow from banks up to one-third of its total assets (including the amount borrowed) provided that it maintains continuous asset coverage of 300% with respect to such borrowings and sells (within three days) sufficient portfolio holdings to restore such coverage if it should decline to less than 300% due to market fluctuations or otherwise, even if disadvantageous from an investment standpoint. The Fund may also borrow money to meet redemptions in order to avoid forced, unplanned sales of portfolio securities or for other temporary or emergency purposes. This allows the Fund greater flexibility to buy and sell portfolio securities for investment or tax considerations, rather than for cash flow considerations.
The use of borrowing by Janus Long/Short Fund involves special risk considerations that may not be associated with other funds that may only borrow for temporary or emergency purposes. Because substantially all of the Fund’s assets fluctuate in value, whereas the interest obligation resulting from a borrowing will be fixed by the terms of the Fund’s agreement with its lender, the NAV per share of the Fund will tend to increase more when its portfolio securities increase in value and decrease more when its portfolio securities decrease in value than would otherwise be the case if the Fund did not borrow funds. In addition, interest costs on borrowings may fluctuate with changing market rates of interest and may partially offset or exceed the return earned on borrowed funds. Under adverse market conditions, the Fund might have to sell portfolio securities to meet interest or principal payments at a time when fundamental investment considerations would not favor such sales. The interest that the Fund must pay on borrowed money, together with any additional fees to maintain a line of credit or any minimum average balances required to be maintained, are additional costs that will reduce or eliminate any net investment income and may also offset any potential capital gains. Unless the
50 | MARCH 31, 2010
appreciation and income, if any, on assets acquired with borrowed funds exceed the costs of borrowing, the use of leverage will diminish the investment performance of the Fund compared with what it would have been without leverage.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to a 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 a Fund. A 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 a Fund’s exposure to counterparty risk in respect to financial assets approximates their carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
A 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 a Fund’s cash balances are 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. A 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 a 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 Funds
The Funds may invest in exchange-traded funds, which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
Exchange-Traded Notes
The Funds may invest directly in exchange-traded notes (“ETNs”), which are senior, unsecured, unsubordinated debt securities whose returns are linked to a particular index and provide exposure to the total returns of various market indices, including indices linked to stocks, bonds, commodities and currencies. This type of debt security differs from other types of bonds and notes. ETN returns are based upon the performance of a market index minus applicable fees; no periodic coupon payments are distributed and no principal protections exist. ETNs do not pay cash distributions. Instead, the value of dividends, interest, and investment gains are captured in the Funds’ total returns. The Funds will invest in these securities when desiring exposure to debt securities or commodities. When evaluating ETNs for investment, Janus Capital will consider the potential risks involved, expected tax efficiency, rate of return, and credit risk. When the Funds invest in ETNs, they will bear their proportionate share of any fees and expenses borne by the ETN. There may be restrictions on the Funds’ right to redeem their investment in an ETN, which is meant to be held until maturity. The Funds’ decision to sell their ETN holdings may be limited by the availability of a secondary market.
Floating Rate Loans
Janus Long/Short Fund may invest in floating rate loans. Floating rate loans are debt securities that have floating interest rates, which adjust periodically and are tied to a benchmark lending rate such as LIBOR. In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loans may include fully funded term loans or revolving lines of credit.
Initial Public Offerings
The Funds may invest in initial public offerings (“IPOs”). IPOs and other investment techniques may have a magnified performance impact on a Fund with a small
Janus Alternative Funds | 51
Notes to Financial Statements (unaudited) (continued)
asset base. The Fund may not experience similar performance as its assets grow.
Interfund Lending
As permitted by the Securities and Exchange Commission (“SEC”), or the 1940 Act and rules promulgated thereunder, the Funds may be party to interfund lending agreements between the Funds and other Janus Capital sponsored mutual funds and certain pooled investment vehicles, which permit them to borrow or lend cash at a rate beneficial to both the borrowing and lending funds. Outstanding borrowings from all sources totaling 10% or more of the borrowing Fund’s total assets must be collateralized at 102% of the outstanding principal value of the loan; loans of less than 10% may be unsecured.
Mortgage Dollar Rolls
The Funds may enter into “mortgage dollar rolls.” In a “mortgage dollar roll” transaction, the Funds sell a mortgage-related security (such as a Government National Mortgage Association (“Ginnie Mae”) security) to a dealer and simultaneously agree to repurchase a similar security (but not the same security) in the future at a predetermined price. The Funds will not be entitled to receive interest and principal payments while the dealer holds the security. The difference between the sale price and the future purchase price is recorded as an adjustment to investment income.
The Funds’ obligations under a dollar roll agreement must be covered by cash, U.S. Government securities or other liquid high-grade debt obligations equal in value to the securities subject to repurchase by the Funds, maintained in a segregated account. To the extent that the Funds collateralize their obligations under a dollar roll agreement, the asset coverage requirements of the 1940 Act will not apply to such transactions. Furthermore, under certain circumstances, an underlying mortgage-backed security that is part of a dollar roll transaction may be considered illiquid.
Successful use of mortgage dollar rolls depends on the portfolio managers’ ability to predict interest rates and mortgage payments. Dollar roll transactions involve the risk that the market value of the securities the Funds are required to purchase may decline below the agreed upon repurchase price.
Restricted Security Transactions
Restricted securities held by the Funds may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Funds to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Securities Lending
Under procedures adopted by the Trustees, the Funds may seek to earn additional income by lending securities to qualified parties (typically brokers or other financial institutions) who need to borrow securities in order to complete certain transactions such as covering short sales, avoiding failures to deliver securities or completing arbitrage activities. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. Janus Capital makes efforts to balance the benefits and risks from granting such loans.
The Funds do not have the right to vote on securities while they are being lent; however, the Funds may attempt to call back the loan and vote the proxy if time permits. 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 permitted by the SEC. Cash collateral may be invested as permitted by the 1940 Act and rules promulgated thereunder.
Deutsche Bank AG (the “Lending Agent”) may also invest the cash collateral in investments in non-affiliated money market funds or accounts, mutually agreed to by the Funds and the Lending Agent, that comply with Rule 2a-7 of the 1940 Act relating to money market funds.
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 upon this mark-to-market evaluation.
The borrower pays fees at the Funds’ direction to the Lending Agent. The Lending Agent may retain a portion of the interest earned on the cash collateral invested. The cash collateral invested by the Lending Agent is disclosed on the Schedules of Investments (if applicable). The lending fees and the Funds’ portion of the interest income earned on cash collateral are included on the Statements of Operations (if applicable).
52 | MARCH 31, 2010
The Securities Lending Program was suspended and effective November 19, 2008, the Funds no longer had any securities on loan. Management continues to review the program and may resume securities lending.
Securities Traded on a To-Be-Announced Basis
The Funds may trade securities on a to-be-announced (“TBA”) basis. In a TBA transaction, the Funds commit to purchasing or selling securities for which specific information is not yet known at the time of the trade, particularly the face amount and maturity date in Ginnie Mae, Federal National Mortgage Association (“Fannie Mae”) and/or Federal Home Loan Mortgage Corporation (“Freddie Mac”) transactions.
Securities purchased on a TBA basis are not settled until they are delivered to the Funds, normally 15 to 45 days later. Beginning on the date the Funds enter into a TBA transaction, cash, U.S. Government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.
Short Sales
The Funds may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Funds own or selling short a security that the Funds have the right to obtain, for delivery at a specified date in the future. The Funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The Funds borrow the securities sold short and receive proceeds from the short sale only when they deliver the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Funds lose the opportunity to participate in the gain.
The Funds may also engage in other short sales. The Funds may engage in short sales when the portfolio managers anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Funds must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. No more than 10% of a Fund’s net assets may be invested in short sales of stocks, futures, swaps, structured notes, and uncovered written calls. No more than 10% of Janus Global Real Estate Fund’s net assets may be invested in short sales of stocks, futures, swaps, structured notes, and uncovered written calls. Janus Global Real Estate Fund may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. Janus Long/Short Fund is not subject to any such limit. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The Funds are also required to pay the lender of the security any dividends or interest that accrues on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, a Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Funds pay stock loan fees on assets borrowed from the security broker.
The Funds may also enter into short positions through derivative instruments such as option contracts, futures contracts, and swap agreements, which may expose the Funds to similar risks. To the extent that the Funds enter into short derivative positions, the Funds may be exposed to risks similar to those associated with short sales, including the risk that the Funds’ losses are theoretically unlimited.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects Janus Global Real Estate Fund’s “base” fee rate prior to any performance adjustment and Janus Long/Short Fund’s contractual investment advisory fee rate (expressed as an annual rate).
Contractual Investment | ||||||||
Average Daily Net | Advisory Fee/Base | |||||||
Fund | Assets of the Fund | Fee (%) (annual rate) | ||||||
Janus Global Real Estate Fund | N/A | 0.75 | ||||||
Janus Long/Short Fund | All Asset Levels | 1.25 | ||||||
For Janus Global Real Estate Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee
Janus Alternative Funds | 53
Notes to Financial Statements (unaudited) (continued)
depending on how well the Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Janus Global Real Estate Fund | FTSE EPRA/NAREIT Developed Index | ||||
Only the base fee rate applied until December 2008 for Janus Global Real Estate Fund, at which time the calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by the Fund listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until the Fund’s performance-based fee structure has been in effect for at least 12 months. When the Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period is equal to the time that has elapsed since the performance-based fee structure took effect. As noted above, any applicable Performance Adjustment began December 2008.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward performance adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued evenly each day throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The application of an expense limit, if any, will have a positive effect upon the Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment.
After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of the Fund relative to the record of the Fund’s benchmark index and future changes to the size of the Fund.
The Fund’s prospectuses and statements of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the six-month period ended March 31, 2010, the following Fund recorded a Performance Adjustment as indicated in the table below:
Fund | Performance Adjustment | ||||
Janus Global Real Estate Fund | $ | 5,257 | |||
54 | MARCH 31, 2010
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital and the Funds’ transfer agent, 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 Funds. Certain intermediaries may charge administrative fees 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 Funds to Janus Services, which uses such fees to reimburse intermediaries.
Class D Shares of certain Funds pay an annual administrative fee of 0.12% of net assets. These administrative fees are paid by the Shares of certain Funds for shareholder services provided by Janus Services LLC.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of Class R Shares and Class S Shares of the Funds, as applicable, for providing or arranging for the provision of, administrative services including but not limited to, recordkeeping, subaccounting, order processing for omnibus or networked accounts, or other shareholder services provided on behalf of investors in Class R Shares and Class S Shares of the Funds, as applicable. Janus Services expects to use a significant portion of this fee to compensate retirement plan service providers, and other financial intermediaries for providing these services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class T Shares of the Funds for providing, or arranging for the provision by intermediaries of, administrative services, including recordkeeping, subaccounting, order processing for omnibus or networked accounts, or other shareholder services provided on behalf of the shareholders of these Funds. 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. Janus Services expects to use some or all of this fee to compensate intermediaries for providing these services to their customers who invest in these Funds. 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 these Funds.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds at an annual rate, as determined from time to time by the Board of Trustees, 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, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year is less than the payments made during a calendar year, the Fund will be reimbursed for the difference.
Janus Capital has agreed until at least February 16, 2011 to reimburse the Funds by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares, the administrative fees payable pursuant to the Transfer Agency Agreement applicable to Class D Shares, Class R Shares, Class S Shares, and Class T Shares, brokerage commissions, interest, dividends, taxes and extraordinary expenses (including, but not limited to, acquired fund fees and expenses), exceed the annual rates noted below. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Fund | Expense Limit (%) | ||||
Janus Global Real Estate Fund | 1.25 | ||||
Janus Long/Short Fund | 1.75 | ||||
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 Funds. 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 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 Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2010 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability,
Janus Alternative Funds | 55
Notes to Financial Statements (unaudited) (continued)
“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 Statements of Assets and Liabilities. Deferred compensation expenses for the six-month period ended March 31, 2010 are included in “Non-interested Trustees’ fees and expenses” on the Statements 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. No deferred fees were distributed to any Trustee under the Deferred Plan during the six-month period ended March 31, 2010.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Such officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff of the Trust. Total compensation of $186,360 was paid by the Trust during the six-month period ended period ended March 31, 2010. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price for the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the six-month period ended March 31, 2010, Janus Distributors retained the following upfront sales charge:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Global Real Estate Fund | $ | 1,769 | |||
Janus Long/Short Fund | 838 | ||||
Class C Shares include a 1.00% contingent deferred sales charge paid by the redeeming shareholder to Janus Distributors. The contingent deferred sales charge applies to shares redeemed within 12 months of purchase. The redemption price may differ from the net asset value per share. During the six-month period ended March 31, 2010, redeeming shareholders of Class C Shares paid the following contingent deferred sales charges:
Contingent Deferred | |||||
Fund (Class C Shares) | Sales Charge | ||||
Janus Long/Short Fund | $ | 1,728 | |||
A 2.00% redemption fee may be imposed on Class D Shares, Class I Shares, Class R Shares, Class S Shares, and Class T Shares of the Funds, as applicable, held for 90 days or less. This fee is paid to the Funds rather than Janus Capital, and is designed to deter excessive short-term trading and to offset the brokerage commissions, market impact, and other costs associated with changes in the Funds’ asset levels and cash flow due to short-term money movements in and out of the Funds. The redemption fee is accounted for as an addition to Paid-in Capital.
Total redemption fees received by the Funds for the six-month period ended March 31, 2010 is indicated in the table below:
Fund | Redemption Fee | ||||
Janus Global Real Estate Fund | $ | 288 | |||
Janus Long/Short Fund | 7,103 | ||||
The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statements of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the terms and conditions of an SEC exemptive order and the provisions of the 1940 Act, the Funds may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus 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 Cash Liquidity Fund LLC maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
During the six-month period ended March 31, 2010, the following Funds recorded distributions from affiliated investment companies as affiliated dividend income, and had the following affiliated purchases and sales:
56 | MARCH 31, 2010
Purchases | Sales | Dividend | Value | |||||||||||
Shares/Cost | Shares/Cost | Income | at 3/31/10 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Global Real Estate Fund | $ | 7,713,946 | $ | (5,741,000) | $ | 2,099 | $ | 3,924,707 | ||||||
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the six-month period ended March 31, 2010, as indicated in the following table.
Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | at 9/30/09 | Purchases | Purchases | Redemptions | Redemptions | at 3/31/10 | ||||||||||||||
Janus Global Real Estate Fund - Class A Shares | $ | 500,000 | $ | – | – | $ | – | – | $ | 500,000 | ||||||||||
Janus Global Real Estate Fund - Class C Shares | 500,000 | – | – | – | – | 500,000 | ||||||||||||||
Janus Global Real Estate Fund - Class D Shares | – | 10,000 | 2/16/10 | – | – | 10,000 | ||||||||||||||
Janus Global Real Estate Fund - Class S Shares | 500,000 | – | – | – | – | 500,000 | ||||||||||||||
Janus Global Real Estate Fund - Class T Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Long/Short Fund - Class T Shares | 1,000 | 10,000 | 10/29/09 | – | – | 11,000 | ||||||||||||||
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 Funds have 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 March 31, 2010 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals and passive foreign investment companies.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Global Real Estate Fund | $ | 21,554,915 | $ | 3,471,756 | $ | (416,440) | $ | 3,055,316 | ||||||
Janus Long/Short Fund | 104,745,894 | 19,921,547 | (7,053,219) | 12,868,328 | ||||||||||
Information on the tax components of securities sold short as of March 31, 2010 is as follows:
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | (Appreciation) | Depreciation | Depreciation | ||||||||||
Janus Long/Short Fund | $ | (60,558,825) | $ | (6,236,494) | $ | 7,021,189 | $ | 784,695 | ||||||
Net capital loss carryovers as of September 30, 2009 are indicated in the table below. These losses may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows the expiration dates of the carryovers.
Janus Alternative Funds | 57
Notes to Financial Statements (unaudited) (continued)
Capital Loss Carryover Expiration Schedule
For the year ended September 30, 2009
For the year ended September 30, 2009
Accumulated | |||||||||||||||||
Fund | September 30, 2015 | September 30, 2016 | September 30, 2017 | Capital Losses | |||||||||||||
Janus Global Real Estate Fund | $ | – | $ | (4,189) | $ | (1,362,543) | $ | (1,366,732) | |||||||||
Janus Long/Short Fund | (4,142,011) | (60,216,763) | (196,768,592) | (261,127,366) | |||||||||||||
6. | Expense Ratios |
The expense ratios listed in the Financial Highlights reflect expenses prior to any expense offsets (gross expense ratio) and after expense offsets (net expense ratio). Both expense ratios reflect expenses after waivers (reimbursement). Listed below are the gross expense ratios for the Funds that would have been in effect, absent the waiver of certain fees and offsets.
For the six-month period ended March 31, 2010 (unaudited),
the two-month fiscal period ended September 30, 2009 and each
fiscal year or period ended July 31
the two-month fiscal period ended September 30, 2009 and each
fiscal year or period ended July 31
Janus | ||||||||
Global Real | Janus | |||||||
Estate Fund | Long/Short Fund | |||||||
Class A Shares | ||||||||
2010 | 2.11% | 4.17% | ||||||
2009(1) | 3.14% | 5.61% | ||||||
2009 | 6.21% | 4.00% | ||||||
2008 | 6.64%(2) | 3.38%(3) | ||||||
2007 | N/A | 3.46% | ||||||
Class C Shares | ||||||||
2010 | 2.86% | 4.84% | ||||||
2009(1) | 3.48% | 6.36% | ||||||
2009 | 6.85% | 4.85% | ||||||
2008 | 7.37%(2) | 4.18%(3) | ||||||
2007 | N/A | 4.60% | ||||||
Class D Shares | ||||||||
2010 | 2.05%(4) | N/A | ||||||
Class I Shares | ||||||||
2010 | 1.85% | 3.77% | ||||||
2009(1) | 2.56% | 5.31% | ||||||
2009 | 5.68% | 3.75% | ||||||
2008 | 6.21%(2) | 3.12%(3) | ||||||
2007 | N/A | 3.26% | ||||||
Class R Shares | ||||||||
2010 | N/A | 4.45% | ||||||
2009(1) | N/A | 5.93% | ||||||
2009 | N/A | 4.72%(3) | ||||||
2008 | N/A | 4.89%(3) | ||||||
2007 | N/A | 7.95% | ||||||
Class S Shares | ||||||||
2010 | 2.33% | 4.19% | ||||||
2009(1) | 2.96% | 5.68% | ||||||
2009 | 6.34% | 4.18% | ||||||
2008 | 6.81%(2) | 3.66%(3) | ||||||
2007 | N/A | 4.42% | ||||||
Class T Shares | ||||||||
2010 | 2.08% | 3.60% | ||||||
2009(1) | 2.54% | 5.35% | ||||||
2009 | 6.78%(5) | 2.71%(5) | ||||||
(1) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(3) | Without the recoupment of expenses, the ratio would have been 4.72% for Class R Shares in the fiscal year ended July 31, 2009, and 3.38% for Class A Shares, 4.16% for Class C Shares, 3.12% for Class I Shares, 4.11% for Class R Shares and 3.61% for Class S Shares in 2008. | |
(4) | Period from February 16, 2010 (inception date) through March 31, 2010. | |
(5) | Period from July 6, 2009 (inception date) through July 31, 2009. |
58 | MARCH 31, 2010
7. | Capital Share Transactions |
For the six-month period ended March 31, 2010 | ||||||||||||||||||||||||||
(unaudited), the two-month fiscal period ended | ||||||||||||||||||||||||||
September 30, 2009 and the fiscal year or period | Janus Global Real | |||||||||||||||||||||||||
ended July 31, 2009 | Estate Fund | Janus Long/Short Fund | ||||||||||||||||||||||||
(all numbers in thousands) | 2010 | 2009(1) | 2009(2) | 2010 | 2009(1) | 2009(3) | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares sold | 137 | 122 | 54 | 212 | 93 | 2,098 | ||||||||||||||||||||
Reinvested dividends and distributions | 5 | – | 3 | – | – | 257 | ||||||||||||||||||||
Shares repurchased | (25) | (1) | (3) | (3,332) | (1,831) | (30,070) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 117 | 121 | 54 | (3,120) | (1,738) | (27,715) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 229 | 108 | 54 | 5,984 | 7,722 | 35,437 | ||||||||||||||||||||
Shares Outstanding, End of Period | 346 | 229 | 108 | 2,864 | 5,984 | 7,722 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares sold | 43 | 1 | 10 | 94 | 30 | 989 | ||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 2 | – | – | 93 | ||||||||||||||||||||
Shares repurchased | – | (1) | (3) | (2,723) | (1,538) | (11,849) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 44 | – | 9 | (2,629) | (1,508) | (10,767) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 62 | 62 | 53 | 7,509 | 9,017 | 19,784 | ||||||||||||||||||||
Shares Outstanding, End of Period | 106 | 62 | 62 | 4,880 | 7,509 | 9,017 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares:(4) | ||||||||||||||||||||||||||
Shares sold | 188 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Reinvested dividends and distributions | – | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Shares repurchased | – | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 188 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Shares Outstanding, End of Period | 188 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares sold | 629 | 156 | 1,278 | 1,682 | 389 | 4,605 | ||||||||||||||||||||
Reinvested dividends and distributions | 34 | – | 22 | – | – | 168 | ||||||||||||||||||||
Shares repurchased | (82) | (6) | (415) | (2,689) | (951) | (19,268) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 581 | 150 | 885 | (1,007) | (562) | (14,495) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,651 | 1,501 | 616 | 4,545 | 5,107 | 19,602 | ||||||||||||||||||||
Shares Outstanding, End of Period | 2,232 | 1,651 | 1,501 | 3,538 | 4,545 | 5,107 | ||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
Shares sold | N/A | N/A | N/A | 3 | – | 17 | ||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | N/A | – | – | – | ||||||||||||||||||||
Shares repurchased | N/A | N/A | N/A | – | (3) | (4) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | N/A | 3 | (3) | 13 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | N/A | 18 | 21 | 8 | ||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | N/A | 21 | 18 | 21 | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares sold | 6 | – | 2 | 20 | 6 | 192 | ||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 2 | – | – | 4 | ||||||||||||||||||||
Shares repurchased | – | – | – | (113) | (138) | (2,539) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 7 | – | 4 | (93) | (132) | (2,343) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 54 | 54 | 50 | 275 | 407 | 2,750 | ||||||||||||||||||||
Shares Outstanding, End of Period | 61 | 54 | 54 | 182 | 275 | 407 |
Janus Alternative Funds | 59
Notes to Financial Statements (unaudited) (continued)
For the six-month period ended March 31, 2010 | ||||||||||||||||||||||||||
(unaudited), the two-month fiscal period ended | ||||||||||||||||||||||||||
September 30, 2009 and the fiscal year or period | Janus Global Real | |||||||||||||||||||||||||
ended July 31, 2009 | Estate Fund | Janus Long/Short Fund | ||||||||||||||||||||||||
(all numbers in thousands) | 2010 | 2009(1) | 2009(2) | 2010 | 2009(1) | 2009(3) | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares sold | 46 | – | 170* | 120 | – | 114* | ||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | ||||||||||||||||||||
Shares repurchased | (1) | – | – | (1) | – | – | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 45 | – | 170* | 119 | – | 114* | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | 170* | – | – | 114* | – | ||||||||||||||||||||
Shares Outstanding, End of Period | 45 | 170* | 170* | 119 | 114* | 114* |
* | Shares outstanding are not in thousands. | |
(1) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009 for Class A Shares, Class C Shares, Class I Shares and Class S Shares, and July 6, 2009 (inception date) through July 31, 2009 for Class T Shares. | |
(3) | Period from August 1, 2008 through July 31, 2009 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares, and July 6, 2009 (inception date) through July 31, 2009 for Class T Shares. | |
(4) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. |
8. | Purchases and Sales of Investment Securities |
For the six-month period ended March 31, 2010, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and options contracts) was as follows:
Purchases of Long- | Proceeds from Sales | |||||||||||||
Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
Janus Global Real Estate Fund | $ | 6,322,816 | $ | 803,486 | $ | – | $ | – | ||||||
Janus Long/Short Fund | 96,309,809 | 175,574,332 | – | – | ||||||||||
9. | Pending Legal Matters |
In the fall of 2003, the Securities and Exchange Commission (“SEC”), the Office of the New York State Attorney General (“NYAG”), the Colorado Attorney General (“COAG”), and the Colorado Division of Securities (“CDS”) announced that they were investigating alleged frequent trading practices in the mutual fund industry. On August 18, 2004, Janus Capital announced that it had reached final settlements with the SEC, the NYAG, the COAG, and the CDS related to such regulators’ investigations into Janus Capital’s frequent trading arrangements.
A number of civil lawsuits were brought against Janus Capital and certain of its affiliates, the Janus funds, and related entities and individuals based on allegations similar to those announced by the above regulators and were filed in several state and federal jurisdictions. Such lawsuits alleged a variety of theories for recovery including, but not limited to, the federal securities laws, other federal statutes (including ERISA), and various common law doctrines. The Judicial Panel on Multidistrict Litigation transferred these actions to the U.S. District Court for the District of Maryland (the “Court”) for coordinated proceedings. On September 29, 2004, five consolidated amended complaints were filed with the Court, two of which still remain: (i) claims by a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims on behalf of the shareholders against JCGI and Janus Capital (First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586, formerly referred to as Wiggins, et al. v. Janus Capital Group, Inc., et al., U.S. District Court, District of Maryland, Case No. 04-CV-00818); and (ii) derivative claims by investors in certain Janus funds ostensibly on behalf of such funds (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518).
In the First Derivative Traders case (action (i) above), a Motion to Dismiss was previously granted and the matter was dismissed in May 2007. Plaintiffs appealed that dismissal to the United States Court of Appeals for the
60 | MARCH 31, 2010
Fourth Circuit (“Fourth Circuit”). In May 2009, the Fourth Circuit reversed the order of dismissal and remanded the case back to the Court for further proceedings. In October 2009, JCGI and Janus Capital filed a petition for a writ of certiorari with the United States Supreme Court to review the judgment of the Fourth Circuit. On January 11, 2010, the Supreme Court asked the United States Solicitor General to file a brief on the question of whether the petition should be granted. As a result of these developments at the Supreme Court, the Court has stayed all further proceedings until the Supreme Court rules on the petition for a writ of certiorari. In the Steinberg case (action (ii) above), the Court entered an order on January 20, 2010, granting Janus Capital’s Motion for Summary Judgment and dismissing the remaining claims asserted against the company. However, on February 17, 2010, Plaintiffs filed a Notice of Appeal with the Fourth Circuit.
In addition to the lawsuits described above, the Auditor of the State of West Virginia (“Auditor”), in his capacity as securities commissioner, initiated administrative proceedings against many of the defendants in the market timing cases (including JCGI and Janus Capital) and, as a part of its relief, is seeking disgorgement and other monetary relief based on similar market timing allegations (In the Matter of Janus Capital Group Inc. et al., Before the Securities Commissioner, State of West Virginia, Summary Order No. 05-1320). In September 2006, JCGI and Janus Capital filed their answer to the Auditor’s summary order instituting proceedings as well as a Motion to Discharge Order to Show Cause. On July 31, 2009, Janus filed a “Notice that Matter is Deemed Concluded.” At this time, no further proceedings are scheduled in this matter.
Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future. Janus Capital does not currently believe that these pending actions will materially affect its ability to continue providing services it has agreed to provide to the Janus funds.
10. | New Accounting Pronouncements |
In January 2010, the FASB issued Accounting Standards Update 2010-06, “Improving Disclosures About Fair Value Measurements.” This Accounting Standards Update will enhance and clarify existing fair value measurement disclosures. Certain disclosures are effective for interim and annual periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact the adoption of this Accounting Standards Update will have on the Funds’ financial statement disclosures.
11. | Subsequent Events |
A definitive proxy statement was filed on April 7, 2010 with the SEC that seeks shareholder approval on a number of proposals that will impact the Funds. The table below briefly summarizes the proposals shareholders are being asked to approve. A proxy statement describing each of these matters was sent to shareholders that held shares of the Funds as of March 17, 2010. Assuming shareholder approval, the proposals will become effective on or about July 1, 2010.
Fund(s) Affected | Proposal(s) | |
All Funds | Board of Trustees elections | |
Janus Global Real Estate Fund | Benchmark change for purposes of calculating the performance fee | |
In May 2009, in accordance with FASB guidance, the Funds adopted the provision of “Subsequent Events,” which provides guidance to establish general standards of accounting for and disclosures of events that occur subsequent to the balance sheet date but before financial statements are issued or are available to be issued. The guidance also requires entities to disclose the date through which subsequent events were evaluated as well as the basis for that date. Management has evaluated whether any events or transactions occurred subsequent to March 31, 2010, the date of issuance of the Funds’ financial statements, and determined that there were no other material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
Janus Alternative Funds | 61
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is 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) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
Approval of Advisory Agreements During The Period
In this disclosure, each fund and portfolio of Janus Investment Fund are referred to as “Fund” and, collectively, as “Funds.”
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital (“Independent Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the seven Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Independent Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by their independent fee consultant. Throughout their consideration of the agreements, the Independent Trustees were advised by their independent legal counsel. The Independent Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 11, 2009, 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 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 Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2010 through February 1, 2011, 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.
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 Funds, taking into account the investment objective and strategy of each 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 Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions, serving as the Funds’ administrator, monitoring adherence to the Funds’ investment restrictions, producing shareholder reports, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent
62 | MARCH 31, 2010
with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the 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 Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by Lipper, and with the Fund’s benchmark index. They concluded that the performance of many Funds was good to very good under current market conditions. Although the performance of some Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Lipper. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and administrative) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by Lipper.
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. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
The Trustees also reviewed management fees charged by Janus Capital to its separate account clients and to non-affiliated funds subadvised by Janus Capital (for which Janus Capital provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administrative services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted that the spread between the average fee rates charged to the Funds and the fee rates that Janus Capital charged to its separate account clients was significantly smaller than the average spread for such fee rates of other advisers, based on publicly available data and research conducted by the Trustees’ independent fee consultant.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised 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 and the fees Janus Capital and the subadvisers charge to other clients. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the
Janus Alternative Funds | 63
Additional Information (unaudited) (continued)
Fund and any expense limitations agreed to 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 Funds increase. They noted that, although most Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the management fee rate paid by each Fund, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by Lipper; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, the Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for several Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the 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 Funds. Based on all of the information they reviewed, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an Independent Trustee, concluded at their December 11, 2009 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
64 | MARCH 31, 2010
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund (from inception) with one or more widely used market indices. The hypothetical example does not represent the returns of any particular investment.
When comparing the performance of a Fund with an index, keep in mind that market indices do not include brokerage commissions that would be incurred if you purchased the individual securities in the index. They also do not include taxes payable on dividends and interest or operating expenses incurred if you maintained a Fund invested in the index.
Average annual total returns are also quoted for each Fund. 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.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized and unsubsidized ratios for the past fiscal year. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting a Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and/or Janus Services and reflects a Fund’s subsidized expense ratio. Both the total annual fund operating expenses ratio and net annual fund operating expenses ratio are estimated for the fiscal year. The ratios also include expenses indirectly incurred by a Fund as a result of investing in other investment companies or pooled investments, which are not reflected in the “Financial Highlights” of this report. As a result, these ratios may be higher or lower than those shown in the “Financial Highlights” in this report. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
2. | Schedules of Investments |
Following the performance overview section is each Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in each 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 a Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports each Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. Each Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
2a. Forward Currency Contracts
A table listing forward currency contracts follows each Fund’s Schedule of Investments (if applicable). Forward currency contracts are agreements to deliver or receive a preset amount of currency at a future date. Forward currency contracts are used to hedge against foreign currency risk in the Funds’ long-term holdings.
The table provides the name of the foreign currency, the settlement date of the contract, the amount of the contract, the value of the currency in U.S. dollars and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the change in currency exchange rates from the time the contract was opened to the last day of the reporting period.
2b. Futures
A table listing futures contracts follows each Fund’s Schedule of Investments (if applicable). Futures contracts are contracts that obligate the buyer to receive and the seller to deliver an instrument or money at a specified price on a specified date. Futures are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, the principal amount, value and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the marked-to-market amount for the last day of the reporting period.
2c. Options
A table listing written options contracts follows each Fund’s Schedule of Investments (if applicable). Written options contracts are contracts that obligate a Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against
Janus Alternative Funds | 65
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” It lists the assets and liabilities of the Funds on the last day of the reporting period.
The Funds’ 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 stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Funds’ 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 Funds’ net assets. Because the Funds 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 Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, 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 increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds 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.
5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. “Redemption Fees” (if applicable) refers to the fee paid to the Funds for shares held for 90 days or less by a shareholder. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense 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 per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total
66 | MARCH 31, 2010
return may include adjustments in accordance with generally accepted accounting principles. As a result, the total return may differ from the total return reflected for shareholder transactions.
Also included are the expense ratios, or the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios vary across the Funds within the Trust for a number of reasons, including the differences in management fees, the frequency of dividend payments and the extent of foreign investments, which entail greater transaction costs.
The Funds’ expenses may be reduced through expense-reduction arrangements. These arrangements may include the use of balance credits or transfer agent fee offsets. The Statements of Operations reflect total expenses before any such offset, the amount of the offset and the net expenses. The expense ratios listed in the Financial Highlights reflect total expenses prior to any expense offset (gross expense ratio) and after the expense offsets (net expense ratio). Both expense ratios reflect expenses after waivers (reimbursements), if applicable.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of a Fund during the reporting period. Don’t confuse this ratio with a Fund’s yield. The net investment income ratio is not a true measure of a Fund’s yield because it doesn’t 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 a Fund. Portfolio turnover is affected by market conditions, changes in the asset size of a Fund, the nature of the Fund’s investments and the investment style of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio is turned over in a 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 portfolio is traded every six months.
Janus Alternative Funds | 67
Notes
68 | MARCH 31, 2010
Notes
Janus Alternative Funds | 69
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
Core
Janus core funds seek investments in more stable and predictable companies. These funds look for a strategic combination of steady growth and for certain funds, some degree of income.
Fixed Income
Janus bond funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies.
Risk-Managed
Our risk-managed funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.
Value
Janus value funds invest in companies they believe are poised for a turnaround or are trading at a significant discount to fair value. The goal is to gain unique insight into a company’s true value and identify and evaluate potential catalysts that may unlock shareholder value.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
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Please consider the charges, risks, expenses and investment objectives carefully before investing or recommending to clients for investment. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Janus Distributors LLC 151 Detroit Street, Denver, CO 80206 (4/10)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0410-300 | 5-31-10 125-24-93003 05-10 |
2010 SEMIANNUAL REPORT
Janus Global & International Funds
Janus Global Opportunities Fund
Janus Global Research Fund
Janus Global Technology Fund
Janus International Equity Fund
Janus International Forty Fund
Janus Overseas Fund
Janus Worldwide Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Table of Contents
Janus Global & International Funds
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus Capital). You can also visit janus.com/info (or janus.com/reports if you hold Shares directly with Janus Capital). Read it carefully before you invest or send money.
Co-Chief Investment Officers’ Market Perspective
![(JONATHAN COLEMAN PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278pcolemaj.jpg)
Jonathan Coleman
Co-Chief Investment Officer
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278psmithgi.jpg)
Gibson Smith
Co-Chief Investment Officer
Thank you for your investment with Janus. In recent months, improvements in the U.S. and global economies have persisted. And, while market and economic conditions continue to change, our research-driven investment philosophy has remained constant. As a result, we are pleased to continue to deliver strong results relative to many of our peers.
For the 12-month period ended March 31, 2010, 71% of Janus funds, Class T Shares, ranked within Lipper’s top two quartiles based on total returns. Longer term, 89% of our funds achieved first- or second-quartile Lipper rankings for the three-year period and 88% ranked in Lipper’s top two quartiles for the five-year period ended March 31, 2010. (Lipper rankings are based on total returns. See complete rankings on page 3.)
Equity and Fixed Income Markets
U.S. equity markets rose during the six-month period to finish near 17-month highs amid upward momentum in the U.S. and global economies and better-than-expected corporate earnings. The S&P 500® Index gained 11.75%, posting its fourth consecutive quarterly gain. Non-U.S. markets also finished close to their highest levels in nearly 18 months.
On the credit and fixed income side, corporate credit markets delivered against strong expectations for the period. The U.S. investment grade credit market (Barclays Capital U.S. Credit Index) rose 3.7% and the U.S. High Yield market (Barclays Capital U.S. High Yield Bond Index) was up 11.1% for the six month period ended March 31, 2010.
A rebound in consumer spending helped drive upward momentum in the U.S. economy during the period, while restructurings in the airline and automobile industries helped strengthen the service and manufacturing sectors. U.S. corporations continued to focus on cost controls instead of ramping up spending and hiring. As a result, we have seen a tremendous recovery in earnings. The U.S. labor market also demonstrated modest progress in March with private payrolls showing their largest monthly increase in two years.
Looking Ahead
While the strength in the U.S. and global economies is encouraging, we believe the potential magnitude of economic growth for the remainder of 2010 remains uncertain. The political environment and overall business confidence remain two key macro themes to watch, given that companies need to invest again in order for sustained economic growth to materialize.
Looking ahead, we do not think the next phase of any market movement will be as broad as the one we saw coming off of the lows of roughly a year ago. This, along with the likelihood of slower or uneven economic growth worldwide, leads us to believe the key to success going forward will largely be dependent on security selection.
As fundamental researchers throughout our 40-year history, our goal has always been to identify those companies going through positive fundamental transition. We take a long-term view of investment opportunities and believe a well-balanced and diversified approach is important to achieving long-term investment success. We look at a potential investment from every angle and believe this is a vital component to successful security selection in both the fixed income and equity markets. This approach forms the foundation of our commitment to deliver strong long-term relative performance.
Once again, we thank you for your business and your continued confidence in Janus.
Janus Global & International Funds | 1
Continued
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or download the file from janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital). Read it carefully before investing or sending money.
The opinions are those of the authors as of March 31, 2010 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes.
Past performance is no guarantee of future results.
All current and potential holdings in Janus products are subject to risks that individuals need to address.
There is no assurance that the investment process will consistently lead to successful investing.
The S&P 500® Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.
The Barclays Capital U.S. Credit Index is comprised of the Barclays Capital U.S. Corporate Index and the non-native currency subcomponent of the Barclays Capital U.S. Government-Related Index. It includes publicly issued U.S. corporates, specified foreign debentures and secured notes denominated in U.S. dollars. It is a subset of the Barclays Capital U.S. Government/Credit Index and the Barclays Capital U.S. Aggregate Bond Index.
Barclays Capital U.S Corporate High-Yield Bond Index is composed of fixed-rate, publicly issued, non-investment grade debt.
A Fund’s portfolio may differ significantly from the securities held in an index. Indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
In preparing this document, Janus has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a Fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
Funds distributed by Janus Distributors LLC (5/10)
2 | MARCH 31, 2010
Lipper Rankings (unaudited)
Lipper Rankings – Based on total returns as of 3/31/10 | ||||||||||||||||||||||||||
One Year | Three Year | Five Year | Ten Year | Since Inception | Since PM Inception | |||||||||||||||||||||
Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | |||||||||||||||
Lipper Category | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | ||||||||||||||
Janus Investment Fund (Inception date) | ||||||||||||||||||||||||||
Growth & Core | ||||||||||||||||||||||||||
Janus Balanced Fund(1)(9/92) | Mixed-Asset Target Allocation–Moderate Funds | 80 | 428/537 | 1 | 3/457 | 2 | 5/347 | 23 | 42/183 | 4 | 1/32 | 2 | 5/368 | |||||||||||||
Janus Contrarian Fund(2/00) | Multi-Cap Core Funds | 6 | 41/805 | 57 | 395/698 | 3 | 16/539 | 15 | 34/234 | 17 | 37/230 | 17 | 37/230 | |||||||||||||
Janus Enterprise Fund(1)(9/92) | Mid-Cap Growth Funds | 26 | 110/425 | 27 | 99/377 | 17 | 54/321 | 90 | 156/173 | 43 | 14/32 | 27 | 106/393 | |||||||||||||
Janus Fund(2/70) | Large-Cap Growth Funds | 32 | 267/834 | 49 | 357/729 | 41 | 245/611 | 69 | 227/330 | 15 | 3/20 | 42 | 316/769 | |||||||||||||
Janus Growth and Income Fund(1)(5/91) | Large-Cap Core Funds | 48 | 438/930 | 46 | 364/799 | 44 | 288/664 | 77 | 296/387 | 7 | 5/78 | 56 | 461/828 | |||||||||||||
Janus Orion Fund(6/00) | Multi-Cap Growth Funds | 2 | 5/456 | 14 | 53/384 | 2 | 4/298 | – | – | 18 | 32/186 | 53 | 214/408 | |||||||||||||
Janus Research Core Fund(1)(6/96) | Large-Cap Core Funds | 19 | 170/930 | 49 | 389/799 | 19 | 123/664 | 42 | 160/387 | 4 | 7/203 | 68 | 562/828 | |||||||||||||
Janus Research Fund(1)(5/93) | Large-Cap Growth Funds | 4 | 28/834 | 35 | 255/729 | 12 | 71/611 | 79 | 261/330 | 6 | 5/86 | 9 | 54/671 | |||||||||||||
Janus Triton Fund(1)(2/05) | Small-Cap Growth Funds | 37 | 196/536 | 3 | 14/472 | 2 | 6/396 | – | – | 2 | 6/392 | 2 | 5/440 | |||||||||||||
Janus Twenty Fund*(4/85) | Large-Cap Growth Funds | 31 | 255/834 | 2 | 8/729 | 1 | 6/611 | 39 | 128/330 | 6 | 2/37 | 35 | 268/781 | |||||||||||||
Janus Venture Fund*(4/85) | Small-Cap Growth Funds | 11 | 59/536 | 50 | 232/472 | 25 | 99/396 | 76 | 169/223 | 9 | 1/11 | 22 | 28/129 | |||||||||||||
Risk-Managed | ||||||||||||||||||||||||||
INTECH Risk-Managed Core Fund(2/03) | Multi-Cap Core Funds | 76 | 605/805 | 70 | 488/698 | 69 | 368/539 | – | – | 49 | 191/393 | 49 | 191/393 | |||||||||||||
Value | ||||||||||||||||||||||||||
Perkins Mid Cap Value Fund(8/98) | Mid-Cap Value Funds | 93 | 203/219 | 8 | 15/192 | 10 | 14/143 | 7 | 4/57 | 3 | 1/43 | 3 | 1/43 | |||||||||||||
Perkins Small Cap Value Fund(2/97) | Small-Cap Core Funds | 37 | 270/733 | 1 | 6/621 | 6 | 28/508 | 10 | 27/272 | 5 | 6/126 | 5 | 6/126 | |||||||||||||
Global & International | ||||||||||||||||||||||||||
Janus Global Life Sciences Fund(12/98) | Global Health/Biotechnology Funds | 45 | 21/46 | 16 | 7/43 | 48 | 18/37 | 75 | 15/19 | 16 | 2/12 | 12 | 5/43 | |||||||||||||
Janus Global Opportunities Fund(1)(6/01) | Global Funds | 36 | 199/556 | 32 | 128/399 | 65 | 198/304 | – | – | 15 | 27/185 | 62 | 195/315 | |||||||||||||
Janus Global Research Fund(1)(2/05) | Global Funds | 20 | 111/556 | 14 | 56/399 | 3 | 9/304 | – | – | 4 | 9/294 | 4 | 9/294 | |||||||||||||
Janus Global Technology Fund(12/98) | Global Science/Technology Funds | 38 | 26/68 | 37 | 21/56 | 36 | 18/50 | 85 | 17/19 | 36 | 6/16 | 42 | 23/54 | |||||||||||||
Janus Overseas Fund(1)(5/94) | International Funds | 1 | 9/1278 | 1 | 6/988 | 1 | 1/721 | 19 | 73/395 | 1 | 1/100 | 1 | 2/607 | |||||||||||||
Janus Worldwide Fund(1)(5/91) | Global Funds | 27 | 145/556 | 61 | 244/399 | 70 | 212/304 | 95 | 145/152 | 34 | 6/17 | 18 | 99/556 | |||||||||||||
Fixed Income | ||||||||||||||||||||||||||
Janus Flexible Bond Fund(1)(7/87) | Intermediate Investment Grade Debt Funds | 59 | 320/544 | 7 | 28/453 | 8 | 28/387 | 18 | 40/224 | 10 | 2/20 | 8 | 34/459 | |||||||||||||
Janus High-Yield Fund(1)(12/95) | High Current Yield Funds | 74 | 338/460 | 23 | 90/399 | 19 | 64/343 | 30 | 66/222 | 7 | 6/91 | 26 | 81/313 | |||||||||||||
Janus Short-Term Bond Fund(1)(9/92) | Short Investment Grade Debt Funds | 64 | 163/257 | 5 | 10/238 | 4 | 6/184 | 18 | 18/99 | 26 | 7/26 | 6 | 14/240 | |||||||||||||
Asset Allocation | ||||||||||||||||||||||||||
Janus Smart Portfolio – Growth(12/05) | Mixed-Asset Target Allocation Growth Funds | 14 | 79/583 | 7 | 33/497 | – | – | – | – | 2 | 5/434 | 2 | 5/434 | |||||||||||||
Janus Smart Portfolio – Moderate(12/05) | Mixed-Asset Target Allocation Moderate Funds | 24 | 124/537 | 2 | 8/457 | – | – | – | – | 3 | 9/401 | 3 | 9/401 | |||||||||||||
Janus Smart Portfolio – Conservative(12/05) | Mixed-Asset Target Allocation Conservative Funds | 29 | 133/462 | 4 | 12/381 | – | – | – | – | 2 | 5/310 | 2 | 5/310 | |||||||||||||
(1) | The date of the Lipper ranking is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception. |
*Closed to new investors.
Past performance is no guarantee of future results. For current month-end performance, call 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus Capital). You can also visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital).
Ranking is for Class T Shares 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 or yield, and therefore the ranking for the period.
Lipper, Inc., a wholly-owned subsidiary of Reuters, is a nationally recognized organization that ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Ratings are historical with capital gains and dividends reinvested.
Janus Global & International Funds | 3
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ managers as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If a Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Funds’ managers may allocate a company 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 by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the managers’ best judgment at the time this report was compiled, which was March 31, 2010. As the investing environment changes, so could the managers’ opinions. These views are unique to each manager and aren’t necessarily shared by fellow employees or by Janus in general.
Fund Expenses
We believe it’s important for our shareholders to have a clear understanding of Fund expenses and the impact they have on investment return.
The following is important information regarding each Fund’s Expense Example, which appears in each Fund’s Management Commentary within this Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); redemption fees, where applicable (and any related exchange fees); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares only); administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares only); administrative fees (applicable to Class A Shares, Class C Shares and Class I Shares only); and other Fund expenses. The 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 five-month period from November 1, 2009 to March 31, 2010 or the six-month period from October 1, 2009 to March 31, 2010 depending on the Fund.
Actual Expenses
The first line of the table in each example provides information about actual account values and actual expenses. You may use the information in this line, 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 first line 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 second line of the table in each example provides information about hypothetical account values and hypothetical expenses based upon each 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 each 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.
Janus Capital Management LLC (“Janus Capital”) has contractually agreed to waive each Fund’s total operating expenses, excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing (12b-1) fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares only), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares only), brokerage commissions, interest, dividends, taxes and extraordinary expenses, including, but not limited to, acquired fund fees and expenses, to certain limits until at least February 16, 2011. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have
4 | MARCH 31, 2010
been higher. More information regarding the waivers is available in the Funds’ prospectuses.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees (where applicable) and any related exchange fees. These fees are fully described in the prospectus. Therefore, the second line of each table is 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.
Janus Global & International Funds | 5
Janus Global Life Sciences Fund (unaudited)
Fund Snapshot We take a global approach to identify high quality or improving businesses in the life sciences sector trading at a discount to our estimate of intrinsic value. We believe the rapidly growing global health-care sector offers fertile opportunities for differentiated research. We believe what sets us apart is the quality of our team, the depth of our research and our commitment to delivering superior long-term results for our clients. | ![]() Andy Acker portfolio manager |
Performance Overview
Global equities posted double-digit gains during the five-month period ended March 31, 2010, driven by stronger-than-expected corporate earnings and growing evidence of an economic recovery. Janus Global Life Sciences Fund’s Class T Shares performed well during the period, with a return of 14.07%, outpacing both the S&P 500’s® 13.87% and the Morgan Stanley Capital International World Health Care Index’sSM 10.67% return.
Investment Strategy
The Fund seeks to uncover opportunities that span the life sciences spectrum, including stocks in the biotechnology, pharmaceuticals, health care services, and medical technology arenas. Our bottom-up fundamental approach utilizes extensive proprietary research in an effort to discover the best investment ideas across the globe.
Portfolio Composition
The Fund includes companies that can be categorized into three conceptual groups: core growth, emerging growth and opportunistic investments. In general, about half of the portfolio is invested in core growth holdings (companies with dominant franchises that have historically generated consistent free cash flow growth). Emerging growth companies (those with new products that we believe can drive earnings acceleration) represent 20-30% of the portfolio. The remaining weighting consists of opportunistic investments, exemplified by companies suffering from what we feel are short-term issues that should resolve over time.
Stocks That Aided Returns
Acorda Therapeutics, Inc. was our top contributor, as the emerging biotechnology company received approval from the FDA for its lead drug Ampyra, a treatment to improve walking ability in patients with multiple sclerosis. Early feedback on the launch has been encouraging, and we believe Ampyra should generate strong returns for the company.
Human Genome Sciences, Inc. continued its strong run and was another top performer for the Fund. A second clinical trial confirmed the significant benefit of its lead drug Benlysta, reinforcing the drug’s status as the first potential new treatment for Lupus in over 50 years. Although we took some profits in the stock after a strong run, we continue to believe Benlysta (shared 50/50 with GlaxoSmithKline) has blockbuster potential.
Pharmaceutical giant Merck & Co., Inc. was also a top contributor during the period. The company benefitted from the closure of its merger with Schering Plough, as several sell side analysts raised ratings and earnings estimates for the combined company. We continue to like the growth prospects of the new Merck, with significant merger synergies ahead and one of the better late stage pipelines in the industry.
Stocks That Weighed on Returns
Biotechnology firm XenoPort, Inc. was our top detractor during the period. The stock declined significantly after a surprising negative ruling from the FDA on its lead drug for the treatment of restless leg syndrome. Despite positive clinical data and over 15 years of human experience with the parent compound, the FDA was concerned about the risk/reward in this indication given a small cancer signal in rats. Given the unfavorable regulatory ruling, we exited the position.
Genmab A/S, a Denmark-based biotechnology company, suffered from a series of disappointing clinical data related to its lead drug Arzerra and a follow-on compound for head and neck cancer. We believe Arzerra still has significant sales potential, but the sales ramp could be slower than we initially expected.
Athenahealth, Inc., a leading provider of web-based solutions for physicians, was another top detractor during the period. The company was hit by a change to more conservative accounting practices and a decision to
6 | MARCH 31, 2010
(unaudited)
increase near-term selling and marketing investments. Both had the effect of depressing near term earnings. Nevertheless, we continue to believe the company offers a compelling value proposition for doctors (improving their cash flow while reducing back-office headaches) that should lead to strong long-term revenue and earnings growth. We used the weakness to add to our position.
Risk Management
The Fund continues with its “value at risk” approach as part of a comprehensive risk management framework. This approach focuses our attention on downside risks, especially those arising from binary events (such as clinical trial announcements or regulatory decisions) that can lead to significant share price volatility. In practice, this means we attempt to limit the position size of any one holding so that, in a worst-case scenario, the estimated adverse impact from a particular event should not exceed 1% of the Fund’s performance. The Fund may also utilize options and other derivative contracts in an attempt to mitigate risks and enhance performance. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Outlook
After significant debate and years of attempts, a health-care reform bill finally passed in Washington in late March, 2010. While this legislation is extremely complex (over 2,000 pages) and still needs to be implemented, we view it as a generally benign outcome for many companies within the health-care sector. Although some companies will face increased taxes and rebates in the near term (the outlook for health insurers is particularly uncertain in our view), we believe the entire sector should benefit as more than 30 million new customers are brought into the health-care system in the coming years.
Thank you for your continued investment in Janus Global Life Sciences Fund.
Janus Global Life Sciences Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Acorda Therapeutics, Inc. | 0.85% | |||
Merck & Co., Inc. | 0.85% | |||
Human Genome Sciences, Inc. | 0.79% | |||
Celgene Corp. | 0.75% | |||
Alexion Pharmaceuticals, Inc. | 0.70% |
5 Bottom Performers – Holdings
Contribution | ||||
XenoPort, Inc. | –0.73% | |||
Genmab A/S | –0.53% | |||
athenahealth, Inc. | –0.30% | |||
Dr. Reddy’s Laboratories, Ltd. | –0.26% | |||
GlaxoSmithKline PLC (ADR) | –0.14% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Health Care | 14.10% | 94.40% | 12.68% | |||||||||
Consumer Staples | 0.40% | 3.95% | 11.52% | |||||||||
Materials | 0.27% | 1.65% | 3.52% | |||||||||
Consumer Discretionary | 0.00% | 0.00% | 9.68% | |||||||||
Energy | 0.00% | 0.00% | 11.56% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 3.62% | |||||||||
Telecommunication Services | 0.00% | 0.00% | 2.99% | |||||||||
Information Technology | 0.00% | 0.00% | 19.12% | |||||||||
Industrials | 0.00% | 0.00% | 10.34% | |||||||||
Financials | 0.00% | 0.00% | 14.97% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 7
Janus Global Life Sciences Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Roche Holding A.G. Medical – Drugs | 3.7% | |||
Celgene Corp. Medical – Biomedical and Genetic | 3.7% | |||
Gilead Sciences, Inc. Medical – Biomedical and Genetic | 3.3% | |||
Merck & Co., Inc. Medical – Drugs | 3.3% | |||
Genzyme Corp. Medical – Biomedical and Genetic | 3.0% | |||
17.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p01.gif)
Emerging markets comprised 2.9% for long positions and (0.7)% for short positions of total net assets.
*Includes Securities Sold Short of (1.3)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c01.gif)
8 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m01.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Global Life Sciences Fund – Class A Shares | |||||||||||||
NAV | 14.02% | 37.22% | 5.39% | 1.62% | 7.36% | 1.10% | |||||||
MOP | 7.47% | 29.33% | 4.15% | 1.02% | 6.79% | ||||||||
Janus Global Life Sciences Fund – Class C Shares | |||||||||||||
NAV | 13.64% | 35.24% | 4.62% | 0.92% | 6.58% | 1.87% | |||||||
CDSC | 12.50% | 33.89% | 4.62% | 0.92% | 6.58% | ||||||||
Janus Global Life Sciences Fund – Class D Shares(1) | 14.07% | 37.55% | 5.52% | 1.78% | 7.51% | 0.97% | |||||||
Janus Global Life Sciences Fund – Class I Shares | 14.11% | 37.55% | 5.52% | 1.78% | 7.51% | 0.87% | |||||||
Janus Global Life Sciences Fund – Class S Shares | 13.88% | 36.70% | 5.21% | 1.47% | 7.20% | 1.37% | |||||||
Janus Global Life Sciences Fund – Class T Shares | 14.07% | 37.55% | 5.52% | 1.78% | 7.51% | 1.10% | |||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 1.33% | ||||||||
Morgan Stanley Capital International World Health Care Index | 10.67% | 34.60% | 3.62% | 3.00% | 1.74% | ||||||||
Lipper Quartile – Class T Shares | – | 2nd | 2nd | 3rd | 1st | ||||||||
Lipper Ranking – based on total return for Global Health/Biotechnology Funds | – | 21/46 | 18/37 | 15/19 | 2/12 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
Janus Global & International Funds | 9
Janus Global Life Sciences Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
This Fund invests in certain industry groups, which may react similarly to market developments (resulting in greater price volatility), and may have significant exposure to foreign markets (which include risks such as currency fluctuation and political uncertainty).
The Fund invests in real estate investment trusts (REITs), which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Effective February 16, 2010, Janus Global Life Sciences Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Global Life Sciences Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each class, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
10 | MARCH 31, 2010
(unaudited)
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares only; other classes may have different performance characteristics.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – December 31, 1998 | |
(1) | Closed to new investors. |
Janus Global & International Funds | 11
Janus Global Life Sciences Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,140.20 | $ | 4.65 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.70 | $ | 5.29 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,137.00 | $ | 7.96 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.96 | $ | 9.05 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,037.90 | $ | 1.11 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.44 | $ | 4.53 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,141.70 | $ | 3.50 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.99 | $ | 3.98 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,139.40 | $ | 5.75 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.45 | $ | 6.54 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,140.70 | $ | 4.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.84 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.05% for Class A Shares, 1.80% for Class C Shares, 0.79% for Class I Shares, 1.30% for Class S Shares and 0.96% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.90% for Class D Shares multiplied by the average account value the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). |
12 | MARCH 31, 2010
Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 99.8% | ||||||||||||
Agricultural Chemicals – 1.3% | ||||||||||||
50,495 | Monsanto Co. | $ | 3,606,353 | |||||||||
46,101 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 5,502,154 | ||||||||||
9,108,507 | ||||||||||||
Chemicals – Diversified – 0.9% | ||||||||||||
100,388 | Bayer A.G.** | 6,789,513 | ||||||||||
Heart Monitors – 1.0% | ||||||||||||
165,375 | HeartWare International, Inc.* | 7,354,226 | ||||||||||
Instruments – Scientific – 1.7% | ||||||||||||
236,822 | Thermo Fisher Scientific, Inc.* | 12,182,124 | ||||||||||
Life and Health Insurance – 0.7% | ||||||||||||
138,145 | OdontoPrev S.A.** | 4,799,130 | ||||||||||
Medical – Biomedical and Genetic – 27.2% | ||||||||||||
370,433 | Acorda Therapeutics, Inc.* | 12,668,809 | ||||||||||
398,142 | Alexion Pharmaceuticals, Inc.* | 21,646,981 | ||||||||||
202,565 | AMAG Pharmaceuticals, Inc.* | 7,071,544 | ||||||||||
130,460 | Amgen, Inc.* | 7,796,290 | ||||||||||
560,175 | Arena Pharmaceuticals, Inc.* | 1,736,543 | ||||||||||
347,610 | Aveo Pharmaceuticals, Inc.* | 3,128,490 | ||||||||||
424,273 | Celgene Corp.*,** | 26,287,954 | ||||||||||
256,675 | Dendreon Corp.*,** | 9,360,937 | ||||||||||
1,271,821 | Fibrogen, Inc. – Private Placement*,°° ,§ | 6,359,105 | ||||||||||
275,151 | Genmab A/S*,** | 3,462,479 | ||||||||||
417,661 | Genzyme Corp.* | 21,647,370 | ||||||||||
517,232 | Gilead Sciences, Inc.*,** | 23,523,711 | ||||||||||
137,002 | Human Genome Sciences, Inc.* | 4,137,460 | ||||||||||
601,707 | Incyte Corp., Ltd.* | 8,399,830 | ||||||||||
157,633 | Martek Biosciences Corp.* | 3,548,319 | ||||||||||
335,708 | Myriad Genetics, Inc.* | 8,073,777 | ||||||||||
227,436 | United Therapeutics Corp.* | 12,584,034 | ||||||||||
345,810 | Vertex Pharmaceuticals, Inc.* | 14,133,255 | ||||||||||
195,566,888 | ||||||||||||
Medical – Drugs – 29.5% | ||||||||||||
385,492 | Abbott Laboratories | 20,307,719 | ||||||||||
1,089,497 | Achillion Pharmaceuticals, Inc.* | 3,017,907 | ||||||||||
251,078 | Auxilium Pharmaceuticals, Inc.* | 7,823,590 | ||||||||||
566,748 | Bristol-Myers Squibb Co. | 15,132,172 | ||||||||||
567,634 | Forest Laboratories, Inc.* | 17,801,002 | ||||||||||
560,272 | GlaxoSmithKline PLC (ADR)** | 21,581,677 | ||||||||||
414,045 | King Pharmaceuticals, Inc.* | 4,869,169 | ||||||||||
627,807 | Merck & Co., Inc. | 23,448,591 | ||||||||||
287,577 | Novartis A.G.** | 15,536,961 | ||||||||||
146,688 | Novo Nordisk A/S** | 11,384,224 | ||||||||||
965,694 | Pfizer, Inc. | 16,561,652 | ||||||||||
165,574 | Roche Holding A.G.** | 26,860,027 | ||||||||||
99,594 | Sanofi-Aventis S.A.** | 7,423,114 | ||||||||||
406,690 | Savient Pharmaceuticals, Inc.* | 5,876,671 | ||||||||||
141,621 | Shire PLC (ADR)** | 9,341,321 | ||||||||||
117,275 | Valeant Pharmaceuticals International* | 5,032,270 | ||||||||||
211,998,067 | ||||||||||||
Medical – Generic Drugs – 4.0% | ||||||||||||
8,364,183 | Mediquest Therapeutics – Private Placement*,°° ,§,£ | 2,509,255 | ||||||||||
440,840 | Mylan, Inc.* | 10,011,476 | ||||||||||
159,283 | Pharmstandard (GDR)*,** | 3,966,147 | ||||||||||
191,606 | Teva Pharmaceutical S.P. (ADR) | 12,086,506 | ||||||||||
28,573,384 | ||||||||||||
Medical – HMO – 1.9% | ||||||||||||
417,751 | UnitedHealth Group, Inc. | 13,647,925 | ||||||||||
Medical – Wholesale Drug Distributors – 0.6% | ||||||||||||
7,588,150 | Alapis Holding Industrial and Commercial S.A.** | 4,509,009 | ||||||||||
Medical Information Systems – 1.5% | ||||||||||||
291,411 | athenahealth, Inc.* | 10,653,986 | ||||||||||
Medical Instruments – 3.6% | ||||||||||||
776,447 | Lifesync Holdings, Inc.*,°° ,§,£ | 1,692,654 | ||||||||||
153,662 | Medtronic, Inc. | 6,919,400 | ||||||||||
427,105 | St. Jude Medical, Inc.* | 17,532,661 | ||||||||||
26,144,715 | ||||||||||||
Medical Labs and Testing Services – 0.9% | ||||||||||||
185,996 | Genoptix, Inc.* | 6,600,998 | ||||||||||
Medical Products – 13.2% | ||||||||||||
269,588 | Baxter International, Inc. | 15,690,022 | ||||||||||
82,640 | Becton, Dickinson and Co. | 6,506,247 | ||||||||||
168,595 | Carefusion Corp.* | 4,455,966 | ||||||||||
330,647 | Covidien PLC (U.S. Shares)** | 16,624,930 | ||||||||||
93,805 | Henry Schein, Inc.* | 5,525,115 | ||||||||||
114,239 | Hospira, Inc.* | 6,471,639 | ||||||||||
241,181 | Johnson & Johnson | 15,725,001 | ||||||||||
193,672 | Stryker Corp. | 11,081,912 | ||||||||||
570,619 | TomoTherapy, Inc.* | 1,945,811 | ||||||||||
191,615 | Varian Medical Systems, Inc.* | 10,602,058 | ||||||||||
94,628,701 | ||||||||||||
Optical Supplies – 1.4% | ||||||||||||
62,839 | Alcon, Inc. (U.S. Shares)** | 10,152,269 | ||||||||||
Pharmacy Services – 2.3% | ||||||||||||
91,995 | Express Scripts, Inc. – Class A* | 9,361,411 | ||||||||||
112,610 | Medco Health Solutions, Inc.* | 7,270,102 | ||||||||||
16,631,513 | ||||||||||||
Physical Practice Management – 0.9% | ||||||||||||
112,680 | Mednax, Inc.* | 6,556,849 | ||||||||||
Retail – Drug Store – 3.7% | ||||||||||||
459,695 | CVS Caremark Corp.** | 16,806,450 | ||||||||||
266,970 | Walgreen Co. | 9,901,917 | ||||||||||
26,708,367 | ||||||||||||
Soap and Cleaning Preparations – 0.9% | ||||||||||||
119,957 | Reckitt Benckiser Group PLC** | 6,583,284 | ||||||||||
Therapeutics – 2.6% | ||||||||||||
866,135 | Allos Therapeutics, Inc.* | 6,435,383 | ||||||||||
159,818 | Onyx Pharmaceuticals, Inc.* | 4,839,289 | ||||||||||
2,919,304 | Portola Pharmaceuticals, Inc. – Private Placement*,°° ,§ | 4,846,045 | ||||||||||
194,167 | Theravance, Inc.* | 2,586,304 | ||||||||||
18,707,021 | ||||||||||||
Total Common Stock (cost $587,528,112) | 717,896,476 | |||||||||||
Preferred Stock – 0.2% | ||||||||||||
Medical – Biomedical and Genetic – 0.2% | ||||||||||||
5,192,551 | Mediquest Therapeutics – Private Placement Series A-1, 0% (cost $3,135,054)°° ,§ | 1,557,765 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 13
Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Purchased Option – Put – 0% | ||||||||||||
650 | Dendreon Corp. expires May 2010 exercise price $20.00 (premiums paid $275,950) | $ | 54,039 | |||||||||
Money Market – 0.4% | ||||||||||||
2,986,594 | Janus Cash Liquidity Fund LLC, 0% (cost $2,986,594) | 2,986,594 | ||||||||||
Warrants – 0% | ||||||||||||
Medical – Generic Drugs – 0.0% | ||||||||||||
3,345,673 | Mediquest Therapeutics, expires 6/5/11*,°° ,§ | 3 | ||||||||||
803,980 | Mediquest Therapeutics, expires 6/5/12*,°° ,§ | 1 | ||||||||||
Total Warrants (cost $94,066) | 4 | |||||||||||
Total Investments (total cost $594,019,776) – 100.4% | 722,494,878 | |||||||||||
Securities Sold Short – (1.3)% | ||||||||||||
Medical – Drugs – (1.3)% | ||||||||||||
178,635 | Dr. Reddy’s Laboratories, Ltd. | (5,042,866) | ||||||||||
102,556 | UCB S.A. | (4,378,716) | ||||||||||
Total Securities Sold Short (proceeds $6,301,504) | (9,421,582) | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities** – 0.9% | 6,299,614 | |||||||||||
Net Assets – 100% | $ | 719,372,910 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Brazil | $ | 4,799,130 | 0.7% | |||||
Canada | 5,502,154 | 0.8% | ||||||
Denmark | 14,846,703 | 2.1% | ||||||
France | 7,423,114 | 1.0% | ||||||
Germany | 6,789,513 | 0.9% | ||||||
Greece | 4,509,009 | 0.6% | ||||||
Ireland | 16,624,931 | 2.3% | ||||||
Israel | 12,086,506 | 1.7% | ||||||
Jersey | 9,341,321 | 1.3% | ||||||
Russia | 3,966,147 | 0.5% | ||||||
Switzerland | 52,549,256 | 7.3% | ||||||
United Kingdom | 28,164,961 | 3.9% | ||||||
United States†† | 555,892,133 | 76.9% | ||||||
Total | $ | 722,494,878 | 100.0% |
†† | Includes Cash Equivalents (76.5% excluding Cash Equivalents) |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
Belgium | $ | (4,378,716) | 46.5% | |||||
India | (5,042,866) | 53.5% | ||||||
Total | $ | (9,421,582) | 100.0% |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
Brazilian Real 4/22/10 | 5,300,000 | $ | 2,969,471 | $ | (116,173) | |||||||
British Pound 4/8/10 | 750,000 | 1,137,950 | 56,050 | |||||||||
British Pound 4/22/10 | 4,400,000 | 6,675,264 | 250,424 | |||||||||
British Pound 5/6/10 | 3,622,000 | 5,494,435 | (52,307) | |||||||||
Danish Krone 5/6/10 | 9,500,000 | 1,723,369 | 28,429 | |||||||||
Euro 4/8/10 | 2,800,000 | 3,781,390 | 110,610 | |||||||||
Euro 4/22/10 | 2,400,000 | 3,241,243 | 46,949 | |||||||||
Euro 5/6/10 | 568,000 | 767,103 | 11,034 | |||||||||
Russian Rouble 5/6/10 | 44,200,000 | 1,496,369 | 4,735 | |||||||||
Swiss Franc 4/22/10 | 11,350,000 | 10,769,250 | (169,600) | |||||||||
Swiss Franc 5/6/10 | 10,200,000 | 9,679,371 | (54,732) | |||||||||
Total | $ | 47,735,215 | $ | 115,419 |
Schedule of Written Options – Calls | Value | |||
Dendreon Corp. expires May 2010 325 contracts exercise price $35.00 | $ | (202,427) | ||
Dendreon Corp. expires May 2010 325 contracts exercise price $40.00 | (128,913) | |||
Total Written Options – Calls (Premiums received $212,150) | $ | (331,340) | ||
See Notes to Schedules of Investments and Financial Statements.
14 | MARCH 31, 2010
Janus Global Opportunities Fund (unaudited)
Fund Snapshot We seek to generate sustainable, long-term results by combining Janus’ proprietary fundamental research with a disciplined and prudent approach to understanding risk and return. We seek to be rewarded by investing in high quality companies with sustainable competitive advantages when they are undervalued in the market. | ![]() Gregory Kolb portfolio manager |
Economic Environment
Global equity indices posted significant gains during the period after recovering from declines in mid-January and early February. U.S. stocks were particularly strong, while a rally in the dollar made for more muted gains in international markets. Stocks in emerging markets modestly outperformed those in developed countries as a whole. In the Morgan Stanley Capital International World IndexSM, the Fund’s primary benchmark, the industrials, materials and consumer discretionary sectors led, while telecommunications, energy and utilities lagged. The U.S. and Canada were leading index contributors, while several European countries were detractors.
Improved manufacturing and services order books around the world as well as tentative signs of stabilization in the employment situation bolstered financial markets. The rebound in GDP, while not uniform across every geographic region, is expected to continue. Broadly speaking, Asian countries are expected to achieve the highest GDP growth, followed by the U.S. and then Europe.
There are concerns, however. Headlines during the past few months have included sovereign debt worries, particularly in the European Union and Greece, as well as fears over potential overheating of the Chinese economy and possible policy responses. In a longer-term context, it remains unclear whether the current recovery will follow the pattern of other post-WWII recoveries in the U.S., which would imply a sustained period of strong growth, or whether perhaps we will experience an environment more similar to other credit-induced recessions the world has seen, in which case a much more subdued outlook is warranted.
Strategy Overview
The Fund’s underperformance during the five-month period was in large part due to our cash position and holdings within industrials and technology. Our stock selection within financials and consumer staples helped relative returns. From a country perspective, our stock selection in the U.S. and Japan detracted, while our lack of exposure to many of the European markets helped relative returns.
In terms of sector positioning, we were overweight health care and consumer staples while underweight materials, energy, industrials and utilities. From a country perspective, we were overweight Japan, Switzerland and South Korea, while underweight most of Europe, Canada and Australia. In general, and especially when considering the sizeable cash position, our portfolio was positioned in a less pro-cyclical manner than the benchmark.
Pasona Group, Inc. negatively impacted performance. A leading temporary staffing company in Japan, Pasona has seen its business hurt by the recession. However, as a market leader, we believe the company is well positioned to benefit from any rebound in the economic situation in Japan or of its export-oriented manufacturers. In addition, we like the company’s strong balance sheet and history of stock buybacks and dividends.
Technology holding Dell, Inc. underperformed during the period after reporting lackluster earnings in February. The company, while having many positive attributes, continues to be competitively challenged and faces a difficult situation. We sold the position during the period.
Finally among detractors, energy stocks lagged during the period, and although we were underweight, our holdings in Total S.A. and Exxon Mobil Corp. hurt results. We are cautious on the global economic outlook and as a result are cautious on energy in the near-term. However, in the long-term there are powerful factors at play in the global supply/demand balance which augur well for energy, in our view. We believe our holdings in Total S.A. and Exxon Mobil, Corp. two of the largest and most stable global energy companies, will benefit from a positive long-term energy environment in the future, while each traded for a modest valuation and paid an attractive dividend as of period end.
Janus Global & International Funds | 15
Janus Global Opportunities Fund (unaudited)
Financial stocks were among the Fund’s strongest performers during the period. Willis Group Holdings, Ltd., the third largest insurance broker worldwide, reported reasonably strong fourth quarter results, particularly given the weak insurance industry backdrop, and was able to de-lever its balance sheet modestly as well. The company also benefitted from a regulatory change which reverses a number of restrictions placed on the insurance brokerage industry in 2005. We believe Willis is well positioned to benefit from any improvement in the insurance pricing backdrop as well as to mitigate the effect an inflationary environment might have on it. Berkshire Hathaway, Inc. – Class B jumped during the quarter after it was announced it would be included in the S&P 500® Index. We continue to like the company’s world class insurance operations, strong balance sheet, diverse portfolio of investments and top notch management. Finally among financials, Nipponkoa Insurance Co., Ltd. saw its shares rise into the quarter close as it was set to merge with larger property and casualty peer Sompo Japan Insurance, Inc. The merged company will be named NKSJ Holdings. We feel the consolidation this merger brings will offer the potential for significant cost savings and perhaps more constructive management of its investment portfolio and excess capital.
In health care, our large holding in Covidien PLC (U.S. Shares) was a key contributor. Covidien PLC is a global health care products company, with a main business in medical devices for surgical procedures. We believe the company is well positioned to benefit from increased health care consumption worldwide in the coming years as large sections of the population age. More specifically to Covidien PLC, we think the company’s post-spin-off strategy of investing in higher growth and higher margin products will continued to deliver solid financial results.
Derivatives
To manage the Fund’s overall currency exposure, we occasionally utilize certain derivatives. Currently, we have hedged roughly half of our Japanese yen exposure. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Market Outlook
We remain cautious. In our view, the more cyclical elements of the stock market are clearly priced for a reasonably robust and sustained recovery in profits. This sort of recovery is a possibility, but not the only one. We are in the aftermath of a credit-induced recession and the future course of economic events is far from certain, as discussed above. This “optimism in the price,” when set against the macroeconomic risks involved, makes for a generally difficult trade-off. Broadly speaking stock prices are not extraordinarily expensive. Indeed on many long-term metrics such as Professor Robert Shiller’s cyclically- and inflation-adjusted P/E ratio they have been substantially richer at points in the past. But neither are stock prices obviously cheap. In fact, stocks in the U.S. have spent extended periods of time below the current Shiller P/E multiple.
It is in this context that we’ve gravitated to less economically sensitive parts of the market, where we find valuations generally attractive. We have exercised a strong sell discipline over the course of the current historic rally in stock prices by selling or materially reducing many winners which we believe no longer have particularly compelling risk-reward characteristics. We have also maintained a significant cash position, as noted above, in order to be liquid and able to take advantage of any opportunities that may arise. It can be very tempting to shift your focus as an investor during a strong rally, particularly on the heels of a terrible drop, from a focus on risk to a focus on return. We are not going to fall into that trap. We are going to continue to take what we believe to be a balanced view of the relationship between risk and return, focusing first on protecting capital.
Thank you for co-investing with us in Janus Global Opportunities Fund.
16 | MARCH 31, 2010
(unaudited)
Janus Global Opportunities Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Willis Group Holdings, Ltd. | 1.04% | |||
Covidien PLC (U.S. Shares) | 0.97% | |||
Berkshire Hathaway, Inc. – Class B | 0.69% | |||
News Corp. – Class B | 0.65% | |||
Nestle S.A. | 0.62% |
5 Bottom Performers – Holdings
Contribution | ||||
Pasona Group, Inc. | –0.68% | |||
Dell, Inc. | –0.27% | |||
Exxon Mobil Corp. | –0.15% | |||
GlaxoSmithKline PLC | –0.12% | |||
Symantec Corp. | –0.09% |
5 Top Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
Financials | 2.75% | 16.43% | 20.74% | |||||||||
Health Care | 2.13% | 23.58% | 10.10% | |||||||||
Consumer Discretionary | 1.85% | 12.41% | 9.43% | |||||||||
Consumer Staples | 1.58% | 15.09% | 10.24% | |||||||||
Information Technology | 0.68% | 12.13% | 11.80% |
5 Bottom Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
Energy | –0.16% | 6.19% | 10.90% | |||||||||
Industrials | –0.13% | 6.52% | 10.58% | |||||||||
Materials | 0.00% | 0.40% | 7.40% | |||||||||
Utilities | 0.00% | 0.00% | 4.51% | |||||||||
Telecommunication Services | 0.47% | 7.25% | 4.30% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 17
Janus Global Opportunities Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Nestle S.A. Food – Miscellaneous/Diversified | 5.4% | |||
Willis Group Holdings, Ltd. Insurance Brokers | 5.3% | |||
Nissin Healthcare Food Service Co., Ltd. Food – Catering | 4.7% | |||
Covidien PLC (U.S. Shares) Medical Products | 4.6% | |||
Vodafone Group PLC Cellular Telecommunications | 4.0% | |||
24.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21p02.gif)
Emerging markets comprised 2.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21c02.gif)
18 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21m02.gif)
Expense Ratios – | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||
Fiscal | One | Five | Since | Total Annual Fund | |||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
Janus Global Opportunities Fund – Class A Shares | |||||||||||
NAV | 7.40% | 53.80% | 2.01% | 5.24% | 1.39% | ||||||
MOP | 1.21% | 44.95% | 0.81% | 4.53% | |||||||
Janus Global Opportunities Fund – Class C Shares | |||||||||||
NAV | 6.93% | 51.85% | 1.26% | 4.47% | 2.14% | ||||||
CDSC | 5.87% | 50.37% | 1.26% | 4.47% | |||||||
Janus Global Opportunities Fund – Class D Shares(1) | 7.42% | 54.13% | 2.23% | 5.47% | 1.26% | ||||||
Janus Global Opportunities Fund – Class I Shares | 6.84% | 53.44% | 2.14% | 5.42% | 1.14% | ||||||
Janus Global Opportunities Fund – Class S Shares | 7.12% | 54.13% | 2.00% | 5.18% | 1.64% | ||||||
Janus Global Opportunities Fund – Class T Shares | 7.42% | 54.13% | 2.23% | 5.47% | 1.39% | ||||||
Morgan Stanley Capital International World IndexSM | 9.39% | 52.37% | 2.89% | 3.02% | |||||||
Morgan Stanley Capital International All Country World IndexSM | 9.60% | 55.48% | 3.94% | 3.88% | |||||||
Lipper Quartile – Class T Shares | – | 2nd | 3rd | 1st | |||||||
Lipper Ranking – based on total return for Global Funds | – | 199/556 | 198/304 | 27/185 | |||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
Janus Global & International Funds | 19
Janus Global Opportunities Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with nondiversification, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
Due to certain investment strategies, the Fund may have an increased position in cash.
Effective February 16, 2010, Janus Global Opportunities Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Global Opportunities Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each class, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares only; other classes may have different performance characteristics.
June 30, 2001 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
20 | MARCH 31, 2010
(unaudited)
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – June 29, 2001 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,079.90 | $ | 5.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,071.20 | $ | 8.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.61 | $ | 9.40 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,042.10 | $ | 1.42 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.20 | $ | 5.79 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,073.30 | $ | 3.09 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.34 | $ | 3.63 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,074.10 | $ | 6.69 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.15 | $ | 7.85 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,075.20 | $ | 4.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.29% for Class A Shares, 1.87% for Class C Shares, 0.72% for Class I Shares, 1.56% for Class S Shares and 0.99% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 1.15% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). |
Janus Global & International Funds | 21
Janus Global Opportunities Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Common Stock – 82.7% | ||||||||||||
Advertising Services – 0.7% | ||||||||||||
36,000 | Asatsu-DK, Inc.** | $ | 764,523 | |||||||||
Agricultural Chemicals – 0.4% | ||||||||||||
78,000 | Nitto FC Co., Ltd.** | 411,405 | ||||||||||
Applications Software – 1.8% | ||||||||||||
63,200 | Microsoft Corp. | 1,849,864 | ||||||||||
Beverages – Wine and Spirits – 1.0% | ||||||||||||
63,778 | Diageo PLC | 1,070,273 | ||||||||||
Building – Residential and Commercial – 0.4% | ||||||||||||
26,835 | KB Home | 449,486 | ||||||||||
Cellular Telecommunications – 5.7% | ||||||||||||
11,746 | SK Telecom Co., Ltd. | 1,801,566 | ||||||||||
1,811,904 | Vodafone Group PLC | 4,178,758 | ||||||||||
5,980,324 | ||||||||||||
Commercial Services – Finance – 1.2% | ||||||||||||
72,795 | Western Union Co. | 1,234,603 | ||||||||||
E-Commerce/Services – 1.5% | ||||||||||||
57,165 | eBay, Inc.* | 1,540,597 | ||||||||||
Electric Products – Miscellaneous – 0.6% | ||||||||||||
22,500 | Icom Inc.** | 576,040 | ||||||||||
Electronic Connectors – 2.0% | ||||||||||||
18,400 | Hirose Electric Co., Ltd.** | 2,122,093 | ||||||||||
Electronic Measuring Instruments – 0.7% | ||||||||||||
47,600 | Cosel Co., Ltd.** | 687,493 | ||||||||||
Food – Catering – 4.7% | ||||||||||||
381,229 | Nissin Healthcare Food Service Co., Ltd.** | 4,894,349 | ||||||||||
Food – Miscellaneous/Diversified – 5.4% | ||||||||||||
108,863 | Nestle S.A. | 5,576,892 | ||||||||||
Food – Retail – 0.4% | ||||||||||||
7,940 | Metro A.G. | 470,951 | ||||||||||
Food – Wholesale/Distribution – 0.9% | ||||||||||||
31,435 | Sysco Corp. | 927,333 | ||||||||||
Human Resources – 3.0% | ||||||||||||
4,809 | Pasona Group, Inc.** | 3,169,299 | ||||||||||
Insurance Brokers – 5.3% | ||||||||||||
174,925 | Willis Group Holdings, Ltd. | 5,473,403 | ||||||||||
Internet Security – 1.8% | ||||||||||||
112,070 | Symantec Corp.* | 1,896,224 | ||||||||||
Medical – Biomedical and Genetic – 1.5% | ||||||||||||
257,820 | PDL BioPharma, Inc.* | 1,601,062 | ||||||||||
Medical – Drugs – 7.4% | ||||||||||||
56,270 | Abbott Laboratories | 2,964,303 | ||||||||||
111,694 | GlaxoSmithKline PLC | 2,144,670 | ||||||||||
47,567 | Novartis A.G. | 2,569,909 | ||||||||||
7,678,882 | ||||||||||||
Medical – HMO – 1.5% | ||||||||||||
47,015 | UnitedHealth Group, Inc. | 1,535,980 | ||||||||||
Medical Instruments – 0.7% | ||||||||||||
25,400 | As One Corp.** | 446,477 | ||||||||||
1,260 | Medikit Co., Ltd.** | 299,936 | ||||||||||
746,413 | ||||||||||||
Medical Products – 8.0% | ||||||||||||
94,828 | Covidien PLC (U.S. Shares) | 4,767,951 | ||||||||||
54,600 | Johnson & Johnson | 3,559,920 | ||||||||||
8,327,871 | ||||||||||||
Metal Products – Distributors – 0.6% | ||||||||||||
82,400 | Furusato Industries, Ltd.** | 580,071 | ||||||||||
Metal Products – Fasteners – 0.6% | ||||||||||||
55,100 | Kitagawa Industries Co., Ltd.** | 589,494 | ||||||||||
Miscellaneous Manufacturing – 0.3% | ||||||||||||
30,200 | Mirai Industry Co., Ltd.** | 280,126 | ||||||||||
Multimedia – 0.9% | ||||||||||||
54,280 | News Corp. – Class B | 923,303 | ||||||||||
Oil Companies – Integrated – 5.5% | ||||||||||||
48,195 | Exxon Mobil Corp. | 3,228,101 | ||||||||||
42,472 | Total S.A. | 2,465,254 | ||||||||||
5,693,355 | ||||||||||||
Property and Casualty Insurance – 3.7% | ||||||||||||
554,400 | Sompo Japan Insurance, Inc.**,°° ,ß | 3,890,943 | ||||||||||
Protection – Safety – 0.5% | ||||||||||||
26,400 | Secom Joshinetsu Co., Ltd.** | 544,551 | ||||||||||
Reinsurance – 2.8% | ||||||||||||
35,650 | Berkshire Hathaway, Inc. – Class B* | 2,897,276 | ||||||||||
Retail – Apparel and Shoe – 0.9% | ||||||||||||
114,151 | Esprit Holdings, Ltd. | 900,534 | ||||||||||
Retail – Discount – 2.7% | ||||||||||||
50,065 | Wal-Mart Stores, Inc. | 2,783,614 | ||||||||||
Savings/Loan/Thrifts – 2.8% | ||||||||||||
234,840 | NewAlliance Bancshares, Inc. | 2,963,681 | ||||||||||
Schools – 0.5% | ||||||||||||
146,600 | Shingakukai Co., Ltd.** | 505,030 | ||||||||||
Telephone – Integrated – 0.6% | ||||||||||||
25,105 | AT&T, Inc. | 648,713 | ||||||||||
Tobacco – 3.0% | ||||||||||||
32,489 | British American Tobacco PLC | 1,119,741 | ||||||||||
33,253 | Imperial Tobacco Group PLC | 1,014,134 | ||||||||||
18,540 | KT&G Corp. | 1,025,994 | ||||||||||
3,159,869 | ||||||||||||
Wire and Cable Products – 0.7% | ||||||||||||
60,900 | HI-LEX CORP** | 773,385 | ||||||||||
Total Common Stock (cost $76,472,209) | 86,119,305 | |||||||||||
Money Market – 15.9% | ||||||||||||
16,518,156 | Janus Cash Liquidity Fund LLC, 0% (cost $16,518,156) | 16,518,156 | ||||||||||
Total Investments (total cost $92,990,365) – 98.6% | 102,637,461 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 1.4% | 1,482,117 | |||||||||||
Net Assets – 100% | $ | 104,119,578 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
22 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 900,534 | 0.9% | |||||
France | 2,465,254 | 2.4% | ||||||
Germany | 470,951 | 0.5% | ||||||
Ireland | 10,241,355 | 10.0% | ||||||
Japan | 20,535,215 | 20.0% | ||||||
South Korea | 2,827,559 | 2.7% | ||||||
Switzerland | 8,146,801 | 7.9% | ||||||
United Kingdom | 9,527,576 | 9.3% | ||||||
United States†† | 47,522,216 | 46.3% | ||||||
Total | $ | 102,637,461 | 100.0% |
†† | Includes Cash Equivalents (30.2% excluding Cash Equivalents) |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
Japanese Yen 4/22/10 | 400,000,000 | $ | 4,279,971 | $ | 113,895 | |||||||
Japanese Yen 5/6/10 | 515,000,000 | 5,510,957 | 168,167 | |||||||||
Total | $ | 9,790,928 | $ | 282,062 |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 23
Janus Global Research Fund (unaudited)
Fund Snapshot Analyst-driven, team-refined investment process attempts to capture the value of our research and manage investment risk. We believe a portfolio reflecting our team’s best ideas can deliver superior risk-adjusted results. | Team-Based Approach Led by Jim Goff, Director of Research |
Fund Performance
For the 5-month period ending March 31, 2010, Janus Global Research Fund’s Class T Shares gained 12.43%, outperforming its primary benchmark, the Morgan Stanley Capital International (MSCI) World Growth Index, which advanced 10.28%.
Five-Year Anniversary
The Fund hit its five-year anniversary during the period. We are pleased that the Fund has generated strong results since its inception, solidly outperformed its primary benchmark and ranked in the fourth percentile for the Lipper global fund category. Equally pleasing is how we got there. With contributions of best ideas from across the Janus team of 38 analysts(1), the Fund was highly diversified and demonstrated strong stock-picking across sectors, company sizes and geographies. Our strategy of capturing the value of our research in a diversified risk portfolio helped deliver strong risk-adjusted results for investors.
Long-Term Investing and Sticking to Conviction
In my opinion, Janus’ investment process has become stronger and more disciplined over the past decade, while striving to maintain a consistent focus on adding value through excellence in research. Our focus is twofold – we strive to generate excellent long term results, while investing in a disciplined manner in an effort to provide consistency of returns for investors. We seek to steadily outperform the market through disciplined investing and by avoiding “big mistakes.” Markets have a way of humbling and challenging investors, though. Consider the severe downturn of late 2008 to early 2009. We wish we were prescient enough to avoid this sharp decline in global stock markets. We believed we would be somewhat protected by owning strong companies with excellent competitive positions in their markets. The key investing decision for most investors over the past 7-8 years was what they did during the depths of the panic and negative headlines. It is said that there are two classes of mistakes – minor ones like wearing white after Labor Day or serious ones like attacking Russia in winter. Moving out of the market or investing defensively during this time was the investment equivalent of “attacking Russia in winter.” Since its low in March of 2009, the MSCI World Growth Index is up 71.5%. Maintaining a focus on the long-term and finding what we felt were the best risk-rewards offered to us by a panicked market helped us to outperform off the March 2009 lows. Sure, we took our lumps for a time, but our patience paid off over the course of this market cycle. We took an important step toward our goal of great 5-, 10- and 20-year performance for our investors.
Economic Overview
During late 2008 and early 2009, many prognosticators felt the global economy was headed towards another depression. Since then, credit markets have improved greatly and lending is functioning more normally. We believe that we are back from the brink. Europe is stagnant and facing challenges from sovereign debt issues, but we feel that the United States is positioned to grow moderately in 2010 and economic growth in emerging markets appears to be vibrant. Near term, corporate earnings are strong and economic indicators in most global markets are clearly better than expected. Despite these positives, we are still at a point of uncertainty in the global economy. While much of the recent downturn can be attributed to excess borrowing by consumers and overvalued housing, the next downturn could come because many national governments took up the mantle from consumers and borrowed too much. Federal deficits and debts, relative to Gross Domestic Product (GDP), are in many cases in uncharted territories. Strong near-term growth could lead to employment gains and a sustainably growing economy to gradually resolve these debt issues. It is possible, however, that these high government borrowings lead to higher tax rates, inflation and higher interest rates which could depress economic growth for many years. We design this portfolio to benefit from stock picking and not from macro or sector bets. Against the backdrop of an uncertain economy, we think it especially important to focus on stock picking. Our portfolio positioning in Global Research remains balanced; it is positioned for neither ebullient growth nor recession.
(1) | Equity analysts’ tenure and headcount includes individuals who are considered both analysts and co-portfolio managers. |
24 | MARCH 31, 2010
(unaudited)
Sector Views
Among our seven research sectors within the MSCI World Growth Index, technology had the strongest relative performance followed by consumer. Our relative underperformance during the period was in the industrials sector. Our bottom-up approach puts us in touch with thousands of companies and industry participants and we use those conversations, surveys and other research tools to gain a broader outlook on sectors.
Communications
We anticipated a recovery in advertising, but the pace exceeded our expectations. Television and internet led the recovery while print media lost share. The lines between internet and television are blurring as advertisers tie on-line advertising with television broadcasts and many people watch television online. We also see opportunities (for infrastructure companies, among others) and challenges (for telecommunication companies, for example) in the growing volume of wireless data.
Consumer
We saw resurgence in consumer demand during the period and improving sentiment, but it was generally off gloomy views from a year ago. Retail sales continue to surprise us and others, especially at the high end. With store utilization lower than average, inventories lean, companies cautious on expenses, and a shift to on-line sales, higher growth means margins expand. Our view on staples is rosier, especially in emerging markets, but we are monitoring how manufacturers offset higher raw material costs.
Energy
In general, the outlook for oil prices is more favorable than that for natural gas. Natural gas production has not fallen in line with the fall in prices for a variety of structural reasons. Refining, which has long suffered from poor profitability, may be near an inflection point if increased demand from refined products sops up excess capacity in the industry. We remain quite impressed with the opportunity for companies with exposure to production in Brazilian waters.
Financials
We are watching the pace and scope of Washington’s efforts at financial sector reform. While we expect a great deal of rhetoric, we generally think the outcome will be less severe than the market fears. Some businesses, such as exchanges, may benefit from the new regulations. Away from Washington, we are anticipating peaks in non-performing loans and charge-offs, which could bode well for bank stocks, especially well-positioned large cap banks with attractive valuations. Our exposure to Greece is minimal, and we found opportunities where the stocks were over-sold in our opinion. Global insurance and real estate are offering investment opportunities as well.
Healthcare
With reform behind us, the fundamentals of the sector will likely once again drive performance. In general, coming off several years of underperformance, valuations are low. The health-care plan did more to expand healthcare than reform the cost structure. Pharmaceuticals, pharmacy benefit management companies and generic drug companies generally win from the increased patient population. Meanwhile, we’re uncertain if the increased regulation of insurance companies offset the benefit of a bigger pool of patients. We see a big opportunity for healthcare investing in emerging markets. We believe growth in these countries will far outpace GDP growth.
Industrials
The team focuses on companies that we believe are structural earnings growers with high returns and operating leverage that could help them benefit from an economic upturn. We are favoring more stable companies that we feel can do well in a variety of economic outcomes. We also see opportunities in companies with structural changes, such as airlines and the auto sector. Transports – which have leverage to the increased shipping needs of a growing economy – offer us some opportunities too. In addition, we think housing has stabilized, meaning good news for the industry and for related companies.
Technology
We saw a modest recovery in the technology sector, but company budgets for spending remained focused at period end. While we are seeing a bounce in demand in the semiconductor space, we believe the long-term winners will be either niche companies or those offering integrated solutions. Some of our investment themes continue to be network infrastructure, wireless, smart phones, web-based software and connectors.
Janus Global & International Funds | 25
Janus Global Research Fund (unaudited)
Holdings Overview
Our holdings in technology and consumer contributed the most to the Fund’s outperformance relative to the MSCI World Growth Index.
Within technology, ARM Holdings PLC was a top contributor. The U.K.-based semiconductor intellectual property licensing company has experienced increasing royalty revenues from the growth in smart phones, which routinely use ARM-based chips.
Marvell Technology Group, Ltd. also posted strong returns. The leading semiconductor company sells to a diverse set of customers in the computing, wireless, communications and storage industries. We remain attracted to Marvell’s business model and potential to gain market share.
Aggreko PLC was also sharply higher during the period. We feel the U.K. provider of temporary power solutions will benefit from power shortages in emerging markets, particularly in Africa, which has suffered from significant under-investment in power plants because of high capital costs and risks.
Detractors included our holdings in industrials and health care. Within industrials, Bayerische Motoren Werke AG (BMW) was the largest individual detractor. We sold the position in the German auto maker and invested in other areas that we felt had better risk-reward opportunities.
Capita Group PLC also traded lower during the period. The largest business process outsourcing company in the U.K faced reduced contract awards in the run-up to parliamentary elections. Longer term, we expect the U.K. government to meaningfully increase its outsourcing, in particular in health care and defense.
U.K. insurer Prudential PLC declined after the company announced it would acquire American International Group’s unit in Asia, AIA Group. We believe the acquisition will strengthen Prudential’s Asian franchise, a key area of future growth.
Derivatives
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
We are committed to the success of Janus Global Research Fund – as managers and as investors. Janus analysts and I have more than $12 million invested in Janus’ U.S. and global research portfolios. We believe this alignment with our shareholders is a good reminder of our commitment to our process. We have a top-notch investment team and a disciplined and repeatable investment process that attempts to capture the value of our research in a highly diversified portfolio. We will go through some periods of underperformance, but by staying disciplined and when needed by staying above the panic, we hope to reward long term investors with continued strong risk-adjusted returns.
Thank you for your investment in Janus Global Research Fund.
26 | MARCH 31, 2010
(unaudited)
Janus Global Research Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Aggreko PLC | 0.74% | |||
ARM Holdings PLC | 0.51% | |||
Marvell Technology Group, Ltd. | 0.50% | |||
Apple, Inc. | 0.48% | |||
Novo Nordisk A/S | 0.43% |
5 Bottom Performers – Holdings
Contribution | ||||
Bayerische Motoren Werke A.G. | –0.13% | |||
Capita Group PLC | –0.12% | |||
Prudential PLC | –0.12% | |||
Panalpina Welttransport Holding A.G. | –0.10% | |||
Agnico-Eagle Mines, Ltd. (U.S. Shares) | –0.09% |
4 Top Performers – Sectors†
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International World | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Technology | 3.78% | 18.50% | 18.09% | |||||||||
Consumer | 3.20% | 19.70% | 20.05% | |||||||||
Industrials | 2.09% | 23.05% | 23.07% | |||||||||
Health Care | 1.31% | 13.21% | 13.18% |
3 Bottom Performers – Sectors†
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International World | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Financials | 0.65% | 10.25% | 10.24% | |||||||||
Energy | 0.70% | 8.64% | 8.83% | |||||||||
Communications | 1.05% | 6.53% | 6.52% |
† | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Global & International Funds | 27
Janus Global Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Aggreko PLC Commercial Services | 2.1% | |||
China Merchants Holdings International Co., Ltd. Diversified Operations | 1.8% | |||
Apple, Inc. Computers | 1.7% | |||
Roche Holding A.G. Medical-Drugs | 1.7% | |||
GlaxoSmithKline PLC Medical-Drugs | 1.7% | |||
9.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21p01.gif)
Emerging markets comprised 7.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21c01.gif)
28 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21m01.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Global Research Fund – Class A Shares | |||||||||||||
NAV | 12.48% | 59.50% | 8.45% | 7.90% | 1.30% | 1.30% | |||||||
MOP | 6.05% | 50.37% | 7.17% | 6.66% | |||||||||
Janus Global Research Fund – Class C Shares | |||||||||||||
NAV | 12.05% | 57.57% | 7.61% | 7.07% | 2.05% | 2.05% | |||||||
CDSC | 10.93% | 56.00% | 7.61% | 7.07% | |||||||||
Janus Global Research Fund – Class D Shares(1) | 12.43% | 59.50% | 8.47% | 7.92% | 1.17% | 1.17% | |||||||
Janus Global Research Fund – Class I Shares | 12.59% | 59.50% | 8.47% | 7.92% | 1.05% | 1.05% | |||||||
Janus Global Research Fund – Class S Shares | 12.21% | 58.77% | 8.16% | 7.62% | 1.55% | 1.55% | |||||||
Janus Global Research Fund – Class T Shares | 12.43% | 59.50% | 8.47% | 7.92% | 1.30% | 1.30% | |||||||
Morgan Stanley Capital International World Growth Index | 10.28% | 49.39% | 3.64% | 3.15% | |||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.60% | 55.48% | 3.94% | 3.42% | |||||||||
Russell 1000® Index | 14.65% | 51.60% | 2.31% | 1.82% | |||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 1st | |||||||||
Lipper Ranking – based on total return for Global Funds | – | 111/556 | 9/304 | 9/294 | |||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 29
Janus Global Research Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs) which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
Effective February 16, 2010, Janus Global Research Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Global Research Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each class, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
30 | MARCH 31, 2010
(unaudited)
The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
February 28, 2005 is the date used to calculate the since- inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Lipper ranking is for Class T Shares 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 or yield, and therefore the ranking for the period.
There is no assurance that the investment process will consistently lead to successful investing.
Janus Global Research Fund compares its performance to the MSCI World Growth Index, and such benchmark index is used to calculate the Fund’s performance-based adjustment to the investment advisory fee for periods after January 1, 2007. Prior to January 1, 2007, the Fund’s benchmark index was the Russell 1000® Growth Index.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – February 25, 2005 | |
(1) | Closed to new investors. |
Janus Global & International Funds | 31
Janus Global Research Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,124.80 | $ | 5.41 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.80 | $ | 6.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,120.50 | $ | 8.68 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.06 | $ | 9.95 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,084.80 | $ | 1.34 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.60 | $ | 5.39 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,125.90 | $ | 4.31 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.04 | $ | 4.94 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,123.10 | $ | 6.46 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.60 | $ | 7.39 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,124.30 | $ | 5.19 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.23% for Class A Shares, 1.98% for Class C Shares, 0.98% for Class I Shares, 1.47% for Class S Shares and 1.18% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 1.07% for Class D Shares, multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
32 | MARCH 31, 2010
Janus Global Research Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 98.1% | ||||||||||||
Advertising Sales – 0.4% | ||||||||||||
27,605 | Lamar Advertising Co. – Class A* | $ | 948,232 | |||||||||
Aerospace and Defense – 1.4% | ||||||||||||
569,762 | BAE Systems PLC | 3,209,866 | ||||||||||
Aerospace and Defense – Equipment – 0.8% | ||||||||||||
24,600 | United Technologies Corp. | 1,810,806 | ||||||||||
Agricultural Operations – 0.7% | ||||||||||||
1,600,000 | Chaoda Modern Agriculture Holdings, Ltd. | 1,704,276 | ||||||||||
Airlines – 3.0% | ||||||||||||
123,460 | Ryanair Holdings PLC (ADR)* | 3,354,408 | ||||||||||
347,000 | Singapore Airlines, Ltd.* | 3,771,200 | ||||||||||
7,125,608 | ||||||||||||
Apparel Manufacturers – 0.6% | ||||||||||||
36,920 | Coach, Inc. | 1,459,078 | ||||||||||
Athletic Footwear – 0.9% | ||||||||||||
28,060 | NIKE, Inc. – Class B | 2,062,410 | ||||||||||
Automotive – Cars and Light Trucks – 1.0% | ||||||||||||
848,000 | Isuzu Motors, Ltd. | 2,295,325 | ||||||||||
Batteries and Battery Systems – 0.6% | ||||||||||||
21,395 | Energizer Holdings, Inc.* | 1,342,750 | ||||||||||
Beverages – Wine and Spirits – 0.6% | ||||||||||||
87,401 | Diageo PLC | 1,466,696 | ||||||||||
Brewery – 0.9% | ||||||||||||
42,008 | Anheuser-Busch InBev N.V. | 2,115,802 | ||||||||||
21,000 | Anheuser-Busch InBev N.V. – VVPR Strip* | 199 | ||||||||||
2,116,001 | ||||||||||||
Building – Residential and Commercial – 2.2% | ||||||||||||
437,200 | MRV Engenharia e Participacoes S.A. | 3,052,406 | ||||||||||
3,086 | NVR, Inc.* | 2,241,979 | ||||||||||
5,294,385 | ||||||||||||
Cable Television – 0.8% | ||||||||||||
214,702 | British Sky Broadcasting Group PLC | 1,961,106 | ||||||||||
Casino Hotels – 0.9% | ||||||||||||
292,660 | Crown, Ltd. | 2,196,212 | ||||||||||
Casino Services – 0.7% | ||||||||||||
91,000 | International Game Technology | 1,678,950 | ||||||||||
Cellular Telecommunications – 0.8% | ||||||||||||
777,665 | Vodafone Group PLC | 1,793,513 | ||||||||||
Chemicals – Diversified – 1.4% | ||||||||||||
240,378 | Israel Chemicals, Ltd. | 3,255,390 | ||||||||||
Commercial Banks – 1.9% | ||||||||||||
77,265 | ICICI Bank, Ltd. | 1,639,450 | ||||||||||
106,037 | Standard Chartered PLC | 2,891,977 | ||||||||||
4,531,427 | ||||||||||||
Commercial Services – 2.5% | ||||||||||||
276,427 | Aggreko PLC | 4,999,484 | ||||||||||
55,630 | Live Nation, Inc.* | 806,635 | ||||||||||
5,806,119 | ||||||||||||
Computer Services – 0.5% | ||||||||||||
25,470 | Accenture, Ltd. – Class A (U.S. Shares) | 1,068,467 | ||||||||||
Computers – 2.4% | ||||||||||||
17,392 | Apple, Inc.* | 4,085,903 | ||||||||||
20,621 | Research In Motion, Ltd. (U.S. Shares)* | 1,524,923 | ||||||||||
5,610,826 | ||||||||||||
Computers – Peripheral Equipment – 0.3% | ||||||||||||
49,703 | Logitech International S.A.* | 818,088 | ||||||||||
Consumer Products – Miscellaneous – 0.6% | ||||||||||||
41,905 | Jarden Corp. | 1,395,017 | ||||||||||
Containers – Metal and Glass – 0.6% | ||||||||||||
52,410 | Crown Holdings, Inc.* | 1,412,974 | ||||||||||
Cosmetics and Toiletries – 0.9% | ||||||||||||
25,259 | Colgate-Palmolive Co. | 2,153,582 | ||||||||||
Distribution/Wholesale – 1.0% | ||||||||||||
500,000 | Li & Fung, Ltd. | 2,460,072 | ||||||||||
Diversified Banking Institutions – 2.5% | ||||||||||||
87,395 | Bank of America Corp. | 1,560,000 | ||||||||||
8,014 | Goldman Sachs Group, Inc. | 1,367,429 | ||||||||||
34,133 | JPMorgan Chase & Co. | 1,527,452 | ||||||||||
47,785 | Morgan Stanley | 1,399,623 | ||||||||||
5,854,504 | ||||||||||||
Diversified Minerals – 1.1% | ||||||||||||
81,040 | Cia Vale do Rio Doce (ADR) | 2,608,678 | ||||||||||
Diversified Operations – 4.3% | ||||||||||||
1,164,000 | China Merchants Holdings International Co., Ltd. | 4,287,789 | ||||||||||
28,546 | Danaher Corp. | 2,281,111 | ||||||||||
37,985 | Illinois Tool Works, Inc. | 1,798,970 | ||||||||||
280,300 | Keppel Corp., Ltd. | 1,827,782 | ||||||||||
10,195,652 | ||||||||||||
E-Commerce/Services – 0.7% | ||||||||||||
60,805 | eBay, Inc.* | 1,638,695 | ||||||||||
Educational Software – 0.5% | ||||||||||||
74,976 | Educomp Solutions, Ltd. | 1,248,904 | ||||||||||
Electric – Generation – 0.3% | ||||||||||||
54,028 | AES Corp. | 594,308 | ||||||||||
Electronic Components – Miscellaneous – 1.1% | ||||||||||||
91,713 | Tyco Electronics, Ltd. (U.S. Shares) | 2,520,273 | ||||||||||
Electronic Components – Semiconductors – 1.4% | ||||||||||||
909,565 | ARM Holdings PLC | 3,288,715 | ||||||||||
Electronic Connectors – 0.5% | ||||||||||||
30,130 | Amphenol Corp. – Class A | 1,271,185 | ||||||||||
Enterprise Software/Services – 1.4% | ||||||||||||
45,625 | Autonomy Corp. PLC* | 1,261,996 | ||||||||||
78,036 | Oracle Corp. | 2,004,745 | ||||||||||
3,266,741 | ||||||||||||
Finance – Investment Bankers/Brokers – 0.7% | ||||||||||||
88,579 | Charles Schwab Corp. | 1,655,542 | ||||||||||
Finance – Other Services – 1.3% | ||||||||||||
118,700 | BM&F Bovespa S.A. | 804,021 | ||||||||||
4,659 | CME Group, Inc. | 1,472,757 | ||||||||||
44,100 | Hong Kong Exchanges & Clearing, Ltd. | 736,136 | ||||||||||
3,012,914 |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 33
Janus Global Research Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Food – Catering – 0% | ||||||||||||
1,713,000 | FU JI Food & Catering Services Holdings, Ltd.*,ß, mu ,°° | $ | 0 | |||||||||
Food – Miscellaneous/Diversified – 1.2% | ||||||||||||
25,552 | Groupe Danone | 1,539,048 | ||||||||||
25,867 | Nestle S.A. | 1,325,129 | ||||||||||
2,864,177 | ||||||||||||
Food – Wholesale/Distribution – 0.5% | ||||||||||||
651,000 | Olam International, Ltd. | 1,205,556 | ||||||||||
Gold Mining – 1.6% | ||||||||||||
35,845 | Agnico-Eagle Mines, Ltd. (U.S. Shares) | 1,995,491 | ||||||||||
33,360 | Newmont Mining Corp. | 1,699,025 | ||||||||||
3,694,516 | ||||||||||||
Human Resources – 1.2% | ||||||||||||
239,924 | Capita Group PLC | 2,753,918 | ||||||||||
Independent Power Producer – 0.2% | ||||||||||||
25,110 | NRG Energy, Inc.* | 524,799 | ||||||||||
Instruments – Scientific – 0.5% | ||||||||||||
23,375 | Thermo Fisher Scientific, Inc.* | 1,202,410 | ||||||||||
Internet Security – 0.4% | ||||||||||||
62,523 | Symantec Corp.* | 1,057,889 | ||||||||||
Life and Health Insurance – 1.2% | ||||||||||||
19,460 | AFLAC, Inc. | 1,056,483 | ||||||||||
218,137 | Prudential PLC | 1,812,099 | ||||||||||
2,868,582 | ||||||||||||
Medical – Biomedical and Genetic – 4.4% | ||||||||||||
35,407 | Alexion Pharmaceuticals, Inc.* | 1,925,079 | ||||||||||
29,961 | Celgene Corp.* | 1,856,384 | ||||||||||
42,813 | Genzyme Corp.* | 2,218,998 | ||||||||||
35,221 | Gilead Sciences, Inc.* | 1,601,851 | ||||||||||
109,505 | Myriad Genetics, Inc.* | 2,633,594 | ||||||||||
10,235,906 | ||||||||||||
Medical – Drugs – 6.4% | ||||||||||||
29,831 | Abbott Laboratories | 1,571,497 | ||||||||||
65,700 | Bristol-Myers Squibb Co. | 1,754,190 | ||||||||||
209,560 | GlaxoSmithKline PLC | 4,023,824 | ||||||||||
45,410 | Novo Nordisk A/S | 3,524,198 | ||||||||||
25,136 | Roche Holding A.G. | 4,077,656 | ||||||||||
14,951,365 | ||||||||||||
Medical Products – 1.2% | ||||||||||||
19,989 | Baxter International, Inc. | 1,163,360 | ||||||||||
34,015 | Covidien PLC (U.S. Shares) | 1,710,274 | ||||||||||
2,873,634 | ||||||||||||
Metal – Diversified – 0.6% | ||||||||||||
81,160 | Ivanhoe Mines, Ltd.* | 1,418,741 | ||||||||||
Multi-Line Insurance – 0.8% | ||||||||||||
37,788 | ACE, Ltd. (U.S. Shares) | 1,976,312 | ||||||||||
Multimedia – 1.5% | ||||||||||||
100,229 | News Corp. – Class A | 1,444,300 | ||||||||||
195,343 | WPP PLC | 2,024,356 | ||||||||||
3,468,656 | ||||||||||||
Networking Products – 1.5% | ||||||||||||
132,146 | Cisco Systems, Inc.* | 3,439,760 | ||||||||||
Oil – Field Services – 1.8% | ||||||||||||
197,020 | AMEC PLC | 2,388,502 | ||||||||||
97,893 | Petrofac, Ltd. | 1,785,355 | ||||||||||
4,173,857 | ||||||||||||
Oil and Gas Drilling – 0.3% | ||||||||||||
19,370 | Helmerich & Payne, Inc. | 737,610 | ||||||||||
Oil Companies – Exploration and Production – 2.5% | ||||||||||||
1,000,547 | Afren PLC* | 1,553,036 | ||||||||||
24,121 | Canadian Natural Resources, Ltd. | 1,785,676 | ||||||||||
18,230 | EOG Resources, Inc. | 1,694,296 | ||||||||||
9,770 | Occidental Petroleum Corp. | 825,956 | ||||||||||
5,858,964 | ||||||||||||
Oil Companies – Integrated – 1.9% | ||||||||||||
82,886 | BG Group PLC | 1,434,316 | ||||||||||
15,125 | Exxon Mobil Corp. | 1,013,073 | ||||||||||
42,894 | Petroleo Brasileiro S.A. (ADR) | 1,908,354 | ||||||||||
4,355,743 | ||||||||||||
Oil Field Machinery and Equipment – 0.3% | ||||||||||||
82,616 | Wellstream Holdings PLC | 821,058 | ||||||||||
Oil Refining and Marketing – 0.7% | ||||||||||||
66,802 | Reliance Industries, Ltd. | 1,598,620 | ||||||||||
Pipelines – 0.4% | ||||||||||||
15,605 | Kinder Morgan Management LLC* | 914,765 | ||||||||||
Property and Casualty Insurance – 0.3% | ||||||||||||
38,306 | Reliance Capital, Ltd. | 645,160 | ||||||||||
Real Estate Management/Services – 0.5% | ||||||||||||
14,665 | Jones Lang LaSalle, Inc. | 1,068,932 | ||||||||||
Real Estate Operating/Development – 1.3% | ||||||||||||
305,000 | CapitaLand, Ltd. | 865,759 | ||||||||||
540,995 | Hang Lung Properties, Ltd. | 2,180,982 | ||||||||||
3,046,741 | ||||||||||||
Retail – Apparel and Shoe – 2.0% | ||||||||||||
19,027 | Inditex S.A. | 1,254,086 | ||||||||||
78,335 | Limited Brands, Inc. | 1,928,607 | ||||||||||
40,180 | Nordstrom, Inc. | 1,641,353 | ||||||||||
4,824,046 | ||||||||||||
Retail – Building Products – 0.5% | ||||||||||||
35,530 | Home Depot, Inc. | 1,149,396 | ||||||||||
Retail – Consumer Electronics – 0.6% | ||||||||||||
30,495 | Best Buy Co., Inc. | 1,297,257 | ||||||||||
Retail – Discount – 0.5% | ||||||||||||
31,670 | Family Dollar Stores, Inc. | 1,159,439 | ||||||||||
Retail – Jewelry – 1.1% | ||||||||||||
24,295 | Compagnie Financiere Richemont S.A. | 941,054 | ||||||||||
32,500 | Tiffany & Co. | 1,543,425 | ||||||||||
2,484,479 | ||||||||||||
Semiconductor Components/Integrated Circuits – 2.0% | ||||||||||||
293,842 | Atmel Corp.* | 1,478,025 | ||||||||||
155,792 | Marvell Technology Group, Ltd.* | 3,175,041 | ||||||||||
4,653,066 | ||||||||||||
Semiconductor Equipment – 0.9% | ||||||||||||
61,885 | ASML Holdings N.V. (U.S. Shares) | 2,190,729 | ||||||||||
Soap and Cleaning Preparations – 0.9% | ||||||||||||
38,034 | Reckitt Benckiser Group PLC | 2,087,320 |
See Notes to Schedules of Investments and Financial Statements.
34 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Telecommunication Equipment – 1.6% | ||||||||||||
79,148 | CommScope, Inc.* | $ | 2,217,727 | |||||||||
215,753 | Tellabs, Inc. | 1,633,250 | ||||||||||
3,850,977 | ||||||||||||
Telecommunication Equipment – Fiber Optics – 0.5% | ||||||||||||
58,836 | Corning, Inc. | 1,189,076 | ||||||||||
Telecommunication Services – 0.7% | ||||||||||||
54,012 | Amdocs, Ltd. (U.S. Shares) | 1,626,301 | ||||||||||
Tobacco – 2.2% | ||||||||||||
46,774 | British American Tobacco PLC | 1,612,077 | ||||||||||
546 | Japan Tobacco, Inc. | 2,032,824 | ||||||||||
31,140 | Philip Morris International, Inc. | 1,624,262 | ||||||||||
5,269,163 | ||||||||||||
Toys – 2.2% | ||||||||||||
75,955 | Mattel, Inc. | 1,727,217 | ||||||||||
10,200 | Nintendo Co., Ltd. | 3,415,641 | ||||||||||
5,142,858 | ||||||||||||
Transactional Software – 0.3% | ||||||||||||
19,295 | Solera Holdings, Inc. | 745,752 | ||||||||||
Transportation – Services – 1.9% | ||||||||||||
35,344 | C.H. Robinson Worldwide, Inc. | 1,973,962 | ||||||||||
39,822 | United Parcel Service, Inc. – Class B | 2,564,935 | ||||||||||
4,538,897 | ||||||||||||
Web Portals/Internet Service Providers – 1.0% | ||||||||||||
2,443 | Google, Inc. – Class A* | 1,385,205 | ||||||||||
56,330 | Yahoo!, Inc.* | 931,135 | ||||||||||
2,316,340 | ||||||||||||
Wireless Equipment – 1.8% | ||||||||||||
50,520 | Crown Castle International Corp.* | 1,931,380 | ||||||||||
55,613 | QUALCOMM, Inc. | 2,335,189 | ||||||||||
4,266,569 | ||||||||||||
Total Common Stock (cost $198,061,047) | 230,682,623 | |||||||||||
�� | ||||||||||||
Purchased Option – Put – 0% | ||||||||||||
134 | Custom Copper Metals Basket expires April 2010 exercise price $90.00 (premiums paid $80,132) | 634 | ||||||||||
Money Market – 0.9% | ||||||||||||
2,121,112 | Janus Cash Liquidity Fund LLC, 0% (cost $2,121,112) | 2,121,112 | ||||||||||
Total Investments (total cost $200,262,291) – 99.0% | 232,804,369 | |||||||||||
Cash, Receivables and Other Assets net of Liabilities —1.0% | 2,398,710 | |||||||||||
Net Assets – 100% | $ | 235,203,079 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 2,196,212 | 1.0% | |||||
Belgium | 2,116,001 | 0.9% | ||||||
Bermuda | 5,635,113 | 2.4% | ||||||
Brazil | 8,373,459 | 3.6% | ||||||
Canada | 6,724,832 | 2.9% | ||||||
Cayman Islands | 1,704,276 | 0.7% | ||||||
Denmark | 3,524,198 | 1.5% | ||||||
France | 1,539,048 | 0.7% | ||||||
Guernsey | 1,626,301 | 0.7% | ||||||
Hong Kong | 7,204,908 | 3.1% | ||||||
India | 5,132,135 | 2.2% | ||||||
Ireland | 6,133,149 | 2.6% | ||||||
Israel | 3,255,390 | 1.4% | ||||||
Japan | 7,743,789 | 3.3% | ||||||
Jersey | 3,809,712 | 1.6% | ||||||
Netherlands | 2,190,729 | 1.0% | ||||||
Singapore | 7,670,296 | 3.3% | ||||||
Spain | 1,254,086 | 0.5% | ||||||
Switzerland | 11,658,511 | 5.0% | ||||||
United Kingdom | 39,359,503 | 16.9% | ||||||
United States†† | 103,952,721 | 44.7% | ||||||
Total | $ | 232,804,369 | 100.0% |
†† | Includes Cash Equivalents (43.7% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 35
Janus Global Technology Fund (unaudited)
Fund Snapshot We seek to identify value creating, strong technology related businesses with sustainable competitive advantages. We believe what sets us apart is the depth of our research, our focus on valuation, and our commitment to delivering superior long-term results for our clients. | ![]() Barney Wilson portfolio manager |
Economic Overview
Continuing their rally from the market lows reached in March of 2009, global equities posted double-digit gains during the five-month period ended March 31, 2010. Stronger-than-expected corporate earnings and growing evidence that the global economy was recovering from the financial crisis of 2008 were only modestly offset by sovereign debt concerns, primarily in Greece. Stocks reached a 17-month high and their highs for the period in early January before a modest pullback that lasted until early February, when the markets regained their bullish momentum and finished near their highs in March. Developed markets outperformed emerging markets during the period led by strong returns in the U.S. market. Commodities generally finished the period higher led by industrial metals, while natural gas was notable among those losing ground. The Dollar Index posted gains, as the dollar was stronger relative to the euro and pound.
Sector Overview
Technology stocks outperformed global indices and performed in line with the S&P 500® Index during the period. Within the Morgan Stanley Capital International World Information Technology IndexSM, the best performing industrial groups were electronic manufacturing services, home entertainment software and technology distributors, while relative underperformers were Internet software and services, systems software and communications equipment.
We saw a modest recovery in the sector, but company budgets for information technology (IT) spending remained focused as of period end. We feel the long-term winners will be either niche companies or those offering integrated solutions. Semiconductor and component manufacturers witnessed strong demand and tight inventories during the period. We believe the semiconductor cycle will remain positive, especially for memory chip makers.
Contributors to Performance
Marvell Technology Group, Ltd., a top five holding during the period, was the largest individual contributor. The semiconductor maker specializes in storage and communication solutions for primarily communication devices. Marvell’s stock performed well during the period, as the company delivered attractive revenue growth largely due to market share gains in the storage industry and did well controlling costs. Long term, we remain attracted to Marvell’s business model and potential to gain market share.
Another semiconductor holding, ARM Holdings PLC, was also among top contributors. The U.K.-based semiconductor intellectual property licensing company has experienced increasing royalty revenues from the growth in smart phones and revenue licensing from semiconductor manufacturers. The company’s dominant market share in low-powered, mobile devices gives it a competitive advantage in our view, and we expect ARM to continue to be a market share gainer in the coming years.
In home entertainment software, Nintendo Co., Ltd. also posted strong returns during the period. We think the Japan-based company is in a multi-year growth cycle given its leading game platform the Wii, which has expanded the gaming market. In addition, we think the company can benefit from new products that could drive higher margin software sales.
Detractors from Performance
The largest individual detractor was new holding athenahealth, Inc. We think the leading software provider for managing physicians’ practices has an attractive growth business in electronic health records and is poised for dramatic growth over the next three to five years. The stock declined after disappointing near term financial results but we still believe that the company has an outstanding multiyear growth opportunity as it bring modern technology capability to an area which has historically underinvested in technology.
36 | MARCH 31, 2010
(unaudited)
Within systems software, DemandTec, Inc. was also among the Fund’s largest detractors. The leading provider of pricing optimization software to retailers has an attractive multi-year growth outlook based on our belief that retailers are able to materially increase their gross profits by using the company’s software. Internet software and services holding Vocus, Inc. traded modestly lower during the period. The on-demand public relations software provider remained one of the larger holdings in the Fund. We think the company has superior technology that has proven to be a cost saver for its business customers. We believe Vocus will continue to benefit from its dominant market position given the lack of meaningful competition at period end.
Derivatives
Due to certain circumstances and market conditions, we may initiate positions in put and call options in order to mitigate the risks and potentially enhance the performance of the Fund. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Conclusion
We continue to focus on anticipating change, trying to determine which companies are going to win on a multiyear basis in the product marketplace. We also focus on finding companies where we feel the price of the stock is below the value the cash flows of the company suggest. We like companies directly or indirectly related to the growing usage of smart phones. These include makers of handheld devices and wireless infrastructure development companies. With IT spending having slumped in 2009, we also favor companies that we believe will benefit from a rebound in IT project expenditures and are long-term market share gainers. In addition, we concentrate on companies that have recurring revenues and flexible cost structures. Our goal is to leverage the strong, grassroots research foundation of Janus to uncover the best investment opportunities for our shareholders.
Thank you for your investment in Janus Global Technology Fund.
Janus Global & International Funds | 37
Janus Global Technology Fund (unaudited)
Janus Global Technology Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Marvell Technology Group, Ltd. | 1.54% | |||
ARM Holdings PLC | 1.49% | |||
Nintendo Co., Ltd. | 1.44% | |||
Live Nation, Inc. | 1.28% | |||
Apple, Inc. | 1.12% |
5 Bottom Performers – Holdings
Contribution | ||||
athenahealth, Inc. | –0.24% | |||
DemandTec, Inc. | –0.17% | |||
Vocus, Inc. | –0.15% | |||
Synaptics, Inc. | –0.12% | |||
Semiconductor HOLDRs Trust | –0.12% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Information Technology | 15.33% | 80.86% | 19.12% | |||||||||
Consumer Discretionary | 2.85% | 8.64% | 9.68% | |||||||||
Health Care | 0.65% | 7.46% | 12.68% | |||||||||
Telecommunication Services | 0.34% | 1.61% | 2.99% | |||||||||
Industrials | 0.23% | 1.50% | 10.34% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | –0.04% | –0.18% | 14.97% | |||||||||
Utilities | 0.00% | 0.00% | 3.62% | |||||||||
Energy | 0.00% | 0.00% | 11.56% | |||||||||
Consumer Staples | 0.00% | 0.00% | 11.52% | |||||||||
Materials | 0.01% | 0.12% | 3.52% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
38 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Apple, Inc. Computers | 4.9% | |||
Cisco Systems, Inc. Networking Products | 4.4% | |||
Nintendo Co., Ltd. Toys | 4.0% | |||
ARM Holdings PLC Electronic Components – Semiconductors | 3.8% | |||
Marvell Technology Group, Ltd. Semiconductor Components/Integrated Circuits | 3.3% | |||
20.4% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p08.gif)
Emerging markets comprised 0.4% for long positions and (0.4)% for short positions of total net assets.
*Includes Securities Sold Short of (5.0)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t08.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c08.gif)
Janus Global & International Funds | 39
Janus Global Technology Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m08.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March��31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Global Technology Fund – Class A Shares | |||||||||||||
NAV | 17.60% | 66.82% | 8.20% | –8.67% | 3.65% | 1.07% | |||||||
MOP | 10.80% | 57.22% | 6.92% | –9.21% | 3.11% | ||||||||
Janus Global Technology Fund – Class C Shares | |||||||||||||
NAV | 17.24% | 64.05% | 7.44% | –9.33% | 2.89% | 1.82% | |||||||
CDSC | 16.07% | 62.41% | 7.44% | –9.33% | 2.89% | ||||||||
Janus Global Technology Fund – Class D Shares(1) | 17.58% | 67.19% | 8.25% | –8.56% | 3.78% | 0.99% | |||||||
Janus Global Technology Fund – Class I Shares | 17.81% | 67.19% | 8.25% | –8.56% | 3.78% | 0.85% | |||||||
Janus Global Technology Fund – Class S Shares | 17.36% | 66.13% | 8.03% | –8.81% | 3.50% | 1.31% | |||||||
Janus Global Technology Fund – Class T Shares | 17.58% | 67.19% | 8.25% | –8.56% | 3.78% | 1.12% | |||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 1.33% | ||||||||
Morgan Stanley Capital International World Information Technology Index | 13.63% | 56.78% | 4.67% | –8.58% | –0.98% | ||||||||
Lipper Quartile – Class T Shares | – | 2nd | 2nd | 4th | 2nd | ||||||||
Lipper Ranking – based on total return for Global Science and Technology Funds | – | 26/68 | 18/50 | 17/19 | 6/16 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
40 | MARCH 31, 2010
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
This Fund may at times have significant exposure to certain industry groups, which may react similarly to market developments (resulting in greater price volatility). The Fund also may have significant exposure to foreign markets (which include risks such as currency fluctuation and political uncertainty).
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Effective February 16, 2010, Janus Global Technology Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Global Technology Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each class, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Janus Global & International Funds | 41
Janus Global Technology Fund (unaudited)
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares only; other classes may have different performance characteristics.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – December 31, 1998 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,176.00 | $ | 5.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,172.40 | $ | 8.63 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.36 | $ | 9.65 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,098.80 | $ | 1.19 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,179.00 | $ | 4.15 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,174.50 | $ | 6.34 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.90 | $ | 7.09 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,175.80 | $ | 5.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.40 | $ | 5.59 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.17% for Class A Shares, 1.92% for Class C Shares, 0.92% for Class I Shares, 1.41% for Class S Shares and 1.11% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.94% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). |
42 | MARCH 31, 2010
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 99.8% | ||||||||||||
Applications Software – 2.6% | ||||||||||||
283,648 | Microsoft Corp. | $ | 8,302,377 | |||||||||
506,185 | Quest Software, Inc.* | 9,005,031 | ||||||||||
58,260 | Salesforce.com, Inc.* | 4,337,457 | ||||||||||
21,644,865 | ||||||||||||
Cable Television – 1.9% | ||||||||||||
13,523 | Jupiter Telecommunications Co., Ltd.** | 15,625,163 | ||||||||||
Casino Services – 1.0% | ||||||||||||
467,675 | International Game Technology | 8,628,604 | ||||||||||
Commercial Services – 1.5% | ||||||||||||
846,684 | Live Nation, Inc.* | 12,276,918 | ||||||||||
Computer Aided Design – 0.4% | ||||||||||||
68,810 | ANSYS, Inc.* | 2,968,463 | ||||||||||
Computer Services – 2.8% | ||||||||||||
563,816 | Accenture, Ltd. – Class A (U.S. Shares) | 23,652,081 | ||||||||||
Computers – 7.3% | ||||||||||||
173,320 | Apple, Inc.*,** | 40,718,068 | ||||||||||
127,048 | International Business Machines Corp. | 16,293,906 | ||||||||||
53,501 | Research In Motion, Ltd. (U.S. Shares)* | 3,956,399 | ||||||||||
60,968,373 | ||||||||||||
Computers – Peripheral Equipment – 0.3% | ||||||||||||
161,322 | Logitech International S.A.* | 2,655,286 | ||||||||||
Consulting Services – 0.2% | ||||||||||||
165,760 | Diamond Management & Technology Consultants, Inc. | 1,301,216 | ||||||||||
Decision Support Software – 1.2% | ||||||||||||
1,392,109 | DemandTec, Inc.* | 9,675,158 | ||||||||||
E-Commerce/Services – 1.7% | ||||||||||||
191,525 | Ctrip.com International, Ltd.* | 7,507,780 | ||||||||||
247,473 | eBay, Inc.* | 6,669,397 | ||||||||||
14,177,177 | ||||||||||||
Educational Software – 1.3% | ||||||||||||
265,178 | Blackboard, Inc.* | 11,047,316 | ||||||||||
Electric Products – Miscellaneous – 0.1% | ||||||||||||
8,860 | LG Electronics, Inc. | 900,725 | ||||||||||
Electronic Components – Miscellaneous – 2.1% | ||||||||||||
645,794 | Tyco Electronics, Ltd. (U.S. Shares) | 17,746,419 | ||||||||||
Electronic Components – Semiconductors – 8.3% | ||||||||||||
8,835,530 | ARM Holdings PLC** | 31,946,634 | ||||||||||
693,464 | Micron Technology, Inc.* | 7,205,091 | ||||||||||
1,521,294 | ON Semiconductor Corp.* | 12,170,352 | ||||||||||
732,475 | Texas Instruments, Inc. | 17,923,663 | ||||||||||
69,245,740 | ||||||||||||
Electronic Connectors – 2.0% | ||||||||||||
403,987 | Amphenol Corp. – Class A | 17,044,212 | ||||||||||
Electronic Measuring Instruments – 2.6% | ||||||||||||
752,101 | Trimble Navigation, Ltd.* | 21,600,341 | ||||||||||
Enterprise Software/Services – 9.5% | ||||||||||||
111,940 | Advent Software, Inc.* | 5,009,315 | ||||||||||
662,233 | Autonomy Corp. PLC*,** | 18,317,489 | ||||||||||
493,548 | Aveva Group PLC** | 8,873,934 | ||||||||||
959,825 | Oracle Corp.** | 24,657,905 | ||||||||||
465,990 | Taleo Corp.* | 12,073,801 | ||||||||||
339,553 | Temenos Group A.G.* | 10,002,012 | ||||||||||
78,934,456 | ||||||||||||
Finance – Other Services – 0.3% | ||||||||||||
420,700 | BM&F Bovespa S.A. | 2,849,636 | ||||||||||
Human Resources – 3.8% | ||||||||||||
209,529 | Hewitt Associates, Inc. – Class A* | 8,335,064 | ||||||||||
1,210,265 | SuccessFactors, Inc.* | 23,043,445 | ||||||||||
31,378,509 | ||||||||||||
Internet Applications Software – 3.1% | ||||||||||||
375,262 | DealerTrack Holdings, Inc.* | 6,409,475 | ||||||||||
104,000 | Tencent Holdings, Ltd. | 2,086,965 | ||||||||||
1,014,090 | Vocus, Inc.*,£ | 17,290,235 | ||||||||||
25,786,675 | ||||||||||||
Internet Content – Information/News – 0.3% | ||||||||||||
485,869 | TechTarget, Inc.* | 2,541,095 | ||||||||||
Internet Security – 0.9% | ||||||||||||
426,303 | Symantec Corp.* | 7,213,047 | ||||||||||
Medical – Biomedical and Genetic – 7.1% | ||||||||||||
126,645 | Alexion Pharmaceuticals, Inc.* | 6,885,689 | ||||||||||
379,156 | Celgene Corp.* | 23,492,505 | ||||||||||
115,487 | Genzyme Corp.* | 5,985,691 | ||||||||||
118,219 | Gilead Sciences, Inc.* | 5,376,600 | ||||||||||
476,778 | Myriad Genetics, Inc.* | 11,466,511 | ||||||||||
142,650 | Vertex Pharmaceuticals, Inc.* | 5,830,106 | ||||||||||
59,037,102 | ||||||||||||
Medical Information Systems – 1.8% | ||||||||||||
421,765 | athenahealth, Inc.* | 15,419,728 | ||||||||||
Multimedia – 1.3% | ||||||||||||
757,262 | News Corp. – Class A | 10,912,145 | ||||||||||
Networking Products – 4.4% | ||||||||||||
1,427,291 | Cisco Systems, Inc.* | 37,152,384 | ||||||||||
Power Converters and Power Supply Equipment – 0.4% | ||||||||||||
1,382,000 | China High Speed Transmission Equipment Group Co., Ltd. | 3,054,498 | ||||||||||
Retail – Automobile – 0.5% | ||||||||||||
113,530 | Copart, Inc.* | 4,041,668 | ||||||||||
Semiconductor Components/Integrated Circuits – 6.2% | ||||||||||||
4,834,165 | Atmel Corp.* | 24,315,850 | ||||||||||
1,347,152 | Marvell Technology Group, Ltd.*,** | 27,454,958 | ||||||||||
51,770,808 | ||||||||||||
Semiconductor Equipment – 0.5% | ||||||||||||
138,858 | KLA-Tencor Corp. | 4,293,489 | ||||||||||
Software Tools – 0.1% | ||||||||||||
17,320 | VMware, Inc. – Class A* | 923,156 | ||||||||||
Telecommunication Equipment – 4.0% | ||||||||||||
4,979,000 | BYD Electronic Company, Ltd. | 4,097,863 | ||||||||||
162,400 | CommScope, Inc.* | 4,550,448 | ||||||||||
3,256,505 | Tellabs, Inc. | 24,651,743 | ||||||||||
33,300,054 | ||||||||||||
Telecommunication Equipment – Fiber Optics – 2.4% | ||||||||||||
799,321 | Corning, Inc. | 16,154,278 | ||||||||||
242,510 | Finisar, Corp.* | 3,809,832 | ||||||||||
19,964,110 |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 43
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Telecommunication Services – 0.7% | ||||||||||||
180,895 | Amdocs, Ltd. (U.S. Shares)*,** | $ | 5,446,748 | |||||||||
Television – 0.6% | ||||||||||||
383,597 | CBS Corp. – Class B | 5,347,342 | ||||||||||
Toys – 4.0% | ||||||||||||
98,760 | Nintendo Co., Ltd.** | 33,071,445 | ||||||||||
Transactional Software – 2.0% | ||||||||||||
438,583 | Solera Holdings, Inc. | 16,951,233 | ||||||||||
Web Portals/Internet Service Providers – 4.4% | ||||||||||||
472,284 | AOL, Inc.* | 11,939,340 | ||||||||||
1,493,367 | Yahoo!, Inc.* | 24,685,356 | ||||||||||
36,624,696 | ||||||||||||
Wireless Equipment – 4.2% | ||||||||||||
257,269 | Crown Castle International Corp.* | 9,835,394 | ||||||||||
608,477 | QUALCOMM, Inc. | 25,549,949 | ||||||||||
35,385,343 | ||||||||||||
Total Common Stock (cost $641,887,381) | 832,557,424 | |||||||||||
Purchased Option – Put – 0% | ||||||||||||
1,768 | Arvinmeritor, Inc. expires June 2010 exercise price $2.00 (premiums paid $415,778) | 51,886 | ||||||||||
Total Investments (total cost $642,303,159) – 99.8% | 832,609,310 | |||||||||||
Securities Sold Short – (5.0)% | ||||||||||||
Common Stock – (3.1)% | ||||||||||||
Computers – Peripheral Equipment – (0.7)% | ||||||||||||
207,423 | Synaptics, Inc.* | (5,726,949) | ||||||||||
Electronic Components – Semiconductors – (0.5)% | ||||||||||||
61,455 | Cree, Inc.* | (4,315,370) | ||||||||||
Networking Products – (0.3)% | ||||||||||||
57,250 | Atheros Communications, Inc.* | (2,216,148) | ||||||||||
Telecommunication Equipment – (1.4)% | ||||||||||||
1,147,115 | ADC Telecommunications, Inc.* | (8,385,411) | ||||||||||
490,400 | ZTE Corp. | (2,971,834) | ||||||||||
(11,357,245) | ||||||||||||
Transactional Software – (0.2)% | ||||||||||||
73,440 | Arcsight, Inc.* | (2,067,336) | ||||||||||
Total Common Stock (proceeds $25,641,101) | (25,683,048) | |||||||||||
Exchange-Traded Fund – (1.9)% | ||||||||||||
Sector Fund – Technology – (1.9)% | ||||||||||||
326,980 | PowerShares QQQ Trust (ETF) (proceeds $14,509,046) | (15,753,896) | ||||||||||
Total Securities Sold Short (proceeds $40,150,147) | (41,436,944) | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities** – 5.2% | 43,465,034 | |||||||||||
Net Assets – 100% | $ | 834,637,400 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 27,454,958 | 3.3% | |||||
Brazil | 2,849,636 | 0.3% | ||||||
Canada | 3,956,399 | 0.5% | ||||||
Cayman Islands | 12,649,243 | 1.5% | ||||||
Guernsey | 5,446,748 | 0.7% | ||||||
Hong Kong | 4,097,863 | 0.5% | ||||||
Ireland | 23,652,081 | 2.8% | ||||||
Japan | 48,696,609 | 5.8% | ||||||
South Korea | 900,725 | 0.1% | ||||||
Switzerland | 30,403,717 | 3.7% | ||||||
United Kingdom | 59,138,057 | 7.1% | ||||||
United States | 613,363,274 | 73.7% | ||||||
Total | $ | 832,609,310 | 100.0% |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
China | $ | (2,971,834) | 7.2% | |||||
United States | (38,465,110) | 92.8% | ||||||
Total | $ | (41,436,944) | 100.0% |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
British Pound 4/22/10 | 9,100,000 | $ | 13,805,659 | $ | 517,923 | |||||||
British Pound 5/6/10 | 8,747,000 | 13,268,862 | (126,320) | |||||||||
Japanese Yen 4/8/10 | 1,100,000,000 | 11,768,736 | 320,456 | |||||||||
Japanese Yen 4/22/10 | 1,767,000,000 | 18,906,772 | 503,132 | |||||||||
Japanese Yen 5/6/10 | 727,000,000 | 7,779,545 | 237,393 | |||||||||
Total | $ | 65,529,574 | $ | 1,452,584 |
Schedule of Written Options – Calls | Value | |||
Apple, Inc. expires July 2010 366 contracts exercise price $220.00 | $ | (899,364) | ||
Arvinmeritor, Inc. expires June 2010 1,768 contracts exercise price $2.10 | (808,818) | |||
Marvell Technology Group, Ltd. expires May 2010 3,686 contracts exercise price $22.50 | (127,754) | |||
Total Written Options – Calls (Premiums received $958,242) | $ | (1,835,936) | ||
See Notes to Schedules of Investments and Financial Statements.
44 | MARCH 31, 2010
Janus International Equity Fund (unaudited)
Fund Snapshot The Fund seeks to invest in a portfolio of international companies that have sustainable competitive advantages, high or improving returns on capital and attractive long-term growth. | ![]() Laurent Saltiel portfolio manager |
Economic Overview
Continuing their rally from the market lows reached in March of 2009, global equities posted moderate gains during the six-month period ended March 31, 2010. Better-than-expected corporate earnings and growing evidence that the global economy was recovering from the financial crisis of 2008 were only modestly offset by sovereign debt concerns, primarily in Greece. Stocks reached a 17-month high and their highs for the period in early January before a modest pullback that lasted until early February, when the markets regained their bullish momentum and finished near their highs in March. Emerging markets slightly outperformed developed markets led by the Emerging Europe, Middle East and Africa region. Commodities generally finished the period higher led by industrial metals, while natural gas was notable among those losing ground. The Dollar Index posted gains, as the dollar was stronger relative to the yen, euro and pound.
Asset Class Overview
Within the Morgan Stanley Capital International EAFE® Index, the strongest performing sectors were materials, consumer staples and information technology, while financials and utilities lagged. On a country basis, Sweden, Australia, Finland and Switzerland were among the strongest performers, while Greece, Spain and Austria were among those posting losses.
Investors favored lower-quality, lower margin businesses with weak competitive positions during much of the period, in our view, while higher quality companies with more resilient business models and stronger long-term growth prospects traded at unusually low valuation premiums. This is encouraging to us when we assess the stock return potential over the next few years of many of our favorite companies.
Strategy Overview
We are concerned that markets may have rallied well ahead of fundamentals from the March 2009 lows. Therefore, we have maintained a fairly defensive positioning in the Western world but with some cyclical exposure in emerging markets. We believe that many emerging market companies still offer a combination of attractive long-term growth, high returns on equity and still reasonable valuations. The Fund remained at the high-end of our typical 10-15% emerging market range, with a balanced exposure between Brazil, China and India as of period end.
We continue to favor quality growth companies that we believe have resilient business models and recurring revenues within consumer discretionary and industrials. We are overweight technology with a preference for software and companies that benefit from secular growth drivers such as smart phones. We have fairly neutral exposure to materials and energy but with a differentiated exposure in both sectors – agricultural firms in materials and oil services in energy. We also have maintained a large underweight in Japan, where it remains difficult for us to find Japanese companies with solid long-term growth, high returns on invested capital and good corporate governance.
For the past six months, stock selection provided the largest contribution to relative results with particularly strong results from holdings in financials (with the exception of Man Group mentioned later), consumer staples and industrials. On a country basis, our largest contributors were our holdings and overweight in the U.K. followed by our non-index holdings in China and underweight in Spain.
Aggreko PLC was the largest contributor for the industrials sector and the Fund overall. The U.K.-based company, which makes and ships large generators that can power sports stadiums or even cities for a short length of time, has won a number of contracts that we feel offer good earnings visibility for 2010. We like Aggreko’s dominant market position and its exposure to
Janus Global & International Funds | 45
Janus International Equity Fund (unaudited)
emerging markets, particularly Africa, which has suffered from significant under-investment in power plants because of high capital costs and political risks. We believe Aggreko has attractive long-term growth opportunities thanks to low penetration in a large and growing market in which it faces weak competition.
Chaoda Modern Agriculture Holdings, Ltd. also posted strong gains during the period, as this Chinese farm operator benefited from better-than-expected results. We believe the company has a superior business model that benefits the company as well as farmers and the government. Chaoda is significantly larger than its competitors and it has generated consistently high profit margins and stable revenue growth over the past few years.
Potash Corporation of Saskatchewan, Inc. was also among top contributors. The Canadian fertilizer company benefited from clear signs that demand for potash, a key ingredient in fertilizer, is recovering in several regions of the world and inventories are at low levels. Notably, North American demand was back to peak levels during the first quarter of 2010. We consider the company to be among the highest quality firms in the in the fertilizer industry and even in the entire materials sector.
Detractors included our holdings in materials and consumer discretionary. On a country basis, our holdings in Singapore and underweight in Australia weighed on performance. On an individual basis, Man Group Plc was our largest detractor. The U.K.-based investment manager which focuses on alternative investments has suffered from performance issues in its main hedge fund, which we view as temporary and has led to the stock trading at a significant discount to its historical valuation. We anticipate a performance improvement could lead to a significant increase in asset in-flows and subsequently boost the company’s earnings.
Our holdings in FU JI Food & Catering Services Holdings, Ltd. also detracted from our performance. We marked this position to zero after the Hong Kong-based catering company filed a petition to liquidate the company. FU JI technically defaulted on its convertible bonds for failing to file timely financial statements. The stock was suspended from trading which prevented us from exiting the position. While we felt the company had a good business model, we think poor execution by management negated its advantage.
Singapore-based Raffles Education Corp. Ltd., the operator of universities and colleges in the Asia-Pacific region, was also among top detractors. Raffles has yet to see a recovery in its business in China. We view this as a short-term issue due to the Chinese government’s cap on enrollments over fears that graduates would be unable to find jobs. As China’s economy continues to improve, we feel those caps will be removed and growth will accelerate for Raffles. In addition, a recent investment by a sovereign wealth fund in a university campus Raffles owns near Beijing demonstrated, in our view, that its properties are undervalued. Long term, we think the wealth effect in China will increase interest in education for many Chinese.
Derivatives
During the period, we took advantage of a significant undervaluation of Jupiter Telecommunications Co. Ltd., a holding, by selling put options on the stock. We believe that these options either will expire worthless, netting us a profit from the trade, or compel us to buy more shares at a lower price. At the time of the trade, with the stock trading below our estimate of intrinsic value, we were willing to buy additional shares at a lower price. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
Investor enthusiasm for riskier companies (those with low margins and heavily exposed to the economy) has been easing in our view. We feel the defensive and higher-quality names in the Fund will outperform going forward. While global equity markets have rallied significantly, economic conditions in the U.S., Europe and Japan remain difficult. We believe unemployment will remain high for some time and sluggish economic growth is likely to persist for several years. However, we believe growth is continuing in emerging markets such as China, India and Brazil, as these countries do not suffer from many of the issues in Western developed markets.
Thank you for your investment in Janus International Equity Fund.
46 | MARCH 31, 2010
(unaudited)
Janus International Equity Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Aggreko PLC | 1.33% | |||
Japan Tobacco, Inc. | 0.92% | |||
Chaoda Modern Agriculture Holdings, Ltd. | 0.86% | |||
Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 0.73% | |||
Admiral Group PLC | 0.58% |
5 Bottom Performers – Holdings
Contribution | ||||
Raffles Education Corp., Ltd. | –0.68% | |||
Man Group PLC | –0.67% | |||
Seven Bank, Ltd. | –0.35% | |||
Capita Group PLC | –0.27% | |||
Estacio Participacoes S.A. | –0.19% |
5 Top Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
Information Technology | 2.94% | 14.15% | 4.91% | |||||||||
Consumer Staples | 2.25% | 15.46% | 10.07% | |||||||||
Industrials | 1.52% | 11.75% | 11.42% | |||||||||
Materials | 1.29% | 9.60% | 10.19% | |||||||||
Health Care | 1.09% | 8.42% | 8.36% |
5 Bottom Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 5.79% | |||||||||
Telecommunication Services | 0.00% | 0.00% | 5.77% | |||||||||
Consumer Discretionary | 0.36% | 15.25% | 9.71% | |||||||||
Energy | 0.64% | 6.07% | 8.27% | |||||||||
Financials | 0.98% | 19.30% | 25.51% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 47
Janus International Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Aggreko PLC Commercial Services | 3.5% | |||
Potash Corporation of Saskatchewan, Inc. (U.S. Shares) Agricultural Chemicals | 3.0% | |||
Li & Fung, Ltd. Distribution/Wholesale | 3.0% | |||
Petrofac, Ltd. Oil – Field Services | 2.9% | |||
K+S A.G. Chemicals – Diversified | 2.9% | |||
15.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27p03.gif)
Emerging markets comprised 9.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27c03.gif)
48 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27m03.gif)
Expense Ratios – | |||||||||||
per the February 16, 2010 and | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | November 27, 2009 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus International Equity Fund – Class A Shares | |||||||||||
NAV | 8.66% | 64.36% | 2.77% | 1.41% | 1.41% | ||||||
MOP | 2.42% | 54.81% | 0.96% | ||||||||
Janus International Equity Fund – Class C Shares | |||||||||||
NAV | 8.28% | 62.97% | 1.84% | 2.20% | 2.20% | ||||||
CDSC | 7.20% | 61.36% | 1.84% | ||||||||
Janus International Equity Fund – Class D Shares(1) | 8.90% | 64.94% | 2.95% | 1.15% | 1.15% | ||||||
Janus International Equity Fund – Class I Shares | 8.95% | 65.11% | 2.99% | 1.04% | 1.04% | ||||||
Janus International Equity Fund – Class R Shares | 8.43% | 63.75% | 2.12% | 1.78% | 1.78% | ||||||
Janus International Equity Fund – Class S Shares | 8.60% | 64.13% | 2.92% | 1.54% | 1.54% | ||||||
Janus International Equity Fund – Class T Shares | 8.72% | 64.50% | 2.80% | 1.28% | 1.28% | ||||||
Morgan Stanley Capital International EAFE® Index | 3.06% | 54.44% | –3.74% | ||||||||
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | 5.38% | 60.93% | –1.20% | ||||||||
Lipper Quartile – Class I Shares | – | 1st | 1st | ||||||||
Lipper Ranking – based on total return for International Funds | – | 148/1,278 | 12/932 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 49
Janus International Equity Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class R Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares, and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The fees and expenses shown for all share classes except Class D Shares and Class T Shares were determined based on net assets as of the fiscal year ended July 31, 2009. Expense information shown for Class D Shares and Class T Shares reflects estimated annualized expenses that the Fund share classes expect to incur during the fiscal year. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares, Class I Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser International Equity Fund (the “JAD predecessor fund”) into corresponding shares of Janus International Equity Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the JAD predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund respectively, net of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class may have been different.
Class D Shares commenced operations on February 16, 2010. The performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s Class I Shares. The performance shown reflects the fees and expenses of Class D Shares, without the effect of any fee and expense limitations or waivers. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class T Shares of the Fund commenced operations on July 6, 2009, after the reorganization of the JAD predecessor fund into Janus International Equity Fund. Performance shown for Class T Shares for periods prior to July 6, 2009, reflects the historical performance of the JAD predecessor fund’s Class I Shares prior to the reorganization, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense limitations or waivers. If Class T Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
50 | MARCH 31, 2010
(unaudited)
Lipper ranking is for Class I Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
November 30, 2006 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
See “Explanations of Charts, Tables and Financial Statements.”
Effective May 7, 2010, Brent Lynn is interim portfolio manager of Janus International Equity Fund.
* | The Fund’s inception date — November 28, 2006 | |
(1) | Closed to new investors. |
Janus Global & International Funds | 51
Janus International Equity Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,088.90 | $ | 6.56 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | $ | 6.34 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,085.10 | $ | 10.45 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.91 | $ | 10.10 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,079.30 | $ | 1.35 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.55 | $ | 5.44 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,090.70 | $ | 4.90 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,086.60 | $ | 8.74 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.55 | $ | 8.45 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,089.30 | $ | 7.45 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,089.50 | $ | 6.30 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.26% for Class A Shares, 2.01% for Class C Shares, 0.94% for Class I Shares, 1.68% for Class R Shares, 1.43% for Class S Shares and 1.21% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 1.08% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
52 | MARCH 31, 2010
Janus International Equity Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Common Stock – 94.4% | ||||||||||||
Agricultural Chemicals – 4.9% | ||||||||||||
59,028 | Monsanto Co.** | $ | 4,215,780 | |||||||||
56,186 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 6,705,798 | ||||||||||
10,921,578 | ||||||||||||
Agricultural Operations – 1.0% | ||||||||||||
2,168,330 | Chaoda Modern Agriculture Holdings, Ltd. | 2,309,646 | ||||||||||
Airlines – 0.3% | ||||||||||||
23,738 | Ryanair Holdings PLC (ADR)* | 644,961 | ||||||||||
Apparel Manufacturers – 0.8% | ||||||||||||
156,916 | Burberry Group PLC | 1,701,132 | ||||||||||
Brewery – 2.8% | ||||||||||||
124,366 | Anheuser-Busch InBev N.V. | 6,263,900 | ||||||||||
96,824 | Anheuser-Busch InBev N.V. – VVPR Strip* | 915 | ||||||||||
6,264,815 | ||||||||||||
Cable Television – 2.8% | ||||||||||||
5,390 | Jupiter Telecommunications Co., Ltd. | 6,227,881 | ||||||||||
Chemicals – Diversified – 2.9% | ||||||||||||
105,898 | K+S A.G. | 6,425,645 | ||||||||||
Chemicals – Specialty – 1.0% | ||||||||||||
1,836,000 | Huabao International Holdings, Ltd. | 2,206,321 | ||||||||||
Commercial Services – 3.5% | ||||||||||||
426,216 | Aggreko PLC | 7,708,581 | ||||||||||
Computer Services – 0.5% | ||||||||||||
25,090 | Accenture, Ltd. – Class A (U.S. Shares) | 1,052,526 | ||||||||||
Computers – 1.3% | ||||||||||||
38,458 | Research In Motion, Ltd. (U.S. Shares)* | 2,843,969 | ||||||||||
Consulting Services – 0.5% | ||||||||||||
350,300 | Xchanging PLC | 1,028,997 | ||||||||||
Cosmetics and Toiletries – 0.4% | ||||||||||||
56,444 | Colgate Palmolive India, Ltd. | 849,112 | ||||||||||
Distribution/Wholesale – 3.0% | ||||||||||||
1,334,000 | Li & Fung, Ltd. | 6,563,472 | ||||||||||
Diversified Banking Institutions – 0.5% | ||||||||||||
6,080 | Goldman Sachs Group, Inc.** | 1,037,430 | ||||||||||
Diversified Minerals – 1.5% | ||||||||||||
54,665 | BHP Billiton, Ltd. | 2,186,018 | ||||||||||
33,390 | Cia Vale do Rio Doce (ADR) | 1,074,824 | ||||||||||
3,260,842 | ||||||||||||
Diversified Operations – 1.8% | ||||||||||||
500,000 | China Merchants Holdings International Co., Ltd. | 1,841,834 | ||||||||||
1,594,428 | Hansen Transmissions International N.V.* | 2,190,594 | ||||||||||
4,032,428 | ||||||||||||
Diversified Operations – Commercial Services – 0.5% | ||||||||||||
99,090 | Bunzl PLC | 1,084,011 | ||||||||||
Educational Software – 2.1% | ||||||||||||
274,183 | Educomp Solutions Ltd. | 4,567,172 | ||||||||||
Electronic Connectors – 1.1% | ||||||||||||
22,100 | Hirose Electric Co., Ltd. | 2,548,818 | ||||||||||
Enterprise Software/Services – 4.3% | ||||||||||||
144,934 | Autonomy Corp. PLC* | 4,008,901 | ||||||||||
84,998 | Aveva Group PLC | 1,528,254 | ||||||||||
134,901 | Temenos Group A.G.* | 3,973,699 | ||||||||||
9,510,854 | ||||||||||||
Extended Service Contracts – 0.4% | ||||||||||||
36,780 | Homeserve PLC | 1,000,042 | ||||||||||
Finance – Mortgage Loan Banker – 2.1% | ||||||||||||
76,928 | Housing Development Finance Corp. | 4,656,466 | ||||||||||
Finance – Other Services – 1.5% | ||||||||||||
558,755 | IG Group Holdings PLC | 3,409,824 | ||||||||||
Food – Catering – 0% | ||||||||||||
1,216,275 | FU JI Food & Catering Services Holdings, Ltd.*,mu ,ß,°° | 0 | ||||||||||
Food – Wholesale/Distribution – 2.3% | ||||||||||||
2,720,000 | Olam International, Ltd. | 5,037,037 | ||||||||||
Gold Mining – 0.8% | ||||||||||||
30,045 | Agnico-Eagle Mines, Ltd. (U.S. Shares) | 1,672,605 | ||||||||||
Hotels and Motels – 0.9% | ||||||||||||
1,072,000 | Shangri-La Asia, Ltd. | 2,104,235 | ||||||||||
Human Resources – 2.3% | ||||||||||||
453,210 | Capita Group PLC | 5,202,078 | ||||||||||
Investment Companies – 1.9% | ||||||||||||
1,182,600 | Man Group PLC | 4,333,347 | ||||||||||
Investment Management and Advisory Services – 0.5% | ||||||||||||
242,000 | GP Investments, Ltd. (BDR)* | 1,184,473 | ||||||||||
Life and Health Insurance – 1.4% | ||||||||||||
377,574 | Prudential PLC | 3,136,568 | ||||||||||
Medical – Biomedical and Genetic – 1.4% | ||||||||||||
50,200 | Celgene Corp.*,** | 3,110,392 | ||||||||||
Medical – Drugs – 3.3% | ||||||||||||
51,169 | Novo Nordisk A/S | 3,971,146 | ||||||||||
20,221 | Roche Holding A.G. | 3,280,325 | ||||||||||
7,251,471 | ||||||||||||
Medical Labs and Testing Services – 0.6% | ||||||||||||
33,241 | Eurofins Scientific | 1,440,801 | ||||||||||
Medical Products – 0.7% | ||||||||||||
24,640 | Cochlear, Ltd. | 1,646,525 | ||||||||||
Multi-Line Insurance – 0.5% | ||||||||||||
20,925 | ACE, Ltd. (U.S. Shares) | 1,094,378 | ||||||||||
Oil – Field Services – 6.1% | ||||||||||||
336,959 | AMEC PLC | 4,085,002 | ||||||||||
352,388 | Petrofac, Ltd. | 6,426,788 | ||||||||||
38,519 | Technip S.A. | 3,131,584 | ||||||||||
13,643,374 | ||||||||||||
Optical Supplies – 1.3% | ||||||||||||
17,876 | Alcon, Inc. (U.S. Shares) | 2,888,047 | ||||||||||
Power Converters and Power Supply Equipment – 1.0% | ||||||||||||
40,834 | Vestas Wind Systems A/S* | 2,219,159 | ||||||||||
Property and Casualty Insurance – 2.3% | ||||||||||||
255,475 | Admiral Group PLC | 5,116,710 |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 53
Janus International Equity Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Real Estate Management/Services – 2.3% | ||||||||||||
19,700 | Daito Trust Construction Co., Ltd. | $ | 950,540 | |||||||||
97,041 | LPS Brasil Consultoria de Imoveis S.A. | 1,403,068 | ||||||||||
1,669,384 | Regus PLC | 2,824,227 | ||||||||||
5,177,835 | ||||||||||||
Real Estate Operating/Development – 3.2% | ||||||||||||
372,402 | CapitaLand, Ltd. | 1,057,083 | ||||||||||
1,499,000 | Hang Lung Properties, Ltd. | 6,043,109 | ||||||||||
7,100,192 | ||||||||||||
Retail – Apparel and Shoe – 1.4% | ||||||||||||
16,117 | Hennes & Mauritz A.B. – Class B | 1,047,463 | ||||||||||
16,231 | Inditex S.A. | 1,069,799 | ||||||||||
423,000 | Ports Design, Ltd. | 1,073,300 | ||||||||||
3,190,562 | ||||||||||||
Retail – Restaurants – 0.6% | ||||||||||||
1,418,000 | Ajisen China Holdings, Ltd. | 1,400,832 | ||||||||||
Rubber/Plastic Products – 1.4% | ||||||||||||
142,633 | Jain Irrigation Systems Ltd. | 3,052,200 | ||||||||||
Schools – 4.0% | ||||||||||||
136,200 | Anhanguera Educacional Participacoes S.A.* | 1,976,145 | ||||||||||
260,795 | Estacio Participacoes S.A. | 3,169,154 | ||||||||||
14,171,000 | Raffles Education Corp., Ltd.* | 3,698,281 | ||||||||||
8,843,580 | ||||||||||||
Tobacco – 5.9% | ||||||||||||
125,342 | British American Tobacco PLC | 4,319,941 | ||||||||||
92,371 | Imperial Tobacco Group PLC | 2,817,086 | ||||||||||
1,621 | Japan Tobacco, Inc. | 6,035,176 | ||||||||||
13,172,203 | ||||||||||||
Toys – 2.8% | ||||||||||||
18,400 | Nintendo Co., Ltd. | 6,161,549 | ||||||||||
Transportation – Truck – 1.5% | ||||||||||||
187,898 | DSV A/S | 3,358,366 | ||||||||||
Web Portals/Internet Service Providers – 2.5% | ||||||||||||
15,373 | Yahoo! Japan Corp. | 5,600,200 | ||||||||||
Total Common Stock (cost $176,243,461) | 209,995,242 | |||||||||||
Corporate Bonds – 1.9% | ||||||||||||
Enterprise Software/Services – 1.0% | ||||||||||||
$ | 1,250,000 | Autonomy Corp. PLC, 3.2500%, 3/4/15 | 2,134,400 | |||||||||
Food – Wholesale/Distribution – 0.9% | ||||||||||||
1,800,000 | Olam International Ltd. 6.0000%, 10/15/16 | 2,011,201 | ||||||||||
Total Corporate Bonds (cost $3,918,309) | 4,145,601 | |||||||||||
Money Market – 2.5% | ||||||||||||
5,678,000 | Janus Cash Liquidity Fund LLC, 0% (cost $5,678,000) | 5,678,000 | ||||||||||
Total Investments (total cost $185,839,770) – 98.8% | 219,818,843 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 1.2% | 2,688,739 | |||||||||||
Net Assets – 100% | $ | 222,507,582 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 3,832,543 | 1.7% | |||||
Belgium | 8,455,409 | 3.8% | ||||||
Bermuda | 13,131,801 | 6.0% | ||||||
Brazil | 7,623,192 | 3.5% | ||||||
Canada | 11,222,373 | 5.1% | ||||||
Cayman Islands | 3,710,478 | 1.7% | ||||||
Denmark | 9,548,670 | 4.3% | ||||||
France | 4,572,385 | 2.1% | ||||||
Germany | 6,425,645 | 2.9% | ||||||
Hong Kong | 7,884,943 | 3.6% | ||||||
India | 13,124,950 | 6.0% | ||||||
Ireland | 1,697,487 | 0.8% | ||||||
Japan | 27,524,164 | 12.5% | ||||||
Jersey | 9,251,016 | 4.2% | ||||||
Singapore | 11,803,601 | 5.4% | ||||||
Spain | 1,069,799 | 0.5% | ||||||
Sweden | 1,047,463 | 0.5% | ||||||
Switzerland | 11,236,448 | 5.1% | ||||||
United Kingdom | 52,614,874 | 23.9% | ||||||
United States†† | 14,041,602 | 6.4% | ||||||
Total | $ | 219,818,843 | 100.0% |
†† | Includes Cash Equivalents (3.8% excluding Cash Equivalents) |
Schedule of Written Options – Puts | Value | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 246 contracts exercise price JPY 90,000 | $ | (19,736) | ||
Jupiter Telecommunications Co., Ltd. expires February 2011 503 contracts exercise price JPY 90,000 | (40,551) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 509 contracts exercise price JPY 90,000 | (41,433) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 630 contracts exercise price JPY 90,000 | (50,667) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 755 contracts exercise price JPY 90,000 | (60,867) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 1,421 contracts exercise price JPY 90,000 | (113,723) | |||
Total Written Options – Puts | ||||
(Premiums received $375,993) | $ | (326,977) | ||
See Notes to Schedules of Investments and Financial Statements.
54 | MARCH 31, 2010
Janus International Forty Fund (unaudited)
Fund Snapshot The Fund seeks to invest in a concentrated portfolio of international companies that have sustainable competitive advantages, high or improving returns on capital and attractive long-term growth. | ![]() Laurent Saltiel portfolio manager |
Economic Overview
Continuing their rally from the market lows reached in March of 2009, global equities posted moderate gains during the six-month period ended March 31, 2010. Better-than-expected corporate earnings and growing evidence that the global economy was recovering from the financial crisis of 2008 were only modestly offset by sovereign debt concerns, primarily in Greece. Stocks reached a 17-month high and their highs for the period in early January before a modest pullback that lasted until early February, when the markets regained their bullish momentum and finished near their highs in March. Emerging markets slightly outperformed developed markets led by the Emerging Europe, Middle East and Africa region. Commodities generally finished the period higher led by industrial metals, while natural gas was notable among those losing ground. The Dollar Index posted gains, as the dollar was stronger relative to the yen, euro and pound.
Asset Class Overview
Within the Morgan Stanley Capital International All Country World ex-U.S. IndexSM, the strongest performing sectors were materials, consumer staples and information technology, while financials and utilities lagged. On a country basis, Israel, Mexico, Russia and Poland were among the strongest performers, while Greece, Spain and Austria were among those posting losses.
Investors favored lower-quality, lower margin businesses with weak competitive positions during much of the period, in our view, while higher quality companies with more resilient business models and stronger long-term growth prospects traded at unusually low valuation premiums. This is encouraging to us when we assess the stock return potential over the next few years of many of our favorite companies.
Strategy Overview
We are concerned that markets may have rallied well ahead of fundamentals from the March 2009 lows. Therefore, we have maintained a fairly defensive positioning in the Western world but with some cyclical exposure in emerging markets. We believe that many emerging market companies still offer a combination of attractive long-term growth, high returns on equity and still reasonable valuations. The Fund remained at the high-end of our typical emerging market range, with a fairly balanced exposure between Brazil, China and India as of period end.
We continued to favor quality growth companies that we believe have resilient business models and recurring revenues within consumer discretionary and industrials. We were overweight technology with a preference for software and companies that benefit from secular growth drivers such as smart phones. Within materials and energy we held differentiated exposure – agricultural firms in materials and oil services in energy. We also have maintained a large underweight in Japan, where it remained difficult for us to find Japanese companies with solid long-term growth, high returns on invested capital (ROIC) and good corporate governance.
For the past six months, stock selection provided the largest contribution to relative results with particularly strong results from holdings in consumer staples, industrials and financials. On a country basis, our largest contributors were our holdings and overweight in the U.K. followed by our non-index holdings in China and non-index exposure in the U.S.
Aggreko PLC was the largest contributor for the industrials sector. The U.K.-based company, which makes and ships large generators that can power sports stadiums or even cities for a short length of time, has won a number of contracts that we feel offer good earnings visibility for 2010. We like Aggreko’s dominant market position and its exposure to emerging markets, particularly Africa, which has suffered from significant under-investment in power plants because of high capital costs
Janus Global & International Funds | 55
Janus International Forty Fund (unaudited)
and political risks. We believe Aggreko has attractive long-term growth opportunities thanks to low penetration in a large and growing market in which it faces weak competition.
Chaoda Modern Agriculture Holdings Ltd. also posted strong gains during the period, as this Chinese farm operator benefited from better-than-expected results. We believe the company has a superior business model that benefits the company as well as farmers and the government. Chaoda is significantly larger than its competitors and it has generated consistently high profit margins and stable revenue growth over the past few years.
Potash Corporation of Saskatchewan, Inc. was also among top contributors. The Canadian fertilizer company benefited from clear signs that demand for potash, a key ingredient in fertilizer, is recovering in several regions of the world and inventories are at low levels. Notably, North American demand was back to peak levels during the first quarter of 2010. We consider the company to be among the highest quality firms in the fertilizer industry and even in the entire materials sector.
Detractors included our holdings in consumer discretionary and materials. On a country basis, our holdings in Singapore and holdings in Japan and Brazil weighed on performance. On an individual basis, Man Group PLC was among our largest detractors. The U.K.-based investment manager, which focuses on alternative investments, has suffered from performance issues in its main hedge fund, which we view as temporary and has led to the stock trading at a significant discount to its historical valuation. We anticipate a performance improvement could lead to a significant increase in asset in-flows and subsequently boost the company’s earnings.
Our holdings in FU JI Food & Catering Services Holdings, Ltd. also detracted from our performance. We marked this position to zero after the Hong Kong-based catering company filed a petition to liquidate the company. FU JI technically defaulted on its convertible bonds for failing to file timely financial statements. The stock was suspended from trading which prevented us from exiting the position. While we felt the company had a good business model, we think poor execution by management negated its advantage.
Singapore-based Raffles Education Corp., Ltd. was also among top detractors. Raffles has yet to see a recovery in its business in China. We view this as a short-term issue due to the Chinese government’s cap on enrollments over fears that graduates would be unable to find jobs. As China’s economy continues to improve, we feel those caps will be removed and growth will accelerate for Raffles. In addition, a recent investment by a sovereign wealth fund in a university campus Raffles owns near Beijing demonstrated, in our view, that its properties are undervalued. Long term, we think the wealth effect in China will increase interest in education for many Chinese.
Derivatives
During the period, we took advantage of a significant undervaluation of Jupiter Telecommunications Co., Ltd., a holding, by selling put options on the stock. We believe that these options either will expire worthless, netting us a profit from the trade, or compel us to buy more shares at a lower price. At the time of the trade, with the stock trading below our estimate of intrinsic value, we were willing to buy additional shares at a lower price. We also held small positions in call options on specific stocks; these call options allowed us to gain exposure to potential upside in these stocks while limiting our downside exposure (the potential loss in these calls options was limited to the premium that we paid to buy them). Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
Investor enthusiasm for riskier companies (those with low margins and heavily exposed to the economy) has been easing in our view. We feel the defensive and higher-quality names in the Fund will outperform going forward. While global equity markets have rallied significantly, economic conditions in the U.S., Europe and Japan remain difficult. We believe unemployment will remain high for some time and sluggish economic growth is likely to persist for several years. However, we believe growth is continuing in emerging markets such as China, India and Brazil, as these countries do not suffer from many of the issues in Western developed markets.
Thank you for your investment in Janus International Forty Fund.
56 | MARCH 31, 2010
(unaudited)
Janus International Forty Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Chaoda Modern Agriculture Holdings, Ltd. | 2.48% | |||
Aggreko PLC | 2.28% | |||
Celgene Corp. | 1.27% | |||
Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 1.23% | |||
JPMorgan Chase & Co. – expires 10/28/18 | 1.18% |
5 Bottom Performers – Holdings
Contribution | ||||
Raffles Education Corp., Ltd. | –1.12% | |||
Man Group PLC | –0.83% | |||
Capita Group PLC | –0.48% | |||
Estacio Participacoes S.A. | –0.24% | |||
Agnico-Eagle Mines, Ltd. (U.S. Shares) | –0.12% |
5 Top Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country World ex-U.S. | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Consumer Staples | 3.00% | 11.40% | 8.55% | |||||||||
Materials | 2.68% | 13.79% | 11.91% | |||||||||
Financials | 2.45% | 24.21% | 25.87% | |||||||||
Industrials | 2.25% | 16.25% | 9.95% | |||||||||
Information Technology | 1.53% | 7.70% | 6.68% |
5 Bottom Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country World ex-U.S. | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Consumer Discretionary | –0.49% | 16.69% | 8.39% | |||||||||
Utilities | 0.00% | 0.00% | 4.97% | |||||||||
Telecommunication Services | 0.00% | 0.00% | 6.22% | |||||||||
Energy | 0.20% | 3.40% | 11.04% | |||||||||
Health Care | 1.27% | 6.56% | 6.42% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 57
Janus International Forty Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Potash Corporation of Saskatchewan, Inc. (U.S. Shares) Agricultural Chemicals | 6.9% | |||
Celgene Corp. Medical – Biomedical and Genetic | 6.2% | |||
Aggreko PLC Commercial Services | 5.5% | |||
Educomp Solutions, Ltd. Educational Software | 4.0% | |||
Cia Vale do Rio Doce (ADR) Diversified Minerals | 4.0% | |||
26.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27p05.gif)
Emerging markets comprised 24.1% of total net assets.
*Includes Cash and Cash Equivalents of (0.2)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27c05.gif)
58 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif27m05.gif)
Expense Ratios – | |||||||||||
per the February 16, 2010 and | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | November 27, 2009 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus International Forty Fund – Class A Shares | |||||||||||
NAV | 10.15% | 64.72% | –10.39% | 12.58% | 1.50% | ||||||
MOP | 3.79% | 55.29% | –13.24% | ||||||||
Janus International Forty Fund – Class C Shares | |||||||||||
NAV | 9.93% | 64.50% | –10.75% | 12.23% | 2.25% | ||||||
CDSC | 8.83% | 62.87% | –10.75% | ||||||||
Janus International Forty Fund – Class D Shares(1) | 6.55% | 52.64% | –17.38% | 11.31% | 1.37% | ||||||
Janus International Forty Fund – Class I Shares | 10.23% | 65.40% | –10.09% | 10.08% | 1.25% | ||||||
Janus International Forty Fund – Class S Shares | 10.12% | 65.46% | –10.27% | 12.71% | 1.75% | ||||||
Janus International Forty Fund – Class T Shares | 10.13% | 62.94% | –12.01% | 12.46% | 1.50% | ||||||
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | 5.38% | 60.93% | –11.47% | ||||||||
Morgan Stanley Capital International EAFE® Index | 3.06% | 54.44% | –12.90% | ||||||||
Lipper Quartile – Class I Shares | – | 1st | 1st | ||||||||
Lipper Ranking – based on total return for International Funds | – | 147/1,278 | 268/1,149 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 59
Janus International Forty Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class S Shares, and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The fees and expenses shown for all share classes except Class D Shares and Class T Shares were determined based on net assets as of the fiscal year ended July 31, 2009. Expense information shown for Class D Shares and Class T Shares reflects estimated annualized expenses that the Fund share classes expect to incur during the fiscal year. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Janus International Forty Fund held approximately 10.5% of its investments in Indian securities as of March 31, 2010, and the Fund may have experienced significant gains or losses due, in part, to its investments in India. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in India.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser International Forty Fund (the “JAD predecessor fund”) into corresponding shares of Janus International Forty Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the JAD predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund respectively, net of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class may have been different.
Class D Shares commenced operations on February 16, 2010. The performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s Class I Shares. The performance shown reflects the fees and expenses of Class D Shares, without the effect of any fee and expense limitations or waivers. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class T Shares of the Fund commenced operations on July 6, 2009, after the reorganization of the JAD predecessor fund into Janus International Forty Fund. Performance shown for Class T Shares for periods prior to July 6, 2009, reflects the historical performance of the JAD predecessor fund’s Class I Shares prior to the reorganization, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense
60 | MARCH 31, 2010
(unaudited)
limitations or waivers. If Class T Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class I Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
Effective May 7, 2010, Brent Lynn is interim portfolio manager of Janus International Forty Fund.
* | The Fund’s inception date — May 30, 2008 | |
(1) | Closed to new investors. |
Janus Global & International Funds | 61
Janus International Forty Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,110.70 | $ | 6.42* | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.14 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,108.40 | $ | 8.36* | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.00 | $ | 8.00 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)** | |||||||||||
Actual | $ | 1,000.00 | $ | 1,082.70 | $ | 0.65* | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.34 | $ | 2.62 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,109.90 | $ | 6.89 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.40 | $ | 6.59 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,110.40 | $ | 6.68* | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | $ | 6.39 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,110.40 | $ | 6.63* | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | $ | 6.34 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.22% for Class A Shares, 1.59% for Class C Shares, 1.31% for Class I Shares, 1.27% for Class S Shares and 1.26% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
* | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the six-month period for Class A Shares, Class C Shares, Class S Shares and Class T Shares, and the inception period for Class D Shares. Without these waivers, the expense paid during the period would have been $8.26 for Class A Shares, $12.14 for Class C Shares, $1.76 for Class D Shares, $9.58 for Class S Shares and $8.16 for Class T Shares. | |
** | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.52% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
62 | MARCH 31, 2010
Janus International Forty Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Common Stock – 92.4% | ||||||||||||
Agricultural Chemicals – 8.9% | ||||||||||||
3,349 | Monsanto Co. | $ | 239,186 | |||||||||
6,758 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 806,568 | ||||||||||
1,045,754 | ||||||||||||
Agricultural Operations – 2.1% | ||||||||||||
225,635 | Chaoda Modern Agriculture Holdings, Ltd. | 240,340 | ||||||||||
Brewery – 0.9% | ||||||||||||
2,185 | Anheuser-Busch InBev N.V. | 110,051 | ||||||||||
1,256 | Anheuser-Busch InBev N.V. – VVPR Strip* | 12 | ||||||||||
110,063 | ||||||||||||
Building – Residential and Commercial – 0.8% | ||||||||||||
12,900 | MRV Engenharia e Participacoes S.A. | 90,064 | ||||||||||
Cable Television – 1.9% | ||||||||||||
189 | Jupiter Telecommunications Co., Ltd. | 218,380 | ||||||||||
Chemicals – Diversified – 6.2% | ||||||||||||
32,039 | Israel Chemicals, Ltd. | 433,898 | ||||||||||
4,761 | K+S A.G. | 288,886 | ||||||||||
722,784 | ||||||||||||
Chemicals – Specialty – 1.6% | ||||||||||||
153,000 | Huabao International Holdings, Ltd. | 183,860 | ||||||||||
Commercial Services – 5.5% | ||||||||||||
35,758 | Aggreko PLC | 646,722 | ||||||||||
Computers – 1.9% | ||||||||||||
3,075 | Research In Motion, Ltd. (U.S. Shares)* | 227,396 | ||||||||||
Distribution/Wholesale – 2.9% | ||||||||||||
70,000 | Li & Fung, Ltd. | 344,410 | ||||||||||
Diversified Banking Institutions – 1.6% | ||||||||||||
1,095 | Goldman Sachs Group, Inc. | 186,840 | ||||||||||
Diversified Minerals – 4.0% | ||||||||||||
14,505 | Cia Vale do Rio Doce (ADR) | 466,916 | ||||||||||
Diversified Operations – 0.9% | ||||||||||||
28,000 | China Merchants Holdings International Co., Ltd. | 103,143 | ||||||||||
Educational Software – 6.6% | ||||||||||||
7,296 | Blackboard, Inc.* | 303,951 | ||||||||||
28,076 | Educomp Solutions, Ltd. | 467,674 | ||||||||||
771,625 | ||||||||||||
Enterprise Software/Services – 1.1% | ||||||||||||
4,191 | Temenos Group A.G.* | 123,452 | ||||||||||
Finance – Mortgage Loan Banker – 3.8% | ||||||||||||
7,335 | Housing Development Finance Corp. | 443,989 | ||||||||||
Finance – Other Services – 2.6% | ||||||||||||
28,477 | BM&F Bovespa S.A. | 192,891 | ||||||||||
17,370 | IG Group Holdings PLC | 106,001 | ||||||||||
298,892 | ||||||||||||
Food – Catering – 0% | ||||||||||||
158,000 | FU JI Food & Catering Services Holdings, Ltd.*,mu ,ß,°° | 0 | ||||||||||
Human Resources – 3.4% | ||||||||||||
34,325 | Capita Group PLC | 393,992 | ||||||||||
Investment Companies – 1.6% | ||||||||||||
52,126 | Man Group PLC | 191,003 | ||||||||||
Investment Management and Advisory Services – 2.2% | ||||||||||||
29,345 | BlueBay Asset Management PLC | 160,423 | ||||||||||
20,805 | GP Investments, Ltd. (BDR)* | 101,830 | ||||||||||
262,253 | ||||||||||||
Life and Health Insurance – 1.9% | ||||||||||||
26,193 | Prudential PLC | 217,589 | ||||||||||
Medical – Biomedical and Genetic – 6.2% | ||||||||||||
11,740 | Celgene Corp.*,** | 727,410 | ||||||||||
Oil – Field Services – 2.9% | ||||||||||||
18,567 | Petrofac, Ltd. | 338,622 | ||||||||||
Printing – Commercial – 1.1% | ||||||||||||
2,246 | VistaPrint NV (U.S. Shares)* | 128,584 | ||||||||||
Property and Casualty Insurance – 3.0% | ||||||||||||
17,602 | Admiral Group PLC | 352,537 | ||||||||||
Real Estate Management/Services – 2.5% | ||||||||||||
7,300 | LPS Brasil Consultoria de Imoveis S.A. | 105,547 | ||||||||||
111,752 | Regus PLC | 189,060 | ||||||||||
294,607 | ||||||||||||
Real Estate Operating/Development – 1.0% | ||||||||||||
28,000 | Hang Lung Properties, Ltd. | 112,880 | ||||||||||
Retail – Apparel and Shoe – 0.9% | ||||||||||||
42,500 | Ports Design, Ltd. | 107,837 | ||||||||||
Retail – Drug Store – 0.1% | ||||||||||||
1,200 | China Nepstar Chain Drugstore, Ltd. | 8,700 | ||||||||||
Retail – Restaurants – 0.8% | ||||||||||||
97,000 | Ajisen China Holdings, Ltd. | 95,826 | ||||||||||
Rubber/Plastic Products – 2.7% | ||||||||||||
14,987 | Jain Irrigation Systems, Ltd. | 320,706 | ||||||||||
Schools – 5.1% | ||||||||||||
10,400 | Anhanguera Educacional Participacoes S.A.* | 150,895 | ||||||||||
12,400 | Estacio Participacoes S.A. | 150,684 | ||||||||||
1,141,000 | Raffles Education Corp., Ltd.* | 297,772 | ||||||||||
599,351 | ||||||||||||
Tobacco – 2.7% | ||||||||||||
5,770 | British American Tobacco PLC | 198,864 | ||||||||||
32 | Japan Tobacco, Inc. | 119,140 | ||||||||||
318,004 | ||||||||||||
Transportation – Truck – 1.0% | ||||||||||||
6,744 | DSV A/S | 120,538 | ||||||||||
Total Common Stock (cost $9,673,785) | 10,815,069 | |||||||||||
Corporate Bonds – 5.8% | ||||||||||||
Enterprise Software/Services – 2.9% | ||||||||||||
$ | 200,000 | Autonomy Corp. PLC, 3.2500%, 3/4/15 | 341,504 | |||||||||
Food – Wholesale/Distribution – 2.9% | ||||||||||||
300,000 | Olam International, Ltd., 6.0000%, 10/15/16 | 335,200 | ||||||||||
Total Corporate Bonds (cost $644,030) | 676,704 | |||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 63
Janus International Forty Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Warrant – 2.0% | ||||||||||||
Diversified Financial Services – 2.0% | ||||||||||||
15,300 | JPMorgan Chase & Co. – expires 10/28/18* (cost $206,279) | $ | 235,161 | |||||||||
Total Investments (total cost $10,524,094) – 100.2% | 11,726,934 | |||||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | (21,001) | |||||||||||
Net Assets��– 100% | $ | 11,705,933 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 110,063 | 0.9% | |||||
Bermuda | 737,938 | 6.3% | ||||||
Brazil | 1,156,996 | 9.9% | ||||||
Canada | 1,033,964 | 8.8% | ||||||
Cayman Islands | 344,866 | 2.9% | ||||||
Denmark | 120,538 | 1.0% | ||||||
Germany | 288,886 | 2.5% | ||||||
Hong Kong | 216,023 | 1.8% | ||||||
India | 1,232,368 | 10.5% | ||||||
Israel | 433,898 | 3.7% | ||||||
Japan | 337,520 | 2.9% | ||||||
Jersey | 527,681 | 4.5% | ||||||
Netherlands | 128,583 | 1.1% | ||||||
Singapore | 632,973 | 5.4% | ||||||
Switzerland | 123,452 | 1.1% | ||||||
United Kingdom | 2,608,637 | 22.3% | ||||||
United States | 1,692,548 | 14.4% | ||||||
Total | $ | 11,726,934 | 100.0% |
Schedule of Written Options – Puts | Value | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 32 contracts exercise price JPY 90,000 | $ | (2,567) | ||
Jupiter Telecommunications Co., Ltd. expires February 2011 65 contracts exercise price JPY 90,000 | (5,240) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 66 contracts exercise price JPY 90,000 | (5,372) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 82 contracts exercise price JPY 90,000 | (6,595) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 98 contracts exercise price JPY 90,000 | (7,901) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 184 contracts exercise price JPY 90,000 | (14,726) | |||
Total Written Options – Puts | ||||
(Premiums received $48,763) | $ | (42,401) | ||
See Notes to Schedules of Investments and Financial Statements.
64 | MARCH 31, 2010
Janus Overseas Fund (unaudited)
Fund Snapshot I believe that company fundamentals drive share prices over the long term. I use fundamental research to make high-conviction, long-term investments in the most compelling international growth companies regardless of geography. | ![]() Brent Lynn portfolio manager |
Economic Update
Despite widespread indications of improvement in economic activity, I believe most businesses still have only limited visibility into 2010, and the path back to sustained global economic growth remains uncertain. Concerns about the speed and magnitude of the inevitable withdrawal of central bank liquidity and government fiscal support compound the uncertainty in our view. Many Western countries face longer-term economic headwinds from the unwinding of the real-estate bubble, consumer deleveraging and high fiscal deficits. Recent fiscal problems in Greece in particular highlight the increasing risk from over-extended sovereign balance sheets.
I believe the short- and long-term health of the U.S. economy is critical to the economies of all other major countries and to global stock markets. Although I am concerned about the cyclical and structural headwinds facing the U.S., I am not convinced that we are doomed to an era of extremely low growth. The U.S. remains the most dynamic and flexible large economy in the world and has historically shown an ability to reinvent its economy. Furthermore, China and other emerging markets have become a much larger part of the global economy, and unlike previous periods, emerging markets now have the size to become a key driver of U.S. and global growth.
Strategy Overview
During 2009, I made meaningful investments in stocks such as airline companies Delta Air Lines, Inc., Continental Airlines, Inc. – Class B, and Deutsche Lufthansa A.G., auto companies Ford Motor Co. and Daimler A.G., and refining company Valero Energy Corp. In these industries, longer-term growth opportunities may be limited; however, I believed that the franchises were under-appreciated by the market, structural changes such as capacity reductions offered the potential for higher medium-term profitability, and the stocks were trading at very low valuations. Notably, during the period, Delta, Ford and Continental were the top three performing holdings.
Detractors included Aegon N.V., the Netherlands-based life insurance company, India-based sugar producer Bajaj Hindusthan Ltd., and U.S.-based solar cell maker SunPower Corp. – Class A. Aegon fell due to a soft environment for the sale of insurance products and market concerns that the company would need to raise more capital. Bajaj Hindusthan fell as sugar prices declined sharply from cyclical highs. SunPower suffered from a continued difficult environment for solar cells as lack of availability of financing for solar cell buyers and an oversupply of solar cells put pressure on pricing.
Conclusion
Global stock markets often experience significant volatility. However, the recent collapse and subsequent partial rebound of global equities has been extreme. During difficult times, the conviction to hold onto existing positions or to buy new ones is critical. My conviction comes from our team’s tremendous, in-depth fundamental research. Janus’ investment team travels millions of miles every year, meeting with companies and their competitors, suppliers and customers. These meetings help us understand our companies better and lay the foundation for high-conviction investments.
Although the performance of the markets and the Fund was positive over the past five months, the future performance of the Fund could be considerably worse or perhaps negative. I certainly do not envision another period like the 2008 crisis, but I also recognize the futility of attempting to predict short-term market trends.
Despite volatile markets, I remain optimistic about the long-term. I am excited about the prospects for our companies to improve their competitive positions and to grow revenues and profits. I have not changed my investment approach. I believe the best way to generate solid long-term returns is to make high conviction, long-term investments in world-class companies with exciting growth prospects trading at undeservedly low valuations. As manager of the Fund, my sole focus is to deliver
Janus Global & International Funds | 65
Janus Overseas Fund (unaudited)
strong, long-term performance for you. I will perform this job to the best of my ability.
Thank you for your continued investment in Janus Overseas Fund.
Janus Overseas Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Delta Air Lines, Inc. | 3.27% | |||
Ford Motor Co. | 2.50% | |||
Continental Airlines, Inc. – Class B | 1.26% | |||
ARM Holdings PLC | 1.15% | |||
Li & Fung, Ltd. | 1.07% |
5 Bottom Performers – Holdings
Contribution | ||||
Aegon N.V. | –0.17% | |||
Bajaj Hindusthan, Ltd. | –0.16% | |||
SunPower Corp. – Class A | –0.15% | |||
Stora Enso Oyj – Class R | –0.14% | |||
CapitaLand, Ltd. | –0.13% |
5 Top Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country World ex-U.S. | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Industrials | 6.10% | 14.49% | 9.95% | |||||||||
Consumer Discretionary | 4.26% | 22.04% | 8.39% | |||||||||
Information Technology | 3.49% | 10.81% | 6.68% | |||||||||
Energy | 1.69% | 13.68% | 11.04% | |||||||||
Financials | 1.53% | 25.82% | 25.87% |
5 Bottom Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country World ex-U.S. | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 4.97% | |||||||||
Telecommunication Services | 0.01% | 0.39% | 6.22% | |||||||||
Materials | 0.40% | 4.38% | 11.91% | |||||||||
Health Care | 0.55% | 4.21% | 6.42% | |||||||||
Consumer Staples | 0.94% | 4.18% | 8.55% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
66 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Li & Fung, Ltd. Distribution/Wholesale | 6.4% | |||
Reliance Industries, Ltd. Oil Refining and Marketing | 5.3% | |||
Delta Air Lines, Inc. Airlines | 4.7% | |||
Ford Motor Co. Automotive – Cars and Light Trucks | 4.5% | |||
Bank of America Corp. Diversified Banking Institutions | 3.9% | |||
24.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21p03.gif)
Emerging markets comprised 18.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21c03.gif)
Janus Global & International Funds | 67
Janus Overseas Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21m03.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Overseas Fund – Class A Shares | |||||||||||||||
NAV | 19.68% | 85.89% | 17.64% | 4.25% | 13.00% | 1.00% | 1.00% | ||||||||
MOP | 12.79% | 75.20% | 16.26% | 3.63% | 12.58% | ||||||||||
Janus Overseas Fund – Class C Shares | |||||||||||||||
NAV | 19.25% | 82.07% | 16.85% | 3.51% | 12.27% | 2.01% | 1.92% | ||||||||
CDSC | 18.06% | 80.26% | 16.85% | 3.51% | 12.27% | ||||||||||
Janus Overseas Fund – Class D Shares(1) | 19.72% | 86.37% | 17.76% | 4.37% | 13.10% | 0.82% | 0.82% | ||||||||
Janus Overseas Fund – Class I Shares | 19.83% | 86.37% | 17.76% | 4.37% | 13.10% | 0.70% | 0.70% | ||||||||
Janus Overseas Fund – Class R Shares | 19.45% | 83.82% | 17.18% | 3.81% | 12.58% | 1.44% | 1.44% | ||||||||
Janus Overseas Fund – Class S Shares | 19.56% | 85.05% | 17.44% | 4.06% | 12.82% | 1.19% | 1.19% | ||||||||
Janus Overseas Fund – Class T Shares | 19.72% | 86.37% | 17.76% | 4.37% | 13.10% | 0.95% | 0.95% | ||||||||
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | 6.70% | 60.93% | 6.11% | 2.80% | N/A** | ||||||||||
Morgan Stanley Capital International EAFE® Index | 4.37% | 54.44% | 3.75% | 1.27% | 4.68% | ||||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 1st | 1st | ||||||||||
Lipper Ranking – based on total return for International Funds | – | 9/1278 | 1/721 | 73/395 | 1/100 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
68 | MARCH 31, 2010
(unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class R Shares, Class S Shares and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agent Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Janus Overseas Fund held approximately 10.4% of its investments in Indian securities as of March 31, 2010, and the Fund may have experienced significant gains or losses due, in part, to its investments in India. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in India.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Effective February 16, 2010, Janus Overseas Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Overseas Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser International Growth Fund (the “JAD predecessor fund”) into corresponding shares of Janus Overseas Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Overseas Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Janus Global & International Funds | 69
Janus Overseas Fund (unaudited)
The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
May 5, 1994 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – May 2, 1994 | |
** | Since inception return is not shown for the index because the index’s inception date differs significantly from the Fund’s inception date. | |
(1) | Closed to new investors. |
70 | MARCH 31, 2010
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,196.80 | $ | 4.41 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.09 | $ | 4.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,192.50 | $ | 8.30 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.81 | $ | 9.20 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,110.80 | $ | 1.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.99 | $ | 3.98 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,198.40 | $ | 3.09 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,194.50 | $ | 6.45 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.14 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,195.90 | $ | 5.31 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,197.20 | $ | 4.04 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.49 | $ | 4.48 | ||||||||
† | Expenses are equal to the annualized expense ratio of 0.97% for Class A Shares, 1.83% for Class C Shares, 0.68% for Class I Shares, 1.42% for Class R Shares, 1.17% for Class S Shares and 0.89% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.79% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Global & International Funds | 71
Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 97.2% | ||||||||||||
Agricultural Chemicals – 1.9% | ||||||||||||
1,932,520 | Potash Corporation of Saskatchewan, Inc. | $ | 230,821,376 | |||||||||
32,025 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 3,822,184 | ||||||||||
234,643,560 | ||||||||||||
Agricultural Operations – 1.8% | ||||||||||||
188,481,502 | Chaoda Modern Agriculture Holdings, Ltd.£ | 200,765,330 | ||||||||||
16,576,975 | China Green Holdings, Ltd. | 20,881,352 | ||||||||||
221,646,682 | ||||||||||||
Airlines – 11.9% | ||||||||||||
52,058,422 | British Airways PLC* | 191,940,106 | ||||||||||
11,012,887 | Continental Airlines, Inc. – Class B*,£ | 241,953,127 | ||||||||||
39,646,725 | Delta Air Lines, Inc.*,£ | 578,445,719 | ||||||||||
12,447,834 | Deutsche Lufthansa A.G.*,** | 206,435,644 | ||||||||||
14,556,000 | Singapore Airlines, Ltd.* | 158,194,766 | ||||||||||
4,878,125 | UAL Corp.* | 95,367,344 | ||||||||||
1,472,336,706 | ||||||||||||
Automotive – Cars and Light Trucks – 6.5% | ||||||||||||
5,178,836 | Daimler A.G.*,** | 243,775,344 | ||||||||||
44,595,358 | Ford Motor Co.* | 560,563,650 | ||||||||||
804,338,994 | ||||||||||||
Automotive – Truck Parts and Equipment – Original – 0.2% | ||||||||||||
594,461 | Valeo S.A.*,** | 21,214,407 | ||||||||||
Building – Residential and Commercial – 1.0% | �� | |||||||||||
18,514,200 | MRV Engenharia e Participacoes S.A. | 129,260,884 | ||||||||||
Casino Hotels – 1.0% | ||||||||||||
17,047,273 | Crown, Ltd. | 127,928,051 | ||||||||||
Chemicals – Diversified – 0.4% | ||||||||||||
3,752,165 | Israel Chemicals, Ltd. | 50,814,802 | ||||||||||
Commercial Banks – 2.4% | ||||||||||||
33,159,396 | Anglo Irish Bank Corp., Ltd.*,°,** | 0 | ||||||||||
27,469,567 | Banco de Oro Unibank, Inc. | 25,232,117 | ||||||||||
564,170 | Banco de Oro Unibank, Inc. (GDR) | 10,362,054 | ||||||||||
6,327,317 | Punjab National Bank, Ltd. | 142,748,726 | ||||||||||
2,625,108 | State Bank of India, Ltd. | 121,530,395 | ||||||||||
299,873,292 | ||||||||||||
Computers – 0.9% | ||||||||||||
1,558,433 | Research In Motion, Ltd. (U.S. Shares)* | 115,246,120 | ||||||||||
Distribution/Wholesale – 6.4% | ||||||||||||
160,166,090 | Li & Fung, Ltd. | 788,040,268 | ||||||||||
Diversified Banking Institutions – 7.0% | ||||||||||||
27,182,222 | Bank of America Corp. | 485,202,662 | ||||||||||
2,784,520 | Credit Suisse Group A.G. | 143,571,447 | ||||||||||
2,170,715 | Deutsche Bank A.G.** | 167,185,540 | ||||||||||
2,109,970 | Julius Baer Group, Ltd. | 76,564,228 | ||||||||||
872,523,877 | ||||||||||||
Diversified Operations – 1.1% | ||||||||||||
5,125,015 | MAX India, Ltd.* | 23,655,672 | ||||||||||
75,292,535 | Melco International Development, Ltd.*,£ | 33,747,813 | ||||||||||
1,023,299 | Orascom Development Holding A.G.* | 76,497,449 | ||||||||||
133,900,934 | ||||||||||||
Diversified Operations – Commercial Services – 0.9% | ||||||||||||
64,902,100 | John Keells Holdings PLC£ | 104,754,267 | ||||||||||
Electric Products – Miscellaneous – 0.6% | ||||||||||||
760,201 | LG Electronics, Inc. | 77,270,200 | ||||||||||
Electronic Components – Semiconductors – 2.9% | ||||||||||||
99,666,756 | ARM Holdings PLC£ | 360,365,181 | ||||||||||
Electronic Connectors – 1.4% | ||||||||||||
1,459,600 | Hirose Electric Co., Ltd.** | 168,337,306 | ||||||||||
Finance – Investment Bankers/Brokers – 0.3% | ||||||||||||
4,923,200 | Nomura Holdings, Inc.*,** | 36,290,626 | ||||||||||
Finance – Mortgage Loan Banker – 0.4% | ||||||||||||
884,774 | Housing Development Finance Corp. | 53,555,534 | ||||||||||
Finance – Other Services – 0.3% | ||||||||||||
6,602,987 | IG Group Holdings PLC | 40,294,982 | ||||||||||
Food – Catering – 0% | ||||||||||||
24,630,000 | FU JI Food & Catering Services Holdings, Ltd.*,mu ,ß,°° | 0 | ||||||||||
Gambling – Non-Hotel – 0% | ||||||||||||
278,947,741 | Amax Entertainment Holdings, Ltd.*,£ | 5,209,611 | ||||||||||
Hotels and Motels – 2.7% | ||||||||||||
15,933,523 | Kingdom Hotel Investments (GDR)*,£ | 78,074,263 | ||||||||||
129,465,165 | Shangri-La Asia, Ltd. | 254,127,912 | ||||||||||
332,202,175 | ||||||||||||
Investment Management and Advisory Services – 0.4% | ||||||||||||
8,717,949 | BlueBay Asset Management PLC | 47,659,232 | ||||||||||
Life and Health Insurance – 0.8% | ||||||||||||
12,492,895 | Prudential PLC | 103,780,479 | ||||||||||
Medical – Biomedical and Genetic – 2.8% | ||||||||||||
3,508,585 | Celgene Corp.* | 217,391,926 | ||||||||||
2,412,385 | Genzyme Corp.* | 125,033,915 | ||||||||||
342,425,841 | ||||||||||||
Medical – Drugs – 0.9% | ||||||||||||
3,205,487 | Biovail, Corp. | 53,756,017 | ||||||||||
1,624,645 | Forest Laboratories, Inc.* | 50,948,867 | ||||||||||
104,704,884 | ||||||||||||
Multi-Line Insurance – 0.7% | ||||||||||||
8,421,356 | ING Groep N.V.*,** | 84,069,123 | ||||||||||
Oil Companies – Exploration and Production – 2.2% | ||||||||||||
2,589,963 | Niko Resources, Ltd.£ | 276,315,434 | ||||||||||
Oil Companies – Integrated – 1.4% | ||||||||||||
3,992,780 | Petroleo Brasileiro S.A. (ADR) | 177,638,782 | ||||||||||
Oil Field Machinery and Equipment – 0.4% | ||||||||||||
5,319,132 | Wellstream Holdings PLC£ | 52,862,844 | ||||||||||
Oil Refining and Marketing – 10.0% | ||||||||||||
5,798,026 | Neste Oil OYJ** | 101,087,844 | ||||||||||
27,279,659 | Reliance Industries, Ltd. | 652,821,868 | ||||||||||
6,865,430 | Tesoro Corp.* | 95,429,477 | ||||||||||
19,745,545 | Valero Energy Corp. | 388,987,237 | ||||||||||
1,238,326,426 | ||||||||||||
Power Converters and Power Supply Equipment – 0.9% | ||||||||||||
2,629,880 | SunPower Corp. – Class A*,£ | 49,704,732 | ||||||||||
4,230,245 | Suntech Power Holdings Co., Ltd. (ADR)* | 59,308,035 | ||||||||||
109,012,767 |
See Notes to Schedules of Investments and Financial Statements.
72 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Property and Casualty Insurance – 1.7% | ||||||||||||
12,280,380 | Reliance Capital, Ltd. | $ | 206,829,612 | |||||||||
Real Estate Management/Services – 1.5% | ||||||||||||
11,003,000 | Mitsubishi Estate Co., Ltd.** | 180,106,879 | ||||||||||
Real Estate Operating/Development – 10.9% | ||||||||||||
156,018,120 | Ayala Land, Inc. | 44,892,332 | ||||||||||
113,161,994 | CapitaLand, Ltd. | 321,216,299 | ||||||||||
188,951,000 | China Overseas Land & Investment, Ltd. | 426,867,664 | ||||||||||
10,745,005 | Cyrela Brazil Realty S.A. | 127,307,907 | ||||||||||
3,506,511 | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes | 23,850,193 | ||||||||||
66,617,000 | Hang Lung Properties, Ltd. | 268,561,579 | ||||||||||
13,253,080 | PDG Realty S.A. Empreendimentos e Participacoes | 110,423,693 | ||||||||||
4,039,161 | Rossi Residencial S.A. | 28,154,827 | ||||||||||
1,351,274,494 | ||||||||||||
Retail – Apparel and Shoe – 0.3% | ||||||||||||
66,489,635 | Trinity, Ltd. – Private Placementß,°° | 39,153,865 | ||||||||||
Retail – Consumer Electronics – 1.1% | ||||||||||||
1,868,780 | Yamada Denki Co., Ltd.** | 137,954,231 | ||||||||||
Retail – Miscellaneous/Diversified – 0.6% | ||||||||||||
9,327,414 | SM Investments Corp. | 76,386,525 | ||||||||||
Semiconductor Equipment – 2.0% | ||||||||||||
6,903,538 | ASML Holding N.V.** | 246,691,447 | ||||||||||
Steel – Producers – 0.4% | ||||||||||||
3,962,700 | Tokyo Steel Manufacturing Co., Ltd.*,** | 49,645,038 | ||||||||||
Sugar – 2.0% | ||||||||||||
12,253,642 | Bajaj Hindusthan, Ltd.£ | 37,042,086 | ||||||||||
1,149,300 | Bajaj Hindusthan, Ltd. (GDR) | 3,473,874 | ||||||||||
5,735,700 | Cosan S.A. Industria e Comercio* | 69,957,792 | ||||||||||
14,108,974 | Cosan, Ltd. – Class A*,£ | 133,047,625 | ||||||||||
243,521,377 | ||||||||||||
Telecommunication Equipment – 0% | ||||||||||||
119 | Nortel Networks Corp. (U.S. Shares)* | 6 | ||||||||||
Telecommunication Services – 1.3% | ||||||||||||
3,790,150 | Amdocs, Ltd. (U.S. Shares)* | 114,121,417 | ||||||||||
11,583,898 | Reliance Communications, Ltd. | 43,855,724 | ||||||||||
157,977,141 | ||||||||||||
Toys – 2.9% | ||||||||||||
1,056,700 | Nintendo Co., Ltd.** | 353,853,750 | ||||||||||
Total Common Stock (cost $9,347,097,847) | 12,030,238,636 | |||||||||||
Money Markets – 1.3% | ||||||||||||
166,786,000 | Janus Cash Liquidity Fund LLC, 0% (cost $166,786,000) | 166,786,000 | ||||||||||
Warrant – 0.9% | ||||||||||||
Commercial Banks – 0.9% | ||||||||||||
40,181,882 | Sberbank (Savings Bank of the Russian Federation) – expires 3/19/12ß (cost $124,537,153) | 116,929,277 | ||||||||||
Total Investments (total cost $9,638,421,000) – 99.4% | 12,313,953,913 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.6% | 74,176,746 | |||||||||||
Net Assets – 100% | $ | 12,388,130,659 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 127,928,051 | 1.0% | |||||
Bermuda | 1,240,460,634 | 10.1% | ||||||
Brazil | 666,594,079 | 5.4% | ||||||
Canada | 679,961,137 | 5.5% | ||||||
Cayman Islands | 338,147,628 | 2.8% | ||||||
Finland | 101,087,844 | 0.8% | ||||||
France | 21,214,407 | 0.2% | ||||||
Germany | 617,396,528 | 5.0% | ||||||
Guernsey | 114,121,417 | 0.9% | ||||||
Hong Kong | 729,177,056 | 5.9% | ||||||
India | 1,285,513,492 | 10.4% | ||||||
Ireland | 0 | 0.0% | ||||||
Israel | 50,814,802 | 0.4% | ||||||
Japan | 926,187,830 | 7.5% | ||||||
Netherlands | 330,760,570 | 2.7% | ||||||
Philippines | 156,873,027 | 1.3% | ||||||
Singapore | 479,411,065 | 3.9% | ||||||
South Korea | 77,270,200 | 0.6% | ||||||
Sri Lanka | 104,754,267 | 0.9% | ||||||
Switzerland | 296,633,124 | 2.4% | ||||||
United Kingdom | 796,902,823 | 6.5% | ||||||
United States†† | 3,172,743,932 | 25.8% | ||||||
Total | $ | 12,313,953,913 | 100.0% |
†† | Includes Cash Equivalents (24.4% excluding Cash Equivalents). |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S.$ | Gain/(Loss) | |||||||||
Euro 4/8/10 | 43,500,000 | $ | 58,746,604 | $ | 1,718,396 | |||||||
Euro 4/22/10 | 51,900,000 | 70,091,880 | 1,015,272 | |||||||||
Euro 5/6/10 | 49,000,000 | 66,176,142 | 951,899 | |||||||||
Japanese Yen 4/8/10 | 13,000,000,000 | 139,085,059 | 3,929,243 | |||||||||
Japanese Yen 4/22/10 | 15,000,000,000 | 160,498,916 | 4,271,066 | |||||||||
Japanese Yen 5/6/10 | 17,000,000,000 | 181,915,074 | 5,551,154 | |||||||||
Total | $ | 676,513,675 | $ | 17,437,030 |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 73
Janus Worldwide Fund (unaudited)
Fund Snapshot We seek to invest in companies that have sustainable competitive advantages, high or improving returns on capital and attractive long-term growth. We invest with conviction whenever we believe that we have superior investment insights in an effort to deliver superior risk-adjusted results over extended periods of time. | ![]() Laurent Saltiel portfolio manager |
Economic Overview
Continuing their rally from the market lows reached in March of 2009, global equities posted double-digit gains during the five-month period ended March 31, 2010. Stronger-than-expected corporate earnings and growing evidence that the global economy was recovering from the financial crisis of 2008 were only modestly offset by sovereign debt concerns, primarily in Greece. Stocks reached a 17-month high and their highs for the period in early January before a modest pullback that lasted until early February, when the markets regained their bullish momentum and finished near their highs in March. Developed markets outperformed emerging markets during the period led by strong returns in the U.S. market. Commodities generally finished the period higher led by industrial metals, while natural gas was notable among those losing ground. The Dollar Index posted gains, as the dollar was stronger relative to the euro and pound.
Asset Class Overview
Within the Morgan Stanley Capital International World Indexsm, the top performing sectors were industrials, consumer discretionary and materials, while telecommunications, energy and utilities were among the laggards. On a country basis, Finland, Canada and the U.S. were among the best performing markets, while Greece, Spain and Portugal were among those markets that lost ground during the period.
Investors favored lower-quality, lower margin businesses with weak competitive positions during much of the period, in our view, while higher quality companies with more resilient business models and stronger long-term growth prospects traded at unusually low valuation premiums. This is encouraging to us when we assess the stock return potential over the next few years for many of our favorite companies.
Strategy Overview
We are concerned that markets may have rallied well ahead of fundamentals from the March 2009 lows. Therefore, we have maintained a fairly defensive positioning in the Western world but with some cyclical exposure in emerging markets. We believe many emerging market companies still offer a combination of attractive long-term growth, high returns on equity and still reasonable valuations. The Fund remained at the high-end of our typical 10-20% emerging market range, with a balanced exposure amongst Brazil, China and India as of period end.
We continue to favor quality growth companies that we believe have resilient business models and recurring revenues within consumer discretionary and industrials. We are overweight technology with a preference for software and companies that benefit from secular growth drivers such as smart phones. We have a fairly neutral exposure to materials and energy but with a differentiated exposure in both sectors – agricultural firms in materials and oil service companies in energy. We also have maintained a large underweight in Japan, where it remains difficult for us to find Japanese companies with solid long-term growth, high returns on invested capital (ROIC) and good corporate governance.
For the past five months, stock selection provided the largest contribution to relative results with particularly strong results from holdings in consumer staples, financials and energy. On a country basis, our largest contributors were our non-index exposure in China followed by our holdings in Japan and the U.K.
Aggreko PLC was the largest individual contributor for the Fund overall. The U.K.-based company, which makes and ships large generators that can power sports stadiums or even cities for a short length of time, has won a number of contracts that we feel offer good earnings visibility for 2010. We like Aggreko’s dominant market position and its exposure to emerging markets, particularly Africa, which has suffered from significant under-investment in power plants because of high capital costs and political risks. We
74 | MARCH 31, 2010
(unaudited)
believe Aggreko has attractive long-term growth opportunities thanks to low penetration in a large and growing market in which it faces weak competition.
Within consumer staples, Japan Tobacco, Inc. posted strong returns. The company confirmed it will raise prices in the second half of 2010, which should lead to an increase in profits. The action confirmed our thesis that the company would react to higher excise taxes in Japan by increasing prices, which are currently approximately a third of those in the U.S., to more than compensate for volume declines.
Potash Corporation of Saskatchewan, Inc. was also among top contributors. The Canadian fertilizer company benefited from clear signs that demand for potash, a key ingredient in fertilizer, is recovering in several regions of the world and inventories are at low levels. Notably, North American demand was back to peak levels during the first quarter of 2010. We consider the company to be among the highest quality firms in the fertilizer industry and even in the entire materials sector.
Detractors included our holdings in consumer discretionary and industrials. On a country basis, our holdings in Singapore and our non-index exposure in Brazil weighed the most on performance. Within consumer discretionary, Singapore-based Raffles Education Corp., Ltd., the operator of universities and colleges in the Asia-Pacific region, was the largest detractor for the sector and the Fund. Raffles has yet to see a recovery in its business in China. We view this as a short-term issue due to the Chinese government’s cap on enrollments over fears that graduates would be unable to find jobs. As China’s economy continues to improve, we feel those caps will be removed and growth will accelerate for Raffles. In addition, a recent investment by a sovereign wealth fund in a university campus Raffles owns near Beijing demonstrated, in our view, that its properties are undervalued. Long term, we think the wealth effect in China will increase demand for education in the country.
Man Group PLC was also among key detractors. The U.K.-based investment manager which focuses on alternative investments has suffered from performance issues in its main hedge fund, which we view as temporary and has led to the stock trading at a significant discount to its historical valuation. We anticipate a performance improvement could lead to a significant increase in asset in-flows and subsequently boost the company’s earnings.
In addition, Capita Group PLC traded lower during the period. The largest business process outsourcing company in the U.K has been negatively impacted by reduced contract awards. We view this as a temporary situation and expect the U.K. government to meaningfully increase its outsourcing with large opportunities in health care and defense in particular. Capita Group has a very defensive business model, as half of its business is with the U.K. government and its contracts are typically long-term. Its wide-ranging services include managing claims for insurance companies and driver’s licenses for governments. Capita Group has demonstrated good growth and is gaining market share through small acquisitions.
Derivatives
During the period, we took advantage of a significant undervaluation of Jupiter Telecommunications, a holding, by selling put options on the stock. We believe that these options either will expire worthless, netting us a profit from the trade, or compel us to buy more shares at a lower price. At the time of the trade, with the stock trading below our estimate of intrinsic value, we were willing to buy additional shares at a lower price. Please see the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
Investor enthusiasm for riskier companies (those with low margins and heavily exposed to the economy) has been easing in our view. We feel the defensive and higher-quality names in the Fund will outperform going forward. While global equity markets have rallied significantly, economic conditions in the U.S., Europe and Japan remain difficult. We believe unemployment will remain high for some time and sluggish economic growth is likely to persist for several years. However, we believe growth is continuing in emerging markets such as China, India and Brazil, as these countries do not suffer from many of the issues in Western developed markets.
Thank you for your continued support of Janus Worldwide Fund.
Janus Global & International Funds | 75
Janus Worldwide Fund (unaudited)
Janus Worldwide Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Aggreko PLC | 1.24% | |||
Japan Tobacco, Inc. | 0.89% | |||
Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 0.86% | |||
Apple, Inc. | 0.70% | |||
Celgene Corp. | 0.62% |
5 Bottom Performers – Holdings
Contribution | ||||
Raffles Education Corp., Ltd. | –0.52% | |||
Man Group PLC | –0.48% | |||
Capita Group PLC | –0.28% | |||
Estacio Participacoes S.A. | –0.08% | |||
Kroton Educacional S.A. | –0.07% |
5 Top Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
Consumer Staples | 2.53% | 12.70% | 10.24% | |||||||||
Information Technology | 2.43% | 13.55% | 11.80% | |||||||||
Financials | 2.05% | 20.49% | 20.74% | |||||||||
Health Care | 1.97% | 12.50% | 10.10% | |||||||||
Industrials | 1.83% | 11.27% | 10.58% |
5 Bottom Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
Utilities | –0.04% | 0.96% | 4.51% | |||||||||
Telecommunication Services | 0.13% | 0.58% | 4.30% | |||||||||
Consumer Discretionary | 0.69% | 12.29% | 9.43% | |||||||||
Energy | 0.76% | 6.16% | 10.90% | |||||||||
Materials | 1.74% | 9.50% | 7.40% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
76 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Apple, Inc. Computers | 3.2% | |||
Aggreko PLC Commercial Services | 3.1% | |||
Li & Fung, Ltd. Distribution/Wholesale | 3.0% | |||
Potash Corporation of Saskatchewan, Inc. (U.S. Shares) Agricultural Chemicals | 3.0% | |||
Celgene Corp. Medical – Biomedical and Genetic | 2.9% | |||
15.2% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21p04.gif)
Emerging markets comprised 12.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21c04.gif)
Janus Global & International Funds | 77
Janus Worldwide Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif21m04.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Worldwide Fund – Class A Shares | |||||||||||||||
NAV | 14.11% | 56.19% | 1.72% | –4.97% | 8.46% | 1.05% | 1.05% | ||||||||
MOP | 7.56% | 47.21% | 0.52% | –5.53% | 8.12% | ||||||||||
Janus Worldwide Fund – Class C Shares | |||||||||||||||
NAV | 13.71% | 53.10% | 0.97% | –5.67% | 7.77% | 2.13% | 1.92% | ||||||||
CDSC | 12.57% | 51.58% | 0.97% | –5.67% | 7.77% | ||||||||||
Janus Worldwide Fund – Class D Shares(1) | 14.26% | 56.62% | 1.81% | –4.91% | 8.50% | 0.74% | 0.74% | ||||||||
Janus Worldwide Fund – Class I Shares | 14.31% | 56.62% | 1.81% | –4.91% | 8.50% | 0.62% | 0.62% | ||||||||
Janus Worldwide Fund – Class R Shares | 13.95% | 54.67% | 1.29% | –5.38% | 8.08% | 1.37% | 1.37% | ||||||||
Janus Worldwide Fund – Class S Shares | 14.08% | 55.65% | 1.53% | –5.16% | 8.31% | 1.12% | 1.12% | ||||||||
Janus Worldwide Fund – Class T Shares | 14.26% | 56.62% | 1.81% | –4.91% | 8.50% | 0.87% | 0.87% | ||||||||
Morgan Stanley Capital International World IndexSM | 9.39% | 52.37% | 2.89% | –0.03% | 6.43% | ||||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.60% | 55.48% | 3.94% | 0.62% | N/A | ||||||||||
Lipper Quartile – Class T Shares | – | 2nd | 3rd | 4th | 2nd | ||||||||||
Lipper Ranking – based on total return for Global Funds | – | 145/556 | 212/304 | 145/152 | 6/17 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
78 | MARCH 31, 2010
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class R Shares, Class S Shares and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Net dividends reinvested are the dividends that remain to be reinvested after foreign tax obligations have been met. Such obligations vary from country to country.
Effective February 16, 2010, Janus Worldwide Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Worldwide Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Worldwide Fund (the “JAD predecessor fund”) into corresponding shares of Janus Worldwide Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Worldwide Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations
Janus Global & International Funds | 79
Janus Worldwide Fund (unaudited)
or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
May 16, 1991 is the date used to calculate the since–inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Lipper ranking is for Class T Shares 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 or yield, and therefore the ranking for the period.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
Effective May 7, 2010, Brent Lynn is interim portfolio manager of Janus Worldwide Fund.
* | The Fund’s inception date – May 15, 1991 | |
(1) | Closed to new investors. |
80 | MARCH 31, 2010
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,141.10 | $ | 4.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,136.90 | $ | 8.09 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.81 | $ | 9.20 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,095.10 | $ | 0.96 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.14 | $ | 3.83 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,142.80 | $ | 2.79 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.79 | $ | 3.18 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,139.46 | $ | 6.11 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.05 | $ | 6.94 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,140.50 | $ | 5.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,141.70 | $ | 3.63 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.84 | $ | 4.13 | ||||||||
† | Expenses are equal to the annualized expense ratio of 0.93% for Class A Shares, 1.83% for Class C Shares, 0.63% for Class I Shares, 1.38% for Class R Shares, 1.13% for Class S Shares and 0.82% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.76% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Global & International Funds | 81
Janus Worldwide Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Common Stock – 95.2% | ||||||||||||
Aerospace and Defense – 0.1% | ||||||||||||
51,603 | TransDigm Group, Inc.* | $ | 2,737,023 | |||||||||
Agricultural Chemicals – 6.1% | ||||||||||||
382,585 | Intrepid Potash, Inc.* | 11,603,803 | ||||||||||
636,265 | Monsanto Co. | 45,442,046 | ||||||||||
356,000 | Mosaic Co. | 21,634,120 | ||||||||||
621,860 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 74,218,990 | ||||||||||
152,898,959 | ||||||||||||
Agricultural Operations – 1.8% | ||||||||||||
22,448,415 | Chaoda Modern Agriculture Holdings, Ltd. | 23,911,437 | ||||||||||
16,086,000 | China Green Holdings, Ltd. | 20,262,890 | ||||||||||
44,174,327 | ||||||||||||
Airlines – 0.2% | ||||||||||||
168,116 | Ryanair Holdings PLC (ADR)* | 4,567,712 | ||||||||||
Apparel Manufacturers – 0.3% | ||||||||||||
734,225 | Burberry Group PLC | 7,959,758 | ||||||||||
Applications Software – 0.9% | ||||||||||||
1,430,966 | Nuance Communications, Inc.* | 23,811,274 | ||||||||||
Brewery – 0.7% | ||||||||||||
359,504 | Anheuser-Busch InBev N.V. | 18,107,015 | ||||||||||
Cable Television – 1.4% | ||||||||||||
31,000 | Jupiter Telecommunications Co., Ltd. | 35,818,979 | ||||||||||
Chemicals – Specialty – 1.1% | ||||||||||||
23,698,035 | Huabao International Holdings, Ltd. | 28,477,932 | ||||||||||
Commercial Services – 3.1% | ||||||||||||
4,332,271 | Aggreko PLC | 78,353,848 | ||||||||||
Commercial Services – Finance – 0.8% | ||||||||||||
74,200 | MasterCard, Inc. – Class A | 18,846,800 | ||||||||||
Computer Aided Design – 0.5% | ||||||||||||
287,024 | ANSYS, Inc.* | 12,382,215 | ||||||||||
Computer Services – 0.8% | ||||||||||||
454,510 | Accenture, Ltd. – Class A (U.S. Shares) | 19,066,695 | ||||||||||
Computers – 4.1% | ||||||||||||
344,912 | Apple, Inc.* | 81,030,176 | ||||||||||
276,928 | Research In Motion, Ltd. (U.S. Shares)* | 20,478,826 | ||||||||||
101,509,002 | ||||||||||||
Cosmetics and Toiletries – 1.1% | ||||||||||||
252,625 | Colgate-Palmolive Co. | 21,538,808 | ||||||||||
393,928 | Colgate Palmolive India, Ltd. | 5,926,032 | ||||||||||
27,464,840 | ||||||||||||
Distribution/Wholesale – 3.0% | ||||||||||||
15,185,550 | Li & Fung, Ltd. | 74,715,097 | ||||||||||
Diversified Banking Institutions – 4.7% | ||||||||||||
1,822,118 | Bank of America Corp. | 32,524,806 | ||||||||||
385,508 | Goldman Sachs Group, Inc.** | 65,779,231 | ||||||||||
431,175 | JPMorgan Chase & Co. | 19,295,081 | ||||||||||
117,599,118 | ||||||||||||
Diversified Minerals – 2.0% | ||||||||||||
622,662 | BHP Billiton, Ltd. | 24,899,854 | ||||||||||
760,705 | Cia Vale do Rio Doce (ADR) | 24,487,094 | ||||||||||
49,386,948 | ||||||||||||
Diversified Operations – 2.6% | ||||||||||||
4,924,935 | China Merchants Holdings International Co., Ltd. | 18,141,827 | ||||||||||
414,229 | Danaher Corp. | 33,101,039 | ||||||||||
1,930,200 | Investimentos Itau S.A. | 13,226,349 | ||||||||||
64,469,215 | ||||||||||||
Educational Software – 5.0% | ||||||||||||
1,726,515 | Blackboard, Inc.*,£ | 71,926,615 | ||||||||||
3,234,040 | Educomp Solutions, Ltd. | 53,870,648 | ||||||||||
125,797,263 | ||||||||||||
Electric – Distribution – 0.3% | ||||||||||||
892,771 | Equatorial Energia S.A. | 7,855,380 | ||||||||||
Electric Products – Miscellaneous – 0.5% | ||||||||||||
245,014 | Bharat Heavy Electricals, Ltd. | 13,048,401 | ||||||||||
Electronic Connectors – 0.5% | ||||||||||||
274,412 | Amphenol Corp. – Class A | 11,577,442 | ||||||||||
Electronic Measuring Instruments – 0.2% | ||||||||||||
155,804 | FLIR Systems, Inc.* | 4,393,673 | ||||||||||
Enterprise Software/Services – 2.1% | ||||||||||||
983,886 | Autonomy Corp. PLC* | 27,214,471 | ||||||||||
728,548 | Aveva Group PLC | 13,099,206 | ||||||||||
437,820 | Temenos Group A.G.* | 12,896,605 | ||||||||||
53,210,282 | ||||||||||||
Finance – Investment Bankers/Brokers – 0.5% | ||||||||||||
671,975 | Charles Schwab Corp. | 12,559,213 | ||||||||||
Finance – Mortgage Loan Banker – 2.3% | ||||||||||||
954,498 | Housing Development Finance Corp. | 57,775,940 | ||||||||||
Finance – Other Services – 1.7% | ||||||||||||
2,473,225 | BM&F Bovespa S.A. | 16,752,534 | ||||||||||
36,810 | CME Group, Inc. | 11,636,009 | ||||||||||
2,264,905 | IG Group Holdings PLC | 13,821,670 | ||||||||||
42,210,213 | ||||||||||||
Food – Dairy Products – 0.3% | ||||||||||||
123,980 | Nestle India, Ltd. | 7,391,158 | ||||||||||
Food – Wholesale/Distribution – 0.7% | ||||||||||||
9,267,625 | Olam International, Ltd. | 17,162,269 | ||||||||||
Gold Mining – 0.9% | ||||||||||||
430,130 | Newmont Mining Corp. | 21,906,521 | ||||||||||
Hotels and Motels – 0.5% | ||||||||||||
6,892,000 | Shangri-La Asia, Ltd. | 13,528,346 | ||||||||||
Human Resources – 1.5% | ||||||||||||
3,339,795 | Capita Group PLC | 38,335,153 | ||||||||||
Industrial Gases – 0.5% | ||||||||||||
143,430 | Praxair, Inc. | 11,904,690 | ||||||||||
Investment Companies – 1.0% | ||||||||||||
6,695,150 | Man Group PLC | 24,532,731 | ||||||||||
Investment Management and Advisory Services – 0.9% | ||||||||||||
140,345 | Affiliated Managers Group, Inc.* | 11,087,255 | ||||||||||
2,311,200 | GP Investments, Ltd. (BDR)* | 11,312,203 | ||||||||||
22,399,458 | ||||||||||||
Life and Health Insurance – 0.9% | ||||||||||||
2,767,283 | Prudential PLC | 22,988,263 |
See Notes to Schedules of Investments and Financial Statements.
82 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Medical – Biomedical and Genetic – 5.9% | ||||||||||||
350,815 | Alexion Pharmaceuticals, Inc.* | $ | 19,073,812 | |||||||||
1,184,560 | Celgene Corp.*,** | 73,395,337 | ||||||||||
482,533 | Gilead Sciences, Inc.* | 21,945,601 | ||||||||||
788,705 | Vertex Pharmaceuticals, Inc.* | 32,234,372 | ||||||||||
146,649,122 | ||||||||||||
Medical – Drugs – 1.3% | ||||||||||||
287,412 | Novo Nordisk A/S | 22,305,591 | ||||||||||
66,397 | Roche Holding A.G. | 10,771,167 | ||||||||||
33,076,758 | ||||||||||||
Medical Instruments – 1.0% | ||||||||||||
586,407 | St. Jude Medical, Inc.* | 24,072,007 | ||||||||||
Medical Products – 0.2% | ||||||||||||
89,875 | Cochlear, Ltd. | 6,005,738 | ||||||||||
Multi-Line Insurance – 0.2% | ||||||||||||
79,455 | ACE, Ltd. (U.S. Shares) | 4,155,497 | ||||||||||
Oil – Field Services – 1.7% | ||||||||||||
823,123 | AMEC PLC | 9,978,838 | ||||||||||
1,847,343 | Petrofac, Ltd. | 33,691,509 | ||||||||||
43,670,347 | ||||||||||||
Oil Companies – Integrated – 0.8% | ||||||||||||
490,724 | Petroleo Brasileiro S.A. (U.S. Shares) | 19,427,763 | ||||||||||
Oil Field Machinery and Equipment – 0.5% | ||||||||||||
386,052 | Dresser-Rand Group, Inc.* | 12,129,754 | ||||||||||
Optical Supplies – 0.7% | ||||||||||||
105,461 | Alcon, Inc. (U.S. Shares) | 17,038,279 | ||||||||||
Pipelines – 4.2% | ||||||||||||
1,364,900 | Energy Transfer Equity LP | 46,051,726 | ||||||||||
1,107,858 | Enterprise GP Holdings L.P. | 47,582,501 | ||||||||||
193,627 | Kinder Morgan Management LLC* | 11,350,415 | ||||||||||
104,984,642 | ||||||||||||
Power Converters and Power Supply Equipment – 0.4% | ||||||||||||
193,558 | Vestas Wind Systems A/S* | 10,519,075 | ||||||||||
Printing – Commercial – 1.4% | ||||||||||||
608,940 | VistaPrint NV (U.S. Shares)* | 34,861,815 | ||||||||||
Property and Casualty Insurance – 1.8% | ||||||||||||
2,237,386 | Admiral Group PLC | 44,810,863 | ||||||||||
Real Estate Management/Services – 0.8% | ||||||||||||
12,470,193 | Regus PLC | 21,096,796 | ||||||||||
Real Estate Operating/Development – 1.1% | ||||||||||||
6,905,435 | Hang Lung Properties, Ltd. | 27,838,758 | ||||||||||
Reinsurance – 0.5% | ||||||||||||
144,480 | Berkshire Hathaway, Inc. – Class B* | 11,741,890 | ||||||||||
Retail – Apparel and Shoe – 0.8% | ||||||||||||
57,993 | Hennes & Mauritz A.B. – Class B | 3,769,035 | ||||||||||
88,210 | Inditex S.A. | 5,813,995 | ||||||||||
3,817,500 | Ports Design, Ltd. | 9,686,341 | ||||||||||
19,269,371 | ||||||||||||
Retail – Drug Store – 0% | ||||||||||||
124,593 | China Nepstar Chain Drugstore, Ltd. | 903,299 | ||||||||||
Retail – Restaurants – 0.5% | ||||||||||||
12,547,000 | Ajisen China Holdings, Ltd. | 12,395,091 | ||||||||||
Rubber/Plastic Products – 1.4% | ||||||||||||
1,678,394 | Jain Irrigation Systems, Ltd. | 35,915,912 | ||||||||||
Schools – 5.5% | ||||||||||||
2,110,400 | Anhanguera Educacional Participacoes S.A.* | 30,620,094 | ||||||||||
207,485 | Capella Education Co.* | 19,262,907 | ||||||||||
1,472,130 | Estacio Participacoes S.A. | 17,889,175 | ||||||||||
477,450 | Grand Canyon Education, Inc.* | 12,480,543 | ||||||||||
1,156,900 | Kroton Educacional S.A. | 10,804,242 | ||||||||||
103,702,550 | Raffles Education Corp., Ltd.*,£ | 27,063,800 | ||||||||||
85,987 | Strayer Education, Inc. | 20,939,554 | ||||||||||
139,060,315 | ||||||||||||
Tobacco – 3.3% | ||||||||||||
525,227 | British American Tobacco PLC | 18,102,070 | ||||||||||
10,526 | Japan Tobacco, Inc. | 39,189,558 | ||||||||||
494,968 | Philip Morris International, Inc. | 25,817,531 | ||||||||||
83,109,159 | ||||||||||||
Toys – 0.5% | ||||||||||||
36,900 | Nintendo Co., Ltd. | 12,356,585 | ||||||||||
Transportation – Services – 0.8% | ||||||||||||
149,570 | C.H. Robinson Worldwide, Inc. | 8,353,485 | ||||||||||
343,625 | Expeditors International of Washington, Inc. | 12,686,635 | ||||||||||
21,040,120 | ||||||||||||
Transportation – Truck – 0.6% | ||||||||||||
819,379 | DSV A/S | 14,645,043 | ||||||||||
Vitamins and Nutrition Products – 0.8% | ||||||||||||
418,377 | Herbalife, Ltd. | 19,295,547 | ||||||||||
Web Portals/Internet Service Providers – 0.5% | ||||||||||||
21,935 | Google, Inc. – Class A* | 12,437,364 | ||||||||||
Wireless Equipment – 2.4% | ||||||||||||
298,536 | Crown Castle International Corp.* | 11,413,031 | ||||||||||
878,625 | QUALCOMM, Inc. | 36,893,464 | ||||||||||
338,375 | SBA Communications Corp. – Class A* | 12,205,186 | ||||||||||
60,511,681 | ||||||||||||
Total Common Stock (cost $1,925,843,011) | 2,383,941,744 | |||||||||||
Corporate Bonds – 2.0% | ||||||||||||
Enterprise Software/Services – 1.0% | ||||||||||||
$ | 15,150,000 | Autonomy Corp. PLC, 3.2500%, 3/4/15 | 25,868,923 | |||||||||
Food – Wholesale/Distribution – 1.0% | ||||||||||||
21,900,000 | Olam International, Ltd. 6.0000%, 10/15/16 | 24,469,615 | ||||||||||
Total Corporate Bonds (cost $48,133,083) | 50,338,538 | |||||||||||
Warrant – 1.3% | ||||||||||||
Diversified Financial Services – 1.3% | ||||||||||||
2,164,696 | JP Morgan Chase & Co. – expires 10/28/18* (cost $23,270,482) | 33,271,378 | ||||||||||
Money Market – 0.5% | ||||||||||||
11,439,000 | Janus Cash Liquidity Fund LLC, 0% (cost $11,439,000) | 11,439,000 | ||||||||||
Total Investments (total cost $2,008,685,576) – 99.0% | 2,478,990,660 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities** – 1.0% | 25,763,873 | |||||||||||
Net Assets – 100% | $ | 2,504,754,533 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 83
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 30,905,592 | 1.2% | |||||
Belgium | 18,107,015 | 0.7% | ||||||
Bermuda | 157,982,809 | 6.4% | ||||||
Brazil | 141,062,631 | 5.7% | ||||||
Canada | 94,697,817 | 3.8% | ||||||
Cayman Islands | 56,505,374 | 2.3% | ||||||
Denmark | 47,469,709 | 1.9% | ||||||
Hong Kong | 45,980,584 | 1.9% | ||||||
India | 173,928,091 | 7.0% | ||||||
Ireland | 23,634,406 | 1.0% | ||||||
Japan | 87,365,123 | 3.5% | ||||||
Jersey | 54,788,305 | 2.2% | ||||||
Netherlands | 34,861,815 | 1.4% | ||||||
Singapore | 68,695,683 | 2.8% | ||||||
Spain | 5,813,995 | 0.2% | ||||||
Sweden | 3,769,035 | 0.2% | ||||||
Switzerland | 44,861,547 | 1.8% | ||||||
United Kingdom | 325,065,794 | 13.1% | ||||||
United States†† | 1,063,495,335 | 42.9% | ||||||
Total | $ | 2,478,990,660 | 100.0% |
†† | Includes Cash Equivalents (42.4% excluding Cash Equivalents). |
Schedule of Written Options – Puts | Value | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 2,938 contracts exercise price JPY 90,000 | $ | (235,706) | ||
Jupiter Telecommunications Co., Ltd. expires February 2011 6,003 contracts exercise price JPY 90,000 | (483,956) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 6,073 contracts exercise price JPY 90,000 | (494,350) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 7,514 contracts exercise price JPY 90,000 | (604,301) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 9,004 contracts exercise price JPY 90,000 | (725,894) | |||
Jupiter Telecommunications Co., Ltd. expires February 2011 16,943 contracts exercise price JPY 90,000 | (1,355,948) | |||
Total Written Options – Puts | ||||
(Premiums received $4,484,946) | $ | (3,900,155) | ||
See Notes to Schedules of Investments and Financial Statements.
84 | MARCH 31, 2010
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Janus Global & International Funds | 85
Statements of Assets and Liabilities
Janus | Janus | |||||||||||||||||||||||||||||||
As of March 31, 2010 (unaudited) | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Janus International | Overseas | Worldwide | ||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Life Sciences Fund | Opportunities Fund | Research Fund | Technology Fund | Equity Fund | Forty Fund | Fund | Fund | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments at cost | $ | 594,020 | $ | 92,990 | $ | 200,262 | $ | 642,303 | $ | 185,840 | $ | 10,524 | $ | 9,638,421 | $ | 2,008,686 | ||||||||||||||||
Unaffiliated investments at value | $ | 719,508 | $ | 86,119 | $ | 230,683 | $ | 832,609 | $ | 214,141 | $ | 11,727 | $ | 12,147,168 | $ | 2,467,552 | ||||||||||||||||
Affiliated money market investments | 2,987 | 16,518 | 2,121 | - | 5,678 | - | 166,786 | 11,439 | ||||||||||||||||||||||||
Cash | 135 | 6 | 292 | - | 127 | 86 | 1,005 | 3,831 | ||||||||||||||||||||||||
Cash denominated in foreign currency(1) | 151 | - | 44 | - | 115 | - | 157 | 318 | ||||||||||||||||||||||||
Restricted cash (Note 1) | 300 | - | - | 1,530 | - | - | - | 2,521 | ||||||||||||||||||||||||
Deposits with broker for short sales | 6,302 | - | - | 40,150 | - | - | - | - | ||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||
Investments sold | 4,270 | 776 | 3,889 | 6,881 | 7,598 | 416 | 99,069 | 117,738 | ||||||||||||||||||||||||
Fund shares sold | 362 | 82 | 262 | 326 | 2,719 | 30 | 14,463 | 484 | ||||||||||||||||||||||||
Dividends | 1,899 | 566 | 643 | 909 | 708 | 24 | 14,366 | 3,582 | ||||||||||||||||||||||||
Interest | - | - | - | - | 54 | 9 | - | 663 | ||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation | 18 | 3 | 6 | 20 | 5 | - | 304 | 61 | ||||||||||||||||||||||||
Other assets | 43 | 2 | - | 189 | 51 | 4 | 3,978 | 6,749 | ||||||||||||||||||||||||
Forward currency contracts | 508 | 282 | - | 1,579 | - | - | 17,437 | - | ||||||||||||||||||||||||
Total Assets | 736,483 | 104,354 | 237,940 | 884,193 | 231,196 | 12,296 | 12,464,733 | 2,614,938 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||
Short sales, at value(2) | 9,422 | - | - | 41,437 | - | - | - | - | ||||||||||||||||||||||||
Options Written, at value(3) | 331 | - | - | 1,836 | 327 | 42 | - | 3,900 | ||||||||||||||||||||||||
Due to Custodian | - | - | - | 2,815 | - | - | - | - | ||||||||||||||||||||||||
Investments purchased | 5,895 | 52 | 2,328 | 2,265 | 7,760 | 482 | 55,217 | 101,588 | ||||||||||||||||||||||||
Fund shares repurchased | 432 | 109 | 133 | 318 | 201 | - | 10,813 | 2,793 | ||||||||||||||||||||||||
Dividends and distributions | - | - | 3 | - | - | - | 2 | 1 | ||||||||||||||||||||||||
Advisory fees | 392 | 57 | 151 | 445 | 134 | 8 | 6,524 | 1,203 | ||||||||||||||||||||||||
Administrative fees - Class D Shares | 47 | 8 | 11 | 55 | - | - | 244 | 128 | ||||||||||||||||||||||||
Administrative fees - Class R Shares | N/A | N/A | N/A | N/A | - | N/A | 28 | - | ||||||||||||||||||||||||
Administrative fees - Class S Shares | - | - | - | - | 1 | - | 354 | 14 | ||||||||||||||||||||||||
Administrative fees - Class T Shares(4) | 54 | 5 | 23 | 58 | - | - | 1,312 | 236 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | - | - | - | - | 15 | 1 | 126 | - | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | - | - | - | - | 17 | 1 | 210 | 1 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | N/A | N/A | N/A | - | N/A | 56 | - | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | - | - | - | - | 1 | - | 354 | 14 | ||||||||||||||||||||||||
Networking fees - Class A Shares | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Networking fees - Class C Shares | - | - | - | - | - | - | 156 | 1 | ||||||||||||||||||||||||
Networking fees - Class I Shares | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | 10 | - | 1 | 11 | 1 | - | 65 | 13 | ||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation fees | 18 | 3 | 6 | 20 | 5 | - | 304 | 61 | ||||||||||||||||||||||||
Foreign tax liability | - | - | - | - | 221 | 20 | - | 39 | ||||||||||||||||||||||||
Accrued expenses and other payables | 116 | - | 81 | 170 | 5 | 36 | 837 | 191 | ||||||||||||||||||||||||
Forward currency contracts | 393 | - | - | 126 | - | - | - | - | ||||||||||||||||||||||||
Total Liabilities | 17,110 | 234 | 2,737 | 49,556 | 8,688 | 590 | 76,602 | 110,183 | ||||||||||||||||||||||||
Net Assets | $ | 719,373 | $ | 104,120 | $ | 235,203 | $ | 834,637 | $ | 222,508 | $ | 11,706 | $ | 12,388,131 | $ | 2,504,755 |
86 | MARCH 31, 2010
See footnotes at the end of the Statement.
See Notes to Financial Statements.
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87
Statements of Assets and Liabilities (continued)
Janus | Janus | |||||||||||||||||||||||||||||||
As of March 31, 2010 (unaudited) | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Janus International | Overseas | Worldwide | ||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Life Sciences Fund | Opportunities Fund | Research Fund | Technology Fund | Equity Fund | Forty Fund | Fund | Fund | ||||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 1,029,221 | $ | 101,125 | $ | 262,297 | $ | 1,654,672 | $ | 239,194 | $ | 10,587 | $ | 10,817,915 | $ | 6,740,997 | ||||||||||||||||
Undistributed net investment income/(loss)* | 2,285 | 208 | 322 | (1,606) | 554 | 4 | (21,726) | 2,947 | ||||||||||||||||||||||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions* | (437,516) | (7,142) | (59,954) | (1,007,977) | (51,087) | (74) | (1,100,481) | (4,710,305) | ||||||||||||||||||||||||
Unrealized appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(5) | 125,383 | 9,929 | 32,538 | 189,548 | 33,847 | 1,189 | 2,692,423 | 471,116 | ||||||||||||||||||||||||
Total Net Assets | $ | 719,373 | $ | 104,120 | $ | 235,203 | $ | 834,637 | $ | 222,508 | $ | 11,706 | $ | 12,388,131 | $ | 2,504,755 | ||||||||||||||||
Net Assets - Class A Shares | $ | 799 | $ | 293 | $ | 151 | $ | 816 | $ | 71,854 | $ | 2,385 | $ | 622,641 | $ | 2,198 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 36 | 25 | 12 | 55 | 6,841 | 296 | 13,512 | 52 | ||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 22.43 | $ | 11.59 | $ | 12.78 | $ | 14.77 | $ | 10.50 | $ | 8.06 | $ | 46.08 | $ | 42.53 | ||||||||||||||||
Maximum Offering Price Per Share(7) | $ | 23.80 | $ | 12.30 | $ | 13.56 | $ | 15.67 | $ | 11.14 | $ | 8.55 | $ | 48.89 | $ | 45.12 | ||||||||||||||||
Net Assets - Class C Shares | $ | 84 | $ | 12 | $ | 218 | $ | 386 | $ | 20,150 | $ | 1,281 | $ | 256,939 | $ | 1,265 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4 | 1 | 17 | 26 | 1,951 | 160 | 5,599 | 30 | ||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 22.33 | $ | 11.53 | $ | 12.69 | $ | 14.69 | $ | 10.33 | $ | 8.01 | $ | 45.89 | $ | 42.45 | ||||||||||||||||
Net Assets - Class D Shares | $ | 460,132 | $ | 78,209 | $ | 111,387 | $ | 553,769 | $ | 1,083 | $ | 618 | $ | 2,447,443 | $ | 1,274,411 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 20,478 | 6,726 | 8,708 | 37,453 | 103 | 76 | 53,074 | 29,902 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 22.47 | $ | 11.63 | $ | 12.79 | $ | 14.79 | $ | 10.48 | $ | 8.12 | $ | 46.11 | $ | 42.62 | ||||||||||||||||
Net Assets - Class I Shares | $ | 3,186 | $ | 37 | $ | 13,131 | $ | 1,197 | $ | 122,000 | $ | 6,230 | $ | 826,943 | $ | 40,949 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 142 | 3 | 1,027 | 81 | 11,639 | 768 | 17,917 | 961 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 22.48 | $ | 11.54 | $ | 12.79 | $ | 14.82 | $ | 10.48 | $ | 8.11 | $ | 46.15 | $ | 42.61 | ||||||||||||||||
Net Assets - Class R Shares | N/A | N/A | N/A | N/A | $ | 840 | N/A | $ | 135,724 | $ | 548 | |||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | N/A | 81 | N/A | 2,951 | 13 | ||||||||||||||||||||||||
Net Asset Value Per Share | N/A | N/A | N/A | N/A | $ | 10.41 | N/A | $ | 45.99 | $ | 42.53 | |||||||||||||||||||||
Net Assets - Class S Shares | $ | 188 | $ | 671 | $ | 12 | $ | 218 | $ | 5,868 | $ | 644 | $ | 1,739,943 | $ | 65,709 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 8 | 57 | 1 | 15 | 552 | 80 | 37,786 | 1,544 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 22.38 | $ | 11.66 | $ | 12.74 | $ | 14.74 | $ | 10.64 | $ | 8.08 | $ | 46.05 | $ | 42.56 | ||||||||||||||||
Net Assets - Class T Shares(4) | $ | 254,984 | $ | 24,898 | $ | 110,304 | $ | 278,251 | $ | 713 | $ | 548 | $ | 6,358,498 | $ | 1,119,675 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 11,350 | 2,143 | 8,625 | 18,822 | 68 | 68 | 137,913 | 26,275 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 22.47 | $ | 11.62 | $ | 12.79 | $ | 14.78 | $ | 10.45 | $ | 8.08 | $ | 46.11 | $ | 42.61 |
* | See Note 5 in the Notes to the Financial Statements. | |
(1) | Includes cost of $149,941, $44,175, $114,567, $156,589 and $315,932 for Janus Global Life Sciences Fund, Janus Global Research Fund, Janus International Equity Fund, Janus Overseas Fund and Janus Worldwide Fund, respectively. | |
(2) | Includes proceeds of $6,301,504 and $40,150,147 on short sales for Janus Global Life Sciences Fund and Janus Global Technology Fund, respectively. | |
(3) | Includes premiums of $212,150, $958,242, $375,993, $48,763, and $4,484,946 on written options for Janus Global Life Sciences Fund, Janus Global Technology Fund, Janus International Equity Fund, Janus International Forty Fund, and Janus Worldwide Fund, respectively. | |
(4) | Formerly named Class J Shares for all Funds except Janus International Equity Fund and Janus International Forty Fund. | |
(5) | Net of foreign taxes on investments of $220,865, $19,764, and $38,707 for Janus International Equity Fund, Janus International Forty Fund, and Janus Worldwide Fund, respectively. | |
(6) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(7) | Maximum offering price is computed at 100/94.25 of net asset value. |
88 | MARCH 31, 2010
See Notes to Financial Statements.
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89
Statements of Operations
For the five- or six-month period ended March 31, 2010 (unaudited) | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Janus International | Janus | Janus | ||||||||||||||||||||||||
(all numbers in thousands) | Life Sciences Fund(1) | Opportunities Fund(1) | Research Fund(1) | Technology Fund(1) | Equity Fund | Forty Fund | Overseas Fund(1) | Worldwide Fund(1) | ||||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||||||||
Interest | $ | 45 | $ | - | $ | - | $ | - | $ | 12 | $ | 2 | $ | 1 | $ | 118 | ||||||||||||||||
Dividends | 5,330 | 1,607 | 1,434 | 1,885 | 1,731 | 62 | 27,524 | 12,972 | ||||||||||||||||||||||||
Dividends from affiliates | 5 | 12 | 2 | 6 | 2 | - | 2,194 | 6 | ||||||||||||||||||||||||
Foreign tax withheld | (328) | (54) | (49) | (52) | (70) | - | (2,096) | (315) | ||||||||||||||||||||||||
Total Investment Income | 5,052 | 1,565 | 1,387 | 1,839 | 1,675 | 64 | 27,623 | 12,781 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Advisory fees | 1,850 | 271 | 711 | 2,065 | 715 | 33 | 29,442 | 5,444 | ||||||||||||||||||||||||
Transfer agent fees and expenses | 130 | 27 | 30 | 183 | 9 | 3 | 291 | 261 | ||||||||||||||||||||||||
Registration fees | 21 | 16 | 21 | 17 | 50 | 47 | 116 | 68 | ||||||||||||||||||||||||
Custodian fees | 17 | 6 | 11 | 12 | 42 | 18 | 464 | 102 | ||||||||||||||||||||||||
Audit fees | 12 | 11 | 11 | 13 | 20 | 16 | 10 | 8 | ||||||||||||||||||||||||
System fees | 9 | 9 | 11 | 3 | 12 | 12 | 12 | 14 | ||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | 16 | 1 | 3 | 18 | 3 | 1 | 137 | 33 | ||||||||||||||||||||||||
Postage and mailing expenses | 108 | 20 | 53 | 136 | 5 | 5 | 195 | 228 | ||||||||||||||||||||||||
Short sales dividend expense | - | - | - | 70 | - | - | - | - | ||||||||||||||||||||||||
Short sales interest expense | 1 | - | - | 3 | - | - | - | - | ||||||||||||||||||||||||
Stock loan fees | 14 | - | - | 328 | - | - | - | - | ||||||||||||||||||||||||
Administrative fees - Class D Shares | 65 | 11 | 15 | 76 | - | - | 332 | 176 | ||||||||||||||||||||||||
Administrative fees - Class R Shares | N/A | N/A | N/A | N/A | 1 | N/A | 120 | 1 | ||||||||||||||||||||||||
Administrative fees - Class S Shares | - | - | - | - | 6 | 1 | 1,606 | 66 | ||||||||||||||||||||||||
Administrative fees - Class T Shares(2) | 415 | 53 | 150 | 448 | - | - | 6,723 | 1,565 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | - | - | - | - | 83 | 3 | 571 | 3 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | - | - | - | 1 | 91 | 5 | 916 | 5 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | N/A | N/A | N/A | 2 | N/A | 240 | 1 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | - | - | - | - | 6 | 1 | 1,606 | 66 | ||||||||||||||||||||||||
Networking fees - Class A Shares | - | - | - | - | 27 | - | 110 | 1 | ||||||||||||||||||||||||
Networking fees - Class C Shares | - | - | - | - | 8 | - | 145 | 1 | ||||||||||||||||||||||||
Networking fees - Class I Shares | - | - | - | - | 3 | 2 | 24 | 1 | ||||||||||||||||||||||||
Other expenses | 104 | 12 | 47 | 123 | 30 | 13 | 288 | 169 | ||||||||||||||||||||||||
Non-recurring costs (Note 4) | - | - | N/A | - | N/A | N/A | - | 1 | ||||||||||||||||||||||||
Costs assumed by Janus Capital Management LLC (Note 4) | - | - | N/A | - | N/A | N/A | - | (1) | ||||||||||||||||||||||||
Total Expenses | 2,762 | 437 | 1,063 | 3,496 | 1,113 | 160 | 43,348 | 8,213 | ||||||||||||||||||||||||
Expense and Fee Offset | (6) | (1) | (3) | (9) | - | - | (16) | (15) | ||||||||||||||||||||||||
Net Expenses | 2,756 | 436 | 1,060 | 3,487 | 1,113 | 160 | 43,332 | 8,198 | ||||||||||||||||||||||||
Less: Excess Expense Reimbursement | - | - | - | - | - | (100) | - | - | ||||||||||||||||||||||||
Net Expenses after Expense Reimbursement | 2,756 | 436 | 1,060 | 3,487 | 1,113 | 60 | 43,332 | 8,198 | ||||||||||||||||||||||||
Net Investment Income/(Loss) | 2,296 | 1,129 | 327 | (1,648) | 562 | 4 | (15,709) | 4,583 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 17,232 | 161 | 6,825 | 47,517 | 8,180 | 347 | 172,338 | 132,446 | ||||||||||||||||||||||||
Net realized gain/(loss) from short sales | (1,104) | - | - | (3,195) | - | - | - | - | ||||||||||||||||||||||||
Net realized gain/(loss) from options contracts | (128) | - | - | (2,258) | - | (15) | - | - | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(3) | 71,716 | 6,132 | 18,641 | 84,921 | 8,208 | 623 | 1,803,283 | 183,334 | ||||||||||||||||||||||||
Net Gain/(Loss) on Investments | 87,716 | 6,293 | 25,466 | 126,985 | 16,388 | 955 | 1,975,621 | 315,780 | ||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 90,012 | $ | 7,422 | $ | 25,793 | $ | 125,337 | $ | 16,950 | $ | 959 | $ | 1,959,912 | $ | 320,363 |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Formerly named Class J Shares for all Funds except Janus International Equity Fund and Janus International Forty Fund. | |
(3) | Net of foreign taxes on investments of $220,865, $19,764, and $38,707 for Janus International Equity Fund, Janus International Forty Fund, and Janus Worldwide Fund, respectively. |
90 | MARCH 31, 2010
See Notes to Financial Statements.
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91
Statements of Changes in Net Assets
For the five- or six-month period ended March 31, 2010 (unaudited), | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 and the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
fiscal years ended July 31, 2009 or October 31, 2009 | Janus Global Life Sciences Fund | Janus Global Opportunities Fund | Janus Global Research Fund | Janus Global Technology Fund | Janus International Equity Fund | Janus International Forty Fund | Janus Overseas Fund | Janus Worldwide Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | 2010 | 2009(3) | 2009(4) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | 2,296 | $ | 1,715 | $ | 1,129 | $ | 893 | $ | 327 | $ | 930 | $ | (1,648) | $ | (1,876) | $ | 562 | $ | 303 | $ | 2,003(5) | $ | 4 | $ | 9 | $ | 46 | $ | (15,709) | $ | 48,788 | $ | 4,583 | $ | 26,617 | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 17,232 | (66,294) | 161 | (6,125) | 6,825 | (48,473) | 47,517 | (96,525) | 8,180 | 2,927 | (62,239)(5) | 347 | 262 | (697) | 172,338 | (703,715) | 132,446 | (938,617) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from short sales | (1,104) | (90) | - | - | - | - | (3,195) | (6,224) | - | - | - | - | - | (1) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from swap contracts | - | - | - | - | - | 103 | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from options contracts | (128) | - | - | - | - | 29 | (2,258) | 628 | - | (633) | 1,012 | (15) | (48) | 74 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 71,716 | 129,261 | 6,132 | 26,251 | 18,641 | 91,300 | 84,921 | 287,168 | 8,208 | 6,858 | 30,317 | 623 | (97) | 766 | 1,803,283 | 3,029,158 | 183,334 | 1,327,687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 90,012 | 64,592 | 7,422 | 21,019 | 25,793 | 43,889 | 125,337 | 183,171 | 16,950 | 9,455 | (28,907) | 959 | 126 | 188 | 1,959,912 | 2,374,231 | 320,363 | 415,687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | (3) | - | - | - | - | - | (50) | - | (1,144) | (7) | - | (11) | (1,772) | - | (14) | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | - | - | - | - | - | (145) | (3) | - | (2) | (204) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | N/A | - | N/A | N/A | - | N/A | - | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | (1) | - | (9) | - | - | - | - | - | (422) | - | (1,392) | (15) | - | (8) | (2,716) | - | (214) | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | - | - | (7) | N/A | N/A | N/A | (225) | - | (1) | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | - | - | - | - | - | (7) | - | (52) | (2) | - | (2) | (4,125) | - | (195) | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | (48) | (2,217) | (1,322) | (1,167) | (69) | (1,526) | - | - | - | - | - | (1) | - | - | (27,378) | (38,008) | (10,450) | (40,661) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment transactions* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | - | - | - | - | - | - | - | - | (658) | - | - | (2) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | - | - | - | - | - | (160) | - | - | (1) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | N/A | - | N/A | N/A | - | N/A | - | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | - | - | - | - | - | - | - | - | - | - | (560) | - | - | (4) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | - | - | (6) | N/A | N/A | N/A | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | - | - | - | - | - | - | - | (28) | - | - | (1) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | - | - | - | (5,568) | - | - | - | - | - | - | - | - | - | - | - | (207,095) | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Decrease) from Dividends and Distributions | (49) | (2,217) | (1,334) | (6,735) | (69) | (1,526) | - | - | (479) | - | (4,152) | (28) | - | (31) | (36,420) | (245,103) | (10,874) | (40,661) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | 759 | 62 | 266 | 16 | 52 | 89 | 578 | 235 | 15,211 | 7,088 | 104,626 | 995 | 1,018 | 4,459 | 173,910 | 155,314 | 345 | 1,633 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | 60 | 21 | - | 13 | 33 | 199 | 322 | 36 | 4,094 | 1,046 | 21,271 | 569 | 112 | 995 | 49,591 | 39,334 | 169 | 342 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | 2,140 | N/A | 740 | N/A | 1,271 | N/A | 3,759 | N/A | 1,089 | N/A | N/A | 606 | N/A | N/A | 34,038 | N/A | 13,532 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | 2,144 | 1,026 | 3 | 574 | 12,466 | 86 | 288 | 1,028 | 42,052 | 6,197 | 100,296 | 5,311 | 384 | 2,929 | 238,712 | 174,339 | 9,679 | 3,059 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 69 | 8 | 745 | N/A | N/A | N/A | 28,340 | 15,327 | 96 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | 175 | 11 | 638 | 16 | - | 13 | 150 | 67 | 1,315 | 504 | 6,477 | 17 | 128 | 1,190 | 257,953 | 169,128 | 4,205 | 5,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | 18,692 | 31,274 | 3,722 | 8,308 | 24,250 | 42,892 | 35,560 | 75,365 | 683 | - | 1 | 526 | - | 1 | 839,292 | 1,662,937 | 23,481 | 65,476 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | 447,301 | N/A | 76,480 | N/A | 104,158 | N/A | 508,009 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2,197,080 | N/A | 1,176,440 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 400,243 | N/A | 2,041 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 179,919 | N/A | 879 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 335,846 | N/A | 28,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 90,316 | N/A | 506 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1,118,975 | N/A | 46,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption fees | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | 1 | N/A | 1 | N/A | 2 | N/A | 3 | N/A | - | N/A | N/A | - | N/A | N/A | 85 | N/A | 3 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | - | - | - | - | - | - | 1 | - | 1 | - | 39 | - | - | - | 115 | 19 | 2 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | - | - | - | N/A | N/A | N/A | 7 | 1 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | - | - | - | - | - | 1 | 1 | 4 | - | 4 | - | 39 | 164 | 2 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | 7 | 63 | 1 | 7 | 10 | 56 | 17 | 75 | - | - | - | - | - | - | 538 | 1,095 | 10 | 69 |
92 | MARCH 31, 2010
See footnotes at the end of the Statement.
See Notes to Financial Statements.
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93
Statements of Changes in Net Assets (continued)
For the five- or six-month period ended March 31, 2010 (unaudited), | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 and the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
fiscal years ended July 31, 2009 or October 31, 2009 | Janus Global Life Sciences Fund | Janus Global Opportunities Fund | Janus Global Research Fund | Janus Global Technology Fund | Janus International Equity Fund | Janus International Forty Fund | Janus Overseas Fund | Janus Worldwide Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | 2010 | 2009(3) | 2009(4) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | 3 | - | - | - | - | - | 49 | - | 1,405 | 7 | - | 5 | 1,531 | - | 14 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | - | - | - | - | - | 193 | 2 | - | 3 | 137 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | N/A | - | N/A | N/A | - | N/A | - | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | - | - | - | - | - | - | - | - | 373 | - | 1,857 | 9 | - | 12 | 2,188 | - | 202 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | - | - | 13 | N/A | N/A | N/A | 163 | - | 1 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | - | - | - | - | - | 6 | - | 70 | 2 | - | 3 | 4,083 | - | 195 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | 47 | 2,178 | 1,300 | 6,620 | 68 | 1,505 | - | - | - | - | - | 1 | - | - | 26,807 | 239,274 | 10,222 | 39,764 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (45) | - | - | - | - | - | (65) | - | (21,109) | (4,880) | (94,437) | (2,669) | (66) | (2,363) | (108,218) | (97,815) | (1,571) | (140) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | (2) | - | (25) | (4) | - | - | (2,055) | (599) | (19,370) | (165) | (10) | (587) | (16,547) | (10,886) | (206) | (40) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | (6,304) | N/A | (2,162) | N/A | (2,810) | N/A | (8,020) | N/A | (29) | N/A | N/A | - | N/A | N/A | (27,467) | N/A | (26,965) | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I Shares | (162) | (8) | (546) | (4) | (397) | (52) | (228) | - | (9,580) | (1,234) | (89,885) | (1,240) | (183) | (1,942) | (73,465) | (40,453) | (3,460) | (956) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | (9) | (1) | (686) | N/A | N/A | N/A | (12,091) | (9,324) | (149) | (29) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | (6) | (2) | - | (19) | - | (588) | (342) | (5,274) | (275) | (224) | (529) | (162,846) | (112,877) | (8,670) | (6,739) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | (33,382) | (102,818) | (4,922) | (16,436) | (16,883) | (51,120) | (37,715) | (78,462) | (10) | - | - | (1) | - | - | (575,524) | (1,010,443) | (128,684) | (300,525) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares | (449,313) | N/A | (76,507) | N/A | (116,162) | N/A | (508,184) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | (2,188,397) | N/A | (1,178,164) | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (17,880) | (68,191) | (985) | (892) | 6,031 | (6,336) | (5,544) | (1,656) | 31,563 | 7,788 | 27,345 | 3,695 | 1,163 | 4,176 | 690,054 | 3,300,433 | (109,271) | (115,348) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 72,083 | (5,816) | 5,103 | 13,392 | 31,755 | 36,027 | 119,793 | 181,515 | 48,034 | 17,243 | (5,714) | 4,626 | 1,289 | 4,333 | 2,613,546 | 5,429,561 | 200,218 | 259,678 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 647,290 | 653,106 | 99,017 | 85,625 | 203,448 | 167,421 | 714,844 | 533,329 | 174,474 | 157,231 | 162,945 | 7,080 | 5,791 | 1,458 | 9,774,585 | 4,345,024 | 2,304,537 | 2,044,859 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
End of period | $ | 719,373 | $ | 647,290 | $ | 104,120 | $ | 99,017 | $ | 235,203 | $ | 203,448 | $ | 834,637 | $ | 714,844 | $ | 222,508 | $ | 174,474 | $ | 157,231 | $ | 11,706 | $ | 7,080 | $ | 5,791 | $ | 12,388,131 | $ | 9,774,585 | $ | 2,504,755 | $ | 2,304,537 | ||||||||||||||||||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | 2,285 | $ | 38 | $ | 208 | $ | 413 | $ | 322 | $ | 64 | $ | (1,606) | $ | 42 | $ | 554 | $ | 471 | 112(5) | $ | 4 | $ | 28 | $ | 21 | $ | (21,726) | $ | 30,403 | $ | 2,947 | $ | 9,238 |
* | See Note 5 in Notes to Financial Statements | |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from November 1, 2008 through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Prior year amounts have been reclassified due to the recharacterization of dividend income to return of capital with no impact to net assets. | |
(6) | Formerly named Class J Shares for all Funds except Janus International Equity Fund and Janus International Forty Fund. |
94 | MARCH 31, 2010
See Notes to Financial Statements.
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95
Financial Highlights
Class A Shares
Janus Global Life | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Sciences Fund | Opportunities Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $19.69 | $17.81 | $10.90 | $9.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .08 | (.01) | .05 | .06 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.68 | 1.89 | .81 | 1.40 | ||||||||||||||
Total from Investment Operations | 2.76 | 1.88 | .86 | 1.46 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.17) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.02) | – | (.17) | – | ||||||||||||||
Net Asset Value, End of Period | $22.43 | $19.69 | $11.59 | $10.90 | ||||||||||||||
Total Return** | 14.02% | 10.56% | 7.99% | 15.47% | ||||||||||||||
Net Assets, End of Period (in thousands) | $799 | $61 | $293 | $16 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $368 | $27 | $202 | $6 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.05%(4) | 1.10% | 1.29% | 0.93% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.05%(4) | 1.05% | 1.29% | 0.84% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.21% | (0.19)% | 1.85% | 0.50% | ||||||||||||||
Portfolio Turnover Rate*** | 45% | 70% | 28% | 62% |
Class A Shares
Janus Global | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Research Fund | Technology Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.38 | $9.81 | $12.56 | $10.96 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .02 | (.01) | (.02) | .01 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.40 | 1.58 | 2.23 | 1.59 | ||||||||||||||
Total from Investment Operations | 1.42 | 1.57 | 2.21 | 1.60 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | –(5) | – | –(5) | – | ||||||||||||||
Total Distributions and Other | (.02) | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $12.78 | $11.38 | $14.77 | $12.56 | ||||||||||||||
Total Return** | 12.48% | 16.00% | 17.60% | 14.60% | ||||||||||||||
Net Assets, End of Period (in thousands) | $151 | $85 | $816 | $232 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $121 | $7 | �� | $468 | $88 | |||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.24% | 1.37% | 1.17%(6) | 1.07%(6) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.23% | 0.93% | 1.17%(6) | 0.99%(6) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.36% | (3.12)% | (0.46)% | (0.45)% | ||||||||||||||
Portfolio Turnover Rate*** | 69% | 99% | 76% | 111% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.05% and 1.04%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Redemption fees aggregated less than $.01 on a per share basis. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.06% and 1.05%, respectively, in 2010 and 1.06% and 0.99%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
96 | MARCH 31, 2010
Class A Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Equity Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007(2)(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.65 | $9.11 | $11.53 | $11.35 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .03 | .02 | .12 | (.02) | .09 | |||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .83 | .52 | (2.29) | .29 | 1.26 | |||||||||||||||||
Total from Investment Operations | .86 | .54 | (2.17) | .27 | 1.35 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.01) | – | (.16) | (.04) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | (.09) | (.05) | – | |||||||||||||||||
Redemption Fees | –(4) | – | – | – | – | |||||||||||||||||
Total Distributions and Other | (.01) | – | (.25) | (.09) | – | |||||||||||||||||
Net Asset Value, End of Period | $10.50 | $9.65 | $9.11 | $11.53 | $11.35 | |||||||||||||||||
Total Return** | 8.89% | 5.93% | (18.29)% | 2.29% | 13.50% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $71,854 | $71,609 | $65,443 | $73,749 | $800 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $66,346 | $69,156 | $54,721 | $21,952 | $643 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(5) | 1.26% | 1.31% | 1.41% | 1.28% | 1.50% | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(5) | 1.26% | 1.31% | 1.41% | 1.27% | 1.50% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.51% | 1.02% | 1.49%(6) | 1.32% | 1.44% | |||||||||||||||||
Portfolio Turnover Rate*** | 98% | 115% | 176% | 39% | 57% |
Class A Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Forty Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(7) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.28 | $7.12 | $9.11 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .02 | .01 | .04 | – | ||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .78 | .15 | (1.98) | (.89) | ||||||||||||||||||
Total from Investment Operations | .80 | .16 | (1.94) | (.89) | ||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.03) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | (.02) | – | ||||||||||||||||||
Total Distributions | (.02) | – | (.05) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.06 | $7.28 | $7.12 | $9.11 | ||||||||||||||||||
Total Return** | 11.07% | 2.25% | (21.08)% | (8.90)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,385 | $3,736 | $2,712 | $321 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,397 | $3,296 | $796 | $247 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(5) | 1.22%(8) | 1.26%(8) | 1.51%(9) | 1.54%(9) | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(5) | 1.22%(8) | 1.25%(8) | 1.50%(9) | 1.54%(9) | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.27% | 0.99% | 1.58% | (0.37)% | ||||||||||||||||||
Portfolio Turnover Rate*** | 136% | 133% | 138% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2006 (inception date) through July 31, 2007. | |
(3) | Certain prior year amounts have been reclassified to conform with current year presentation. | |
(4) | Redemption fees aggregated less than $.01 on a per share basis. | |
(5) | See Note 6 in Notes to Financial Statements. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
(7) | Period from May 30, 2008 (inception date) through July 31, 2008. | |
(8) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 1.57% and 1.57%, respectively, in 2010 and 1.69% and 1.68%, respectively, for the fiscal period ended September 30, 2009 without the waivers of these fees and expenses. | |
(9) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.51% and 1.50%, respectively, for the fiscal year ended July 31, 2009 and 1.50% and 1.50%, respectively, in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Global & International Funds | 97
Financial Highlights (continued)
Class A Shares
Janus | Janus | |||||||||||||||||
For a share outstanding during the five-month period ended | Overseas Fund | Worldwide Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $38.63 | $33.51 | $37.43 | $33.40 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.08) | .22 | (.02) | .04 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.67 | 4.90 | 5.29 | 3.99 | ||||||||||||||
Total from Investment Operations | 7.59 | 5.12 | 5.27 | 4.03 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.14) | – | (.17) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.14) | – | (.17) | – | ||||||||||||||
Net Asset Value, End of Period | $46.08 | $38.63 | $42.53 | $37.43 | ||||||||||||||
Total Return** | 19.68% | 15.28% | 14.11% | 12.07% | ||||||||||||||
Net Assets, End of Period (in thousands) | $622,641 | $462,533 | $2,198 | $3,084 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $552,062 | $452,405 | $2,966 | $2,020 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.97% | 1.00% | 0.94% | 1.20% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.97% | 1.00% | 0.93% | 1.17% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.37)% | 0.39% | 0.27% | 0.81% | ||||||||||||||
Portfolio Turnover Rate*** | 20% | 45% | 134% | 195% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. |
98 | MARCH 31, 2010
Class C Shares
Janus Global Life | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Sciences Fund | Opportunities Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $19.64 | $17.81 | $10.92 | $9.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .02 | (.03) | .07 | .03 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.67 | 1.86 | .70 | 1.45 | ||||||||||||||
Total from Investment Operations | 2.69 | 1.83 | .77 | 1.48 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | (.16) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | (.16) | – | ||||||||||||||
Net Asset Value, End of Period | $22.33 | $19.64 | $11.53 | $10.92 | ||||||||||||||
Total Return** | 13.70% | 10.28% | 7.12% | 15.68% | ||||||||||||||
Net Assets, End of Period (in thousands) | $84 | $21 | $12 | $13 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $25 | $7 | $13 | $3 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.80%(4) | 1.87% | 1.87% | 1.79% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.80%(4) | 1.80% | 1.87% | 1.63% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.15% | (1.09)% | 1.81% | 0.31% | ||||||||||||||
Portfolio Turnover Rate*** | 45% | 70% | 28% | 62% |
Class C Shares
Janus Global | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Research Fund | Technology Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.34 | $9.81 | $12.53 | $10.96 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.02) | (.01) | (.03) | – | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.39 | 1.54 | 2.19 | 1.57 | ||||||||||||||
Total from Investment Operations | 1.37 | 1.53 | 2.16 | 1.57 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | –(5) | – | –(5) | – | ||||||||||||||
Total Distributions and Other | (.02) | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $12.69 | $11.34 | $14.69 | $12.53 | ||||||||||||||
Total Return** | 12.05% | 15.60% | 17.24% | 14.32% | ||||||||||||||
Net Assets, End of Period (in thousands) | $218 | $188 | $386 | $36 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $181 | $28 | $182 | $14 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.98% | 1.55% | 1.92%(6) | 1.82%(6) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.98% | 1.31% | 1.92%(6) | 1.75%(6) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.44)% | (1.32)% | (1.11)% | (1.20)% | ||||||||||||||
Portfolio Turnover Rate*** | 69% | 99% | 76% | 111% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.80% and 1.79%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Redemption fees aggregated less than $.01 on a per share basis. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.81% and 1.80%, respectively, in 2010 and 1.82% and 1.74%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Global & International Funds | 99
Financial Highlights (continued)
Class C Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Equity Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.52 | $9.00 | $11.37 | $11.30 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.01) | .01 | .06 | (.02) | .04 | |||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .82 | .51 | (2.26) | .14 | 1.26 | |||||||||||||||||
Total from Investment Operations | .81 | .52 | (2.20) | .12 | 1.30 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.08) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | (.09) | (.05) | – | |||||||||||||||||
Redemption Fees | –(3) | – | – | – | – | |||||||||||||||||
Total Distributions and Other | – | – | (.17) | (.05) | – | |||||||||||||||||
Net Asset Value, End of Period | $10.33 | $9.52 | $9.00 | $11.37 | $11.30 | |||||||||||||||||
Total Return** | 8.51% | 5.78% | (18.88)% | 1.02% | 13.00% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $20,150 | $16,596 | $15,260 | $16,623 | $846 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $18,196 | $15,959 | $12,613 | $5,971 | $619 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 2.01% | 2.08% | 2.20% | 2.04% | 2.26% | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 2.01% | 2.07% | 2.20% | 2.04% | 2.25% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.27)% | 0.24% | 0.75%(5) | 0.51% | 0.63% | |||||||||||||||||
Portfolio Turnover Rate*** | 98% | 115% | 176% | 39% | 57% |
Class C Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Forty Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(6) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.25 | $7.09 | $9.10 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.01) | – | .07 | (.01) | ||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .79 | .16 | (2.03) | (.89) | ||||||||||||||||||
Total from Investment Operations | .78 | .16 | (1.96) | (.90) | ||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.03) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | (.02) | – | ||||||||||||||||||
Total Distributions | (.02) | – | (.05) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.01 | $7.25 | $7.09 | $9.10 | ||||||||||||||||||
Total Return** | 10.84% | 2.26% | (21.32)% | (9.00)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,281 | $778 | $660 | $248 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,040 | $736 | $246 | $242 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.60%(7) | 1.43%(7) | 1.04%(7)(8) | 2.29%(8) | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.59%(7) | 1.41%(7) | 1.03%(7)(8) | 2.29%(8) | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.19)% | 0.76% | 1.95% | (1.13)% | ||||||||||||||||||
Portfolio Turnover Rate*** | 136% | 133% | 138% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2006 (inception date) through July 31, 2007. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from May 30, 2008 (inception date) through July 31, 2008. | |
(7) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 2.32% and 2.31%, respectively, in 2010, 2.44% and 2.42%, respectively, for the fiscal period ended September 30, 2009 and 2.26% and 2.25%, respectively, for the fiscal year ended July 31, 2009 without the waivers of these fees and expenses. | |
(8) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.04% and 1.03%, respectively, for the fiscal year ended July 31, 2009 and 2.25% and 2.25%, respectively, in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
100 | MARCH 31, 2010
Class C Shares
Janus | Janus | |||||||||||||||||
For a share outstanding during the five-month period ended | Overseas Fund | Worldwide Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $38.52 | $33.51 | $37.34 | $33.40 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.21) | .10 | (.10) | (.05) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.62 | 4.91 | 5.21 | 3.99 | ||||||||||||||
Total from Investment Operations | 7.41 | 5.01 | 5.11 | 3.94 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.04) | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.04) | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $45.89 | $38.52 | $42.45 | $37.34 | ||||||||||||||
Total Return** | 19.25% | 14.95% | 13.69% | 11.80% | ||||||||||||||
Net Assets, End of Period (in thousands) | $256,939 | $185,858 | $1,265 | $1,144 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $221,364 | $170,640 | $1,230 | $1,063 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.83% | 1.93% | 1.83% | 2.07% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.83% | 1.92% | 1.83% | 2.05% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.22)% | (0.56)% | (0.55)% | (0.14)% | ||||||||||||||
Portfolio Turnover Rate*** | 20% | 45% | 134% | 195% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. |
Janus Global & International Funds | 101
Financial Highlights (continued)
Class D Shares
Janus Global Life | Janus Global | |||||||||
For a share outstanding during the period | Sciences Fund | Opportunities Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $21.65 | $11.16 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .06 | .05 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | .76 | .42 | ||||||||
Total from Investment Operations | .82 | .47 | ||||||||
Less Distributions and Other: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Redemption Fees | –(2) | –(2) | ||||||||
Total Distributions and Other | – | – | ||||||||
Net Asset Value, End of Period | $22.47 | $11.63 | ||||||||
Total Return** | 3.79% | 4.21% | ||||||||
Net Assets, End of Period (in thousands) | $460,132 | $78,209 | ||||||||
Average Net Assets for the Period (in thousands) | $458,317 | $77,890 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.90%(4) | 1.16% | ||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.90%(4) | 1.15% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.23% | 3.50% | ||||||||
Portfolio Turnover Rate*** | 45% | 28% |
Class D Shares
Janus Global | Janus Global | |||||||||
For a share outstanding during the period | Research Fund | Technology Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $11.79 | $13.46 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .03 | – | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | .97 | 1.33 | ||||||||
Total from Investment Operations | 1.00 | 1.33 | ||||||||
Less Distributions and Other: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Redemption Fees | –(2) | –(2) | ||||||||
Total Distributions and Other | – | – | ||||||||
Net Asset Value, End of Period | $12.79 | $14.79 | ||||||||
Total Return** | 8.48% | 9.88% | ||||||||
Net Assets, End of Period (in thousands) | $111,387 | $553,769 | ||||||||
Average Net Assets for the Period (in thousands) | $108,958 | $535,916 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.09% | 0.95%(5) | ||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.07% | 0.94%(5) | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.72% | 0.20% | ||||||||
Portfolio Turnover Rate*** | 69% | 76% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through March 31, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. | |
(2) | Redemption fees aggregated less than $.01 on a per share basis. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.90% and 0.89%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.91% and 0.90%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
102 | MARCH 31, 2010
Class D Shares
Janus International | Janus International | |||||||||
For a share outstanding during the period | Equity Fund | Forty Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $9.71 | $7.50 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .02 | .01 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | .75 | .61 | ||||||||
Total from Investment Operations | .77 | .62 | ||||||||
Less Distributions and Other: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Redemption Fees | –(2) | – | ||||||||
Total Distributions and Other | – | – | ||||||||
Net Asset Value, End of Period | $10.48 | $8.12 | ||||||||
Total Return** | 7.93% | 8.27% | ||||||||
Net Assets, End of Period (in thousands) | $1,083 | $618 | ||||||||
Average Net Assets for the Period (in thousands) | $453 | $272 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.09% | 0.55%(4) | ||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.08% | 0.52%(4) | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 3.36% | 1.54% | ||||||||
Portfolio Turnover Rate*** | 98% | 136% |
Class D Shares
Janus Overseas | Janus Worldwide | |||||||||
For a share outstanding during the period | Fund | Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $41.51 | $38.92 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .02 | .05 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 4.58 | 3.65 | ||||||||
Total from Investment Operations | 4.60 | 3.70 | ||||||||
Less Distributions and Other: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Redemption Fees | –(2) | –(2) | ||||||||
Total Distributions and Other | – | – | ||||||||
Net Asset Value, End of Period | $46.11 | $42.62 | ||||||||
Total Return** | 11.08% | 9.51% | ||||||||
Net Assets, End of Period (in thousands) | $2,447,443 | $1,274,411 | ||||||||
Average Net Assets for the Period (in thousands) | $2,346,360 | $1,242,899 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.79% | 0.76% | ||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.79% | 0.76% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.35% | 0.97% | ||||||||
Portfolio Turnover Rate*** | 20% | 134% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through March 31, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. | |
(2) | Redemption fees aggregated less than $.01 on a per share basis. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 1.43% and 1.40%, respectively, without the waivers of these fees and expenses. |
Janus Global & International Funds | 103
Financial Highlights (continued)
Class I Shares
Janus Global Life | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Sciences Fund | Opportunities Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $19.71 | $17.81 | $10.92 | $9.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .09 | – | (1.12) | .02 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.70 | 1.90 | 1.91 | 1.46 | ||||||||||||||
Total from Investment Operations | 2.79 | 1.90 | .79 | 1.48 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.17) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.02) | – | (.17) | – | ||||||||||||||
Net Asset Value, End of Period | $22.48 | $19.71 | $11.54 | $10.92 | ||||||||||||||
Total Return** | 14.17% | 10.67% | 7.33% | 15.68% | ||||||||||||||
Net Assets, End of Period (in thousands) | $3,186 | $991 | $37 | $562 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,649 | $249 | $295 | $58 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.79%(4) | 0.87% | 0.72% | 0.85% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.79%(4) | 0.77% | 0.72% | 0.54% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.47% | 0.10% | 3.34% | (0.10)% | ||||||||||||||
Portfolio Turnover Rate*** | 45% | 70% | 28% | 62% |
Class I Shares
Janus Global | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Research Fund | Technology Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.38 | $9.81 | $12.57 | $10.96 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .02 | .03 | (.02) | – | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.41 | 1.54 | 2.26 | 1.61 | ||||||||||||||
Total from Investment Operations | 1.43 | 1.57 | 2.24 | 1.61 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | –(5) | – | .01 | – | ||||||||||||||
Total Distributions and Other | (.02) | – | .01 | – | ||||||||||||||
Net Asset Value, End of Period | $12.79 | $11.38 | $14.82 | $12.57 | ||||||||||||||
Total Return** | 12.59% | 16.00% | 17.90% | 14.69% | ||||||||||||||
Net Assets, End of Period (in thousands) | $13,131 | $37 | $1,197 | $973 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $3,697 | $31 | $974 | $123 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.99% | 0.43% | 0.92%(6) | 0.85%(6) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.98% | 0.39% | 0.92%(6) | 0.63%(6) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.85% | 1.01% | (0.32)% | (1.27)% | ||||||||||||||
Portfolio Turnover Rate*** | 69% | 99% | 76% | 111% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.79% and 0.79%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Redemption fees aggregated less than $.01 on a per share basis. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.80% and 0.79%, respectively, in 2010 and 0.85% and 0.63%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
104 | MARCH 31, 2010
Class I Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Equity Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.65 | $9.11 | $11.52 | $11.39 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .03 | .02 | .14 | .08 | .05 | |||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .84 | .52 | (2.27) | .16 | 1.34 | |||||||||||||||||
Total from Investment Operations | .87 | .54 | (2.13) | .24 | 1.39 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.04) | – | (.19) | (.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | (.09) | (.05) | – | |||||||||||||||||
Redemption Fees | –(3) | –(3) | –(3) | –(3) | – | |||||||||||||||||
Total Distributions and Other | (.04) | – | (.28) | (.11) | – | |||||||||||||||||
Net Asset Value, End of Period | $10.48 | $9.65 | $9.11 | $11.52 | $11.39 | |||||||||||||||||
Total Return** | 9.07% | 5.93% | (17.89)% | 2.02% | 13.90% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $122,000 | $80,850 | $71,578 | $68,397 | $22,761 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $100,500 | $75,168 | $52,295 | $43,172 | $6,599 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.94% | 0.97% | 1.04% | 1.19% | 1.26% | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.94% | 0.97% | 1.04% | 1.18% | 1.25% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.81% | 1.37% | 2.00%(5) | 1.17% | 2.28% | |||||||||||||||||
Portfolio Turnover Rate*** | 98% | 115% | 176% | 39% | 57% |
Class I Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Forty Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(6) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.33 | $7.16 | $9.11 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.04) | – | .11 | – | ||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .84 | .17 | (2.01) | (.89) | ||||||||||||||||||
Total from Investment Operations | .80 | .17 | (1.90) | (.89) | ||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.03) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | (.02) | – | ||||||||||||||||||
Total Distributions | (.02) | – | (.05) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.11 | $7.33 | $7.16 | $9.11 | ||||||||||||||||||
Total Return** | 10.99% | 2.37% | (20.63)% | (8.90)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,230 | $1,730 | $1,507 | $662 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,597 | $1,468 | $986 | $369 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.31% | 1.44% | 0.55%(7)(8) | 1.28%(8) | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.31% | 1.42% | 0.55%(7)(8) | 1.28%(8) | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.05% | 0.70% | 2.49% | (0.17)% | ||||||||||||||||||
Portfolio Turnover Rate*** | 136% | 133% | 138% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2006 (inception date) through July 31, 2007. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.04%. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from May 30, 2008 (inception date) through July 31, 2008. | |
(7) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 1.26% and 1.25%, respectively, without the waivers of these fees and expenses. | |
(8) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.55% and 0.55%, respectively, for the fiscal year ended July 31, 2009 and 1.25% and 1.25% in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Global & International Funds | 105
Financial Highlights (continued)
Class I Shares
Janus | Janus | |||||||||||||||||
For a share outstanding during the five-month period ended | Overseas Fund | Worldwide Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $38.67 | $33.51 | $37.49 | $33.40 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.03) | .21 | .09 | .09 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.67 | 4.95 | 5.25 | 4.00 | ||||||||||||||
Total from Investment Operations | 7.64 | 5.16 | 5.34 | 4.09 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.17) | – | (.22) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | .01 | –(3) | –(3) | –(3) | ||||||||||||||
Total Distributions and Other | (.16) | – | (.22) | – | ||||||||||||||
Net Asset Value, End of Period | $46.15 | $38.67 | $42.61 | $37.49 | ||||||||||||||
Total Return** | 19.84% | 15.40% | 14.28% | 12.25% | ||||||||||||||
Net Assets, End of Period (in thousands) | $826,943 | $542,392 | $40,949 | $30,008 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $680,595 | $447,943 | $38,222 | $27,800 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.68% | 0.70% | 0.64% | 0.77% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.68% | 0.69% | 0.63% | 0.76% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.06)% | 0.64% | 0.65% | 1.12% | ||||||||||||||
Portfolio Turnover Rate*** | 20% | 45% | 134% | 195% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. |
106 | MARCH 31, 2010
Class R Shares
For a share outstanding during the six-month period ended March 31, 2010 | ||||||||||||||||||||||
(unaudited), the two-month fiscal period ended September 30, 2009 and each | Janus International Equity Fund | |||||||||||||||||||||
fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.58 | $9.05 | $11.40 | $11.32 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | – | .01 | .09 | (.01) | .07 | |||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .83 | .52 | (2.26) | .14 | 1.25 | |||||||||||||||||
Total from Investment Operations | .83 | .53 | (2.17) | .13 | 1.32 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.09) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | (.09) | (.05) | – | |||||||||||||||||
Redemption Fees | –(3) | – | – | – | – | |||||||||||||||||
Total Distributions and Other | – | – | (.18) | (.05) | – | |||||||||||||||||
Net Asset Value, End of Period | $10.41 | $9.58 | $9.05 | $11.40 | $11.32 | |||||||||||||||||
Total Return** | 8.66% | 5.86% | (18.61)% | 1.11% | 13.20% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $840 | $716 | $670 | $750 | $566 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $752 | $694 | $538 | $647 | $553 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.68% | 1.71% | 1.78% | 2.00% | 2.00% | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.68% | 1.71% | 1.78% | 2.00% | 2.00% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.06% | 0.60% | 1.18%(5) | 0.22% | 0.85% | |||||||||||||||||
Portfolio Turnover Rate*** | 98% | 115% | 176% | 39% | 57% |
Class R Shares
Janus | Janus | |||||||||||||||||||||
For a share outstanding during the five-month period ended | Overseas Fund | Worldwide Fund | ||||||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(6) | 2009(7) | 2010(6) | 2009(7) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $38.58 | $33.51 | $37.40 | $33.40 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (.14) | .16 | (.02) | .01 | ||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.64 | 4.91 | 5.23 | 3.99 | ||||||||||||||||||
Total from Investment Operations | 7.50 | 5.07 | 5.21 | 4.00 | ||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.09) | – | (.08) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||||||
Redemption Fees | –(3) | – | – | – | ||||||||||||||||||
Total Distributions and Other | (.09) | – | (.08) | – | ||||||||||||||||||
Net Asset Value, End of Period | $45.99 | $38.58 | $42.53 | $37.40 | ||||||||||||||||||
Total Return** | 19.45% | 15.13% | 13.95% | 11.98% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $135,724 | $99,338 | $548 | $532 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $116,206 | $95,361 | $530 | $494 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.42% | 1.44% | 1.38% | 1.52% | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.42% | 1.43% | 1.38% | 1.51% | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.81)% | (0.07)% | (0.11)% | 0.39% | ||||||||||||||||||
Portfolio Turnover Rate*** | 20% | 45% | 134% | 195% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2006 (inception date) through July 31, 2007. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(7) | Period from July 6, 2009 (inception date) through October 31, 2009. |
Janus Global & International Funds | 107
Financial Highlights (continued)
Class S Shares
Janus Global Life | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Sciences Fund | Opportunities Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $19.66 | $17.81 | $11.02 | $9.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .07 | – | .06 | .16 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.67 | 1.85 | .75 | 1.25 | ||||||||||||||
Total from Investment Operations | 2.74 | 1.85 | .81 | 1.41 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.17) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | – | – | – | .17 | ||||||||||||||
Total Distributions and Other | (.02) | – | (.17) | .17 | ||||||||||||||
Net Asset Value, End of Period | $22.38 | $19.66 | $11.66 | $11.02 | ||||||||||||||
Total Return** | 13.94% | 10.39% | 7.41% | 16.74% | ||||||||||||||
Net Assets, End of Period (in thousands) | $188 | $11 | $671 | $11 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $92 | $1 | $181 | $9 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.30%(4) | 1.48% | 1.57% | 1.13% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.30%(4) | 1.24% | 1.56% | 1.09% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.03% | (0.07)% | 3.44% | 1.10% | ||||||||||||||
Portfolio Turnover Rate*** | 45% | 70% | 28% | 62% |
Class S Shares
Janus Global | Janus Global | |||||||||||||||||
For a share outstanding during the five-month period ended | Research Fund | Technology Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.36 | $9.81 | $12.55 | $10.96 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | – | �� | (.01) | (.03) | .01 | |||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.40 | 1.56 | 2.22 | 1.58 | ||||||||||||||
Total from Investment Operations | 1.40 | 1.55 | 2.19 | 1.59 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | –(5) | – | –(5) | – | ||||||||||||||
Total Distributions and Other | (.02) | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $12.74 | $11.36 | $14.74 | $12.55 | ||||||||||||||
Total Return** | 12.31% | 15.80% | 17.45% | 14.51% | ||||||||||||||
Net Assets, End of Period (in thousands) | $12 | $13 | $218 | $67 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $13 | $2 | $120 | $38 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.48% | 1.42% | 1.42%(6) | 1.31%(6) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.47% | 1.16% | 1.41%(6) | 1.26%(6) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | (1.18)% | (0.71)% | (0.61)% | ||||||||||||||
Portfolio Turnover Rate*** | 69% | 99% | 76% | 111% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.29% and 1.29%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Redemption fees aggregated less than $.01 on a per share basis. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.30% and 1.30%, respectively, in 2010 and 1.31% and 1.26%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
108 | MARCH 31, 2010
Class S Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Equity Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.78 | $9.24 | $11.62 | $11.34 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .01 | .02 | .07 | .03 | .08 | |||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .86 | .52 | (2.25) | – | 1.26 | |||||||||||||||||
Total from Investment Operations | .87 | .54 | (2.18) | .03 | 1.34 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.01) | – | (.12) | (.01) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | (.09) | (.05) | – | |||||||||||||||||
Redemption Fees | –(3) | –(3) | .01 | .31 | – | |||||||||||||||||
Total Distributions and Other | (.01) | – | (.20) | .25 | – | |||||||||||||||||
Net Asset Value, End of Period | $10.64 | $9.78 | $9.24 | $11.62 | $11.34 | |||||||||||||||||
Total Return** | 8.93% | 5.84% | (18.22)% | 2.94% | 13.40% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $5,868 | $4,702 | $4,279 | $3,426 | $602 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,106 | $4,556 | $2,738 | $2,837 | $565 | |||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.43% | 1.46% | 1.54% | 1.54% | 1.75% | |||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.43% | 1.46% | 1.54% | 1.54% | 1.75% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.31% | 0.86% | 1.50%(5) | 1.07% | 1.10% | |||||||||||||||||
Portfolio Turnover Rate*** | 98% | 115% | 176% | 39% | 57% |
Class S Shares
For a share outstanding during the six-month period ended | Janus International | |||||||||||||||||||||
March 31, 2010 (unaudited), the two-month fiscal period ended | Forty Fund | |||||||||||||||||||||
September 30, 2009 and each fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008(6) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $7.30 | $7.11 | $9.11 | $10.00 | ||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | .01 | – | .05 | (.01) | ||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .79 | .16 | (2.00) | (.88) | ||||||||||||||||||
Total from Investment Operations | .80 | .16 | (1.95) | (.89) | ||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (.02) | – | (.03) | – | ||||||||||||||||||
Distributions (from capital gains)* | – | – | (.02) | – | ||||||||||||||||||
Redemption Fees | – | .03 | –(3) | – | ||||||||||||||||||
Total Distributions and Other | (.02) | .03 | (.05) | – | ||||||||||||||||||
Net Asset Value, End of Period | $8.08 | $7.30 | $7.11 | $9.11 | ||||||||||||||||||
Total Return** | 11.04% | 2.67% | (21.19)% | (8.90)% | ||||||||||||||||||
Net Assets, End of Period (in thousands) | $644 | $835 | $911 | $227 | ||||||||||||||||||
Average Net Assets for the Period (in thousands) | $719 | $887 | $207 | $237 | ||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.27%(7) | 1.74% | 1.02%(7)(8) | 1.79%(8) | ||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.27%(7) | 1.72% | 1.01%(7)(8) | 1.79%(8) | ||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.09% | 0.35% | 2.05% | (0.62)% | ||||||||||||||||||
Portfolio Turnover Rate*** | 136% | 133% | 138% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2006 (inception date) through July 31, 2007. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.04%. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from May 30, 2008 (inception date) through July 31, 2008. | |
(7) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 1.82% and 1.82%, respectively, in 2010 and 1.76% and 1.75%, respectively, for the fiscal year ended July 31, 2009 without the waivers of these fees and expenses. | |
(8) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.02% and 1.01%, respectively, for the fiscal year ended July 31, 2009 and 1.75% and 1.75% in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Global & International Funds | 109
Financial Highlights (continued)
Class S Shares
Janus | Janus | |||||||||||||||||
For a share outstanding during the five-month period ended | Overseas Fund | Worldwide Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $38.61 | $33.51 | $37.43 | $33.40 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.10) | .20 | .02 | .04 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.65 | 4.89 | 5.23 | 3.98 | ||||||||||||||
Total from Investment Operations | 7.55 | 5.09 | 5.25 | 4.02 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.11) | – | (.12) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption Fees | –(3) | .01 | –(3) | .01 | ||||||||||||||
Total Distributions and Other | (.11) | .01 | (.12) | .01 | ||||||||||||||
Net Asset Value, End of Period | $46.05 | $38.61 | $42.56 | $37.43 | ||||||||||||||
Total Return** | 19.59% | 15.22% | 14.05% | 12.07% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,739,943 | $1,371,807 | $65,709 | $61,824 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,552,755 | $1,344,815 | $64,142 | $62,260 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.17% | 1.19% | 1.13% | 1.27% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.17% | 1.18% | 1.13% | 1.26% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.57)% | 0.18% | 0.14% | 0.64% | ||||||||||||||
Portfolio Turnover Rate*** | 20% | 45% | 134% | 195% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. |
110 | MARCH 31, 2010
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $19.70 | $17.78 | $24.12 | $20.25 | $19.37 | $16.08 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .09 | .04 | .03 | – | – | – | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.68 | 1.94 | (6.38) | 3.87 | .88 | 3.29 | ||||||||||||||||||||
Total from Investment Operations | 2.77 | 1.98 | (6.35) | 3.87 | .88 | 3.29 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (.06) | – | – | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | –(3) | –(3) | .01 | –(3) | –(3) | –(3) | ||||||||||||||||||||
Total Distributions and Other | – | (.06) | .01 | – | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $22.47 | $19.70 | $17.78 | $24.12 | $20.25 | $19.37 | ||||||||||||||||||||
Total Return** | 14.07% | 11.21% | (26.29)% | 19.11% | 4.54% | 20.46% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $254,984 | $646,206 | $653,106 | $894,002 | $982,030 | $1,149,666 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $566,118 | $618,360 | $835,370 | $874,776 | $1,101,726 | $1,181,741 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.96%(5) | 1.04% | 0.98% | 1.01% | 1.02% | 0.97% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.96%(5) | 1.03% | 0.97% | 0.99% | 1.01% | 0.96% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.45% | 0.28% | 0.15% | (0.27)% | (0.39)% | (0.49)% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 45% | 70% | 81% | 61% | 87% | 77% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Global Opportunities Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.95 | $9.36 | $17.21 | $15.32 | $13.91 | $12.93 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .05 | .23 | .15 | .07 | .10 | .10 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .77 | 2.11 | (7.26) | 4.13 | 1.42 | .91 | ||||||||||||||||||||
Total from Investment Operations | .82 | 2.34 | (7.11) | 4.20 | 1.52 | 1.01 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.15) | (.13) | (.27) | (.09) | (.11) | (.03) | ||||||||||||||||||||
Distributions (from capital gains)* | – | (.62) | (.48) | (2.22) | – | – | ||||||||||||||||||||
Redemption fees | –(3) | –(3) | .01 | –(3) | –(3) | –(3) | ||||||||||||||||||||
Total Distributions and Other | (.15) | (.75) | (.74) | (2.31) | (.11) | (.03) | ||||||||||||||||||||
Net Asset Value, End of Period | $11.62 | $10.95 | $9.36 | $17.21 | $15.32 | $13.91 | ||||||||||||||||||||
Total Return** | 7.52% | 27.37% | (42.89)% | 30.59% | 10.96% | 7.78% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $24,898 | $98,415 | $85,625 | $188,616 | $145,667 | $177,560 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $79,375 | $84,893 | $136,813 | $162,723 | $161,256 | $218,871 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.99% | 1.31% | 1.25% | 1.07% | 1.17%(6) | 1.03% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.99% | 1.30% | 1.24% | 1.06% | 1.15% | 1.02% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.41% | 1.05% | 0.70% | 0.43% | 0.57% | 0.62% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 28% | 62% | 18% | 14% | 38% | 36% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.96% and 0.96%, respectively, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | The effect of non-recurring costs assumed by Janus Capital (Note 4) is included in the ratio of gross expenses to average net assets and increased the ratio by 0.02%. |
Janus Global & International Funds | 111
Financial Highlights (continued)
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Global Research Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year or period ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.38 | $8.81 | $17.11 | $13.16 | $11.11 | $10.00 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .01 | .05 | .04 | .04 | .10 | (.01) | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.40 | 2.60 | (7.58) | 4.72 | 2.22 | 1.12 | ||||||||||||||||||||
Total from Investment Operations | 1.41 | 2.65 | (7.54) | 4.76 | 2.32 | 1.11 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (.08) | (.05) | (.05) | (.04) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | (.72) | (.76) | (.23) | – | ||||||||||||||||||||
Redemption fees | –(4) | –(4) | .01 | –(4) | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | – | (.08) | (.76) | (.81) | (.27) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $12.79 | $11.38 | $8.81 | $17.11 | $13.16 | $11.11 | ||||||||||||||||||||
Total Return** | 12.43% | 30.46% | (45.95)% | 38.09% | 21.21% | 11.10% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $110,304 | $203,125 | $167,476 | $284,162 | $113,025 | $47,404 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $185,121 | $166,030 | $260,977 | $173,760 | $79,500 | $29,920 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(5) | 1.18% | 1.25% | 1.15% | 1.12% | 1.16% | 1.27%(6) | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(5) | 1.18% | 1.24% | 1.14% | 1.11% | 1.14% | 1.25% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.10% | 0.56% | 0.39%(7) | 0.36% | 0.48% | (0.24)% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 69% | 99% | 95% | 72% | 118% | 86% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Global Technology Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.57 | $9.29 | $16.51 | $12.23 | $10.88 | $9.70 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.09) | – | – | .06 | – | .01 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.30 | 3.28 | (7.16) | 4.22 | 1.36 | 1.17 | ||||||||||||||||||||
Total from Investment Operations | 2.21 | 3.28 | (7.16) | 4.28 | 1.36 | 1.18 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.06) | – | (.01) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | –(4) | –(4) | –(4) | –(4) | –(4) | –(4) | ||||||||||||||||||||
Total Distributions and Other | – | – | (.06) | – | (.01) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $14.78 | $12.57 | $9.29 | $16.51 | $12.23 | $10.88 | ||||||||||||||||||||
Total Return** | 17.58% | 35.31% | (43.51)% | 35.00% | 12.48% | 12.16% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $278,251 | $713,536 | $533,329 | $1,028,084 | $914,349 | $993,663 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $625,353 | $584,300 | $828,435 | $915,092 | $999,147 | $1,109,908 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(5) | 1.11%(8) | 1.06%(8) | 1.02%(8) | 1.04% | 1.13% | 1.04% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(5) | 1.11%(8) | 1.05%(8) | 1.01%(8) | 1.03% | 1.11% | 1.03% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.69)% | (0.32)% | (0.15)%(7) | 0.40% | (0.30)% | 0.07% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 76% | 111% | 90% | 57% | 85% | 31% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | Period from February 25, 2005 (inception date) through October 31, 2005. | |
(4) | Redemption fees aggregated less than $.01 on a per share basis. | |
(5) | See Note 6 in Notes to Financial Statements. | |
(6) | The ratio was 1.61% in 2005 before waiver of certain fees incurred by the Fund. | |
(7) | As a result of the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03% and 0.02% for Janus Global Research Fund and Janus Global Technology Fund, respectively. The adjustment had no impact on total net assets or total return of the class. | |
(8) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.97% and 0.96%, respectively, in 2010, 1.06% and 1.05%, respectively, in 2009 and 1.02% and 1.01%, respectively, in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
112 | MARCH 31, 2010
Class T Shares
For a share outstanding during the six-month period ended March 31, 2010 (unaudited), the two- | Janus International Equity Fund | |||||||||||||
month fiscal period ended September 30, 2009 and the fiscal period ended July 31, 2009 | 2010 | 2009(1) | 2009(2) | |||||||||||
Net Asset Value, Beginning of Period | $9.64 | $9.10 | $8.34 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | .04 | .02 | .01 | |||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .81 | .52 | .75 | |||||||||||
Total from Investment Operations | .85 | .54 | .76 | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (.05) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Redemption fees | .01 | – | – | |||||||||||
Total Distributions and Other | (.04) | – | – | |||||||||||
Net Asset Value, End of Period | $10.45 | $9.64 | $9.10 | |||||||||||
Total Return** | 8.95% | 5.93% | 9.11% | |||||||||||
Net Assets, End of Period (in thousands) | $713 | $1 | $1 | |||||||||||
Average Net Assets for the Period (in thousands) | $188 | $1 | $1 | |||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.21% | 1.07% | 1.50% | |||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.21% | 1.07% | 1.50% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.61% | 1.23% | (0.41)% | |||||||||||
Portfolio Turnover Rate*** | 98% | 115% | 176% |
Class T Shares
For a share outstanding during the six-month period ended March 31, 2010 (unaudited), the two- | Janus International Forty Fund | |||||||||||||
month fiscal period ended September 30, 2009 and the fiscal period ended July 31, 2009 | 2010 | 2009(1) | 2009(2) | |||||||||||
Net Asset Value, Beginning of Period | $7.30 | $7.14 | $6.40 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | – | .01 | – | |||||||||||
Net gains/(losses) on investments (both realized and unrealized) | .80 | .15 | .74 | |||||||||||
Total from Investment Operations | .80 | .16 | .74 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (.02) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | (.02) | – | – | |||||||||||
Net Asset Value, End of Period | $8.08 | $7.30 | $7.14 | |||||||||||
Total Return** | 11.04% | 2.24% | 11.56% | |||||||||||
Net Assets, End of Period (in thousands) | $548 | $1 | $1 | |||||||||||
Average Net Assets for the Period (in thousands) | $254 | $1 | $1 | |||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.27%(4) | 1.46% | 1.54% | |||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.26%(4) | 1.45% | 1.50% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.13% | 0.70% | 1.32% | |||||||||||
Portfolio Turnover Rate*** | 136% | 133% | 138% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would be 1.56% and 1.55%, respectively, without the waivers of these fees and expenses. |
Janus Global & International Funds | 113
Financial Highlights (continued)
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Overseas Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.65 | $27.12 | $63.02 | $42.45 | $28.42 | $21.62 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.10) | .41 | .63 | .36 | .49 | .21 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.71 | 12.66 | (31.38) | 20.74 | 13.80 | 6.82 | ||||||||||||||||||||
Total from Investment Operations | 7.61 | 13.07 | (30.75) | 21.10 | 14.29 | 7.03 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.15) | (.22) | (.88) | (.55) | (.28) | (.23) | ||||||||||||||||||||
Distributions (from capital gains)* | – | (1.33) | (4.29) | – | – | – | ||||||||||||||||||||
Redemption fees | –(3) | .01 | .02 | .02 | .02 | –(3) | ||||||||||||||||||||
Total Distributions and Other | (.15) | (1.54) | (5.15) | (.53) | (.26) | (.23) | ||||||||||||||||||||
Net Asset Value, End of Period | $46.11 | $38.65 | $27.12 | $63.02 | $42.45 | $28.42 | ||||||||||||||||||||
Total Return** | 19.72% | 51.63% | (52.78)% | 50.24% | 50.71% | 32.74% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,358,498 | $7,112,657 | $4,345,024 | $11,424,962 | $5,317,122 | $2,554,621 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,328,151 | $5,182,633 | $9,214,669 | $7,916,993 | $3,933,175 | $2,272,200 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.89% | 0.91% | 0.90% | 0.89% | 0.92% | 0.90% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.89% | 0.91% | 0.89% | 0.89% | 0.91% | 0.89% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.35)% | 0.90% | 0.79% | 0.77% | 1.69% | 0.88% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 20% | 45% | 50% | 51% | 61% | 57% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Worldwide Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $37.49 | $31.36 | $60.04 | $48.05 | $41.41 | $38.12 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .09 | .41 | .43 | .32 | .65 | .46 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 5.21 | 6.37 | (28.82) | 12.31 | 6.48 | 3.14 | ||||||||||||||||||||
Total from Investment Operations | 5.30 | 6.78 | (28.39) | 12.63 | 7.13 | 3.60 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.18) | (.65) | (.29) | (.64) | (.49) | (.31) | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | –(3) | –(3) | –(3) | –(3) | –(3) | –(3) | ||||||||||||||||||||
Total Distributions and Other | (.18) | (.65) | (.29) | (.64) | (.49) | (.31) | ||||||||||||||||||||
Net Asset Value, End of Period | $42.61 | $37.49 | $31.36 | $60.04 | $48.05 | $41.41 | ||||||||||||||||||||
Total Return** | 14.17% | 22.08% | (47.49)% | 26.53% | 17.34% | 9.47% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,119,675 | $2,207,945 | $2,044,859 | $4,645,253 | $4,373,358 | $4,957,669 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,961,557 | $1,971,727 | $3,480,275 | $4,522,584 | $4,601,953 | $5,984,293 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.82% | 0.76% | 0.83% | 0.88%(5) | 0.87%(5) | 0.85% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.82% | 0.76% | 0.83% | 0.87% | 0.86% | 0.85% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.37% | 1.34% | 0.82% | 0.53% | 1.31% | 0.90% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 134% | 195% | 16% | 27% | 43% | 33% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | Redemption fees aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | The ratio was 0.89% in 2007 and 0.90% in 2006 before waiver of certain fees incurred by the Fund. |
114 | MARCH 31, 2010
Notes to Schedules of Investments (unaudited)
Lipper Global Funds | Funds that invest at least 25% of their portfolios in securities traded outside of the United States and that may own U.S. securities as well. | |
Lipper Global Science and Technology Funds | Funds that invest at least 65% of their equity portfolio in science and technology stocks. | |
Lipper Global Health/Biotechnology Funds | Funds that invest at least 65% of their equity portfolios in shares of companies engaged in health-care, medicine, and biotechnology. | |
Lipper International Funds | Funds that invest their assets in securities with primary trading markets outside of the United States. | |
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | An unmanaged, free float-adjusted, market capitalization weighted index composed of stocks of companies located in countries throughout the world, excluding the United States. It is designed to measure equity market performance in global developed and emerging markets outside the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International All Country World IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International EAFE® Index | A free float-adjusted market capitalization weighted index designed to measure developed market equity performance. The MSCI EAFE® Index is composed of companies representative of the market structure of developed market countries. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World Growth Index | Measures the performance of growth stocks in developed countries throughout the world. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World Health Care Index | A capitalization weighted index that monitors the performance of health care stocks from developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World IndexSM | A market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World Information Technology Index | A capitalization weighted index that monitors the performance of information technology stocks from developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Russell 1000® Index | Measures the performance of the 1,000 largest companies in the Russell 3000® Index. | |
S&P 500® Index | The Standard & Poor’s (“S&P”) 500® Index is a commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. Equity performance. | |
ADR | American Depositary Receipt | |
BDR | Brazilian Depositary Receipt | |
ETF | Exchange-Traded Fund | |
GDR | Global Depositary Receipt | |
PLC | Public Limited Company | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. | |
VVPR Strip | The Voter Verified Paper Record (VVPR) strip is a coupon which, if presented along with the dividend coupon of the ordinary share, allows the benefit of a reduced withholding tax on the dividends paid by the company. This strip is quoted separately from the ordinary share and is freely negotiable. |
Janus Global & International Funds | 115
Notes to Schedules of Investments (unaudited) (continued)
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements and/or securities with extended settlement dates. | |
ß | Security is illiquid. | |
mu | On October 20, 2009, FU JI Food & Catering Services Holdings, Ltd. filed a petition to wind up the company. | |
o | On January 23, 2009, Anglo Irish Bank Corporation PLC was acquired by the Republic of Ireland. The Fund’s investment in this issuer, as reflected in the Schedule of Investments, exposes investors to the negative (or positive) performance resulting from this and other events. |
∞ Schedule of Fair Valued Securities (as of March 31, 2010)
Value as a | |||||||
Value | % of Net Assets | ||||||
Janus Global Life Sciences Fund | |||||||
Fibrogen, Inc. – Private Placement | $ | 6,359,105 | 0.9% | ||||
Lifesync Holdings, Inc. | 1,692,654 | 0.2% | |||||
Mediquest Therapeutics – expires 6/15/11 | 3 | 0.0% | |||||
Mediquest Therapeutics – expires 6/15/12 | 1 | 0.0% | |||||
Mediquest Therapeutics – Private Placement | 2,509,255 | 0.3% | |||||
Mediquest Therapeutics – Private Placement, Series A-1, 0% | 1,557,765 | 0.2% | |||||
Portola Pharmaceuticals, Inc. – Private Placement | 4,846,045 | 0.7% | |||||
$ | 16,964,828 | 2.3% | |||||
Janus Global Opportunities Fund | |||||||
Sompo Japan Insurance, Inc. | $ | 3,890,943 | 3.7% | ||||
Janus Global Research Fund | |||||||
FU JI Food & Catering Services Holdings, Ltd. | $ | - | 0.0% | ||||
Janus International Equity Fund | |||||||
FU JI Food & Catering Services Holdings, Ltd. | $ | - | 0.0% | ||||
Janus International Forty Fund | |||||||
FU JI Food & Catering Services Holdings, Ltd. | $ | - | 0.0% | ||||
Janus Overseas Fund | |||||||
FU JI Food & Catering Services Holdings, Ltd. | $ | - | 0.0% | ||||
Trinity, Ltd. – Private Placement | 39,153,865 | 0.3% | |||||
$ | 39,153,865 | 0.3% | |||||
Securities are valued at “fair value” pursuant to procedures adopted by the Funds’ Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to a systematic fair valuation model.
§ Schedule of Restricted and Illiquid Securities (as of March 31, 2010)
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Global Life Sciences Fund | ||||||||||||
Fibrogen, Inc. – Private Placement | 12/28/04 – 11/8/05 | $ | 5,786,786 | $ | 6,359,105 | 0.9% | ||||||
Lifesync Holdings, Inc. | 5/31/06 – 2/19/08 | 5,869,428 | 1,692,654 | 0.2% | ||||||||
Mediquest Therapeutics – expires 6/15/11 | 5/11/06 – 6/15/06 | – | 3 | 0.0% | ||||||||
Mediquest Therapeutics – expires 6/15/12 | 10/12/07 – 5/08/08 | 94,066 | 1 | 0.0% | ||||||||
Mediquest Therapeutics – Private Placement | 5/11/06 – 6/15/06 | 5,018,510 | 2,509,255 | 0.3% | ||||||||
Mediquest Therapeutics – Private Placement, Series A-1, 0% | 3/31/09 | 3,135,054 | 1,557,765 | 0.2% | ||||||||
Portola Pharmaceuticals, Inc. – Private Placement | 7/3/08 | 4,130,815 | 4,846,045 | 0.7% | ||||||||
$ | 24,034,659 | $ | 16,964,828 | 2.3% | ||||||||
The Fund has registration rights for certain restricted securities held as of March 31, 2010. The issuer incurs all registration costs.
116 | MARCH 31, 2010
£ | The Investment Company Act of 1940, as amended, defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities at any time during the period ended March 31, 2010. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Global Life Sciences Fund | |||||||||||||||||||||
Lifesync Holdings, Inc. | – | $ | – | – | $ | – | $ | – | $ | – | $ | 1,692,654 | |||||||||
Mediquest Therapeutics – Private Placement | – | – | – | – | – | – | 2,509,255 | ||||||||||||||
$ | – | $ | – | $ | – | $ | – | $ | 4,201,909 | ||||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Global Technology Fund | |||||||||||||||||||||
Vocus, Inc. | – | $ | – | – | $ | – | $ | – | $ | – | $ | 17,290,235 | |||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Overseas Fund | |||||||||||||||||||||
Amax Entertainment Holdings, Ltd. | – | $ | – | – | $ | – | $ | – | $ | – | $ | 5,209,611 | |||||||||
ARM Holdings PLC | – | – | – | – | – | – | 360,365,181 | ||||||||||||||
Bajaj Hindusthan, Ltd. | 5,590,729 | 26,708,536 | – | – | – | 206,553 | 37,042,086 | ||||||||||||||
Chaoda Modern Agriculture Holdings, Ltd. | – | – | 106,000 | 79,052 | 26,217 | 1,216,709 | 200,765,330 | ||||||||||||||
Continental Airlines, Inc. – Class B | – | – | 905,123 | 8,972,431 | 11,038,842 | – | 241,953,127 | ||||||||||||||
Cosan, Ltd. – Class A | – | – | – | – | – | – | 133,047,625 | ||||||||||||||
Delta Air Lines, Inc. | 981,600 | 8,425,915 | 4,152,100 | 36,527,791 | 24,055,419 | – | 578,445,719 | ||||||||||||||
Eurodekania, Ltd. – Private Placement (U.S. Shares) | – | – | 1,570,746 | 20,595,554 | (20,072,575) | – | – | ||||||||||||||
John Keells Holdings PLC | 64,902,100 | 94,801,160 | – | – | – | 569,317 | 104,754,267 | ||||||||||||||
Kingdom Hotel Investments (GDR) | – | – | – | – | – | – | 78,074,263 | ||||||||||||||
Melco International Development, Ltd. | – | – | – | – | – | – | 33,747,813 | ||||||||||||||
Niko Resources, Ltd. | 831,200 | 73,894,068 | – | – | – | 148,944 | 276,315,434 | ||||||||||||||
SunPower Corp. – Class A | – | – | – | – | – | – | 49,704,732 | ||||||||||||||
Wellstream Holdings PLC | – | – | – | – | – | – | 52,862,844 | ||||||||||||||
$ | 203,829,679 | $ | 66,174,828 | $ | 15,047,903 | $ | 2,141,523 | $ | 2,152,288,032 | ||||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Worldwide Fund | |||||||||||||||||||||
Blackboard, Inc. | 1,857,000 | $ | 78,590,847 | 130,485 | $ | 5,997,339 | $ | (748,611) | $ | – | $ | 71,926,615 | |||||||||
Raffles Education Corp., Ltd. | 22,349,000 | 6,179,489 | 50,747,000 | 22,091,443 | (7,591,906) | – | 27,063,800 | ||||||||||||||
$ | 84,770,336 | $ | 28,088,782 | $ | (8,340,517) | $ | – | 98,990,415 | |||||||||||||
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2010. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2010)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Global Life Sciences Fund | |||||||||||
Common Stock | |||||||||||
Medical – Biomedical and Genetic | $ | 189,207,783 | $ | – | $ | 6,359,105 | |||||
Medical – Drugs | 181,075,068 | 30,922,999 | – | ||||||||
Medical – Generic Drugs | 10,011,476 | 16,052,653 | 2,509,255 | ||||||||
Medical Instruments | 24,452,061 | – | 1,692,654 | ||||||||
Therapeutics | 13,860,976 | – | 4,846,045 | ||||||||
All Other | 236,906,401 | – | – | ||||||||
Preferred Stock | – | – | 1,557,765 | ||||||||
Warrants | – | – | 4 | ||||||||
Money Market | – | 2,986,594 | – | ||||||||
Total Investments in Securities | $ | 655,513,765 | $ | 49,962,246 | $ | 16,964,828 | |||||
Janus Global & International Funds | 117
Notes to Schedules of Investments (unaudited) (continued)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Global Opportunities Fund | |||||||||||
Common Stock | |||||||||||
Property and Casualty Insurance | $ | – | $ | 3,890,943 | $ | – | |||||
All other | 82,228,362 | – | – | ||||||||
Money Market | – | 16,518,156 | – | ||||||||
Total Investments in Securities | $ | 82,228,362 | $ | 20,409,099 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Research Fund | |||||||||||
Common Stock | |||||||||||
Airlines | $ | 3,771,200 | $ | 3,354,408 | $ | – | |||||
Diversified Minerals | – | 2,608,678 | – | ||||||||
Food – Catering | – | – | – | ||||||||
Oil Companies – Integrated | 2,447,389 | 1,908,354 | – | ||||||||
All other | 216,592,594 | – | – | ||||||||
Money Market | – | 2,121,112 | – | ||||||||
Total Investments in Securities | $ | 222,811,183 | $ | 9,992,552 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Technology Fund | |||||||||||
Common Stock | |||||||||||
E-Commerce/Services | $ | 6,669,397 | $ | 7,507,780 | $ | – | |||||
All Other | 818,380,247 | – | – | ||||||||
Total Investments in Securities | $ | 825,049,644 | $ | 7,507,780 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus International Equity Fund | |||||||||||
Common Stock | |||||||||||
Airlines | $ | – | $ | 644,961 | $ | – | |||||
Diversified Minerals | 2,186,018 | 1,074,824 | – | ||||||||
Food – Catering | – | – | – | ||||||||
Investment Management and Advisory Services | – | 1,184,473 | – | ||||||||
All other | 204,904,966 | – | – | ||||||||
Corporate Bonds | – | 4,145,601 | – | ||||||||
Money Market | – | 5,678,000 | – | ||||||||
Total Investments in Securities | $ | 207,090,984 | $ | 12,727,859 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus International Forty Fund | |||||||||||
Common Stock | |||||||||||
Diversified Minerals | $ | – | $ | 466,916 | $ | – | |||||
Food – Catering | – | – | – | ||||||||
Investment Management and Advisory Services | 160,423 | 101,830 | – | ||||||||
Retail – Drug Store | – | 8,700 | – | ||||||||
All other | 10,077,200 | – | – | ||||||||
Corporate Bonds | – | 676,704 | – | ||||||||
Warrant | – | 235,161 | – | ||||||||
Total Investments in Securities | $ | 10,237,623 | $ | 1,489,311 | $ | – | |||||
118 | MARCH 31, 2010
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Overseas Fund | |||||||||||
Common Stock | |||||||||||
Commercial Banks | $ | 289,511,238 | $ | 10,362,054 | $ | – | |||||
Food – Catering | – | – | – | ||||||||
Hotels and Motels | 254,127,912 | 78,074,263 | – | ||||||||
Oil Companies – Integrated | – | 177,638,782 | – | ||||||||
Power Converters and Power Supply Equipment | 49,704,732 | 59,308,035 | – | ||||||||
Retail – Apparel and Shoe | – | – | 39,153,865 | ||||||||
Sugar | 240,047,503 | 3,473,874 | – | ||||||||
All other | 10,828,836,379 | – | – | ||||||||
Warrant | – | 116,929,277 | – | ||||||||
Money Market | – | 166,786,000 | – | ||||||||
Total Investments in Securities | $ | 11,662,227,764 | $ | 612,572,284 | $ | 39,153,865 | |||||
Investments in Securities: | |||||||||||
Janus Worldwide Fund | |||||||||||
Common Stock | |||||||||||
Airlines | $ | – | $ | 4,567,712 | $ | – | |||||
Diversified Minerals | 24,899,854 | 24,487,094 | – | ||||||||
Investment Management and Advisory Services | 11,087,255 | 11,312,203 | – | ||||||||
Oil Companies – Integrated | – | 19,427,763 | – | ||||||||
Retail – Drug Store | – | 903,299 | – | ||||||||
All Other | 2,287,256,564 | – | – | ||||||||
Corporate Bonds | – | 50,338,538 | – | ||||||||
Warrant | – | 33,271,378 | – | ||||||||
Money Market | – | 11,439,000 | – | ||||||||
Total Investments in Securities | $ | 2,323,243,673 | $ | 155,746,987 | $ | – | |||||
Investments in Purchased Options: | |||||||||||
Janus Global Life Sciences Fund | $ | – | $ | 54,039 | $ | – | |||||
Janus Global Research Fund | – | 634 | – | ||||||||
Janus Global Technology Fund | 51,886 | – | – | ||||||||
Investments in Securities Sold Short: | |||||||||||
Janus Global Life Sciences Fund | $ | (4,378,716) | $ | (5,042,866) | $ | – | |||||
Janus Global Technology Fund | (41,436,944) | – | – | ||||||||
Other Financial Instruments(a): | |||||||||||
Janus Global Life Sciences Fund | $ | – | $ | (215,921) | $ | – | |||||
Janus Global Opportunities Fund | – | 282,062 | – | ||||||||
Janus Global Technology Fund | – | (383,352) | – | ||||||||
Janus International Equity Fund | – | (326,977) | – | ||||||||
Janus International Forty Fund | – | (42,401) | – | ||||||||
Janus Overseas Fund | – | 17,437,030 | – | ||||||||
Janus Worldwide Fund | – | (3,900,155) | – | ||||||||
(a) | Other financial instruments include futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options are reported at their market value at measurement date. |
Level 3 Valuation Reconciliation of Assets (for the five- or six-month period ended March 31, 2010)
Balance as of | Accrued | Change in Unrealized | Net | Transfers In | |||||||||||||||||||
October 31, 2009 or | Discounts/ | Realized | Appreciation/ | Purchases/ | and/or Out of | Balance as of | |||||||||||||||||
September 30, 2009 | Premiums | Gain/(Loss) | (Depreciation)(a) | (Sales) | Level 3 | March 31, 2010 | |||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
Janus Global Life Sciences Fund | |||||||||||||||||||||||
Common Stock |
Janus Global & International Funds | 119
Notes to Schedules of Investments (unaudited) (continued)
Balance as of | Accrued | Change in Unrealized | Net | Transfers In | |||||||||||||||||||
October 31, 2009 or | Discounts/ | Realized | Appreciation/ | Purchases/ | and/or Out of | Balance as of | |||||||||||||||||
September 30, 2009 | Premiums | Gain/(Loss) | (Depreciation)(a) | (Sales) | Level 3 | March 31, 2010 | |||||||||||||||||
Medical – Biomedical and Genetic | $ | 6,359,105 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 6,359,105 | |||||||||
Medical – Generic Drugs | 2,509,255 | – | – | – | – | – | 2,509,255 | ||||||||||||||||
Medical Instruments | 1,692,654 | – | – | – | – | – | 1,692,654 | ||||||||||||||||
Therapeutics | 4,846,045 | – | – | – | – | – | 4,846,045 | ||||||||||||||||
Preferred Stock | 1,557,765 | – | – | – | – | – | 1,557,765 | ||||||||||||||||
Warrants | 4 | – | – | – | – | – | 4 | ||||||||||||||||
Janus Global Research Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Food – Catering | – | – | – | – | – | – | – | ||||||||||||||||
Janus International Equity Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Food – Catering | – | – | – | – | – | – | – | ||||||||||||||||
Janus International Forty Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Food – Catering | – | – | – | – | – | – | – | ||||||||||||||||
Janus Overseas Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Food – Catering | – | – | – | – | – | – | – | ||||||||||||||||
Insurance Brokers | 1,687,284 | – | (15,314,774) | 14,020,176 | (392,686) | – | – | ||||||||||||||||
Retail – Apparel and Shoe | 12,954,755 | – | – | 26,199,110 | – | – | 39,153,865 | ||||||||||||||||
(a) | Included in “Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Operations. |
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates as of March 31, 2010 is noted below.
Fund | Aggregate Value | ||||
Janus Global Life Sciences Fund | $ | 176,686,835 | |||
Janus Global Opportunities Fund | 20,535,216 | ||||
Janus Global Technology Fund | 164,442,833 | ||||
Janus International Equity Fund | 5,907,280 | ||||
Janus International Forty Fund | 650,580 | ||||
Janus Overseas Fund | 1,996,647,223 | ||||
Janus Worldwide Fund | 83,879,293 | ||||
120 | MARCH 31, 2010
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus Global Life Sciences Fund, Janus Global Opportunities Fund, Janus Global Research Fund, Janus Global Technology Fund, Janus International Equity Fund, Janus International Forty Fund, Janus Overseas Fund and Janus Worldwide Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part 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. On November 1, 2009, Janus Global Life Sciences Fund, Janus Global Opportunities Fund, Janus Global Research Fund, Janus Global Technology Fund, Janus Overseas Fund and Janus Worldwide Fund changed their fiscal year end from October 31 to September 30. Accordingly, these financial statements include information for the five-month period from November 1, 2009 to March 31, 2010. The Trust offers thirty-eight funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Global Opportunities Fund and Janus International Forty Fund, which are classified as nondiversified.
Each Fund in this report 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 A Shares and Class C 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. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who held accounts directly with the Janus funds as of July 6, 2009 and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
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, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
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 Management LLC (“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, and 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 Funds and are in conformity with accounting principles generally accepted in the United States of America within the investment management industry.
Investment Valuation
Securities are valued at the last sales price or the official closing price for securities traded on a principal securities exchange (U.S. or foreign) and on the NASDAQ National Market. Securities traded on over-the-counter markets and listed securities for which no sales are reported are 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 Funds’ Trustees. Short-term securities with maturities of 60 days or less may be valued at amortized cost, which approximates market value. Debt securities with a remaining maturity of greater than 60 days are valued in accordance with the evaluated bid price supplied by the pricing service. The evaluated bid price supplied by the pricing service is an evaluation that reflects such factors as security prices, yields, maturities and ratings. Short positions shall be valued in accordance with the same methodologies, except that in the event that a last sale price is not available, the latest ask price shall be used
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Notes to Financial Statements (unaudited) (continued)
instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Funds are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Funds’ Trustees. 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 non-significant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a non-valued security and a restricted or non-public security. The Funds may use a systematic fair valuation model provided by an independent pricing service to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Funds’ Trustees.
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 Trust 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
Each Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to each Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class 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.
Foreign Currency Translations
The Funds do 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.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and market risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Funds may be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
The 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 REIT’s taxable earnings and profits, resulting in the excess
122 | MARCH 31, 2010
portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements, as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Funds adopted the provisions of “Income Taxes.” These provisions require an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statements of Operations.
These provisions require management of the Funds to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the five- or six-month period ended March 31, 2010, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examinations in progress and are 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.
Restricted Cash
As of March 31, 2010, Janus Global Life Sciences Fund, Janus Global Technology Fund and Janus Worldwide Fund had restricted cash in the amounts of $300,000, $1,530,000 and $2,520,793, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at March 31, 2010. The restricted cash is held at the Fund’s custodian, State Street Bank and Trust Company. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with FASB guidance, the Funds utilize the “Fair Value Measurements and Disclosures” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit 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. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the security and would be based on the best information available under the circumstances.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2010 to value the Funds’ investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and “Level 3 Valuation Reconciliation of Assets” (if applicable) in the Notes to Schedules of Investments.
In April 2009, FASB issued “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” which provides additional guidance for estimating fair value in accordance with Fair Value Measurements when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a
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Notes to Financial Statements (unaudited) (continued)
transaction is not orderly. Additionally, it amends the Fair Value Measurement Standard by expanding disclosure requirements for reporting entities surrounding the major categories of assets and liabilities carried at fair value. The required disclosures have been incorporated into the “Valuation Inputs Summary” in the Notes to Schedules of Investments. Management believes applying this guidance does not have a material impact on the financial statements.
2. | Derivative Instruments |
The Funds 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 Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the cost of the derivative. The Funds may not use any derivative to gain exposure to an asset or class of assets prohibited by their investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives are generally 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 Funds to additional risks that they would not be subject to if they 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, including counterparty risk, currency risk, leverage risk, liquidity risk, and index risk.
Derivatives may generally be traded over-the-counter (“OTC”) or on an exchange. Derivatives traded OTC, such as structured notes, 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 counterparty credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a 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. 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.
Equity-Linked Structured Notes
The Funds may invest in equity-linked structured notes. Equity-linked structured notes are derivative securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, an equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked structured notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked structured notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is a commitment to purchase or sell a foreign currency at a future date at a negotiated rate. The Funds 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 Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Funds are subject to foreign currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
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 contract is included in “Net realized gain/(loss) from investment
124 | MARCH 31, 2010
and foreign currency transactions” on the Statements of Operations (if applicable).
Forward currency contracts held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
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 Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, market risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds 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 are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds may purchase or write covered and uncovered put and call options on futures contracts and on portfolio securities for hedging purposes or as a substitute for an investment. The Funds are subject to interest rate risk, liquidity risk, market risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use option contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Funds may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Funds may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Funds may also invest in long-term equity anticipation securities, which are long-term option contracts that can be maintained for a period of up to three years. The Funds generally invest in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Funds may also purchase and write exchange-listed and over-the-counter put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which
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Notes to Financial Statements (unaudited) (continued)
the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded over-the-counter expose the Funds to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by having the counterparty post collateral to cover the Funds’ exposure to the counterparty.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments (if applicable). Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written at value” (if applicable).
Realized gains and losses are reported as “Net realized gain/(loss) from options contracts” on the Statements of Operations (if applicable).
The following Funds recognized realized gains/(losses) from written options contracts during the five-month period ended March 31, 2010 as indicated in the tables below:
Fund | Gains/(Losses) | ||||
Janus Global Life Sciences Fund | $ | (127,515) | |||
Janus Global Technology Fund | (1,226,468) | ||||
The risk in writing call options is that the Funds give up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Funds may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Funds pay a premium whether or not the options are exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Funds’ hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. There is no limit to the loss the Funds may recognize due to written call options.
Written option activity for the five- or six-month period ended March 31, 2010 is indicated in the table below:
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Global Life Sciences Fund | ||||||||
Options outstanding at October 31, 2009 | 1,465 | $ | 428,545 | |||||
Options written | 975 | 323,950 | ||||||
Options closed | (691) | (218,863) | ||||||
Options expired | – | – | ||||||
Options exercised | (1,099) | (321,482) | ||||||
Options outstanding at March 31, 2010 | 650 | $ | 212,150 | |||||
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Global Technology Fund | ||||||||
Options outstanding at October 31, 2009 | 3,422 | $ | 188,655 | |||||
Options written | 13,477 | 1,524,043 | ||||||
Options closed | (10,376) | (585,033) | ||||||
Options expired | (703) | (169,423) | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 5,820 | $ | 958,242 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus International Equity Fund | ||||||||
Options outstanding at September 30, 2009 | – | $ | – | |||||
Options written | 4,064 | 375,993 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 4,064 | $ | 375,993 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus International Forty Fund | ||||||||
Options outstanding at September 30, 2009 | – | $ | – | |||||
Options written | 527 | 48,763 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 527 | $ | 48,763 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Worldwide Fund | ||||||||
Options outstanding at October 31, 2009 | – | $ | – | |||||
Options written | 48,475 | 4,484,946 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 48,475 | $ | 4,484,946 | |||||
Other Options
In addition to the option strategies described above, the Funds may purchase and sell a variety of options with non-standard payout structures or other features (“exotic options”). Exotic options are traded OTC and typically have price movements that can vary markedly from simple put or call options. The risks associated with exotic options are that they cannot be as easily priced and may be subject to liquidity risk. While some exotic options have fairly active markets others are mostly thinly traded
126 | MARCH 31, 2010
instruments. Some options are pure two-party transactions and may have no liquidity. The Funds may treat such instruments as illiquid and will limit their investments in such instruments to no more than 15% of a Fund’s net assets, when combined with all other illiquid investments of a Fund. The Funds may use exotic options to the extent that they are consistent with the Funds’ investment objectives and investment policies, and applicable regulations.
The Funds may purchase and sell exotic options that have values which are determined by the correlation of two or more underlying assets. These types of options include, but are not limited to, outperformance options, yield curve options or other spread options.
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Funds may utilize swap agreements as a means to gain exposure to certain common stocks and/or to “hedge” or protect their portfolios from adverse movements in securities prices or interest rates. The Funds are subject to market risk and interest rate risk in the normal course of pursuing their investment objectives through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a 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 contracts of the Funds are reported as an asset or liability on the Statements of Assets and Liabilities (if applicable). Realized gains and losses of the Funds are reported in “Net realized gain/(loss) from swap contracts” on the Statements of Operations (if applicable).
Various types of swaps such as credit default (funded and unfunded), equity, interest rate, and total return swaps are described below.
Credit default swaps are a specific kind of counterparty agreement that allows the transfer of third-party credit risk from one party to the other. The Funds are subject to credit risk in the normal course of pursuing their investment objectives through their investments in credit default swap contracts. The Funds may enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which they are not otherwise exposed. With a credit default swap, one party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange for regular periodic payments. The Funds’ maximum risk of loss from counterparty risk, either as protection sellers or as protection buyers (undiscounted), is the notional value of the agreement. The risk is mitigated by having a netting arrangement between the Funds and the counterparty and by posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.
Funded (notional value of contract paid up front) or unfunded (notional value only paid in case of default) credit default swaps are based on an index of credit default swaps (“CDXs”) or other similarly structured products. CDXs are designed to track segments of the credit default swap market and provide investors with exposure to specific reference baskets of issuers of bonds or loans. These instruments have the potential to allow an investor to obtain the same investment exposure as an investor who invests in an individual credit default swap, but with the potential added benefit of diversification. The CDX reference baskets are normally priced daily and rebalanced every six months in conjunction with leading market makers in the credit industry. The liquidity of the market for CDXs is normally subject to liquidity in the secured loan and credit derivatives markets. A fund investing in CDXs is normally only permitted to take long positions in these instruments.
Equity swaps involve the exchange by two parties of future cash flow (e.g., one cash flow based on a referenced interest rate and the other based on the performance of stock or a stock index).
Interest rate swaps involve the exchange by two parties of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments).
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.
The Funds’ maximum risk of loss for equity swaps, interest rate swaps and total return swaps 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 Funds and the counterparty and by the posting of collateral to the Funds to cover the Funds’ exposure to the counterparty.
Janus Global & International Funds | 127
Notes to Financial Statements (unaudited) (continued)
In accordance with FASB guidance, the Funds adopted the provisions for “Derivatives and Hedging”, which require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
Fair Value of Derivative Instruments as of March 31, 2010
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Global Life Sciences Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 54,039 | Options written, at value | $ | 331,340 | ||||||
Foreign Exchange Contracts | Forward currency contracts | 508,231 | Forward currency contracts | 392,812 | ||||||||
Total | $ | 562,270 | $ | 724,152 | ||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Global Opportunities Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 282,062 | |||||||||
Total | $ | 282,062 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Global Research Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 634 | |||||||||
Total | $ | 634 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Global Technology Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 51,886 | Options written, at value | $ | 1,835,936 | ||||||
Foreign Exchange Contracts | Forward Currency Contracts | 1,578,904 | Forward Currency Contracts | 126,320 | ||||||||
Total | $ | 1,630,790 | $ | 1,962,256 | ||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus International Equity Fund | ||||||||||||
Equity Contracts | Options written, at value | $ | 326,977 | |||||||||
Total | $ | 326,977 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus International Forty Fund | ||||||||||||
Equity Contracts | Options written, at value | $ | 42,401 | |||||||||
Total | $ | 42,401 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Overseas Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 17,437,030 | |||||||||
Total | $ | 17,437,030 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Worldwide Fund | ||||||||||||
Equity Contracts | Options written, at value | $ | 3,900,155 | |||||||||
Total | $ | 3,900,155 | ||||||||||
128 | MARCH 31, 2010
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2010
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Life Sciences Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (127,515 | ) | $ | – | $ | (127,515 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 1,915,077 | 1,915,077 | |||||||||||||||
Total | $ | – | $ | – | $ | (127,515 | ) | $ | 1,915,077 | $ | 1,787,562 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Life Sciences Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (388,747 | ) | $ | – | $ | (388,747 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 648,938 | 648,938 | |||||||||||||||
Total | $ | – | $ | – | $ | (388,747 | ) | $ | 648,938 | $ | 260,191 | |||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Opportunities Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 126,220 | $ | 126,220 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 126,220 | $ | 126,220 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Opportunities Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 265,382 | $ | 265,382 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 265,382 | $ | 265,382 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Research Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (79,498 | ) | $ | – | $ | (79,498 | ) | ||||||||
Total | $ | – | $ | – | $ | (79,498 | ) | $ | – | $ | (79,498 | ) | ||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Technology Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (2,257,791 | ) | $ | – | $ | (2,257,791 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 1,137,438 | 1,137,438 | |||||||||||||||
Total | $ | – | $ | – | $ | (2,257,791 | ) | $ | 1,137,438 | $ | (1,120,353 | ) | ||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Technology Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (1,378,911 | ) | $ | – | $ | (1,378,911 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 1,954,312 | 1,954,312 | |||||||||||||||
Total | $ | – | $ | – | $ | (1,378,911 | ) | $ | 1,954,312 | $ | 575,401 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus International Equity Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 49,016 | $ | – | $ | 49,016 | ||||||||||
Total | $ | – | $ | – | $ | 49,016 | $ | – | $ | 49,016 | ||||||||||
Janus Global & International Funds | 129
Notes to Financial Statements (unaudited) (continued)
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus International Forty Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (14,523 | ) | $ | – | $ | (14,523 | ) | ||||||||
Total | $ | – | $ | – | $ | (14,523 | ) | $ | – | $ | (14,523 | ) | ||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus International Forty Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 25,660 | $ | – | $ | 25,660 | ||||||||||
Total | $ | – | $ | – | $ | 25,660 | $ | – | $ | 25,660 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Overseas Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 24,409,938 | $ | 24,409,938 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 24,409,938 | $ | 24,409,938 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Overseas Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 16,542,354 | $ | 16,542,354 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 16,542,354 | $ | 16,542,354 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Worldwide Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 584,791 | $ | – | $ | 584,791 | ||||||||||
Total | $ | – | $ | – | $ | 584,791 | $ | – | $ | 584,791 | ||||||||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
3. | Other investments and strategies |
Additional Investment Risk
Unforeseen events in the equity and fixed-income markets may at times result in an unusually high degree of volatility in the markets, both domestic and international. These events and the resulting market upheavals may have an adverse effect on the Funds such as a decline in the value and liquidity of many securities held by the Funds, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in net asset value, and an increase in Fund expenses. Such unforeseen events may make it unusually difficult to identify both investment risks and opportunities and could limit or preclude each Fund’s ability to achieve its investment objective. The market’s behavior may at times be unpredictable. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to a 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 a Fund. A 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 a Fund’s exposure to counterparty risk in respect to financial assets approximates their carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
A Fund may be exposed to counterparty risk through participation in various programs including, but not limited
130 | MARCH 31, 2010
to, lending its securities to third parties, cash sweep arrangements whereby a Fund’s cash balances are 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. A 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 a 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 Funds
The Funds may invest in exchange-traded funds, which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
Exchange-Traded Notes
The Funds may invest directly in exchange-traded notes (“ETNs”), which are senior, unsecured, unsubordinated debt securities whose returns are linked to a particular index and provide exposure to the total returns of various market indices, including indices linked to stocks, bonds, commodities and currencies. This type of debt security differs from other types of bonds and notes. ETN returns are based upon the performance of a market index minus applicable fees; no periodic coupon payments are distributed and no principal protections exist. ETNs do not pay cash distributions. Instead, the value of dividends, interest, and investment gains are captured in the Funds’ total returns. The Funds will invest in these securities when desiring exposure to debt securities or commodities. When evaluating ETNs for investment, Janus Capital will consider the potential risks involved, expected tax efficiency, rate of return, and credit risk. When the Funds invest in ETNs, they will bear their proportionate share of any fees and expenses borne by the ETN. There may be restrictions on the Funds’ right to redeem their investment in an ETN, which is meant to be held until maturity. The Funds’ decision to sell their ETN holdings may be limited by the availability of a secondary market.
Initial Public Offerings
The Funds may invest in initial public offerings (“IPOs”). IPOs and other investment techniques may have a magnified performance impact on a Fund with a small asset base. The Fund may not experience similar performance as its assets grow.
Interfund Lending
As permitted by the Securities and Exchange Commission (“SEC”), or the 1940 Act and rules promulgated thereunder, the Funds may be party to interfund lending agreements between the Funds and other Janus Capital sponsored mutual funds and certain pooled investment vehicles, which permit them to borrow or lend cash at a rate beneficial to both the borrowing and lending funds. Outstanding borrowings from all sources totaling 10% or more of the borrowing Fund’s total assets must be collateralized at 102% of the outstanding principal value of the loan; loans of less than 10% may be unsecured.
Restricted Security Transactions
Restricted securities held by the Funds may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Funds to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Securities Lending
Under procedures adopted by the Trustees, the Funds may seek to earn additional income by lending securities to qualified parties (typically brokers or other financial institutions) who need to borrow securities in order to complete certain transactions such as covering short sales, avoiding failures to deliver securities or completing arbitrage activities. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. Janus Capital makes efforts to balance the benefits and risks from granting such loans.
The Funds do not have the right to vote on securities while they are being lent; however, the Funds may attempt to call back the loan and vote the proxy if time permits. 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 permitted by the SEC. Cash collateral may be invested as permitted by the 1940 Act and rules promulgated thereunder.
Janus Global & International Funds | 131
Notes to Financial Statements (unaudited) (continued)
Deutsche Bank AG (the “Lending Agent”) may also invest the cash collateral in investments in non-affiliated money market funds or accounts, mutually agreed to by the Funds and the Lending Agent, that comply with Rule 2a-7 of the 1940 Act relating to money market funds.
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 upon this mark-to-market evaluation.
The borrower pays fees at the Funds’ direction to the Lending Agent. The Lending Agent may retain a portion of the interest earned on the cash collateral invested. The cash collateral invested by the Lending Agent is disclosed on the Schedules of Investments (if applicable). The lending fees and the Funds’ portion of the interest income earned on cash collateral are included on the Statements of Operations (if applicable).
The Securities Lending Program was suspended and effective November 19, 2008, the Funds no longer had any securities on loan. Management continues to review the program and may resume securities lending.
Short Sales
The Funds may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Funds own or selling short a security that the Funds have the right to obtain, for delivery at a specified date in the future. The Funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The Funds borrow the securities sold short and receive proceeds from the short sale only when they deliver the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Funds lose the opportunity to participate in the gain.
The Funds may also engage in other short sales. The Funds may engage in short sales when the portfolio managers and/or investment personnel anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Funds must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. No more than 10% of a Fund’s net assets may be invested in short sales of stocks, futures, swaps, structured notes, and uncovered written calls. The Funds may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The Funds are also required to pay the lender of the security any dividends or interest that accrues on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, a Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Funds pay stock loan fees on assets borrowed from the security broker.
The Funds may also enter into short positions through derivative instruments such as option contracts, futures contracts, and swap agreements, which may expose the Funds to similar risks. To the extent that the Funds enter into short derivative positions, the Funds may be exposed to risks similar to those associated with short sales, including the risk that the Funds’ losses are theoretically unlimited.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects certain Funds’ “base” fee rates prior to any performance adjustment and certain Funds’ contractual investment advisory fee rates (expressed as an annual rate).
Contractual | ||||||||
Investment | ||||||||
Average | Advisory | |||||||
Daily | Fee/Base | |||||||
Net Assets | Fee (%) | |||||||
Fund | of the Fund | (annual rate) | ||||||
Janus Global Life Sciences Fund | All Asset Levels | 0.64 | ||||||
Janus Global Opportunities Fund | All Asset Levels | 0.64 | ||||||
Janus Global Research Fund | N/A | 0.64 | ||||||
Janus Global Technology Fund | All Asset Levels | 0.64 | ||||||
Janus International Equity Fund | N/A | 0.68 | ||||||
Janus International Forty Fund | N/A | 0.73 | ||||||
Janus Overseas Fund | All Asset Levels | 0.64 | ||||||
Janus Worldwide Fund | N/A | 0.60 | ||||||
132 | MARCH 31, 2010
For Janus Global Research Fund, Janus International Equity Fund, Janus International Forty Fund and Janus Worldwide Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Janus Global Research Fund | MSCI World Growth Index | ||||
Janus International Equity Fund | MSCI EAFE® Index | ||||
Janus International Forty Fund | MSCI All Country World ex-U.S. IndexSM | ||||
Janus Worldwide Fund | MSCI World IndexSM | ||||
Only the base fee rate applied until January 2007 for Janus Global Research Fund, February 2007 for Janus Worldwide Fund, December 2007 for Janus International Equity Fund, and June 2009 for Janus International Forty Fund, at which time the calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months. When a Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period is equal to the time that has elapsed since the performance-based fee structure took effect. As noted above, any applicable Performance Adjustments began January 2007 for Janus Global Research Fund, February 2007 for Janus Worldwide Fund, December 2007 for Janus International Equity Fund, and June 2009 for Janus International Forty Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward performance adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued evenly each day throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
The application of an expense limit, if any, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. For performance measurement periods prior to July 6, 2009, certain Funds calculated their Performance Adjustment by comparing the performance of Class T Shares (formerly named Class J Shares) against the investment record of each Fund’s benchmark index. For periods beginning July 6, 2009, the investment performance of a Fund’s load-waived Class A Shares for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether a particular Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares, or Class T Shares (formerly named
Janus Global & International Funds | 133
Notes to Financial Statements (unaudited) (continued)
Class J Shares) as the case may be, against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund.
As noted, for certain Funds, effective July 6, 2009, the investment performance of the Fund’s load-waived Class A Shares is used to calculate the Performance Adjustment. However, because the Fund’s Performance Adjustment is based upon a rolling 36-month performance measurement period, calculations based on the Fund’s load-waived Class A Shares will not be fully implemented for 36 months after July 6, 2009. During this transition period, the Fund’s performance will be compared to a blended investment performance record that includes the Fund’s Class T Shares (formerly named Class J Shares) performance (the prior share class used for performance calculations) for the portion of the performance measurement period prior to July 6, 2009, and the Fund’s load-waived Class A Shares for the remainder of the period. At the conclusion of the transition period, the Fund’s Class T Shares will be eliminated from the Performance Adjustment calculation, and the calculation will be based solely upon the Fund’s load-waived Class A Shares.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of each Fund relative to the record of the Fund’s benchmark index and future changes to the size of each Fund.
The Funds’ prospectuses and statements of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the five- or six-month period ended March 31, 2010, the following Funds recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Janus Global Research Fund | $ | 127,848 | |||
Janus International Equity Fund | 67,002 | ||||
Janus International Forty Fund | (133) | ||||
Janus Worldwide Fund | (570,493) | ||||
Prior to February 16, 2010, certain Funds paid Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital and the Funds’ transfer agent, an asset-weighted averaged annual fee based on the proportion of Fund’s total net assets sold directly and the proportion of Fund’s net assets sold through intermediaries for Class D Shares. The applicable fee rates were 0.12% of net assets on the proportion of assets sold directly and 0.25% on the proportion of assets sold through intermediaries for Class D Shares.
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 Funds. Certain intermediaries may charge administrative fees 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 Funds to Janus Services, which uses such fees to reimburse intermediaries.
Class D Shares of certain Funds pay an annual administrative fee of 0.12% of net assets. These administrative fees are paid by the Shares of certain Funds for shareholder services provided by Janus Services LLC.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of Class R Shares and Class S Shares of the Funds, as applicable, for providing or arranging for the provision of, administrative services including but not limited to, recordkeeping, subaccounting, order processing for omnibus or networked accounts, or other shareholder services provided on behalf of investors in Class R Shares and Class S Shares of the Funds, as applicable. Janus Services expects to use a significant portion of this fee to compensate retirement plan service providers, and other financial intermediaries for providing these services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class T Shares of the Funds for providing, or arranging for the provision by intermediaries of, administrative services, including recordkeeping, subaccounting, order processing for omnibus or networked accounts, or other shareholder services provided on behalf of the shareholders of these Funds. 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. Janus Services expects to use some or all of this fee to compensate intermediaries for providing these services to their customers who invest in these Funds. 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 these Funds.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to
134 | MARCH 31, 2010
Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds at an annual rate, as determined from time to time by the Board of Trustees, 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, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year is less than the payments made during a calendar year, the Fund will be reimbursed for the difference.
Janus Capital has agreed until at least February 16, 2011 to reimburse certain Funds by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares, the administrative fees payable pursuant to the Transfer Agency Agreement applicable to Class D Shares, Class R Shares, Class S Shares, and Class T Shares, brokerage commissions, interest, dividends, taxes and extraordinary expenses (including, but not limited to, acquired fund fees and expenses), exceed the annual rates noted below. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Fund | Expense Limit (%) | ||||
Janus Global Research Fund | 1.00 | ||||
Janus International Equity Fund | 1.25 | ||||
Janus International Forty Fund | 1.25 | ||||
Janus Overseas Fund | 0.92 | ||||
Janus Worldwide Fund | 1.00 | ||||
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 Funds. 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 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 Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2010 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a 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 Statements of Assets and Liabilities. Deferred compensation expenses for the five- or six-month period ended March 31, 2010 are included in “Non-interested Trustees’ fees and expenses” on the Statements 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. No deferred fees were distributed to any Trustee under the Deferred Plan during the five- or six-month period ended March 31, 2010.
For the five- or six-month period ended March 31, 2010, Janus Capital assumed $14,571 of legal, consulting and Trustee costs and fees incurred by the funds in the Trust and Janus Aspen Series together with the Trust (the “Portfolios”), in connection with the regulatory and civil litigation matters discussed in Note 11. These non-recurring costs were allocated to all Portfolios based on the Portfolios’ respective net assets as of July 31, 2004. Unless noted otherwise in the financial highlights, the effect of these non-recurring costs assumed by Janus Capital are included in the ratio of gross expenses to average net assets and were less than 0.01%. No fees were allocated to the Portfolios that commenced operations after July 31, 2004. Additionally, all future non-recurring costs will be allocated to the Portfolios based on the Portfolios’ respective net assets on July 31, 2004. These “Non-recurring costs” and “Costs assumed by Janus Capital” are shown on the Statements of Operations.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Such officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff of the Trust. Total compensation of $186,360 was paid by the Trust during the five- or six-month period ended period ended March 31, 2010. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price for the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the five- or six-month period ended
Janus Global & International Funds | 135
Notes to Financial Statements (unaudited) (continued)
March 31, 2010, Janus Distributors retained the following upfront sales charge:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Global Life Sciences Fund | $ | 3,771 | |||
Janus Global Opportunities Fund | 220 | ||||
Janus Global Research Fund | 192 | ||||
Janus Global Technology Fund | 1,499 | ||||
Janus International Equity Fund | 10,006 | ||||
Janus International Forty Fund | 424 | ||||
Janus Overseas Fund | 65,112 | ||||
Janus Worldwide Fund | 607 | ||||
Class C Shares include a 1.00% contingent deferred sales charge paid by the redeeming shareholder to Janus Distributors. The contingent deferred sales charge applies to shares redeemed within 12 months of purchase. The redemption price may differ from the net asset value per share. During the five- or six-month period ended March 31, 2010, redeeming shareholders of Class C Shares paid the following contingent deferred sales charges:
Contingent Deferred | |||||
Fund (Class C Shares) | Sales Charge | ||||
Janus International Equity Fund | $ | 347 | |||
Janus Overseas Fund | 4,251 | ||||
A 2.00% redemption fee may be imposed on Class D Shares, Class I Shares, Class R Shares, Class S Shares, and Class T Shares of the Funds, as applicable, held for 90 days or less. This fee is paid to the Funds rather than Janus Capital, and is designed to deter excessive short-term trading and to offset the brokerage commissions, market impact, and other costs associated with changes in the Funds’ asset levels and cash flow due to short-term money movements in and out of the Funds. The redemption fee is accounted for as an addition to Paid-in Capital.
Total redemption fees received by the Funds for the five- or six-month period ended March 31, 2010 is indicated in the table below:
Fund | Redemption Fee | ||||
Janus Global Life Sciences Fund | $ | 8,385 | |||
Janus Global Opportunities Fund | 1,622 | ||||
Janus Global Research Fund | 11,612 | ||||
Janus Global Technology Fund | 20,864 | ||||
Janus International Equity Fund | 2,156 | ||||
Janus Overseas Fund | 783,761 | ||||
Janus Worldwide Fund | 16,543 | ||||
The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statements of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the terms and conditions of an SEC exemptive order and the provisions of the 1940 Act, the Funds may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus 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 Cash Liquidity Fund LLC maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
136 | MARCH 31, 2010
During the five- or six-month period ended March 31, 2010, the following Funds recorded distributions from affiliated investment companies as affiliated dividend income, and had the following affiliated purchases and sales:
Purchases | Sales | Dividend | Value | |||||||||||
Shares/Cost | Shares/Cost | Income | at 3/31/10 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Global Life Sciences Fund | $ | 68,195,039 | $ | (69,981,181) | $ | 4,711 | $ | 2,986,594 | ||||||
Janus Global Opportunities Fund | 6,758,097 | (7,788,000) | 12,237 | 16,518,156 | ||||||||||
Janus Global Research Fund | 30,437,203 | (29,499,091) | 1,931 | 2,121,112 | ||||||||||
Janus Global Technology Fund | 102,724,631 | (105,572,631) | 6,324 | – | ||||||||||
Janus International Equity Fund | 56,273,289 | (53,421,289) | 1,828 | 5,678,000 | ||||||||||
Janus International Forty Fund | 5,690,051 | (5,815,051) | 147 | – | ||||||||||
Janus Overseas Fund | 918,649,969 | (753,829,969) | 52,485 | 166,786,000 | ||||||||||
Janus Worldwide Fund | 297,486,754 | (286,047,754) | 5,640 | 11,439,000 | ||||||||||
$ | 1,486,215,033 | $ | (1,311,954,966) | $ | 85,303 | $ | 205,528,862 | |||||||
Janus Global & International Funds | 137
Notes to Financial Statements (unaudited) (continued)
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the five- or six-month period ended March 31, 2010, as indicated in the following table.
Seed | Seed | |||||||||||||||||||
Capital at | Date of | Date of | Capital at | |||||||||||||||||
Fund | 9/30/09 or 10/31/09* | Purchases | Purchases | Redemptions | Redemptions | 3/31/10 | ||||||||||||||
Janus Global Life Sciences Fund - Class A Shares | $ | 1,000 | $ | – | – | $ | – | – | $ | 1,000 | ||||||||||
Janus Global Life Sciences Fund - Class C Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Life Sciences Fund - Class I Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Life Sciences Fund - Class S Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
Janus Global Opportunities Fund - Class A Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Opportunities Fund - Class C Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
Janus Global Opportunities Fund - Class I Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
Janus Global Opportunities Fund - Class S Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Research Fund - Class A Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Research Fund - Class C Shares | 1,000 | – | – | – | �� | 1,000 | ||||||||||||||
Janus Global Research Fund - Class I Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Research Fund - Class S Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
Janus Global Technology Fund - Class A Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Technology Fund - Class C Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Technology Fund - Class I Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Global Technology Fund - Class S Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus International Equity Fund - Class D Shares | – | 10,000 | 2/16/10 | – | – | 10,000 | ||||||||||||||
Janus International Equity Fund - Class R Shares | 500,000 | – | – | – | – | 500,000 | ||||||||||||||
Janus International Equity Fund - Class T Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus International Forty Fund - Class A Shares | 250,000 | – | – | – | – | 250,000 | ||||||||||||||
Janus International Forty Fund - Class C Shares | 250,000 | – | – | – | – | 250,000 | ||||||||||||||
Janus International Forty Fund - Class D Shares | – | 10,000 | 2/16/10 | – | – | 10,000 | ||||||||||||||
Janus International Forty Fund - Class I Shares | 250,000 | – | – | – | – | 250,000 | ||||||||||||||
Janus International Forty Fund - Class S Shares | 250,000 | – | – | – | – | 250,000 | ||||||||||||||
Janus International Forty Fund - Class T Shares | 1,000 | 10,000 | 10/29/09 | – | – | 11,000 | ||||||||||||||
* | Seed capital is at 9/30/09 for Janus International Equity Fund and Janus International Forty Fund and is at 10/31/09 for Janus Global Life Sciences Fund, Janus Global Opportunities Fund, Janus Global Research Fund, and Janus Global Technology Fund. |
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
138 | MARCH 31, 2010
transactions, net investment losses and capital loss carryovers.
The Funds have 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 March 31, 2010 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals and passive foreign investment companies.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Global Life Sciences Fund | $ | 614,478,154 | $ | 140,383,980 | $ | (32,367,256) | $ | 108,016,724 | ||||||
Janus Global Opportunities Fund | 93,396,633 | 14,159,248 | (4,918,420) | 9,240,828 | ||||||||||
Janus Global Research Fund | 203,472,843 | 38,712,707 | (9,381,181) | 29,331,526 | ||||||||||
Janus Global Technology Fund | 650,072,589 | 200,211,775 | (17,675,054) | 182,536,721 | ||||||||||
Janus International Equity Fund | 188,338,219 | 39,435,291 | (7,954,667) | 31,480,624 | ||||||||||
Janus International Forty Fund | 10,729,184 | 1,354,616 | (356,866) | 997,750 | ||||||||||
Janus Overseas Fund | 9,661,853,272 | 3,545,079,498 | (892,978,857) | 2,652,100,641 | ||||||||||
Janus Worldwide Fund | 2,023,594,600 | 477,604,316 | (22,208,256) | 455,396,060 | ||||||||||
Information on the tax components of securities sold short as of March 31, 2010 is as follows:
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | (Appreciation) | Depreciation | (Appreciation) | ||||||||||
Janus Global Life Sciences Fund | $ | (6,301,504) | $ | (3,120,078) | $ | – | $ | (3,120,078) | ||||||
Janus Global Technology Fund | (40,150,147) | (1,911,609) | 624,812 | (1,286,797) | ||||||||||
Net capital loss carryovers as of September 30, 2009 and October 31, 2009 are indicated in the table below. These losses may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows the expiration dates of the carryovers.
Capital Loss Carryover Expiration Schedule
For the year ended September 30, 2009 or October 31, 2009
September 30, | September 30, | September 30, | September 30, | Accumulated | |||||||||||||
Fund | 2010 | 2011 | 2016 | 2017 | Capital Losses | ||||||||||||
Janus Global Life Sciences Fund(1) | $ | (251,753,591) | $ | (103,237,607) | $ | – | $ | (71,904,532) | $ | (426,895,730) | |||||||
Janus Global Opportunities Fund(1) | – | – | – | (6,879,347) | (6,879,347) | ||||||||||||
Janus Global Research Fund(1) | – | – | (12,214,767) | (50,432,700) | (62,647,467) | ||||||||||||
Janus Global Technology Fund(1) | (857,178,929) | (83,082,507) | – | (100,992,979) | (1,041,254,415) | ||||||||||||
Janus International Equity Fund(2) | – | – | (16,859,383) | (38,438,932) | (55,298,315) | ||||||||||||
Janus International Forty Fund(2) | – | – | (138,537) | (203,081) | (341,618) | ||||||||||||
Janus Overseas Fund(1)(3) | (921,654) | – | (488,111,660) | (765,138,031) | (1,254,171,345) | ||||||||||||
Janus Worldwide Fund(1)(3) | (3,191,954,135) | (670,957,456) | (23,171,454) | (953,343,061) | (4,839,426,106) | ||||||||||||
(1) | For the year ended October 31, 2009. | |
(2) | For the year ended September 30, 2009. | |
(3) | Capital loss carryovers subject to annual limitations. |
6. | Expense Ratios |
The expense ratios listed in the Financial Highlights reflect expenses prior to any expense offsets (gross expense ratio) and after expense offsets (net expense ratio). Both expense ratios reflect expenses after waivers (reimbursement). Listed below are the gross expense ratios for the Funds that would have been in effect, absent the waiver of certain fees and offsets.
Janus Global & International Funds | 139
Notes to Financial Statements (unaudited) (continued)
For the five- or six-month period ended March 31, 2010 (unaudited),
the two-month fiscal period ended September 30, 2009 and
each fiscal year or period ended July 31 or October 31
the two-month fiscal period ended September 30, 2009 and
each fiscal year or period ended July 31 or October 31
Janus Global | Janus International | Janus International | Janus Overseas | Janus Worldwide | ||||||||||||||||
Research Fund | Equity Fund | Forty Fund | Fund | Fund | ||||||||||||||||
Class A Shares | ||||||||||||||||||||
2010(1) | 1.24% | N/A | N/A | 0.97% | 0.94% | |||||||||||||||
2010(2) | N/A | 1.26% | 3.81% | N/A | N/A | |||||||||||||||
2009(3) | N/A | 1.31% | 4.78% | N/A | N/A | |||||||||||||||
2009(4) | 1.40%(5) | 1.41% | 12.58% | 1.00%(5) | 1.20%(5) | |||||||||||||||
2008 | N/A | 1.28% | 56.43%(6) | N/A | N/A | |||||||||||||||
2007 | N/A | 9.77%(7) | N/A | N/A | N/A | |||||||||||||||
Class C Shares | ||||||||||||||||||||
2010(1) | 1.98% | N/A | N/A | 1.83% | 1.83% | |||||||||||||||
2010(2) | N/A | 2.01% | 4.30% | N/A | N/A | |||||||||||||||
2009(3) | N/A | 2.08% | 5.61% | N/A | N/A | |||||||||||||||
2009(4) | 1.55%(5) | 2.20% | 12.23% | 2.01%(5) | 2.28%(5) | |||||||||||||||
2008 | N/A | 2.04% | 52.96%(6) | N/A | N/A | |||||||||||||||
2007 | N/A | 11.49%(7) | N/A | N/A | N/A | |||||||||||||||
Class D Shares | ||||||||||||||||||||
2010(8) | 1.09% | 1.09% | 2.37% | 0.79% | 0.76% | |||||||||||||||
Class I Shares | ||||||||||||||||||||
2010(1) | 0.99% | N/A | N/A | 0.68% | 0.64% | |||||||||||||||
2010(2) | N/A | 0.94% | 3.19% | N/A | N/A | |||||||||||||||
2009(3) | N/A | 0.97% | 4.15% | N/A | N/A | |||||||||||||||
2009(4) | 0.43%(5) | 1.04% | 10.08% | 0.70%(5) | 0.77%(5) | |||||||||||||||
2008 | N/A | 1.19% | 73.31%(6) | N/A | N/A | |||||||||||||||
2007 | N/A | 2.40%(7) | N/A | N/A | N/A | |||||||||||||||
Class R Shares | ||||||||||||||||||||
2010(1) | N/A | N/A | N/A | 1.42% | 1.38% | |||||||||||||||
2010(2) | N/A | 1.68% | N/A | N/A | N/A | |||||||||||||||
2009(3) | N/A | 1.71% | N/A | N/A | N/A | |||||||||||||||
2009(4) | N/A | 1.78% | N/A | 1.44%(5) | 1.52%(5) | |||||||||||||||
2008 | N/A | 2.07% | N/A | N/A | N/A | |||||||||||||||
2007 | N/A | 11.43%(7) | N/A | N/A | N/A | |||||||||||||||
Class S Shares | ||||||||||||||||||||
2010(1) | 1.48% | N/A | N/A | 1.17% | 1.13% | |||||||||||||||
2010(2) | N/A | 1.43% | 3.92% | N/A | N/A | |||||||||||||||
2009(3) | N/A | 1.46% | 5.29% | N/A | N/A | |||||||||||||||
2009(4) | 1.42%(5) | 1.54% | 12.71% | 1.19%(5) | 1.27%(5) | |||||||||||||||
2008 | N/A | 1.54% | 50.69%(6) | N/A | N/A | |||||||||||||||
2007 | N/A | 11.01%(7) | N/A | N/A | N/A | |||||||||||||||
Class T Shares(9) | ||||||||||||||||||||
2010(1) | 1.18% | N/A | N/A | 0.89% | 0.82% | |||||||||||||||
2010(2) | N/A | 1.21% | 3.08% | N/A | N/A | |||||||||||||||
2009(3) | N/A | 1.07% | 4.42% | N/A | N/A | |||||||||||||||
2009(4) | 1.25% | 1.31%(10) | 22.34%(10) | 0.91% | 0.76% | |||||||||||||||
2008 | 1.15% | N/A | N/A | 0.90% | 0.83% | |||||||||||||||
2007 | 1.12% | N/A | N/A | 0.89% | 0.89% | |||||||||||||||
2006 | 1.16% | N/A | N/A | 0.92% | 0.90% | |||||||||||||||
2005 | 1.61%(11) | N/A | N/A | 0.90% | 0.85% | |||||||||||||||
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from October 1, 2009 through March 31, 2010. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Fiscal year ended October 31, 2009 for Janus Global Research Fund, Janus Overseas Fund and Janus Worldwide Fund. Fiscal year ended July 31, 2009 for Janus International Equity Fund and Janus International Forty Fund. | |
(5) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(6) | Period from May 30, 2008 (inception date) through July 31, 2008. | |
(7) | Period from November 28, 2006 (inception date) through July 31, 2007. | |
(8) | Period from February 16, 2010 (inception date) through March 31, 2010. | |
(9) | Formerly named Class J Shares for Janus Global Research Fund, Janus Overseas Fund and Janus Worldwide Fund. | |
(10) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(11) | Period from February 25, 2005 (inception date) through October 31, 2005. |
140 | MARCH 31, 2010
7. | Capital Share Transactions |
Janus Global | Janus Global | Janus Global | Janus Global | |||||||||||||||||||||||||||||||
Life Sciences | Opportunities | Research | Technology | |||||||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||
For the five-month period ended March 31, 2010 (unaudited) and the fiscal year or period ended October 31 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||
Shares sold | 35 | 3 | 24 | 1 | 5 | 7 | 41 | 18 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | (2) | – | – | – | – | – | (4) | – | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 33 | 3 | 24 | 1 | 5 | 7 | 37 | 18 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 3 | – | 1 | – | 7 | – | 18 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 36 | 3 | 25 | 1 | 12 | 7 | 55 | 18 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||
Shares sold | 3 | 1 | – | 1 | 2 | 17 | 23 | 3 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | – | – | – | – | (2) | – | – | – | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3 | 1 | – | 1 | – | 17 | 23 | 3 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1 | – | 1 | – | 17 | – | 3 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 4 | 1 | 1 | 1 | 17 | 17 | 26 | 3 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares(3): | ||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | 20,661 | N/A | 6,853 | N/A | 8,834 | N/A | 37,742 | N/A | ||||||||||||||||||||||||||
Shares sold | 100 | N/A | 62 | N/A | 99 | N/A | 272 | N/A | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | N/A | – | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||||
Shares repurchased | (283) | N/A | (189) | N/A | (225) | N/A | (561) | N/A | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 20,478 | N/A | 6,726 | N/A | 8,708 | N/A | 37,453 | N/A | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | – | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 20,478 | N/A | 6,726 | N/A | 8,708 | N/A | 37,453 | N/A | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||
Shares sold | 99 | 50 | – | 51 | 1,056 | 8 | 21 | 77 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | (7) | – | (48) | – | (32) | (5) | (17) | – | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 92 | 50 | (48) | 51 | 1,024 | 3 | 4 | 77 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 50 | – | 51 | – | 3 | – | 77 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 142 | 50 | 3 | 51 | 1,027 | 3 | 81 | 77 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||
Shares sold | 7 | 1 | 56 | 2 | – | 1 | 11 | 5 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | – | – | – | (1) | – | – | (1) | – | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 7 | 1 | 56 | 1 | – | 1 | 10 | 5 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1 | – | 1 | – | 1 | – | 5 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 8 | 1 | 57 | 1 | 1 | 1 | 15 | 5 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares(4): | ||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | (20,753) | N/A | (6,855) | N/A | (9,853) | N/A | (37,755) | N/A | ||||||||||||||||||||||||||
Shares sold | 853 | 1,802 | 333 | 898 | 2,010 | 4,483 | 2,563 | 7,009 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | 2 | 127 | 116 | 780 | 6 | 175 | – | – | ||||||||||||||||||||||||||
Shares repurchased | (1,550) | (5,857) | (436) | (1,843) | (1,393) | (5,804) | (2,758) | (7,640) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (21,448) | (3,928) | (6,842) | (165) | (9,230) | (1,146) | (37,950) | (631) | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 32,798 | 36,726 | 8,985 | 9,150 | 17,855 | 19,001 | 56,772 | 57,403 | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 11,350 | 32,798 | 2,143 | 8,985 | 8,625 | 17,855 | 18,822 | 56,772 |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Transactions in Fund Shares for Class A Shares, Class C Shares, Class I Shares and Class S Shares are for the period from July 6, 2009 (inception date) to October 31, 2009. | |
(3) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. | |
(4) | Formerly named Class J Shares. |
Janus Global & International Funds | 141
Notes to Financial Statements (unaudited) (continued)
For the five- or six-month period ended March 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||
(unaudited), the two-month fiscal period ended | Janus International | Janus International | Janus Overseas | Janus Worldwide | ||||||||||||||||||||||||||||||||||||||
September 30, 2009 and the fiscal years ended July 31, | Equity Fund | Forty Fund | Fund | Fund | ||||||||||||||||||||||||||||||||||||||
2009 or October 31, 2009 (all numbers in thousands) | 2010 | 2009(1) | 2009(2) | 2010 | 2009(1) | 2009(3) | 2010(4) | 2009(5) | 2010(4) | 2009(5) | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10,354 | N/A | 43 | ||||||||||||||||||||||||||||||||
Shares sold | 1,528 | 757 | 12,530 | 131 | 141 | 718 | 4,046 | 4,006 | 9 | 43 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 5 | – | 192 | 1 | – | 1 | 37 | – | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (2,113) | (518) | (11,935) | (349) | (9) | (373) | (2,543) | (2,388) | (39) | (4) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (580) | 239 | 787 | (217) | 132 | 346 | 1,540 | 11,972 | (30) | 82 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 7,421 | 7,182 | 6,395 | 513 | 381 | 35 | 11,972 | – | 82 | – | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 6,841 | 7,421 | 7,182 | 296 | 513 | 381 | 13,512 | 11,972 | 52 | 82 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 4,100 | N/A | 22 | ||||||||||||||||||||||||||||||||
Shares sold | 416 | 113 | 2,640 | 75 | 15 | 159 | 1,160 | 1,009 | 4 | 10 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | 27 | – | – | – | 3 | – | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (209) | (65) | (2,433) | (22) | (1) | (93) | (389) | (284) | (5) | (1) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 207 | 48 | 234 | 53 | 14 | 66 | 774 | 4,825 | (1) | 31 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,744 | 1,696 | 1,462 | 107 | 93 | 27 | 4,825 | – | 31 | – | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 1,951 | 1,744 | 1,696 | 160 | 107 | 93 | 5,599 | 4,825 | 30 | 31 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares(6): | ||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | N/A | N/A | N/A | N/A | N/A | N/A | 52,929 | N/A | 30,227 | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 106 | N/A | N/A | 76 | N/A | N/A | 761 | N/A | 342 | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | – | N/A | N/A | – | N/A | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | (3) | N/A | N/A | – | N/A | N/A | (616) | N/A | (667) | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 103 | N/A | N/A | 76 | N/A | N/A | 53,074 | N/A | 29,902 | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | N/A | – | N/A | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 103 | N/A | N/A | 76 | N/A | N/A | 53,074 | N/A | 29,902 | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10,799 | N/A | 748 | ||||||||||||||||||||||||||||||||
Shares sold | 4,189 | 651 | 12,544 | 690 | 52 | 447 | 5,567 | 4,294 | 241 | 78 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 38 | – | 247 | 1 | – | 2 | 52 | – | 5 | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (968) | (132) | (10,868) | (159) | (26) | (312) | (1,728) | (1,067) | (85) | (26) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,259 | 519 | 1,923 | 532 | 26 | 137 | 3,891 | 14,026 | 161 | 800 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 8,380 | 7,861 | 5,938 | 236 | 210 | 73 | 14,026 | – | 800 | – | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 11,639 | 8,380 | 7,861 | 768 | 236 | 210 | 17,917 | 14,026 | 961 | 800 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2,428 | N/A | 13 | ||||||||||||||||||||||||||||||||
Shares sold | 7 | 1 | 91 | N/A | N/A | N/A | 656 | 400 | 3 | 2 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | 2 | N/A | N/A | N/A | 4 | – | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (1) | – | (85) | N/A | N/A | N/A | (284) | (253) | (4) | (1) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 6 | 1 | 8 | N/A | N/A | N/A | 376 | 2,575 | (1) | 14 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 75 | 74 | 66 | N/A | N/A | N/A | 2,575 | – | 14 | – | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 81 | 75 | 74 | N/A | N/A | N/A | 2,951 | 2,575 | 13 | 14 |
142 | MARCH 31, 2010
For the five- or six-month period ended March 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||
(unaudited), the two-month fiscal period ended | Janus International | Janus International | Janus Overseas | Janus Worldwide | ||||||||||||||||||||||||||||||||||||||
September 30, 2009 and the fiscal years ended July 31, | Equity Fund | Forty Fund | Fund | Fund | ||||||||||||||||||||||||||||||||||||||
2009 or October 31, 2009 (all numbers in thousands) | 2010 | 2009(1) | 2009(2) | 2010 | 2009(1) | 2009(3) | 2010(4) | 2009(5) | 2010(4) | 2009(5) | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 34,108 | N/A | 1,698 | ||||||||||||||||||||||||||||||||
Shares sold | 130 | 53 | 787 | 2 | 17 | 186 | 5,982 | 4,383 | 103 | 136 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 9 | 1 | – | – | 97 | – | 5 | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (59) | (36) | (628) | (37) | (31) | (83) | (3,819) | (2,965) | (216) | (182) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 72 | 17 | 168 | (34) | (14) | 103 | 2,260 | 35,526 | (108) | 1,652 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 480 | 463 | 295 | 114 | 128 | 25 | 35,526 | – | 1,652 | – | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 552 | 480 | 463 | 80 | 114 | 128 | 37,786 | 35,526 | 1,544 | 1,652 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares(7): | ||||||||||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | N/A | N/A | N/A | N/A | N/A | N/A | (52,720) | N/A | (30,271) | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 69 | – | 120* | 68 | – | 156* | 19,571 | 49,207 | 593 | 2,041 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | 638 | 9,733 | 256 | 1,299 | ||||||||||||||||||||||||||||||||
Shares repurchased | (1) | – | (1)* | – | – | – | (13,621) | (35,098) | (3,195) | (9,661) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 68 | – | 119* | 68 | – | 156* | (46,132) | 23,842 | (32,617) | (6,321) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | 119* | – | – | 156* | – | 184,045 | 160,203 | 58,892 | 65,213 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 68 | 119* | 119* | 68 | 156* | 156* | 137,913 | 184,045 | 26,275 | 58,892 |
* | Shares outstanding are not in thousands. | |
(1) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares, and July 6, 2009 (inception date) through July 31, 2009 for Class T Shares. | |
(3) | Period from August 1, 2008 through July 31, 2009 for Class A Shares, Class C Shares, Class I Shares and Class S Shares, and July 6, 2009 (inception date) through July 31, 2009 for Class T Shares. | |
(4) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(5) | Transactions in Fund Shares for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares are for the period from July 6, 2009 (inception date) to October 31, 2009. | |
(6) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. | |
(7) | Formerly named Class J Shares. |
8. | Purchases and Sales of Investment Securities |
For the five- or six-month period ended March 31, 2010, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and options contracts) was as follows:
Purchases of Long- | Proceeds from Sales | |||||||||||||
Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
Janus Global Life Sciences Fund | $ | 128,708,457 | $ | 136,752,244 | $ | – | $ | – | ||||||
Janus Global Opportunities Fund | 9,642,427 | 10,937,224 | – | – | ||||||||||
Janus Global Research Fund | 64,852,082 | 61,461,318 | – | – | ||||||||||
Janus Global Technology Fund | 239,211,215 | 245,833,749 | – | – | ||||||||||
Janus International Equity Fund | 115,991,747 | 91,546,790 | – | – | ||||||||||
Janus International Forty Fund | 9,733,507 | 6,055,566 | – | – | ||||||||||
Janus Overseas Fund | 1,349,016,720 | 882,466,635 | – | – | ||||||||||
Janus Worldwide Fund | 1,315,641,165 | 1,463,434,614 | – | – | ||||||||||
9. | Shares Issued in Connection with Restructuring |
Effective February 16, 2010, Class J Shares were renamed Class T Shares and are available through certain financial intermediary platforms. In addition, Class J Shares held directly with Janus were moved to newly created Class D Shares, a share class dedicated to shareholders investing directly with Janus. Class D Shares commenced operations on February 16, 2010. The shares issued in connection with the restructuring from Class J Shares to Class D Shares are reflected on the Statements of Changes in Net Assets.
Janus Global & International Funds | 143
Notes to Financial Statements (unaudited) (continued)
10. | Fund Acquisition |
On July 6, 2009, Janus Overseas Fund and Janus Worldwide Fund acquired all of the net assets of Janus Adviser International Growth Fund and Janus Adviser Worldwide Fund, respectively, pursuant to separate plans of reorganization approved by the Trustees of Janus Investment Fund. The reorganization involved certain funds that were a series of the Janus Adviser Series trust (“JAD Trust”) being merged into various corresponding funds of the Trust. The reorganization was accomplished by a tax-free exchange of the series of the JAD Trust for the series of the Trust. The table below reflects the merger activity.
Target Fund’s | ||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||
Target Fund’s | Target Fund’s | Acquiring Fund’s | Acquiring Fund’s | Combined | Appreciation/ | |||||||||||||||||||
Shares Outstanding | Net Assets | Shares Issued | Net Assets | Net Assets | (Depreciation) | |||||||||||||||||||
Name of Fund | Prior to Merger | Prior to Merger | in Merger | Prior to Merger | after Merger | Prior to Merger | ||||||||||||||||||
Janus Overseas Fund | 57,749,692 | $ | 2,070,427,646 | 61,789,221 | $ | 5,780,488,484 | $ | 7,850,916,130 | $ | (54,872,135 | ) | |||||||||||||
Janus Worldwide Fund | 3,775,787 | 84,321,160 | 2,524,836 | 2,036,422,264 | 2,120,743,424 | 6,670,775 |
11. | Pending Legal Matters |
In the fall of 2003, the Securities and Exchange Commission (“SEC”), the Office of the New York State Attorney General (“NYAG”), the Colorado Attorney General (“COAG”), and the Colorado Division of Securities (“CDS”) announced that they were investigating alleged frequent trading practices in the mutual fund industry. On August 18, 2004, Janus Capital announced that it had reached final settlements with the SEC, the NYAG, the COAG, and the CDS related to such regulators’ investigations into Janus Capital’s frequent trading arrangements.
A number of civil lawsuits were brought against Janus Capital and certain of its affiliates, the Janus funds, and related entities and individuals based on allegations similar to those announced by the above regulators and were filed in several state and federal jurisdictions. Such lawsuits alleged a variety of theories for recovery including, but not limited to, the federal securities laws, other federal statutes (including ERISA), and various common law doctrines. The Judicial Panel on Multidistrict Litigation transferred these actions to the U.S. District Court for the District of Maryland (the “Court”) for coordinated proceedings. On September 29, 2004, five consolidated amended complaints were filed with the Court, two of which still remain: (i) claims by a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims on behalf of the shareholders against JCGI and Janus Capital (First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586, formerly referred to as Wiggins, et al. v. Janus Capital Group, Inc., et al., U.S. District Court, District of Maryland, Case No. 04-CV-00818); and (ii) derivative claims by investors in certain Janus funds ostensibly on behalf of such funds (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518).
In the First Derivative Traders case (action (i) above), a Motion to Dismiss was previously granted and the matter was dismissed in May 2007. Plaintiffs appealed that dismissal to the United States Court of Appeals for the Fourth Circuit (“Fourth Circuit”). In May 2009, the Fourth Circuit reversed the order of dismissal and remanded the case back to the Court for further proceedings. In October 2009, JCGI and Janus Capital filed a petition for a writ of certiorari with the United States Supreme Court to review the judgment of the Fourth Circuit. On January 11, 2010, the Supreme Court asked the United States Solicitor General to file a brief on the question of whether the petition should be granted. As a result of these developments at the Supreme Court, the Court has stayed all further proceedings until the Supreme Court rules on the petition for a writ of certiorari. In the Steinberg case (action (ii) above), the Court entered an order on January 20, 2010, granting Janus Capital’s Motion for Summary Judgment and dismissing the remaining claims asserted against the company. However, on February 17, 2010, Plaintiffs filed a Notice of Appeal with the Fourth Circuit.
In addition to the lawsuits described above, the Auditor of the State of West Virginia (“Auditor”), in his capacity as securities commissioner, initiated administrative proceedings against many of the defendants in the market timing cases (including JCGI and Janus Capital) and, as a part of its relief, is seeking disgorgement and other monetary relief based on similar market timing allegations (In the Matter of Janus Capital Group Inc. et al., Before the Securities Commissioner, State of West Virginia, Summary Order No. 05-1320). In September 2006, JCGI and Janus Capital filed their answer to the Auditor’s summary order instituting proceedings as well as a Motion to Discharge Order to Show Cause. On July 31, 2009, Janus filed a “Notice that Matter is Deemed Concluded.”
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At this time, no further proceedings are scheduled in this matter.
Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future. Janus Capital does not currently believe that these pending actions will materially affect its ability to continue providing services it has agreed to provide to the Janus funds.
12. | New Accounting Pronouncements |
In January 2010, the FASB issued Accounting Standards Update 2010-06, “Improving Disclosures About Fair Value Measurements.” This Accounting Standards Update will enhance and clarify existing fair value measurement disclosures. Certain disclosures are effective for interim and annual periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact the adoption of this Accounting Standards Update will have on the Funds’ financial statement disclosures.
13. | Subsequent Events |
A definitive proxy statement was filed on April 7, 2010 with the SEC that seeks shareholder approval on a number of proposals that will impact the Funds. The table below briefly summarizes the proposals shareholders are being asked to approve. A proxy statement describing each of these matters was sent to shareholders that held shares of the Funds as of March 17, 2010. Assuming shareholder approval, the proposals will become effective on or about July 1, 2010.
Fund(s) Affected | Proposal(s) | |
All Funds | Board of Trustees elections | |
Janus Global Opportunities Fund Janus Overseas Fund | Addition of performance-based fees as part of the investment advisory fee structure | |
Janus Global Opportunities Fund | Move to Janus Capital’s value-oriented subsidiary, Perkins Investment Management LLC, as subadviser to the Fund (if approved, this will result in a change to the Fund’s investment objective and strategies) | |
In May 2009, in accordance with FASB guidance, the Funds adopted the provision of “Subsequent Events,” which provides guidance to establish general standards of accounting for and disclosures of events that occur subsequent to the balance sheet date but before financial statements are issued or are available to be issued. The guidance also requires entities to disclose the date through which subsequent events were evaluated as well as the basis for that date. Management has evaluated whether any events or transactions occurred subsequent to March 31, 2010, the date of issuance of the Funds’ financial statements, and determined that there were no other material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
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Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is 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) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
Approval of Advisory Agreements During The Period
In this disclosure, each fund and portfolio of Janus Investment Fund are referred to as “Fund” and, collectively, as “Funds.”
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital (“Independent Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the seven Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Independent Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by their independent fee consultant. Throughout their consideration of the agreements, the Independent Trustees were advised by their independent legal counsel. The Independent Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 11, 2009, 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 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 Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2010 through February 1, 2011, 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.
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 Funds, taking into account the investment objective and strategy of each 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 Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions, serving as the Funds’ administrator, monitoring adherence to the Funds’ investment restrictions, producing shareholder reports, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent
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with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the 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 Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by Lipper, and with the Fund’s benchmark index. They concluded that the performance of many Funds was good to very good under current market conditions. Although the performance of some Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Lipper. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and administrative) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by Lipper.
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. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
The Trustees also reviewed management fees charged by Janus Capital to its separate account clients and to non-affiliated funds subadvised by Janus Capital (for which Janus Capital provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administrative services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted that the spread between the average fee rates charged to the Funds and the fee rates that Janus Capital charged to its separate account clients was significantly smaller than the average spread for such fee rates of other advisers, based on publicly available data and research conducted by the Trustees’ independent fee consultant.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised 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 and the fees Janus Capital and the subadvisers charge to other clients. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the
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Additional Information (unaudited) (continued)
Fund and any expense limitations agreed to 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 Funds increase. They noted that, although most Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the management fee rate paid by each Fund, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by Lipper; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, the Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for several Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the 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 Funds. Based on all of the information they reviewed, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an Independent Trustee, concluded at their December 11, 2009 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
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Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund (from inception) with one or more widely used market indices. The hypothetical example does not represent the returns of any particular investment.
When comparing the performance of a Fund with an index, keep in mind that market indices do not include brokerage commissions that would be incurred if you purchased the individual securities in the index. They also do not include taxes payable on dividends and interest or operating expenses incurred if you maintained a Fund invested in the index.
Average annual total returns are also quoted for each Fund. 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.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized and unsubsidized ratios for the past fiscal year. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting a Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and/or Janus Services and reflects a Fund’s subsidized expense ratio. Both the total annual fund operating expenses ratio and net annual fund operating expenses ratio are estimated for the fiscal year. The ratios also include expenses indirectly incurred by a Fund as a result of investing in other investment companies or pooled investments, which are not reflected in the “Financial Highlights” of this report. As a result, these ratios may be higher or lower than those shown in the “Financial Highlights” in this report. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
2. | Schedules of Investments |
Following the performance overview section is each Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in each 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 a Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports each Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. Each Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
2a. Forward Currency Contracts
A table listing forward currency contracts follows each Fund’s Schedule of Investments (if applicable). Forward currency contracts are agreements to deliver or receive a preset amount of currency at a future date. Forward currency contracts are used to hedge against foreign currency risk in the Funds’ long-term holdings.
The table provides the name of the foreign currency, the settlement date of the contract, the amount of the contract, the value of the currency in U.S. dollars and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the change in currency exchange rates from the time the contract was opened to the last day of the reporting period.
2b. Futures
A table listing futures contracts follows each Fund’s Schedule of Investments (if applicable). Futures contracts are contracts that obligate the buyer to receive and the seller to deliver an instrument or money at a specified price on a specified date. Futures are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, the principal amount, value and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the marked-to-market amount for the last day of the reporting period.
2c. Options
A table listing written options contracts follows each Fund’s Schedule of Investments (if applicable). Written options contracts are contracts that obligate a Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against
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Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” It lists the assets and liabilities of the Funds on the last day of the reporting period.
The Funds’ 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 stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Funds’ 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 Funds’ net assets. Because the Funds 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 Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, 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 increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds 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.
5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. “Redemption Fees” (if applicable) refers to the fee paid to the Funds for shares held for 90 days or less by a shareholder. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense 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 per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total
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return may include adjustments in accordance with generally accepted accounting principles. As a result, the total return may differ from the total return reflected for shareholder transactions.
Also included are the expense ratios, or the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios vary across the Funds within the Trust for a number of reasons, including the differences in management fees, the frequency of dividend payments and the extent of foreign investments, which entail greater transaction costs.
The Funds’ expenses may be reduced through expense-reduction arrangements. These arrangements may include the use of balance credits or transfer agent fee offsets. The Statements of Operations reflect total expenses before any such offset, the amount of the offset and the net expenses. The expense ratios listed in the Financial Highlights reflect total expenses prior to any expense offset (gross expense ratio) and after the expense offsets (net expense ratio). Both expense ratios reflect expenses after waivers (reimbursements), if applicable.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of a Fund during the reporting period. Don’t confuse this ratio with a Fund’s yield. The net investment income ratio is not a true measure of a Fund’s yield because it doesn’t 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 a Fund. Portfolio turnover is affected by market conditions, changes in the asset size of a Fund, the nature of the Fund’s investments and the investment style of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio is turned over in a 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 portfolio is traded every six months.
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Notes
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Notes
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Notes
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Notes
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Notes
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Notes
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Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
Core
Janus core funds seek investments in more stable and predictable companies. These funds look for a strategic combination of steady growth and for certain funds, some degree of income.
Fixed Income
Janus bond funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies.
Risk-Managed
Our risk-managed funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.
Value
Janus value funds invest in companies they believe are poised for a turnaround or are trading at a significant discount to fair value. The goal is to gain unique insight into a company’s true value and identify and evaluate potential catalysts that may unlock shareholder value.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
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Please consider the charges, risks, expenses and investment objectives carefully before investing or recommending to clients for investment. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Janus Distributors LLC 151 Detroit Street, Denver, CO 80206 (4/10)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0410-300 | 5-31-10 125-24-93002 05-10 |
2010 SEMIANNUAL REPORT
Janus Growth & Core Funds
Janus Contrarian Fund
Janus Enterprise Fund
Janus Forty Fund
Janus Fund
Janus Growth and Income Fund
Janus Orion Fund
Janus Research Core Fund
Janus Research Fund
Janus Triton Fund
Janus Twenty Fund
Janus Venture Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Table of Contents
Janus Growth & Core Funds
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus Capital). You can also visit janus.com/info (or janus.com/reports if you hold Shares directly with Janus Capital). Read it carefully before you invest or send money.
Co-Chief Investment Officers’ Market Perspective
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Jonathan Coleman
Co-Chief Investment Officer
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Gibson Smith
Co-Chief Investment Officer
Thank you for your investment with Janus. In recent months, improvements in the U.S. and global economies have persisted. And, while market and economic conditions continue to change, our research-driven investment philosophy has remained constant. As a result, we are pleased to continue to deliver strong results relative to many of our peers.
For the 12-month period ended March 31, 2010, 71% of Janus funds, Class T Shares, ranked within Lipper’s top two quartiles based on total returns. Longer term, 89% of our funds achieved first- or second-quartile Lipper rankings for the three-year period and 88% ranked in Lipper’s top two quartiles for the five-year period ended March 31, 2010. (Lipper rankings are based on total returns. See complete rankings on page 3.)
Equity and Fixed Income Markets
U.S. equity markets rose during the six-month period to finish near 17-month highs amid upward momentum in the U.S. and global economies and better-than-expected corporate earnings. The S&P 500® Index gained 11.75%, posting its fourth consecutive quarterly gain. Non-U.S. markets also finished close to their highest levels in nearly 18 months.
On the credit and fixed income side, corporate credit markets delivered against strong expectations for the period. The U.S. investment grade credit market (Barclays Capital U.S. Credit Index) rose 3.7% and the U.S. High Yield market (Barclays Capital U.S. High Yield Bond Index) was up 11.1% for the six month period ended March 31, 2010.
A rebound in consumer spending helped drive upward momentum in the U.S. economy during the period, while restructurings in the airline and automobile industries helped strengthen the service and manufacturing sectors. U.S. corporations continued to focus on cost controls instead of ramping up spending and hiring. As a result, we have seen a tremendous recovery in earnings. The U.S. labor market also demonstrated modest progress in March with private payrolls showing their largest monthly increase in two years.
Looking Ahead
While the strength in the U.S. and global economies is encouraging, we believe the potential magnitude of economic growth for the remainder of 2010 remains uncertain. The political environment and overall business confidence remain two key macro themes to watch, given that companies need to invest again in order for sustained economic growth to materialize.
Looking ahead, we do not think the next phase of any market movement will be as broad as the one we saw coming off of the lows of roughly a year ago. This, along with the likelihood of slower or uneven economic growth worldwide, leads us to believe the key to success going forward will largely be dependent on security selection.
As fundamental researchers throughout our 40-year history, our goal has always been to identify those companies going through positive fundamental transition. We take a long-term view of investment opportunities and believe a well-balanced and diversified approach is important to achieving long-term investment success. We look at a potential investment from every angle and believe this is a vital component to successful security selection in both the fixed income and equity markets. This approach forms the foundation of our commitment to deliver strong long-term relative performance.
Once again, we thank you for your business and your continued confidence in Janus.
Janus Growth & Core Funds | 1
Continued
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or download the file from janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital). Read it carefully before investing or sending money.
The opinions are those of the authors as of March 31, 2010 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes.
Past performance is no guarantee of future results.
All current and potential holdings in Janus products are subject to risks that individuals need to address.
There is no assurance that the investment process will consistently lead to successful investing.
The S&P 500® Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.
The Barclays Capital U.S. Credit Index is comprised of the Barclays Capital U.S. Corporate Index and the non-native currency subcomponent of the Barclays Capital U.S. Government-Related Index. It includes publicly issued U.S. corporates, specified foreign debentures and secured notes denominated in U.S. dollars. It is a subset of the Barclays Capital U.S. Government/Credit Index and the Barclays Capital U.S. Aggregate Bond Index.
Barclays Capital U.S Corporate High-Yield Bond Index is composed of fixed-rate, publicly issued, non-investment grade debt.
A Fund’s portfolio may differ significantly from the securities held in an index. Indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
In preparing this document, Janus has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a Fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
Funds distributed by Janus Distributors LLC (5/10)
2 | MARCH 31, 2010
Lipper Rankings (unaudited)
Lipper Rankings – Based on total returns as of 3/31/10 | ||||||||||||||||||||||||||
One Year | Three Year | Five Year | Ten Year | Since Inception | Since PM Inception | |||||||||||||||||||||
Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | Percentile | Rank/ | |||||||||||||||
Lipper Category | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | Rank % | Total Funds | ||||||||||||||
Janus Investment Fund (Inception date) | ||||||||||||||||||||||||||
Growth & Core | ||||||||||||||||||||||||||
Janus Balanced Fund(1)(9/92) | Mixed-Asset Target Allocation–Moderate Funds | 80 | 428/537 | 1 | 3/457 | 2 | 5/347 | 23 | 42/183 | 4 | 1/32 | 2 | 5/368 | |||||||||||||
Janus Contrarian Fund(2/00) | Multi-Cap Core Funds | 6 | 41/805 | 57 | 395/698 | 3 | 16/539 | 15 | 34/234 | 17 | 37/230 | 17 | 37/230 | |||||||||||||
Janus Enterprise Fund(1)(9/92) | Mid-Cap Growth Funds | 26 | 110/425 | 27 | 99/377 | 17 | 54/321 | 90 | 156/173 | 43 | 14/32 | 27 | 106/393 | |||||||||||||
Janus Fund(2/70) | Large-Cap Growth Funds | 32 | 267/834 | 49 | 357/729 | 41 | 245/611 | 69 | 227/330 | 15 | 3/20 | 42 | 316/769 | |||||||||||||
Janus Growth and Income Fund(1)(5/91) | Large-Cap Core Funds | 48 | 438/930 | 46 | 364/799 | 44 | 288/664 | 77 | 296/387 | 7 | 5/78 | 56 | 461/828 | |||||||||||||
Janus Orion Fund(6/00) | Multi-Cap Growth Funds | 2 | 5/456 | 14 | 53/384 | 2 | 4/298 | – | – | 18 | 32/186 | 53 | 214/408 | |||||||||||||
Janus Research Core Fund(1)(6/96) | Large-Cap Core Funds | 19 | 170/930 | 49 | 389/799 | 19 | 123/664 | 42 | 160/387 | 4 | 7/203 | 68 | 562/828 | |||||||||||||
Janus Research Fund(1)(5/93) | Large-Cap Growth Funds | 4 | 28/834 | 35 | 255/729 | 12 | 71/611 | 79 | 261/330 | 6 | 5/86 | 9 | 54/671 | |||||||||||||
Janus Triton Fund(1)(2/05) | Small-Cap Growth Funds | 37 | 196/536 | 3 | 14/472 | 2 | 6/396 | – | – | 2 | 6/392 | 2 | 5/440 | |||||||||||||
Janus Twenty Fund*(4/85) | Large-Cap Growth Funds | 31 | 255/834 | 2 | 8/729 | 1 | 6/611 | 39 | 128/330 | 6 | 2/37 | 35 | 268/781 | |||||||||||||
Janus Venture Fund*(4/85) | Small-Cap Growth Funds | 11 | 59/536 | 50 | 232/472 | 25 | 99/396 | 76 | 169/223 | 9 | 1/11 | 22 | 28/129 | |||||||||||||
Risk-Managed | ||||||||||||||||||||||||||
INTECH Risk-Managed Core Fund(2/03) | Multi-Cap Core Funds | 76 | 605/805 | 70 | 488/698 | 69 | 368/539 | – | – | 49 | 191/393 | 49 | 191/393 | |||||||||||||
Value | ||||||||||||||||||||||||||
Perkins Mid Cap Value Fund(8/98) | Mid-Cap Value Funds | 93 | 203/219 | 8 | 15/192 | 10 | 14/143 | 7 | 4/57 | 3 | 1/43 | 3 | 1/43 | |||||||||||||
Perkins Small Cap Value Fund(2/97) | Small-Cap Core Funds | 37 | 270/733 | 1 | 6/621 | 6 | 28/508 | 10 | 27/272 | 5 | 6/126 | 5 | 6/126 | |||||||||||||
Global & International | ||||||||||||||||||||||||||
Janus Global Life Sciences Fund(12/98) | Global Health/Biotechnology Funds | 45 | 21/46 | 16 | 7/43 | 48 | 18/37 | 75 | 15/19 | 16 | 2/12 | 12 | 5/43 | |||||||||||||
Janus Global Opportunities Fund(1)(6/01) | Global Funds | 36 | 199/556 | 32 | 128/399 | 65 | 198/304 | – | – | 15 | 27/185 | 62 | 195/315 | |||||||||||||
Janus Global Research Fund(1)(2/05) | Global Funds | 20 | 111/556 | 14 | 56/399 | 3 | 9/304 | – | – | 4 | 9/294 | 4 | 9/294 | |||||||||||||
Janus Global Technology Fund(12/98) | Global Science/Technology Funds | 38 | 26/68 | 37 | 21/56 | 36 | 18/50 | 85 | 17/19 | 36 | 6/16 | 42 | 23/54 | |||||||||||||
Janus Overseas Fund(1)(5/94) | International Funds | 1 | 9/1278 | 1 | 6/988 | 1 | 1/721 | 19 | 73/395 | 1 | 1/100 | 1 | 2/607 | |||||||||||||
Janus Worldwide Fund(1)(5/91) | Global Funds | 27 | 145/556 | 61 | 244/399 | 70 | 212/304 | 95 | 145/152 | 34 | 6/17 | 18 | 99/556 | |||||||||||||
Fixed Income | ||||||||||||||||||||||||||
Janus Flexible Bond Fund(1)(7/87) | Intermediate Investment Grade Debt Funds | 59 | 320/544 | 7 | 28/453 | 8 | 28/387 | 18 | 40/224 | 10 | 2/20 | 8 | 34/459 | |||||||||||||
Janus High-Yield Fund(1)(12/95) | High Current Yield Funds | 74 | 338/460 | 23 | 90/399 | 19 | 64/343 | 30 | 66/222 | 7 | 6/91 | 26 | 81/313 | |||||||||||||
Janus Short-Term Bond Fund(1)(9/92) | Short Investment Grade Debt Funds | 64 | 163/257 | 5 | 10/238 | 4 | 6/184 | 18 | 18/99 | 26 | 7/26 | 6 | 14/240 | |||||||||||||
Asset Allocation | ||||||||||||||||||||||||||
Janus Smart Portfolio – Growth(12/05) | Mixed-Asset Target Allocation Growth Funds | 14 | 79/583 | 7 | 33/497 | – | – | – | – | 2 | 5/434 | 2 | 5/434 | |||||||||||||
Janus Smart Portfolio – Moderate(12/05) | Mixed-Asset Target Allocation Moderate Funds | 24 | 124/537 | 2 | 8/457 | – | – | – | – | 3 | 9/401 | 3 | 9/401 | |||||||||||||
Janus Smart Portfolio – Conservative(12/05) | Mixed-Asset Target Allocation Conservative Funds | 29 | 133/462 | 4 | 12/381 | – | – | – | – | 2 | 5/310 | 2 | 5/310 | |||||||||||||
(1) | The date of the Lipper ranking is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception. |
*Closed to new investors.
Past performance is no guarantee of future results. For current month-end performance, call 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus Capital). You can also visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital).
Ranking is for Class T Shares 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 or yield, and therefore the ranking for the period.
Lipper, Inc., a wholly-owned subsidiary of Reuters, is a nationally recognized organization that ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Ratings are historical with capital gains and dividends reinvested.
Janus Growth & Core Funds | 3
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ managers as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If a Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Funds’ managers may allocate a company 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 by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the managers’ best judgment at the time this report was compiled, which was March 31, 2010. As the investing environment changes, so could the managers’ opinions. These views are unique to each manager and aren’t necessarily shared by fellow employees or by Janus in general.
Fund Expenses
We believe it’s important for our shareholders to have a clear understanding of Fund expenses and the impact they have on investment return.
The following is important information regarding each Fund’s Expense Example, which appears in each Fund’s Management Commentary within this Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); redemption fees, where applicable (and any related exchange fees); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares only); administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares, and Class T Shares only); administrative fees (applicable to Class A Shares, Class C Shares, and Class I Shares only); and other Fund expenses. The 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 five-month period from November 1, 2009 to March 31, 2010 or the six-month period from October 1, 2009 to March 31, 2010 depending on the Fund.
Actual Expenses
The first line of the table in each example provides information about actual account values and actual expenses. You may use the information in this line, 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 first line 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 second line of the table in each example provides information about hypothetical account values and hypothetical expenses based upon each 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 each 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.
Janus Capital Management LLC (“Janus Capital”) has contractually agreed to waive certain Funds’ total operating expenses, excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing (12b-1) fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares only), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares, and Class T Shares only), brokerage commissions, interest, dividends, taxes and extraordinary expenses, including, but not limited to, acquired fund fees and expenses, to certain limits until at least February 16, 2011. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your
4 | MARCH 31, 2010
expenses would have been higher. More information regarding the waivers is available in the Funds’ prospectuses.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees (where applicable) and any related exchange fees. These fees are fully described in the prospectus. Therefore, the second line of each table is 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.
Janus Growth & Core Funds | 5
Janus Balanced Fund (unaudited)
Fund Snapshot We believe a dynamic approach to asset allocation that leverages our bottom-up, fundamental equity and fixed income research will allow us to outperform our benchmark and peers over time. Our integrated equity and fixed income research team seeks an optimal balance of asset class opportunities across market cycles. | ![]() Marc Pinto co-portfolio manager | ![]() Gibson Smith co-portfolio manager |
Performance Overview
Janus Balanced Fund’s Class T Shares returned 8.73% for the five-month period ended March 31, 2010, compared with an 8.26% return by the Balanced Index, an internally-calculated secondary benchmark. The Balanced Index is composed of a 55% weighting in the S&P 500® Index, the Fund’s primary benchmark, and a 45% weighting in the Barclays Capital U.S. Aggregate Bond Index, the Fund’s other secondary benchmark, which returned 13.87% and 1.49%, respectively.
Economic Overview
U.S. equity prices finished the period near 17-month highs amid upward momentum in the U.S. economy, strength abroad and better-than-expected corporate earnings. Small-cap and mid-cap stocks outperformed, while value-style indices topped growth. Industrial, financial and consumer discretionary stocks were the best performing group within the S&P 500® Index. Meanwhile, utilities and telecommunication services underperformed. Most commodities finished the period higher, although natural gas prices moved significantly lower.
While the strength in the economy is encouraging, we have seen evidence that it has largely been driven by businesses rebuilding depleted inventories and strong government stimulus. Meanwhile, mixed housing data released during the period provided evidence of the fragile nature of the U.S. housing market and that it continues to struggle to recover. The U.S. labor market showed modest improvement in March, with private payrolls showing their largest monthly increase in two years. Overall, private sector hiring remains slow as corporations have treaded carefully, helping to keep the unemployment rate at 9.7% at the end of March.
Given the accommodative stance of the Federal Reserve (Fed), positive economic momentum and a large U.S. fiscal budget deficit, interest rates ended the period higher with the long-end of the curve making the largest move. Volatility of rates increased amid concerns over sovereign creditworthiness, namely in Europe, reduced stimulus and monetary tightening in China and concerns over the demand for U.S. Treasuries. Overall the yield curve remained near its steepest level on record at period end. In fact, the 10-year yield stood near its highest level since June 2009. Amid the volatility and the rise in rates, Treasuries were among the worst performing fixed income segments during the period. Commercial Mortgage Backed Securities (CMBS) were the top performing segment as yields relative to U.S. Treasuries, or spreads, continued to narrow. Turning to corporate credit, spreads narrowed during the quarter with the greatest tightening occurring within high yield. This elevated high yield near the top of the list of gainers while investment grade credit was close behind.
Strategy Overview
The Fund’s equity exposure rose slightly during the period bringing our modest overweight equities relative to the Balanced Index during the period to 59.1% by period end. While this positioning aided performance, as equities outperformed fixed income, our more conservative tilt within the equity sleeve drove the Fund’s overall underperformance relative to its primary benchmark and peer group. Specifically, our equity holdings in financials and consumer-related sectors were the largest detractors during the period. Investment bank/brokerage firm Morgan Stanley was the top individual detractor. Morgan Stanley has been benefiting from the improvement in the capital markets, although its trading business has become more competitive. We continue to view its stock as attractively valued. CVS Caremark Corp., a pharmacy operator and pharmacy benefit manager (PBM) suffered during the period after reporting contract losses in its PBM business. While we think the stock is valued attractively, we continue to monitor the situation.
Meanwhile, our selections within energy and information technology, along with an underweight to utilities, were the largest contributors on the equity side. Bristol-Myers Squibb Co., a pharmaceutical holding, posted gains during the period. We like that the company’s focus is on returns
6 | MARCH 31, 2010
(unaudited)
on invested capital. It also has an attractive dividend yield. Enterprise software maker Oracle Corp. reported strong earnings early in the period, which we think confirmed our thesis that its products are considered non-discretionary by information technology purchasing managers and therefore would likely hold up better in an uncertain spending environment.
The Fund’s fixed income sleeve outperformed, largely because of our overweight and credit selection within corporate bonds. Lower quality bonds, like BBB- and BB-rated credits aided relative results as well. Specifically, our retailers and banks were among the top fixed income contributors. Compared to investment grade corporate credit high-yield debt remains relatively attractive to us with the BBB- and BB-rated segments offering the most value in our view because of their higher yields, which can absorb some of the adverse impact of a federal funds rate-driven backup in short-term interest rates. Our significant exposure to Teck Resources, Ltd., a non-index name, was the largest individual contributor to performance. The Vancouver, Canada-based company focused on metallic coal mining has benefited from strong demand from China as well as speculation of the company being a takeover candidate. Regardless of what happens, management has indicated its desire to pay down debt and improve its financial position. We did reduce our position given its rapid run up, but maintained sizeable exposure.
In terms of detractors within fixed income, our underweight exposure to CMBS weighed on results relative to our benchmark and peer group, the intermediate investment grade debt category, where many of our peers have CMBS exposure. CMBS spreads continued to tighten in what we think remains a fairly limited market. We continue to see little value in the CMBS market given its size, structure and the potential for spread widening. Sectors that hurt relative results among corporate credit included entertainment. In terms of individual detractors, our holding in Alcoa, Inc., an aluminum producer, underperformed during the period. We think Alcoa’s strong balance sheet and liquidity profile may mitigate some of the risk and that the holding was attractively valued. We are seeing continued improvement in the demand for aluminum and a more rational pricing environment. We believe Alcoa is well positioned to benefit.
Under certain circumstances and market conditions, we may initiate positions in futures contracts in order to mitigate the risks and potentially enhance the performance of the portfolio. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Outlook
Despite the continued rally in equity prices, we think valuations are attractive and investor expectations remain reasonable. Corporate balance sheets and profits are in good shape in our view amid aggressive cost reductions, which could help profits hold up in a weak economy and provide leverage in a strengthening economy. We recognize that with the equity sleeve’s conservative tilt an accelerating economy or double-dip recession poses a slight risk to relative performance, but think we are positioned appropriately. Regardless, we continue to favor companies with sustainable cash flows, good dividend yields and strong earnings visibility.
The fundamental and structural issues within fixed income, which we’ve outlined in previous commentaries and research briefs, remain in place in our view and will likely continue to be key drivers of returns within fixed income over the near term. Large U.S. fiscal budget deficits and the resulting financing needs of the U.S. Government will likely place upward pressure on long-term interest rates. With the Fed remaining committed to holding the federal funds rate low for an “extended period,” essentially anchoring short-term rates, we see risk of a further steepening of the yield curve. This is particularly true if the market perceives the Fed to be behind in addressing inflationary pressures, which so far have remained subdued given excess capacity in the economy, low wage growth and falling owners equivalent rents. The unprecedented size and nature of the monetary and fiscal stimulus, as well as the other governmental support mechanisms, have made the economic impact of unwinding such aid uncertain in our opinion.
Despite the significant spread tightening we’ve seen in corporate credit relative to U.S. Treasuries, we believe there is the potential for further tightening. While solid earnings growth and better functioning credit markets have helped companies restructure and firm up their balance sheets, revenue growth needs to materialize to allay some of our concerns over the sustainability of the earnings recovery. Unemployment remains high and we do not see companies quickly ramping up hiring, which could prolong the labor market weakness and result in slower economic growth overall. Furthermore, the impact of fiscal and monetary stimulus has begun to wane. As a result, we do not believe the rally in corporate credit will continue to be as broad as it has been in recent quarters and that individual security selection will matter the most in generating risk-adjusted outperformance. While we
Janus Growth & Core Funds | 7
Janus Balanced Fund (unaudited)
recognize the risk of a double-dip recession and have included a little more insurance in the form of greater U.S. Treasury exposure at the short end, we continue to emphasize the importance of corporate credit and credit analysis in fixed income investing.
We think our strengths lie in our fundamental bottom-up analysis and robust risk management. Stock picking and corporate credit selection are areas where we believe we can effectively apply these strengths and create value for our shareholders over the long term.
Thank you for investing in Janus Balanced Fund.
Janus Balanced Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
Bristol-Myers Squibb Co. | 0.73% | |||
Oracle Corp. | 0.57% | |||
Boeing Co. | 0.55% | |||
Canadian National Railway Co. (U.S. Shares) | 0.53% | |||
Corning, Inc. | 0.53% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Morgan Stanley | –0.28% | |||
CVS Caremark Corp. | –0.13% | |||
Credit Suisse Group A.G. (ADR) | –0.10% | |||
Daimler A.G. | –0.09% | |||
Goldman Sachs Group, Inc. | –0.05% |
5 Top Performers – Sectors*
Fund Weighting | ||||||||||||
Fund Contribution | (Average % of Equity) | S&P 500® Index Weighting | ||||||||||
Information Technology | 2.94% | 17.76% | 19.12% | |||||||||
Health Care | 2.54% | 18.09% | 12.68% | |||||||||
Industrials | 2.50% | 9.90% | 10.34% | |||||||||
Consumer Staples | 1.53% | 17.32% | 11.52% | |||||||||
Consumer Discretionary | 1.52% | 8.76% | 9.68% |
5 Bottom Performers – Sectors*
Fund Weighting | ||||||||||||
Fund Contribution | (Average % of Equity) | S&P 500® Index Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 3.62% | |||||||||
Telecommunication Services | 0.04% | 0.57% | 2.99% | |||||||||
Materials | 0.44% | 3.75% | 3.52% | |||||||||
Financials | 0.62% | 13.72% | 14.97% | |||||||||
Energy | 0.67% | 10.13% | 11.56% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
8 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Philip Morris International, Inc. Tobacco | 2.1% | |||
Bristol-Myers Squibb Co. Medical – Drugs | 1.8% | |||
Reckitt Benckiser Group PLC Soap and Cleaning Preparations | 1.8% | |||
Nestle S.A. Food – Miscellaneous/Diversified | 1.8% | |||
Anheuser-Busch InBev N.V. Brewery | 1.6% | |||
9.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19p06.gif)
Emerging markets comprised 2.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19t06.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19c06.gif)
Janus Growth & Core Funds | 9
Janus Balanced Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19m06.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Balanced Fund – Class A Shares | |||||||||||||||
NAV | 8.75% | 30.58% | 7.72% | 3.93% | 10.21% | 0.89% | 0.89% | ||||||||
MOP | 2.49% | 23.07% | 6.45% | 3.32% | 9.84% | ||||||||||
Janus Balanced Fund – Class C Shares | |||||||||||||||
NAV | 8.41% | 28.92% | 6.95% | 3.17% | 9.57% | 1.70% | 1.70% | ||||||||
CDSC | 7.33% | 27.65% | 6.95% | 3.17% | 9.57% | ||||||||||
Janus Balanced Fund – Class D Shares(1) | 8.73% | 30.61% | 7.76% | 3.96% | 10.22% | 0.72% | 0.72% | ||||||||
Janus Balanced Fund – Class I Shares | 8.84% | 30.61% | 7.76% | 3.96% | 10.22% | 0.63% | 0.63% | ||||||||
Janus Balanced Fund – Class R Shares | 8.53% | 29.59% | 7.22% | 3.44% | 9.83% | 1.35% | 1.35% | ||||||||
Janus Balanced Fund – Class S Shares | 8.67% | 30.15% | 7.48% | 3.70% | 10.05% | 1.10% | 1.10% | ||||||||
Janus Balanced Fund – Class T Shares | 8.73% | 30.61% | 7.76% | 3.96% | 10.22% | 0.85% | 0.85% | ||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 8.15% | ||||||||||
Barclays Capital U.S. Aggregate Bond Index(#) | 1.49% | 7.69% | 5.44% | 6.29% | 6.33% | ||||||||||
Barclays Capital U.S. Government/Credit Bond Index | 1.10% | 7.51% | 5.17% | 6.22% | 6.32% | ||||||||||
Balanced Index | 8.26% | 29.56% | 3.73% | 2.77% | 7.65% | ||||||||||
Lipper Quartile – Class T Shares | – | 4th | 1st | 1st | 1st | ||||||||||
Lipper Ranking – based on total return for Mixed-Asset Target Allocation Moderate Funds | – | 428/537 | 5/347 | 42/183 | 1/32 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
10 | MARCH 31, 2010
(unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with non-investment grade debt securities, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs), which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of bond funds. The return of principal is not guaranteed due to net asset value fluctuation that is caused by changes in the price of specific bonds held in the Fund and selling of bonds within the Fund by the portfolio managers.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Balanced Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Balanced Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Balanced Fund (the “JAD predecessor fund”) into corresponding shares of Janus Balanced Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Balanced Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
September 3, 1992 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Janus Growth & Core Funds | 11
Janus Balanced Fund (unaudited)
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – September 1, 1992 | |
# | The Fund changed its secondary benchmark index from the Barclays Capital U.S. Government/Credit Bond Index to the Barclays Capital U.S. Aggregate Bond Index. Janus Capital believes that the new secondary benchmark index provides a more appropriate representation of the Fund’s investments. The Barclays Capital U.S. Aggregate Bond Index is an unmanaged market value weighted index for U.S. dollar-denominated investment-grade debt issues, including government, corporate, mortgage-backed, and asset-backed securities with maturities of at least one year. | |
(1) | Closed to new investors. |
12 | MARCH 31, 2010
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,087.50 | $ | 3.71 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,084.10 | $ | 6.98 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.85 | $ | 8.15 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,053.60 | $ | 0.87 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.44 | $ | 3.53 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,088.40 | $ | 2.59 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.94 | $ | 3.02 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,085.30 | $ | 5.74 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.30 | $ | 6.69 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,086.70 | $ | 4.66 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.55 | $ | 5.44 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,087.80 | $ | 3.50 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | ||||||||
† | Expenses are equal to the annualized expense ratio of 0.86% for Class A Shares, 1.62% for Class C Shares, 0.60% for Class I Shares, 1.33% for Class R Shares, 1.08% for Class S Shares and 0.81% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.70% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Growth & Core Funds | 13
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Common Stock – 58.8% | ||||||||||||
Aerospace and Defense – 1.4% | ||||||||||||
624,934 | Boeing Co. | $ | 45,376,458 | |||||||||
1,478,128 | Empresa Brasileira de Aeronautica S.A. (ADR) | 35,415,947 | ||||||||||
80,792,405 | ||||||||||||
Agricultural Chemicals – 1.6% | ||||||||||||
340,711 | Monsanto Co. | 24,333,580 | ||||||||||
1,177,391 | Syngenta A.G. (ADR)** | 65,356,974 | ||||||||||
89,690,554 | ||||||||||||
Applications Software – 0.5% | ||||||||||||
922,923 | Microsoft Corp. | 27,013,956 | ||||||||||
Athletic Footwear – 1.2% | ||||||||||||
936,662 | NIKE, Inc. – Class B | 68,844,657 | ||||||||||
Automotive – Cars and Light Trucks – 0.5% | ||||||||||||
667,175 | Daimler A.G.*,** | 31,363,897 | ||||||||||
Brewery – 1.6% | ||||||||||||
1,764,674 | Anheuser-Busch InBev N.V.** | 88,880,733 | ||||||||||
1,636,499 | Anheuser-Busch InBev N.V. – VVPR Strip*,** | 15,471 | ||||||||||
88,896,204 | ||||||||||||
Cable Television – 0.6% | ||||||||||||
1,008,383 | DIRECTV – Class A* | 34,093,429 | ||||||||||
Casino Hotels – 0.4% | ||||||||||||
3,079,853 | Crown, Ltd. | 23,112,177 | ||||||||||
Cellular Telecommunications – 0.3% | ||||||||||||
856,113 | Vodafone Group PLC** | 19,938,872 | ||||||||||
Commercial Banks – 1.6% | ||||||||||||
716,500 | ICICI Bank, Ltd. (ADR) | 30,594,550 | ||||||||||
1,036,625 | Itau Unibanco Holding S.A. (ADR) | 22,795,384 | ||||||||||
1,466,105 | Standard Chartered PLC** | 39,985,490 | ||||||||||
93,375,424 | ||||||||||||
Commercial Services – Finance – 0.9% | ||||||||||||
763,090 | Paychex, Inc. | 23,426,863 | ||||||||||
1,542,307 | Western Union Co. | 26,157,527 | ||||||||||
49,584,390 | ||||||||||||
Computers – 3.0% | ||||||||||||
223,821 | Apple, Inc.* | 52,582,267 | ||||||||||
536,227 | International Business Machines Corp. | 68,771,112 | ||||||||||
665,370 | Research In Motion, Ltd. (U.S. Shares)* | 49,204,112 | ||||||||||
170,557,491 | ||||||||||||
Cosmetics and Toiletries – 1.0% | ||||||||||||
698,770 | Colgate-Palmolive Co. | 59,577,130 | ||||||||||
Diversified Banking Institutions – 4.3% | ||||||||||||
3,315,463 | Bank of America Corp. | 59,181,015 | ||||||||||
1,461,958 | Credit Suisse Group A.G. (ADR)** | 75,115,401 | ||||||||||
159,300 | Goldman Sachs Group, Inc. | 27,181,359 | ||||||||||
2,876,033 | Morgan Stanley | 84,239,006 | ||||||||||
245,716,781 | ||||||||||||
Diversified Operations – 1.6% | ||||||||||||
4,159,145 | China Merchants Holdings International Co., Ltd. | 15,320,910 | ||||||||||
896,857 | Danaher Corp. | 71,667,843 | ||||||||||
5,708,410 | Melco International Development, Ltd.* | 2,558,638 | ||||||||||
89,547,391 | ||||||||||||
E-Commerce/Services – 0.7% | ||||||||||||
1,176,805 | eBay, Inc.* | 31,714,895 | ||||||||||
433,751 | Liberty Media Corp. – Interactive – Class A* | 6,640,728 | ||||||||||
38,355,623 | ||||||||||||
Electric Products – Miscellaneous – 0.5% | ||||||||||||
539,297 | Emerson Electric Co. | 27,148,211 | ||||||||||
Electronic Components – Semiconductors – 0.4% | ||||||||||||
271,168 | Broadcom Corp. – Class A | 8,997,354 | ||||||||||
545,991 | Microchip Technology, Inc. | 15,375,107 | ||||||||||
24,372,461 | ||||||||||||
Electronic Connectors – 0.5% | ||||||||||||
653,145 | Amphenol Corp. – Class A | 27,556,188 | ||||||||||
Enterprise Software/Services – 1.4% | ||||||||||||
3,087,271 | Oracle Corp. | 79,311,992 | ||||||||||
Fiduciary Banks – 0.1% | ||||||||||||
141,580 | Northern Trust Corp. | 7,823,711 | ||||||||||
Finance – Investment Bankers/Brokers – 0.5% | ||||||||||||
1,595,723 | Charles Schwab Corp. | 29,824,063 | ||||||||||
Finance – Other Services – 0.4% | ||||||||||||
831,006 | NYSE Euronext | 24,606,088 | ||||||||||
Food – Miscellaneous/Diversified – 1.8% | ||||||||||||
1,941,589 | Nestle S.A.** | 99,464,762 | ||||||||||
Food – Retail – 0.4% | ||||||||||||
3,472,912 | Tesco PLC** | 22,945,659 | ||||||||||
Industrial Gases – 0.6% | ||||||||||||
383,764 | Praxair, Inc. | 31,852,412 | ||||||||||
Medical – Biomedical and Genetic – 2.0% | ||||||||||||
776,453 | Celgene Corp.* | 48,109,028 | ||||||||||
1,400,360 | Gilead Sciences, Inc.* | 63,688,373 | ||||||||||
111,797,401 | ||||||||||||
Medical – Drugs – 3.9% | ||||||||||||
799,145 | Abbott Laboratories | 42,098,959 | ||||||||||
3,898,260 | Bristol-Myers Squibb Co. | 104,083,541 | ||||||||||
445,150 | Roche Holding A.G.** | 72,213,879 | ||||||||||
52,185 | Roche Holding A.G. (ADR)** | 2,114,536 | ||||||||||
220,510,915 | ||||||||||||
Medical – HMO – 0.7% | ||||||||||||
1,197,767 | UnitedHealth Group, Inc. | 39,131,048 | ||||||||||
Medical Products – 3.1% | ||||||||||||
1,304,291 | Baxter International, Inc. | 75,909,735 | ||||||||||
1,033,199 | Covidien PLC (U.S. Shares)** | 51,949,246 | ||||||||||
707,863 | Johnson & Johnson | 46,152,668 | ||||||||||
174,011,649 | ||||||||||||
Metal Processors and Fabricators – 0.4% | ||||||||||||
196,542 | Precision Castparts Corp. | 24,903,837 | ||||||||||
Multi-Line Insurance – 0.4% | ||||||||||||
474,905 | ACE, Ltd. (U.S. Shares)** | 24,837,532 | ||||||||||
Networking Products – 1.4% | ||||||||||||
3,027,652 | Cisco Systems, Inc.* | 78,809,782 | ||||||||||
Oil and Gas Drilling – 0.4% | ||||||||||||
294,394 | Transocean, Ltd. (U.S. Shares)*,** | 25,429,754 |
See Notes to Schedules of Investments and Financial Statements.
14 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Oil Companies – Exploration and Production – 2.0% | ||||||||||||
1,991,161 | EnCana Corp. (U.S. Shares) | $ | 61,785,725 | |||||||||
643,901 | Occidental Petroleum Corp. | 54,435,391 | ||||||||||
116,221,116 | ||||||||||||
Oil Companies – Integrated – 3.3% | ||||||||||||
1,991,161 | Cenovus Energy, Inc. | 52,188,330 | ||||||||||
1,111,109 | Hess Corp. | 69,499,867 | ||||||||||
1,587,872 | Petroleo Brasileiro S.A. (U.S. Shares) | 62,863,852 | ||||||||||
184,552,049 | ||||||||||||
Optical Supplies – 0.3% | ||||||||||||
99,107 | Alcon, Inc. (U.S. Shares)** | 16,011,727 | ||||||||||
Power Converters and Power Supply Equipment – 0.2% | ||||||||||||
699,275 | Suntech Power Holdings Co., Ltd. (ADR)* | 9,803,836 | ||||||||||
Real Estate Operating/Development – 0.3% | ||||||||||||
4,090,000 | Hang Lung Properties, Ltd. | 16,488,537 | ||||||||||
Retail – Building Products – 0.9% | ||||||||||||
1,609,101 | Home Depot, Inc. | 52,054,417 | ||||||||||
Retail – Discount – 0.5% | ||||||||||||
571,380 | Target Corp. | 30,054,588 | ||||||||||
Retail – Drug Store – 0.6% | ||||||||||||
861,062 | CVS Caremark Corp.** | 31,480,427 | ||||||||||
Retail – Jewelry – 0.2% | ||||||||||||
198,998 | Tiffany & Co. | 9,450,415 | ||||||||||
Retail – Regional Department Stores – 0.5% | ||||||||||||
569,760 | Kohl’s Corp.* | 31,211,453 | ||||||||||
Semiconductor Components/Integrated Circuits – 0.3% | ||||||||||||
819,370 | Marvell Technology Group, Ltd.* | 16,698,761 | ||||||||||
Soap and Cleaning Preparations – 1.8% | ||||||||||||
1,821,142 | Reckitt Benckiser Group PLC** | 99,944,932 | ||||||||||
Telecommunication Equipment – Fiber Optics – 1.0% | ||||||||||||
2,745,098 | Corning, Inc. | 55,478,431 | ||||||||||
Television – 0.7% | ||||||||||||
2,759,144 | CBS Corp. – Class B | 38,462,467 | ||||||||||
Tobacco – 2.7% | ||||||||||||
1,493,186 | Altria Group, Inc. | 30,640,177 | ||||||||||
2,326,236 | Philip Morris International, Inc. | 121,336,469 | ||||||||||
151,976,646 | ||||||||||||
Toys – 0.5% | ||||||||||||
1,142,925 | Mattel, Inc. | 25,990,115 | ||||||||||
Transportation – Railroad – 2.0% | ||||||||||||
1,228,169 | Canadian National Railway Co. (U.S. Shares) | 74,414,760 | ||||||||||
534,023 | Union Pacific Corp. | 39,143,886 | ||||||||||
113,558,646 | ||||||||||||
Wireless Equipment – 0.9% | ||||||||||||
1,222,972 | QUALCOMM, Inc. | 51,352,594 | ||||||||||
Total Common Stock (cost $2,729,803,046) | 3,335,589,003 | |||||||||||
Corporate Bonds – 29.8% | ||||||||||||
Advertising Services – 0.2% | ||||||||||||
$ | 1,687,000 | WPP Finance UK, 5.8750%, 6/15/14** | 1,783,825 | |||||||||
6,701,000 | WPP Finance UK, 8.0000%, 9/15/14** | 7,699,369 | ||||||||||
9,483,194 | ||||||||||||
Agricultural Chemicals – 0.1% | ||||||||||||
$ | 6,117,000 | Mosaic Co., 7.6250%, 12/1/16 (144A) | 6,709,939 | |||||||||
Apparel Manufacturers – 0.1% | ||||||||||||
6,798,000 | Hanesbrands, Inc., 3.8308%, 12/15/14‡ | 6,492,090 | ||||||||||
Automotive – Cars and Light Trucks – 0.2% | ||||||||||||
11,752,000 | Daimler Finance North America LLC 6.5000%, 11/15/13 | 13,028,737 | ||||||||||
Beverages – Non-Alcoholic – 0.2% | ||||||||||||
9,196,000 | Dr. Pepper Snapple Group, Inc. 6.1200%, 5/1/13 | 10,225,557 | ||||||||||
3,646,000 | PepsiCo, Inc., 3.7500%, 3/1/14 | 3,812,035 | ||||||||||
14,037,592 | ||||||||||||
Brewery – 0.9% | ||||||||||||
12,876,000 | Anheuser-Busch InBev Worldwide, Inc. 7.2000%, 1/15/14 (144A) | 14,751,106 | ||||||||||
17,280,000 | Anheuser-Busch InBev Worldwide, Inc. 7.7500%, 1/15/19 (144A) | 20,552,521 | ||||||||||
17,876,000 | Anheuser-Busch InBev Worldwide, Inc. 5.3750%, 1/15/20 | 18,440,542 | ||||||||||
53,744,169 | ||||||||||||
Building – Residential and Commercial – 0.2% | ||||||||||||
4,094,000 | D.R. Horton, Inc., 7.8750%, 8/15/11 | 4,324,288 | ||||||||||
5,860,000 | MDC Holdings, Inc., 5.3750%, 12/15/14 | 5,851,104 | ||||||||||
4,075,000 | Ryland Group, 5.3750%, 5/15/12 | 4,115,750 | ||||||||||
14,291,142 | ||||||||||||
Building and Construction Products – Miscellaneous – 0.1% | ||||||||||||
5,893,000 | Owens Corning, 9.0000%, 6/15/19 | 6,944,352 | ||||||||||
Building Products – Cement and Aggregate – 0.3% | ||||||||||||
2,298,000 | CRH America Inc., 5.6250%, 9/30/11 | 2,408,437 | ||||||||||
4,116,000 | CRH America Inc., 6.9500%, 3/15/12 | 4,474,849 | ||||||||||
10,416,000 | Hanson, Ltd., 6.1250%, 8/15/16** | 10,305,706 | ||||||||||
17,188,992 | ||||||||||||
Cable Television – 1.0% | ||||||||||||
17,798,000 | Comcast Corp., 5.7000%, 5/15/18 | 18,871,042 | ||||||||||
6,919,000 | Comcast Corp., 5.1500%, 3/1/20 | 6,981,181 | ||||||||||
6,017,000 | Comcast Corp., 6.5500%, 7/1/39 | 6,226,741 | ||||||||||
6,907,000 | Comcast Corp., 6.4000%, 3/1/40 | 7,020,489 | ||||||||||
9,661,000 | COX Communications, Inc. 6.2500%, 6/1/18 (144A) | 10,274,531 | ||||||||||
4,071,000 | COX Communications, Inc. 9.3750%, 1/15/19 (144A) | 5,163,367 | ||||||||||
54,537,351 | ||||||||||||
Casino Hotels – 0.1% | ||||||||||||
4,040,000 | Ameristar Casinos, Inc. 9.2500%, 6/1/14 | 4,231,900 | ||||||||||
Casino Services – 0.3% | ||||||||||||
15,057,000 | International Game Technology 7.5000%, 6/15/19 | 17,054,160 | ||||||||||
Chemicals – Diversified – 0.4% | ||||||||||||
5,924,000 | Dow Chemical Co., 7.6000%, 5/15/14 | 6,762,791 | ||||||||||
11,530,000 | Dow Chemical Co., 8.5500%, 5/15/19 | 13,948,314 | ||||||||||
20,711,105 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 15
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Coatings and Paint Products – 0.4% | ||||||||||||
$ | 12,151,000 | RPM International, Inc. 6.1250%, 10/15/19 | $ | 12,634,926 | ||||||||
9,732,000 | Sherwin-Williams Co. 3.1250%, 12/15/14 | 9,779,852 | ||||||||||
22,414,778 | ||||||||||||
Commercial Banks – 1.7% | ||||||||||||
20,093,000 | American Express Bank FSB 5.5000%, 4/16/13 | 21,519,101 | ||||||||||
7,849,000 | BB&T Corp., 5.7000%, 4/30/14 | 8,529,186 | ||||||||||
8,739,000 | Credit Suisse New York 5.0000%, 5/15/13** | 9,392,476 | ||||||||||
14,013,000 | Credit Suisse New York 5.5000%, 5/1/14** | 15,252,198 | ||||||||||
7,175,000 | Credit Suisse New York 5.4000%, 1/14/20** | 7,231,087 | ||||||||||
24,574,000 | Discover Bank, 8.7000%, 11/18/19 | 26,915,213 | ||||||||||
5,408,000 | Zions Bancorp, 7.7500%, 9/23/14 | 5,454,617 | ||||||||||
94,293,878 | ||||||||||||
Computer Services – 0.4% | ||||||||||||
18,433,000 | Affiliated Computer Services, Inc. 4.7000%, 6/1/10 | 18,502,124 | ||||||||||
5,234,000 | Affiliated Computer Services, Inc. 5.2000%, 6/1/15 | 5,391,020 | ||||||||||
23,893,144 | ||||||||||||
Computers – Integrated Systems – 0.1% | ||||||||||||
1,463,000 | Brocade Communications Systems, Inc. 6.6250%, 1/15/18 (144A) | 1,488,603 | ||||||||||
1,806,000 | Brocade Communications Systems, Inc. 6.8750%, 1/15/20 (144A) | 1,842,120 | ||||||||||
3,330,723 | ||||||||||||
Computers – Memory Devices – 0.4% | ||||||||||||
11,612,000 | Seagate Technology 6.3750%, 10/1/11 | 12,018,420 | ||||||||||
8,728,000 | Seagate Technology 10.0000%, 5/1/14 (144A) | 9,884,460 | ||||||||||
21,902,880 | ||||||||||||
Consulting Services – 0% | ||||||||||||
1,545,000 | FTI Consulting Inc., 7.7500%, 10/1/16 | 1,575,900 | ||||||||||
Containers – Paper and Plastic – 0.1% | ||||||||||||
554,000 | Rock-Tenn Co. 9.2500% 3/15/16 (144A) | 603,860 | ||||||||||
3,194,000 | Rock-Tenn Co. 9.2500%, 3/15/16 | 3,481,460 | ||||||||||
4,085,320 | ||||||||||||
Cosmetics and Toiletries – 0% | ||||||||||||
2,581,000 | Estee Lauder Cos., Inc. 7.7500%, 11/1/13 | 3,000,206 | ||||||||||
Dialysis Centers – 0.2% | ||||||||||||
10,300,000 | DaVita, Inc., 6.6250%, 3/15/13 | 10,364,375 | ||||||||||
Diversified Banking Institutions – 1.0% | ||||||||||||
11,915,000 | Citigroup, Inc., 5.6250%, 8/27/12 | 12,490,054 | ||||||||||
9,808,000 | Citigroup, Inc., 5.3000%, 10/17/12 | 10,301,313 | ||||||||||
10,194,000 | Citigroup, Inc., 6.0100%, 1/15/15 | 10,709,490 | ||||||||||
9,207,000 | JPMorgan Chase & Co. 6.0000%, 1/15/18 | 9,996,058 | ||||||||||
3,300,000 | Morgan Stanley, 6.7500%, 4/15/11 | 3,483,638 | ||||||||||
$ | 3,139,000 | Morgan Stanley, 5.2500%, 11/2/12 | 3,345,923 | |||||||||
5,256,000 | Morgan Stanley, 5.6250%, 9/23/19 | 5,237,467 | ||||||||||
2,252,000 | Morgan Stanley, 5.5000%, 1/26/20 | 2,202,769 | ||||||||||
57,766,712 | ||||||||||||
Diversified Financial Services – 1.4% | ||||||||||||
14,679,000 | American Express Travel Related Services Co., Inc. 5.2500%, 11/21/11 (144A) | 15,341,096 | ||||||||||
4,290,000 | General Electric Capital Corp. 4.8000%, 5/1/13 | 4,559,112 | ||||||||||
6,061,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 6,668,591 | ||||||||||
28,295,000 | General Electric Capital Corp. 6.0000%, 8/7/19 | 29,898,448 | ||||||||||
14,924,000 | General Electric Capital Corp. 5.5000%, 1/8/20 | 15,226,435 | ||||||||||
5,285,000 | General Electric Capital Corp. 6.1500%, 8/7/37 | 5,168,233 | ||||||||||
76,861,915 | ||||||||||||
Diversified Minerals – 1.0% | ||||||||||||
4,443,000 | Teck Resources, Ltd. 7.0000%, 9/15/12 | 4,781,779 | ||||||||||
14,514,000 | Teck Resources, Ltd. 9.7500%, 5/15/14 | 17,199,089 | ||||||||||
3,563,000 | Teck Resources, Ltd. 5.3750%, 10/1/15 | 3,638,714 | ||||||||||
3,709,000 | Teck Resources, Ltd. 10.2500%, 5/15/16 | 4,413,710 | ||||||||||
7,375,000 | Teck Resources, Ltd. 10.7500%, 5/15/19 | 9,034,375 | ||||||||||
18,497,000 | Teck Resources, Ltd. 6.1250%, 10/1/35 | 16,878,513 | ||||||||||
55,946,180 | ||||||||||||
Diversified Operations – 0.4% | ||||||||||||
19,168,000 | Tyco Electronics Group S.A. 6.0000%, 10/1/12** | 20,638,741 | ||||||||||
2,083,000 | Tyco International Finance S.A. 4.1250%, 10/15/14** | 2,153,785 | ||||||||||
22,792,526 | ||||||||||||
Electric – Generation – 0.1% | ||||||||||||
5,970,000 | Allegheny Energy Supply Co. LLC 8.2500%, 4/15/12 (144A) | 6,584,492 | ||||||||||
Electric – Integrated – 0.6% | ||||||||||||
8,138,000 | CMS Energy Corp., 6.3000%, 2/1/12 | 8,495,657 | ||||||||||
5,919,000 | CMS Energy Corp., 1.2013%, 1/15/13‡ | 5,637,848 | ||||||||||
4,028,000 | Pacific Gas & Electric Co. 4.2000%, 3/1/11 | 4,146,331 | ||||||||||
5,422,000 | PPL Energy Supply LLC 5.7000%, 10/15/15 | 5,734,367 | ||||||||||
8,412,000 | Virginia Electric and Power Co. 5.1000%, 11/30/12 | 9,155,796 | ||||||||||
33,169,999 |
See Notes to Schedules of Investments and Financial Statements.
16 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Electronic Components – Semiconductors – 0.5% | ||||||||||||
$ | 12,422,000 | National Semiconductor Corp. 6.1500%, 6/15/12 | $ | 13,432,989 | ||||||||
12,580,000 | National Semiconductor Corp. 3.9500%, 4/15/15 | 12,492,695 | ||||||||||
4,126,000 | National Semiconductor Corp. 6.6000%, 6/15/17 | 4,479,722 | ||||||||||
30,405,406 | ||||||||||||
Electronic Connectors – 0.3% | ||||||||||||
17,450,000 | Amphenol Corp., 4.7500%, 11/15/14 | 17,950,623 | ||||||||||
Electronics – Military – 0.8% | ||||||||||||
9,862,000 | L-3 Communications Corp. 6.1250%, 7/15/13 | 10,009,930 | ||||||||||
6,221,000 | L-3 Communications Corp. 6.1250%, 1/15/14 | 6,329,868 | ||||||||||
2,124,000 | L-3 Communications Corp. 5.8750%, 1/15/15 | 2,161,170 | ||||||||||
25,381,000 | L-3 Communications Corp. 6.3750%, 10/15/15 | 26,047,251 | ||||||||||
44,548,219 | ||||||||||||
Enterprise Software/Services – 0.3% | ||||||||||||
14,344,000 | BMC Software, Inc., 7.2500%, 6/1/18 | 15,746,829 | ||||||||||
Finance – Auto Loans – 0.6% | ||||||||||||
5,215,000 | Ford Motor Credit Co. LLC 9.7500%, 9/15/10 | 5,340,035 | ||||||||||
11,428,000 | Ford Motor Credit Co. LLC 7.3750%, 2/1/11 | 11,713,346 | ||||||||||
5,933,000 | Ford Motor Credit Co. LLC 7.2500%, 10/25/11 | 6,134,075 | ||||||||||
6,404,000 | Ford Motor Credit Co. LLC 7.5000%, 8/1/12 | 6,631,220 | ||||||||||
5,165,000 | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | 5,437,485 | ||||||||||
35,256,161 | ||||||||||||
Finance – Credit Card – 0.4% | ||||||||||||
4,272,000 | American Express Co. 7.0000%, 3/19/18 | 4,852,103 | ||||||||||
9,175,000 | American Express Co. 8.1250%, 5/20/19 | 11,112,751 | ||||||||||
2,824,000 | American Express Co. 6.8000%, 9/1/66‡ | 2,753,400 | ||||||||||
5,032,000 | American Express Credit Co. 7.3000%, 8/20/13 | 5,647,982 | ||||||||||
24,366,236 | ||||||||||||
Finance – Investment Bankers/Brokers – 0.8% | ||||||||||||
14,996,000 | Charles Schwab Corp., 4.9500%, 6/1/14 | 15,989,154 | ||||||||||
10,729,000 | Jefferies Group, Inc., 8.5000%, 7/15/19 | 11,902,141 | ||||||||||
436,000 | Lazard Group LLC, 7.1250%, 5/15/15 | 457,799 | ||||||||||
8,483,000 | Lazard Group LLC, 6.8500%, 6/15/17 | 8,632,369 | ||||||||||
4,300,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 4,325,645 | ||||||||||
5,358,000 | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | 5,413,027 | ||||||||||
46,720,135 | ||||||||||||
Finance – Other Services – 0.4% | ||||||||||||
$ | 3,439,000 | Cantor Fitzgerald L.P. 7.8750%, 10/15/19 (144A) | 3,446,387 | |||||||||
10,904,000 | CME Group, Inc., 5.7500%, 2/15/14 | 11,970,586 | ||||||||||
7,148,000 | NASDAQ OMX Group, Inc. 4.0000%, 1/15/15 | 7,113,861 | ||||||||||
22,530,834 | ||||||||||||
Food – Meat Products – 0.3% | ||||||||||||
5,169,000 | Smithfield Foods, Inc. 7.0000%, 8/1/11 | 5,278,841 | ||||||||||
10,390,000 | Tyson Foods Inc., 7.8500%, 4/1/16 | 11,169,250 | ||||||||||
16,448,091 | ||||||||||||
Food – Miscellaneous/Diversified – 0.5% | ||||||||||||
1,865,000 | Kellogg Co., 4.2500%, 3/6/13 | 1,970,276 | ||||||||||
3,120,000 | Kraft Foods, Inc., 2.6250%, 5/8/13 | 3,143,456 | ||||||||||
3,625,000 | Kraft Foods, Inc., 6.1250%, 2/1/18 | 3,967,164 | ||||||||||
3,474,000 | Kraft Foods, Inc., 5.3750%, 2/10/20 | 3,530,817 | ||||||||||
7,968,000 | Kraft Foods, Inc., 6.8750%, 1/26/39 | 8,628,460 | ||||||||||
8,663,000 | Kraft Foods, Inc., 6.5000%, 2/9/40 | 8,977,302 | ||||||||||
30,217,475 | ||||||||||||
Food – Retail – 0.2% | ||||||||||||
8,190,000 | Delhaize Group, 5.8750%, 2/1/14** | 8,955,380 | ||||||||||
Investment Management and Advisory Services – 1.0% | ||||||||||||
9,969,000 | Ameriprise Financial, Inc. 7.3000%, 6/28/19 | 11,550,542 | ||||||||||
3,497,000 | Ameriprise Financial, Inc. 5.3000%, 3/15/20 | 3,537,709 | ||||||||||
8,776,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 8,710,180 | ||||||||||
17,427,000 | BlackRock, Inc., 3.5000%, 12/10/14 | 17,641,072 | ||||||||||
8,911,000 | BlackRock, Inc., 5.0000%, 12/10/19 | 8,920,143 | ||||||||||
6,925,000 | FMR LLC, 6.4500%, 11/15/39 (144A) | 6,578,044 | ||||||||||
56,937,690 | ||||||||||||
Life and Health Insurance – 0.5% | ||||||||||||
11,256,000 | Aflac, Inc., 6.9000%, 12/17/39 | 11,600,040 | ||||||||||
11,525,000 | Prudential Financial, Inc. 3.6250%, 9/17/12 | 11,852,759 | ||||||||||
2,076,000 | Prudential Financial, Inc. 4.7500%, 6/13/15 | 2,133,186 | ||||||||||
4,361,000 | Prudential Financial, Inc. 7.3750%, 6/15/19 | 5,001,142 | ||||||||||
30,587,127 | ||||||||||||
Medical – Biomedical and Genetic – 0.1% | ||||||||||||
1,744,000 | Amgen, Inc., 4.5000%, 3/15/20 | 1,741,173 | ||||||||||
3,791,000 | Bio-Rad Laboratories, Inc. 6.1250%, 12/15/14 | 3,828,910 | ||||||||||
5,570,083 | ||||||||||||
Medical – Drugs – 0.2% | ||||||||||||
7,742,000 | Novartis Capital Corp. 1.9000%, 4/24/13 | 7,737,634 | ||||||||||
2,494,000 | Novartis Capital Corp. 4.4000%, 4/24/20 | 2,493,344 | ||||||||||
10,230,978 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 17
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Medical – Hospitals – 0.4% | ||||||||||||
$ | 7,104,000 | HCA, Inc., 8.7500%, 9/1/10 | $ | 7,246,080 | ||||||||
12,508,000 | HCA, Inc., 9.2500%, 11/15/16 | 13,297,568 | ||||||||||
3,247,000 | HCA, Inc., 8.5000%, 4/15/19 (144A) | 3,492,554 | ||||||||||
24,036,202 | ||||||||||||
Medical – Wholesale Drug Distributors – 0.2% | ||||||||||||
4,681,000 | McKesson Corp., 6.5000%, 2/15/14 | 5,228,377 | ||||||||||
4,070,000 | McKesson Corp., 7.5000%, 2/15/19 | 4,825,954 | ||||||||||
10,054,331 | ||||||||||||
Medical Labs and Testing Services – 0.5% | ||||||||||||
4,012,000 | Laboratory Corp. of America Holdings 5.6250%, 12/15/15 | 4,342,966 | ||||||||||
14,749,000 | Roche Holdings, Inc. 4.5000%, 3/1/12 (144A) | 15,591,934 | ||||||||||
8,852,000 | Roche Holdings, Inc. 6.0000%, 3/1/19 (144A) | 9,782,567 | ||||||||||
29,717,467 | ||||||||||||
Medical Products – 0.4% | ||||||||||||
7,522,000 | CareFusion Corp. 4.1250%, 8/1/12 | 7,845,401 | ||||||||||
5,654,000 | CareFusion Corp. 5.1250%, 8/1/14 | 6,000,438 | ||||||||||
9,465,000 | Hospira, Inc., 6.4000%, 5/15/15 | 10,497,044 | ||||||||||
24,342,883 | ||||||||||||
Metal – Aluminum – 0.2% | ||||||||||||
3,568,000 | Alcoa, Inc., 6.7500%, 7/15/18 | 3,697,761 | ||||||||||
7,853,000 | Alcoa, Inc., 5.9500%, 2/1/37 | 6,438,887 | ||||||||||
10,136,648 | ||||||||||||
Metal – Copper – 0.1% | ||||||||||||
3,547,000 | Freeport-McMoRan Copper & Gold, Inc. 8.3750%, 4/1/17 | 3,946,038 | ||||||||||
Multi-Line Insurance – 0.2% | ||||||||||||
3,980,000 | MetLife, Inc., 6.7500%, 6/1/16 | 4,460,199 | ||||||||||
4,563,000 | MetLife, Inc., 7.7170%, 2/15/19 | 5,328,042 | ||||||||||
9,788,241 | ||||||||||||
Multimedia – 0.2% | ||||||||||||
14,022,000 | Time Warner, Inc., 4.8750%, 3/15/20 | 13,699,943 | ||||||||||
Non-Hazardous Waste Disposal – 0.2% | ||||||||||||
10,737,000 | Allied Waste North America, Inc. 7.1250%, 5/15/16 | 11,663,066 | ||||||||||
Office Automation and Equipment – 0.1% | ||||||||||||
1,344,000 | Xerox Corp., 5.6500%, 5/15/13 | 1,441,506 | ||||||||||
3,459,000 | Xerox Corp., 8.2500%, 5/15/14 | 4,016,327 | ||||||||||
2,482,000 | Xerox, Corp., 5.6250%, 12/15/19 | 2,551,216 | ||||||||||
8,009,049 | ||||||||||||
Oil and Gas Drilling – 0.1% | ||||||||||||
5,546,000 | Nabors Industries, Inc. 9.2500%, 1/15/19 | 6,898,553 | ||||||||||
Oil Companies – Exploration and Production – 0.5% | ||||||||||||
9,452,000 | Anadarko Petroleum Corp. 5.9500%, 9/15/16 | 10,297,680 | ||||||||||
15,193,000 | Forest Oil Corp., 8.0000%, 12/15/11 | 16,028,615 | ||||||||||
26,326,295 | ||||||||||||
Oil Companies – Integrated – 0.1% | ||||||||||||
$ | 5,110,000 | Shell International Finance BV 1.8750%, 3/25/13** | 5,104,992 | |||||||||
Oil Refining and Marketing – 0.3% | ||||||||||||
777,000 | Frontier Oil Corp., 8.5000%, 9/15/16 | 796,425 | ||||||||||
7,223,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 7,561,036 | ||||||||||
7,943,000 | Motiva Enterprises LLC 6.8500%, 1/15/40 (144A) | 8,559,719 | ||||||||||
16,917,180 | ||||||||||||
Pharmacy Services – 0.4% | ||||||||||||
12,748,000 | Express Scripts, Inc. 5.2500%, 6/15/12 | 13,592,606 | ||||||||||
10,873,000 | Express Scripts, Inc. 6.2500%, 6/15/14 | 12,046,556 | ||||||||||
25,639,162 | ||||||||||||
Pipelines – 0.5% | ||||||||||||
1,773,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 1,794,648 | ||||||||||
2,621,000 | Kinder Morgan Energy Partners L.P. 5.9500%, 2/15/18 | 2,811,140 | ||||||||||
12,610,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 12,357,801 | ||||||||||
3,762,000 | Midcontinent Express Pipeline LLC 5.4500%, 9/15/14 (144A) | 3,895,137 | ||||||||||
3,475,000 | Plains All American Pipeline L.P. 4.2500%, 9/1/12 | 3,610,310 | ||||||||||
2,766,000 | Plains All American Pipeline L.P. 8.7500%, 5/1/19 | 3,374,431 | ||||||||||
3,487,000 | Williams Partners L.P. 3.8000%, 2/15/15 (144A) | 3,480,744 | ||||||||||
31,324,211 | ||||||||||||
Real Estate Management/Services – 0.3% | ||||||||||||
7,128,000 | AMB Property L.P., 6.1250%, 12/1/16 | 7,287,910 | ||||||||||
7,131,000 | AMB Property L.P., 6.6250%, 12/1/19 | 7,257,846 | ||||||||||
14,545,756 | ||||||||||||
Reinsurance – 0.9% | ||||||||||||
10,310,000 | Berkshire Hathaway Finance Corp. 1.4000%, 2/10/12 | 10,362,756 | ||||||||||
17,635,000 | Berkshire Hathaway Finance Corp. 4.0000%, 4/15/12 | 18,567,327 | ||||||||||
10,335,000 | Berkshire Hathaway Finance Corp. 2.1250%, 2/11/13 | 10,418,558 | ||||||||||
10,372,000 | Berkshire Hathaway Finance Corp. 3.2000%, 2/11/15 | 10,460,536 | ||||||||||
49,809,177 | ||||||||||||
REIT – Diversified – 0.1% | ||||||||||||
3,578,000 | Digital Realty Trust L.P. 5.8750%, 2/1/20 (144A) | 3,498,676 | ||||||||||
REIT – Health Care – 0.3% | ||||||||||||
10,101,000 | HCP, Inc., 6.4500%, 6/25/12 | 10,709,576 | ||||||||||
3,606,000 | HCP, Inc., 5.6500%, 12/15/13 | 3,769,384 | ||||||||||
1,306,000 | Ventas Realty L.P., 6.7500%, 4/1/17 | 1,340,866 | ||||||||||
15,819,826 |
See Notes to Schedules of Investments and Financial Statements.
18 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
REIT – Office Property – 0.4% | ||||||||||||
$ | 3,545,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | $ | 3,483,973 | ||||||||
16,994,000 | Reckson Operating Partnership L.P. 7.7500%, 3/15/20 | 17,283,204 | ||||||||||
20,767,177 | ||||||||||||
REIT – Warehouse/Industrial – 0.3% | ||||||||||||
4,004,000 | ProLogis, 7.3750%, 10/30/19 | 4,110,194 | ||||||||||
10,492,000 | ProLogis, 6.8750%, 3/15/20 | 10,363,326 | ||||||||||
14,473,520 | ||||||||||||
Resorts and Theme Parks – 0% | ||||||||||||
2,855,000 | Vail Resorts, Inc., 6.7500%, 2/15/14 | 2,865,706 | ||||||||||
Retail – Apparel and Shoe – 0.5% | ||||||||||||
1,368,000 | Limited Brands, Inc. 6.1250%, 12/1/12 | 1,436,400 | ||||||||||
5,929,000 | Limited Brands, Inc. 6.9000%, 7/15/17 | 6,047,580 | ||||||||||
4,804,000 | Limited Brands, Inc. 8.5000%, 6/15/19 | 5,356,460 | ||||||||||
6,537,000 | Limited Brands, Inc. 7.6000%, 7/15/37 | 6,161,123 | ||||||||||
7,754,000 | Nordstrom, Inc., 6.7500%, 6/1/14 | 8,706,958 | ||||||||||
27,708,521 | ||||||||||||
Retail – Computer Equipment – 0% | ||||||||||||
1,904,000 | GameStop Corp., 8.0000%, 10/1/12 | 1,975,400 | ||||||||||
Retail – Propane Distribution – 0.1% | ||||||||||||
3,425,000 | Ferrellgas L.P., 8.6250%, 6/15/20 | 3,425,000 | ||||||||||
Retail – Regional Department Stores – 1.0% | ||||||||||||
3,689,000 | JC Penney Corp., Inc. 9.0000%, 8/1/12 | 4,131,680 | ||||||||||
4,300,000 | JC Penney Corp., Inc. 6.8750%, 10/15/15 | 4,558,000 | ||||||||||
4,012,000 | JC Penney Corp., Inc. 5.7500%, 2/15/18 | 4,017,015 | ||||||||||
1,591,000 | JC Penney Corp., Inc. 6.3750%, 10/15/36 | 1,481,619 | ||||||||||
5,057,000 | JC Penney Corp., Inc. 7.4000%, 4/1/37 | 5,057,000 | ||||||||||
5,778,000 | Macy’s Retail Holdings, Inc. 5.8750%, 1/15/13 | 6,038,010 | ||||||||||
11,949,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 12,187,980 | ||||||||||
11,646,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 11,616,885 | ||||||||||
5,471,000 | Macy’s Retail Holdings, Inc. 6.9000%, 4/1/29 | 5,197,450 | ||||||||||
54,285,639 | ||||||||||||
Retail – Restaurants – 0.4% | ||||||||||||
12,665,000 | Brinker International, 5.7500%, 6/1/14 | 13,107,426 | ||||||||||
8,015,000 | Darden Restaurants Inc. 5.6250%, 10/15/12 | 8,643,328 | ||||||||||
21,750,754 | ||||||||||||
Steel – Producers – 0.1% | ||||||||||||
2,854,000 | ArcelorMittal, 5.3750%, 6/1/13** | 3,037,835 | ||||||||||
2,389,000 | ArcelorMittal, 9.0000%, 2/15/15** | 2,853,245 | ||||||||||
5,891,080 | ||||||||||||
Super-Regional Banks – 0.4% | ||||||||||||
$ | 5,101,000 | National City Corp. 6.8750%, 5/15/19 | 5,667,920 | |||||||||
3,492,000 | PNC Funding Corp., 3.6250%, 2/8/15 | 3,512,921 | ||||||||||
5,195,000 | PNC Funding Corp., 5.1250%, 2/8/20 | 5,233,142 | ||||||||||
3,502,000 | Wells Fargo Capital 3.6250%, 4/15/15 | 3,474,663 | ||||||||||
5,146,000 | Wells Fargo Capital 7.7000%, 9/26/99‡ | 5,313,245 | ||||||||||
23,201,891 | ||||||||||||
Telecommunication Services – 0.1% | ||||||||||||
5,359,000 | Virgin Media Secured Finance PLC 6.5000%, 1/15/18 (144A)** | 5,372,398 | ||||||||||
Telephone – Integrated – 0.8% | ||||||||||||
18,061,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 (144A) | 18,647,983 | ||||||||||
23,572,000 | Sprint Capital Corp., 7.6250%, 1/30/11 | 24,249,695 | ||||||||||
42,897,678 | ||||||||||||
Television – 0.7% | ||||||||||||
6,562,000 | CBS Corp., 6.6250%, 5/15/11 | 6,891,170 | ||||||||||
9,591,000 | CBS Corp., 8.2000%, 5/15/14 | 11,197,521 | ||||||||||
16,763,000 | CBS Corp., 8.8750%, 5/15/19 | 20,249,771 | ||||||||||
4,254,000 | CBS Corp., 5.7500%, 4/15/20 | 4,272,284 | ||||||||||
42,610,746 | ||||||||||||
Transportation – Railroad – 0.2% | ||||||||||||
2,771,631 | CSX Corp., 8.3750%, 10/15/14 | 3,210,519 | ||||||||||
2,716,000 | Kansas City Southern de Mexico S.A. de C.V. 7.6250%, 12/1/13 | 2,777,110 | ||||||||||
1,177,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 (144A) | 1,206,425 | ||||||||||
2,489,000 | Kansas City Southern Railway 13.0000%, 12/15/13 | 2,961,910 | ||||||||||
10,155,964 | ||||||||||||
Total Corporate Bonds (cost $1,591,109,041) | 1,691,568,188 | |||||||||||
Preferred Stock – 0.3% | ||||||||||||
Food – Miscellaneous/Diversified – 0% | ||||||||||||
19 | H.J. Heinz Finance Co. 8.0000% (144A) | 2,005,094 | ||||||||||
Metal – Copper – 0.3% | ||||||||||||
124,773 | Freeport-McMoRan Copper & Gold, Inc. convertible, 6.7500% | 14,469,925 | ||||||||||
Total Preferred Stock (cost $8,470,594) | 16,475,019 | |||||||||||
U.S. Treasury Notes/Bonds – 7.7% | ||||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||||
$ | 15,920,000 | 0.8750%, 1/31/11 | 15,984,667 | |||||||||
14,394,000 | 1.1250%, 6/30/11 | 14,498,587 | ||||||||||
19,756,000 | 1.0000%, 10/31/11 | 19,824,692 | ||||||||||
3,417,000 | 1.0000%, 12/31/11 | 3,423,807 | ||||||||||
66,547,000 | 0.8750%, 1/31/12 | 66,469,006 | ||||||||||
51,749,000 | 1.3750%, 2/15/12 | 52,151,245 | ||||||||||
22,444,000 | 0.8750%, 2/29/12 | 22,397,541 | ||||||||||
10,559,000 | 1.3750%, 9/15/12 | 10,582,103 | ||||||||||
2,065,000 | 1.3750%, 1/15/13 | 2,058,386 | ||||||||||
25,069,000 | 2.7500%, 10/31/13 | 25,795,600 | ||||||||||
15,740,000 | 1.7500%, 1/31/14 | 15,561,697 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 19
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
U.S. Treasury Notes/Bonds – (continued) | ||||||||||||
$ | 46,196,000 | 1.8750%, 2/28/14 | $ | 45,806,198 | ||||||||
3,734,000 | 2.6250%, 7/31/14 | 3,785,051 | ||||||||||
3,351,000 | 2.3750%, 8/31/14 | 3,358,855 | ||||||||||
3,411,000 | 2.3750%, 9/30/14 | 3,412,064 | ||||||||||
808,000 | 2.1250%, 11/30/14 | 797,395 | ||||||||||
5,676,000 | 2.6250%, 12/31/14 | 5,716,799 | ||||||||||
45,029,000 | 2.2500%, 1/31/15 | 44,540,030 | ||||||||||
53,135,000 | 2.3750%, 2/28/15 | 52,769,962 | ||||||||||
25,863,000 | 3.3750%, 11/15/19 | 24,955,778 | ||||||||||
4,526,000 | 3.6250%, 2/15/20 | 4,448,918 | ||||||||||
Total U.S. Treasury Notes/Bonds (cost $439,090,864) | 438,338,381 | |||||||||||
Money Market – 3.4% | ||||||||||||
191,577,723 | Janus Cash Liquidity Fund LLC, 0% (cost $191,577,723) | 191,577,723 | ||||||||||
Total Investments (total cost $4,960,051,268) – 100.0% | 5,673,548,314 | |||||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.0)% | (968,914) | |||||||||||
Net Assets – 100% | $ | 5,672,579,400 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 23,112,177 | 0.4% | |||||
Belgium | 97,851,584 | 1.7% | ||||||
Bermuda | 16,698,761 | 0.3% | ||||||
Brazil | 121,075,183 | 2.1% | ||||||
Canada | 288,697,817 | 5.1% | ||||||
Cayman Islands | 31,706,716 | 0.6% | ||||||
Germany | 31,363,897 | 0.5% | ||||||
Hong Kong | 34,368,085 | 0.6% | ||||||
India | 30,594,550 | 0.5% | ||||||
Ireland | 51,949,246 | 0.9% | ||||||
Luxembourg | 28,683,605 | 0.5% | ||||||
Mexico | 3,983,535 | 0.1% | ||||||
Netherlands | 5,104,992 | 0.1% | ||||||
Switzerland | 412,420,327 | 7.3% | ||||||
United Kingdom | 207,976,249 | 3.7% | ||||||
United States†† | 4,287,961,590 | 75.6% | ||||||
Total | $ | 5,673,548,314 | 100.0% |
†† | Includes Cash Equivalents (72.2% excluding Cash Equivalents) |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
British Pound 4/8/10 | 7,500,000 | $ | 11,379,499 | $ | (82,999) | |||||||
British Pound 4/22/10 | 39,910,000 | 60,547,675 | 2,271,463 | |||||||||
British Pound 5/6/10 | 9,675,000 | 14,676,603 | (139,722) | |||||||||
Euro 4/8/10 | 4,800,000 | 6,482,384 | 189,616 | |||||||||
Euro 4/22/10 | 14,980,000 | 20,230,759 | 293,040 | |||||||||
Euro 5/6/10 | 220,000 | 297,117 | 4,274 | |||||||||
Swiss Franc 4/22/10 | 28,000,000 | 26,567,314 | (418,395) | |||||||||
Swiss Franc 5/6/10 | 48,900,000 | 46,404,043 | (262,391) | |||||||||
Total | $ | 186,585,394 | $ | 1,854,886 |
See Notes to Schedules of Investments and Financial Statements.
20 | MARCH 31, 2010
Janus Contrarian Fund (unaudited)
Fund Snapshot We believe a bottom-up process, focused on non-consensus, contrarian investment ideas will drive strong risk-adjusted returns over time. Through our deep fundamental analysis, we seek to identify high-quality businesses, regardless of market capitalization or geography, and capitalize on asymmetrical risk/reward opportunities. | ![]() David Decker portfolio manager |
During the period October 31 2009 through March 31 2010, Contrarian Fund’s Class T Shares generated a return of 22.38%, outperforming the 13.87% return of the S&P 500® Index, the Fund’s primary index. Following a very strong rebound off the March 2009 bottom, the market continued to grind higher as the global economy continued to recover.
There is an interesting tendency in investor behavior (indeed human behavior) to heavily weight the environment just experienced when considering future investment behavior. For example, when market conditions are very favorable, investor psychology becomes more positive, leading to a willingness to take on more risk. Conversely, when market conditions are very unfavorable, investor psychology becomes more negative, leading to an unwillingness to take on more risk. The problem with this natural reaction is that it means that investors become most risk averse after the worst has occurred and most risk seeking after the best has occurred (I believe this explains why most investors substantially underperform not only the indexes, but mutual funds as well – they sell when the damage is almost complete and they reenter the market too late).
An important aspect of the discussion above is the fact that I believe that markets and stocks vacillate around their true value (which hopefully increases over time). When a company’s stock gets further and further from its fair value (in either direction), like a rubber band, it will eventually come back to fair value. Importantly, this means that the more a stock goes down, the less risky it becomes (even if fundamentals are worsening because now its price reflects these worsening fundamentals), and conversely, the more it goes up, the more risky it becomes. Though most would not argue with this assertion, actual investor behavior suggests this is not the case.
The reason that understanding this aspect of investor behavior is important is that the core of contrarian investing is about resisting the temptation to sell at the bottom (indeed one should invest with abandon at the bottom), because one understands that stocks will ultimately revert toward fair value. I believe this dynamic explains why the recent recovery in the market has been so frustrating for those who have stood on the side-lines waiting for the eyes of the recovery to give them the all clear signal to get back in. In fact, investors remain for the most part skeptical rather than complacent, and this is why I remain sanguine (though certainly less so as I will discuss later) in the valuations of many stocks globally, despite the substantial recovery in prices.
What Worked
During the period a number of our positions performed well as the economic recovery led to more rapidly improving business conditions in positions such as UAL Corp. (parent of United Airlines), commercial real estate services provider CB Richard Ellis Group, Inc., and mortgage insurer Radian Group, Inc. In the case of United Airlines (as well as Continental Airlines, Inc., another holding in the Fund), it became clear to us that not only was the highly profitable business traffic improving, but importantly capacity was being taken out of the system. This has kept pricing and yield firm, more than offsetting rising oil prices. While I am always hesitant to say “it is different this time,” particularly for an industry with a history of massive shareholder value destruction, significant consolidation in the industry (Delta Air Lines, Inc. merging with Northwest and the recently announced United Airlines/Continental merger) may lead to substantially better earnings than in the past.
Two new positions, JSW Steel, Ltd. and Perrigo Co. were important contributors to the return of the portfolio.
JSW is one of the largest steel producers in India and is rapidly becoming one of the lowest cost producers in the world through vertical input integration. It is also one of the fastest growing steel companies in the world. I remain confident in the sustainability of economic growth in India and in particular, its need for steel based infrastructure – roads, power plants, etc.
Perrigo is the largest manufacturer of store brand over-the-counter (OTC) pharmaceuticals. Perrigo provides a
Janus Growth & Core Funds | 21
Janus Contrarian Fund (unaudited)
product that is not only cheaper than branded OTC products for the consumer, but more profitable for the retailer. We believe that OTC pharmaceuticals will continue to take share due to the value proposition for both the consumer and the retailer, and Perrigo is a primary beneficiary of this dynamic.
What Didn’t Work
Two investments that performed poorly during the period were Motorola, Inc. and SandRidge Energy, Inc., a natural gas exploration company.
While it is no secret that Motorola faces increasing competition in the wireless handset market, we believe that the current market value of Motorola ascribes very little (if any) value to the handset division after considering the value of the other parts of the company. For this reason, despite the weak performance during the period, I have maintained the position.
On the other hand, I decided to sell SandRidge at a loss after deciding that the very difficult environment for natural gas will likely persist for a very long time due to the fact that there is simply a glut of it in this country. Until demand for natural gas catches up with the enormous supply coming out of the huge shale plays, the economics of the industry will remain very difficult.
Under certain circumstances and market conditions, we may initiate positions in put and call options in order to mitigate the risks and potentially enhance the performance of the portfolio. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Concluding Comments
In conclusion, while the global economy looks substantially better than it did a year ago, risk and uncertainty still exist. Debt levels remain high in the U.S. and Europe, and the crisis in Greece is increasingly concerning. Moreover, inflation in Asia continues to rise, and economic growth in the U.S. is by no means self-sustaining given persistently high unemployment (though I do expect employment to improve in the coming quarters). Accordingly, while I believe valuations remain attractive, investment opportunities aren’t nearly as plentiful. However, consistent with the four themes I outlined in my letter of October 31, 2009 (high dividend yield, beneficiaries of the growing Asian consumer, beneficiaries of overall Asian economic growth, and special situations), we are still finding opportunities globally that I believe will generate strong risk adjusted returns in the coming years.
Thank you for your continued investment in Janus Contrarian Fund.
22 | MARCH 31, 2010
(unaudited)
Janus Contrarian Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
St. Joe Co. | 2.05% | |||
UAL Corp. | 1.91% | |||
CB Richard Ellis Group, Inc. – Class A | 1.66% | |||
Kinder Morgan Management LLC | 1.34% | |||
JSW Steel, Ltd. | 1.22% |
5 Bottom Performers – Holdings
Contribution | ||||
Motorola, Inc. | –0.63% | |||
A123 Systems, Inc. | –0.23% | |||
BG Group PLC | –0.17% | |||
SandRidge Energy, Inc. | –0.16% | |||
Ultra Petroleum Corp. | –0.16% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | 8.89% | 33.37% | 14.97% | |||||||||
Industrials | 3.34% | 8.91% | 10.34% | |||||||||
Consumer Discretionary | 2.52% | 12.53% | 9.68% | |||||||||
Consumer Staples | 1.81% | 12.19% | 11.52% | |||||||||
Materials | 1.75% | 6.22% | 3.52% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Information Technology | –0.39% | 3.32% | 19.12% | |||||||||
Telecommunication Services | 0.00% | 0.00% | 2.99% | |||||||||
Other** | 0.07% | 0.31% | 0.00% | |||||||||
Utilities | 0.26% | 5.70% | 3.62% | |||||||||
Energy | 1.45% | 12.45% | 11.56% |
* | Based on sector classification according to the Global Industry Classification Standard codes (“GICS”), which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 23
Janus Contrarian Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
St. Joe Co. Real Estate Operating/Development | 6.4% | |||
Kinder Morgan Management LLC Pipelines | 5.1% | |||
British American Tobacco PLC Tobacco | 4.5% | |||
JSW Steel, Ltd. Steel – Producers | 4.3% | |||
CB Richard Ellis Group, Inc. – Class A Real Estate Management/Services | 3.9% | |||
24.2% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19p05.gif)
Emerging markets comprised 19.2% of total net assets.
Top Country Allocations – Long Positions – (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19c05.gif)
24 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19m05.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Contrarian Fund – Class A Shares | |||||||||||||||
NAV | 22.26% | 74.59% | 6.63% | 5.31% | 6.09% | 1.33% | 1.23% | ||||||||
MOP | 15.25% | 64.55% | 5.37% | 4.69% | 5.47% | ||||||||||
Janus Contrarian Fund – Class C Shares | |||||||||||||||
NAV | 21.78% | 72.37% | 5.84% | 4.52% | 5.30% | 2.28% | 1.98% | ||||||||
CDSC | 20.57% | 70.65% | 5.84% | 4.52% | 5.30% | ||||||||||
Janus Contrarian Fund – Class D Shares(1) | 22.38% | 75.10% | 6.80% | 5.46% | 6.24% | 0.94% | 0.94% | ||||||||
Janus Contrarian Fund – Class I Shares | 22.38% | 75.10% | 6.80% | 5.46% | 6.24% | 0.84% | 0.84% | ||||||||
Janus Contrarian Fund – Class R Shares | 22.11% | 73.48% | 6.17% | 4.84% | 5.61% | 1.57% | 1.57% | ||||||||
Janus Contrarian Fund – Class S Shares | 22.26% | 74.24% | 6.43% | 5.10% | 5.88% | 1.32% | 1.32% | ||||||||
Janus Contrarian Fund – Class T Shares | 22.38% | 75.10% | 6.80% | 5.46% | 6.24% | 1.07% | 1.07% | ||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 0.28% | ||||||||||
Morgan Stanley Capital International All Country World Indexsm | 9.60% | 55.48% | 3.94% | 0.62% | 1.26% | ||||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 1st | 1st | ||||||||||
Lipper Ranking – based on total return for Multi-Cap Core Funds | – | 41/805 | 16/539 | 34/234 | 37/230 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Growth & Core Funds | 25
Janus Contrarian Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with nondiversification, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs), which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
This Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
The Fund held approximately 17.4% of its investments in Indian securities as of March 31, 2010, and the Fund has experienced significant gains due, in part, to its investments in India. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in India.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Effective February 16, 2010, Janus Contrarian Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Contrarian Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Contrarian Fund (the “JAD predecessor fund”) into corresponding shares of Janus Contrarian Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Contrarian Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
26 | MARCH 31, 2010
(unaudited)
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – February 29, 2000 | |
(1) | Closed to new investors. |
Janus Growth & Core Funds | 27
Janus Contrarian Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,222.60 | $ | 5.38 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,218.90 | $ | 8.86 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.31 | $ | 9.70 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,103.40 | $ | 1.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.94 | $ | 4.03 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,223.80 | $ | 3.50 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.14 | $ | 3.83 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,221.10 | $ | 6.80 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.55 | $ | 7.44 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,222.60 | $ | 5.65 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.80 | $ | 6.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,223.80 | $ | 4.23 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.17% for Class A Shares, 1.93% for Class C Shares, 0.76% for Class I Shares, 1.48% for Class R Shares, 1.23% for Class S Shares and 0.92% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.80% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers of Janus Capital. |
28 | MARCH 31, 2010
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Common Stock – 97.1% | ||||||||||||
Airlines – 3.9% | ||||||||||||
3,233,180 | Continental Airlines, Inc. – Class B* | $ | 71,032,965 | |||||||||
5,365,542 | UAL Corp.* | 104,896,346 | ||||||||||
175,929,311 | ||||||||||||
Broadcast Services and Programming – 1.0% | ||||||||||||
1,577,302 | Liberty Global, Inc. – Class C* | 45,568,255 | ||||||||||
Cable Television – 0.7% | ||||||||||||
967,283 | DIRECTV – Class A* | 32,703,838 | ||||||||||
Commercial Banks – 6.3% | ||||||||||||
5,177,948 | ICICI Bank, Ltd. | 109,868,467 | ||||||||||
1,961,404 | ICICI Bank, Ltd. (ADR) | 83,751,951 | ||||||||||
1,166,400 | Sumitomo Mitsui Financial Group, Inc. | 38,559,709 | ||||||||||
1,570,600 | Sumitomo Mitsui Financial Group, Inc. | 51,922,050 | ||||||||||
284,102,177 | ||||||||||||
Computers – 0.5% | ||||||||||||
165,155 | International Business Machines Corp. | 21,181,129 | ||||||||||
Diversified Banking Institutions – 2.2% | ||||||||||||
5,525,908 | Bank of America Corp. | 98,637,458 | ||||||||||
Electric – Generation – 1.3% | ||||||||||||
12,481,587 | NTPC, Ltd. | 57,625,505 | ||||||||||
Electric – Integrated – 0.4% | ||||||||||||
1,472,300 | Light S.A. | 19,937,137 | ||||||||||
Electric – Transmission – 1.7% | ||||||||||||
32,210,129 | Power Grid Corp. of India, Ltd. | 76,883,834 | ||||||||||
Finance – Auto Loans – 2.8% | ||||||||||||
5,348,130 | AmeriCredit Corp.*,** | 127,071,569 | ||||||||||
Finance – Consumer Loans – 0.6% | ||||||||||||
2,071,235 | SLM Corp.* | 25,931,862 | ||||||||||
Financial Guarantee Insurance – 4.5% | ||||||||||||
5,801,900 | Assured Guaranty, Ltd. | 127,467,743 | ||||||||||
1,400,230 | PMI Group, Inc.* | 7,589,247 | ||||||||||
4,129,785 | Radian Group, Inc. | 64,589,837 | ||||||||||
199,646,827 | ||||||||||||
Food – Dairy Products – 0.6% | ||||||||||||
418,112 | Nestle India, Ltd. | 24,926,051 | ||||||||||
Food – Miscellaneous/Diversified – 3.0% | ||||||||||||
2,642,717 | Nestle S.A. | 135,382,523 | ||||||||||
Food – Retail – 0.9% | ||||||||||||
6,187,744 | Tesco PLC** | 40,882,655 | ||||||||||
Forestry – 2.1% | ||||||||||||
2,394,233 | Plum Creek Timber Co., Inc.** | 93,159,606 | ||||||||||
Medical – Drugs – 2.5% | ||||||||||||
2,082,950 | Forest Laboratories, Inc.* | 65,321,312 | ||||||||||
609,015 | Novo Nordisk A/S (ADR) | 46,967,237 | ||||||||||
112,288,549 | ||||||||||||
Medical – Generic Drugs – 5.8% | ||||||||||||
3,975,285 | Mylan, Inc.* | 90,278,722 | ||||||||||
2,171,630 | Perrigo Co. | 127,518,114 | ||||||||||
691,990 | Teva Pharmaceutical S.P. (ADR) | 43,650,729 | ||||||||||
261,447,565 | ||||||||||||
Metal Processors and Fabricators – 0.9% | ||||||||||||
6,906,937 | Bharat Forge, Ltd. | 39,135,207 | ||||||||||
Multi-Line Insurance – 0.5% | ||||||||||||
1,258,125 | Genworth Financial, Inc. – Class A* | 23,074,013 | ||||||||||
Oil Companies – Exploration and Production – 3.4% | ||||||||||||
8,910,540 | Denbury Resources, Inc.*,** | 150,320,810 | ||||||||||
Oil Companies – Integrated – 0.9% | ||||||||||||
2,227,622 | BG Group PLC** | 38,548,301 | ||||||||||
Pipelines – 5.1% | ||||||||||||
3,920,995 | Kinder Morgan Management LLC*,** | 229,848,727 | ||||||||||
Power Converters and Power Supply Equipment – 0.1% | ||||||||||||
296,730 | Yingli Green Energy Holding Company, Ltd.* | 3,780,340 | ||||||||||
Real Estate Management/Services – 3.9% | ||||||||||||
11,000,850 | CB Richard Ellis Group, Inc. – Class A*,** | 174,363,473 | ||||||||||
Real Estate Operating/Development – 11.1% | ||||||||||||
13,636,955 | CapitaLand, Ltd. | 38,709,217 | ||||||||||
2,710,775 | DB Realty Ltd.* | 27,687,466 | ||||||||||
3,382,514 | DB Realty Ltd.* | 34,548,511 | ||||||||||
26,693,000 | Hang Lung Properties, Ltd. | 107,610,884 | ||||||||||
8,898,522 | St. Joe Co.*,**,£ | 287,867,186 | ||||||||||
496,423,264 | ||||||||||||
REIT – Mortgage – 0.1% | ||||||||||||
2,117,228 | Gramercy Capital Corp.* | 5,907,066 | ||||||||||
REIT – Warehouse/Industrial – 2.5% | ||||||||||||
8,386,754 | ProLogis** | 110,705,153 | ||||||||||
Resorts and Theme Parks – 2.7% | ||||||||||||
2,970,340 | Vail Resorts, Inc.*,£ | 119,080,931 | ||||||||||
Retail – Major Department Stores – 0.8% | ||||||||||||
3,697,469 | Pantaloon Retail India, Ltd. | 32,473,316 | ||||||||||
382,259 | Pantaloon Retail India, Ltd. – Class B | 2,196,989 | ||||||||||
34,670,305 | ||||||||||||
Soap and Cleaning Preparations – 0.7% | ||||||||||||
588,032 | Reckitt Benckiser Group PLC** | 32,271,409 | ||||||||||
Steel – Producers – 6.8% | ||||||||||||
7,090,612 | Jindal Steel & Power, Ltd. | 111,058,349 | ||||||||||
7,064,947 | JSW Steel, Ltd. | 194,337,191 | ||||||||||
305,395,540 | ||||||||||||
Television – 2.8% | ||||||||||||
8,844,670 | CBS Corp. – Class B** | 123,294,700 | ||||||||||
Tobacco – 9.3% | ||||||||||||
2,181,255 | Altria Group, Inc. | 44,759,353 | ||||||||||
5,830,003 | British American Tobacco PLC** | 200,932,401 | ||||||||||
45,377 | Japan Tobacco, Inc. | 168,944,003 | ||||||||||
414,635,757 | ||||||||||||
Water – 1.7% | ||||||||||||
3,417,775 | American Water Works Co., Inc. | 74,370,784 | ||||||||||
Wireless Equipment – 3.0% | ||||||||||||
19,100,520 | Motorola, Inc.*,** | 134,085,650 | ||||||||||
Total Common Stock (cost $3,938,518,798) | 4,343,217,281 | |||||||||||
Corporate Bond – 0.7% | ||||||||||||
REIT – Warehouse/Industrial – 0.7% | ||||||||||||
$ | 31,151,000 | ProLogis, 2.2500%, 4/1/37 (cost $15,949,928) | 30,294,348 | |||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 29
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares/Principal/Contract Amounts | Value | |||||||||||
Purchased Options – Calls – 1.6% | ||||||||||||
58,117 | Delta Air Lines expires June 2010 exercise price $13.00 | $ | 13,490,856 | |||||||||
12,739 | Ford Motor Co. expires September 2010 exercise price $16.00 | 515,742 | ||||||||||
130,819 | Ford Motor Co. expires September 2010 exercise price $16.00 | 5,261,802 | ||||||||||
12,262 | Genzyme Corp. expires July 2010 exercise price $57.50 | 1,852,564 | ||||||||||
409,717,130 | Kospi 200 Index expires June 2010 exercise price KRW 232.00 | 1,336,087 | ||||||||||
830,551,310 | Kospi 200 Index expires December 2010 exercise price KRW 228.50 | 8,363,652 | ||||||||||
52,738 | Motorola, Inc. expires January 2011 exercise price $2.50 | 23,963,061 | ||||||||||
53,681 | PowerShares DB U.S. Dollar Index Bullish Fund expires June 2010 exercise price $23.00** | 5,365,078 | ||||||||||
28,327 | UAL Corp. expires September 2010 exercise price $18.00 | 11,667,985 | ||||||||||
Total Purchased Options – Calls (premiums paid $66,651,434) | 71,816,827 | |||||||||||
Purchased Options – Puts – 0.5% | ||||||||||||
59,000 | iShares Russell 2000® Index expires April 2010 exercise price $55.00** | 3,345 | ||||||||||
166,930 | iShares Russell 2000® Index expires April 2010 exercise price $67.00 | 12,873,642 | ||||||||||
9,833 | iShares Russell 2000® Index expires June 2010 exercise price $65.00** | 1,913,517 | ||||||||||
49,166 | iShares Russell 2000® Index expires June 2010 exercise price $65.00** | 9,567,782 | ||||||||||
Total Purchased Options – Puts (premiums paid $29,322,574) | 24,358,286 | |||||||||||
Money Market – 2.2% | ||||||||||||
96,574,956 | Janus Cash Liquidity Fund LLC, 0% (cost $96,574,956) | 96,574,956 | ||||||||||
Total Investments (total cost $4,147,017,690) – 102.1% | 4,566,261,698 | |||||||||||
Liabilities, net of Cash, Receivables and Other Assets – (2.1)% | (93,240,005) | |||||||||||
Net Assets – 100% | $ | 4,473,021,693 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 127,467,743 | 2.8% | |||||
Brazil | 19,937,137 | 0.4% | ||||||
Cayman Islands | 3,780,340 | 0.1% | ||||||
Denmark | 46,967,237 | 1.0% | ||||||
Hong Kong | 107,610,884 | 2.4% | ||||||
India | 794,492,837 | 17.4% | ||||||
Israel | 43,650,729 | 1.0% | ||||||
Japan | 259,425,762 | 5.7% | ||||||
Singapore | 38,709,217 | 0.8% | ||||||
Switzerland | 135,382,523 | 3.0% | ||||||
United Kingdom | 312,634,767 | 6.8% | ||||||
United States†† | 2,676,202,522 | 58.6% | ||||||
Total | $ | 4,566,261,698 | 100.0% |
†† | Includes Cash Equivalents (56.5% excluding Cash Equivalents) |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
British Pound 4/8/10 | 62,680,000 | $ | 95,102,264 | $ | 4,684,297 | |||||||
British Pound 4/22/10 | 64,000,000 | 97,094,744 | 3,642,536 | |||||||||
British Pound 5/6/10 | 60,286,500 | 91,452,301 | (870,629) | |||||||||
Total | $ | 283,649,309 | $ | 7,456,204 |
Schedule of Written Options – Calls | Value | |||
iShares Russell 2000® Index expires May 2010 28,785 contracts exercise price $67.00 | $ | (7,426,130) | ||
iShares Russell 2000® Index expires May 2010 28,785 contracts exercise price $68.00 | (5,741,030) | |||
PowerShares DB U.S. Dollar Index Bullish Fund expires June 2010 53,681 contracts exercise price $26.00 | (68,492) | |||
Total Written Options – Calls | ||||
(premiums received $16,426,188) | $ | (13,235,652) | ||
Schedule of Written Options – Puts | ||||
Bank of America Corp. expires January 2011 73,645 contracts exercise price $15.00 | $ | (8,233,349) | ||
Ford Motor Co. expires June 2010 114,847 contracts exercise price $10.00 | (2,827,556) | |||
Genzyme Corp. expires July 2010 18,394 contracts exercise price $47.50 | (3,237,840) | |||
iShares Russell 2000® Index expires April 2010 166,930 contracts exercise price $62.00 | (1,669,300) |
See Notes to Schedules of Investments and Financial Statements.
30 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Value | ||||
iShares Russell 2000® Index expires June 2010 19,666 contracts exercise price $60.00 | (1,797,447) | |||
iShares Russell 2000® Index expires June 2010 98,332 contracts exercise price $60.00 | (8,987,417) | |||
UAL Corp. expires September 2010 28,327 contracts exercise price $15.00 | (4,195,280) | |||
Total Written Options – Puts | ||||
(premiums received $55,722,757) | $ | (30,948,189) | ||
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 31
Janus Enterprise Fund (unaudited)
Fund Snapshot We believe that investing in companies with predictable and sustainable growth can drive consistent returns and allow us to outperform our benchmark and peers over time with moderate risk. We seek to identify mid-cap companies with high quality management teams that wisely allocate capital to fund and drive long-term growth over time. | ![]() Brian Demain portfolio manager |
Economic Overview
Continuing their rally from March of 2009, U.S. equities recorded strong gains during the five-month period ended March 31, 2010. A pledge from U.S. Federal Reserve (Fed) Chairman Ben Bernanke that the Fed would maintain its accommodative monetary policy for an “extended period” and upbeat economic news that indicated the economic recovery was on track were partially offset by sovereign debt worries, primarily in Greece. Markets retreated modestly in mid-January into early February; however, they regained their uptrend in March to finish near 17-month highs.
Asset Class Overview
Small-cap and mid-cap stocks significantly outperformed large-caps during the period, while value-style indices slightly outperformed growth. Top performing sectors within our index, Russell Midcap® Growth Index, were telecommunications, health care and consumer discretionary, while utilities, consumer staples and materials lagged the index.
Strategy Overview
We continued to focus on what we characterize as higher quality, less volatile names across a variety of sectors, which hampered performance in an environment in which higher beta (more volatile) names outperformed – an unsurprising outcome in a rising market. Our performance has also been hindered from a higher than average market capitalization exposure relative to the index. Longer term, we feel our holdings will outperform.
Our holdings in industrials and information technology (IT) were the primary detractors. A majority of our holdings in both sectors posted gains (double-digit gains in most cases), but overall the returns lagged the index’s holdings, which we feel reflected the outperformance of lower quality names. Within IT, Global Payments, an electronic payments processing provider, was weak during the period. We like the company for its strong presence in Asia via a relationship with U.K. bank HSBC, which should provide strong long-term growth opportunities.
KLA-Tencor Corp., a semiconductor equipment provider, also traded lower. In general, we believe the semiconductor spending environment continues to improve, which should benefit the semiconductor equipment maker. We also think the company, which has improved its operational performance, can continue to gain market share.
athenahealth, Inc., a new holding, was also among individual detractors. The Internet-based company’s revenue cycle management services and automated billing functions help doctors minimize potential billing errors so that they can get payment from insurance companies in a timely manner. From an investment perspective, we like its subscription-based recurring revenue stream and think the services are very appealing to doctors trying to minimize costs in a soft economy.
Contributors to performance included our holdings in financials and telecommunications. Our largest holding during the period, Crown Castle International Corp., was also our largest individual contributor. The wireless tower company continued to perform well amid strong results, which were highlighted by growing numbers of tenants on its towers. We think this could continue as wireless service providers work to upgrade their networks in order to meet growing demand for data transmission. We also believe Crown will be able to improve its free cash flow and generate strong returns on invested capital. Its predictable, long-term contract-driven revenue base remains attractive to us.
tw telecom, inc. (formerly Time Warner Telecom), a provider of managed network services, benefited from good quarterly results and increased optimism in the U.S. economic recovery. We think tw telecom managed the downturn well. We like its historically stable recurring cash flows and long-term growth potential. We also think the company can leverage its asset base to generate strong incremental returns on capital.
32 | MARCH 31, 2010
(unaudited)
Biotechnology holding Celgene Corp. also posted strong gains during the period. Recent trial data on the company’s cancer-fighting drug Revlimid showed high effectiveness in treating multiple myeloma. We think the data suggests a longer usage and duration of treatment, which could drive revenue growth for Celgene. We continue to believe Revlimid is still early in its launch cycle, which in our view makes Celgene an attractive multi-year growth opportunity in the U.S. and Europe.
Outlook
The economic environment and macroeconomic backdrop continues to stabilize, in our view. The bulk of the recession appears to have run its course, and the economy has returned to growth. However, the longer-term outlook is still mixed, with a number of positives and negatives offsetting each other.
Clearly, the economy has been recovering from a very deep trough. Key macroeconomic indicators in the U.S. including the Purchasing Managers Index, spending, confidence, and gross domestic product (GDP), all point to renewed levels of business activity. Unemployment, generally a lagging indicator, is likely to begin to move lower through the year. Companies, many of which went into lockdown mode in late 2008 through 2009, are now beginning to look at growth projects and business reinvestment, rather than cost-cutting and balance sheet management. Consumers, who took a year off from making discretionary purchases of all sorts, are now spending again. The federal government continues to spend stimulus funds. All of these variables argue for a healthy economic backdrop through 2010.
However, the longer-term picture remains much more uncertain. There are a number of positive and negative cross-currents. On the positive side, global GDP growth, corporate balance sheets, and American business culture are significant positives. On the negative side, consumer deleveraging, government balance sheet stress, and the fragile housing market remain concerns.
Growth in emerging markets, including China, Brazil, and India, should benefit American corporations, because many do business in those markets. Companies with strong brands or unique intellectual property should be able to tap into these markets for many years of growth with high returns on capital.
Additionally, corporate balance sheets are in very strong shape. Scarred by two recessions in a decade, corporations have generally, although not universally, pared down debt and bulked up cash. These conservative balance sheets will allow corporations to spend against growth opportunities, which will help drive growth in the U.S.; one company’s capital expenditure is another’s revenue.
As a final positive, the flexible labor markets and entrepreneurial spirit of the United States are genuine positives. One way to measure economic growth is by productivity multiplied by the workforce. The country has exited challenging periods before because new innovations and a labor force free to capitalize on those innovations have driven strong productivity improvements. To the extent corporate America has leaned its cost structure through the recession, it may be able to capitalize on better productivity to drive growth as the economy recovers.
Moving to the negatives, consumer credit continues to shrink at a modest pace. If the deleveraging consumer is a secular, rather than cyclical phenomenon, that will act as a headwind to growth as consumers pay down debt rather than purchase. Other postwar recessions have been marked by a return to greater levels of leverage, which has driven robust recoveries. It remains to be seen whether consumer credit will continue to shrink or will grow again.
The fiscal picture of the United States, and other developed sovereign states, is another headwind. With high debt, continued budget deficits, and large new entitlement programs, the government is in an unsustainable position; either taxes must rise, spending must come down, or real interest rates must go up. While the timing of any of these outcomes is difficult to assess, the outcomes themselves are not. Higher taxes or lower spending would act as a drag on GDP growth, and higher interest rates would be a headwind for capital investment throughout the economy, and therefore also act as a drag on GDP growth.
Finally, the housing market remains fragile. While there are signs of a bottoming, as prices are modestly rising and new home starts appear to be ticking up slightly, there are still potential issues. The Federal Reserve has wrapped up its purchases of mortgage-backed securities (MBS) as of March 31, 2010. To the extent this drives higher mortgage rates it could stall the still nascent housing recovery.
With all of these cross-currents, we are focusing on companies that we believe can succeed in all macroeconomic environments. These are generally companies that exhibit sustainable and predictable growth, with strong management teams, high and stable operating margins, and high or improving returns on invested capital. We look to pay a reasonable price for these companies, and sell them if they achieve our price target or if the
Janus Growth & Core Funds | 33
Janus Enterprise Fund (unaudited)
fundamental story changes materially. We continue to find opportunities that meet these criteria in all sectors of the economy.
Thank you for your investment in Janus Enterprise Fund.
Janus Enterprise Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Crown Castle International Corp. | 0.91% | |||
tw telecom, inc. | 0.75% | |||
Celgene Corp. | 0.71% | |||
Atmel Corp. | 0.68% | |||
Jones Lang LaSalle, Inc. | 0.66% |
5 Bottom Performers – Holdings
Contribution | ||||
athenahealth, Inc. | –0.11% | |||
Global Payments, Inc. | –0.10% | |||
KLA-Tencor Corp. | –0.08% | |||
Ultra Petroleum Corp. (U.S. Shares) | –0.08% | |||
Symantec Corp. | –0.08% |
5 Top Performers – Sectors*
Fund Weighting | Russell Midcap® Growth | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Information Technology | 4.42% | 28.32% | 23.51% | |||||||||
Health Care | 3.59% | 18.02% | 13.55% | |||||||||
Industrials | 2.64% | 17.39% | 14.82% | |||||||||
Financials | 2.18% | 8.39% | 8.70% | |||||||||
Telecommunication Services | 1.67% | 5.70% | 1.08% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell Midcap® Growth | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Utilities | 0.01% | 0.04% | 2.95% | |||||||||
Consumer Staples | 0.34% | 1.96% | 7.33% | |||||||||
Materials | 0.62% | 3.67% | 4.76% | |||||||||
Energy | 0.88% | 7.08% | 5.48% | |||||||||
Consumer Discretionary | 1.64% | 9.43% | 17.82% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
34 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Crown Castle International Corp. Wireless Equipment | 3.7% | |||
Celgene Corp. Medical – Biomedical and Genetic | 3.4% | |||
Li & Fung, Ltd. Distribution/Wholesale | 2.2% | |||
Atmel Corp. Semiconductor Components/Integrated Circuits | 2.2% | |||
St. Jude Medical, Inc. Medical Instruments | 2.2% | |||
13.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p06.gif)
Emerging markets comprised 0.8% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t06.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c06.gif)
Janus Growth & Core Funds | 35
Janus Enterprise Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m06.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Enterprise Fund – Class A Shares | |||||||||||||||
NAV | 17.19% | 61.69% | 6.28% | –5.32% | 9.49% | 1.21% | 1.15% | ||||||||
MOP | 10.45% | 52.39% | 5.03% | –5.88% | 9.12% | ||||||||||
Janus Enterprise Fund – Class C Shares | |||||||||||||||
NAV | 16.78% | 58.37% | 5.48% | –5.98% | 8.70% | 2.39% | 1.90% | ||||||||
CDSC | 15.62% | 56.79% | 5.48% | –5.98% | 8.70% | ||||||||||
Janus Enterprise Fund – Class D Shares(1) | 17.27% | 62.00% | 6.34% | –5.26% | 9.54% | 0.90% | 0.90% | ||||||||
Janus Enterprise Fund – Class I Shares | 17.33% | 62.00% | 6.34% | –5.26% | 9.54% | 0.82% | 0.82% | ||||||||
Janus Enterprise Fund – Class R Shares | 16.97% | 60.02% | 5.83% | –5.70% | 9.08% | 1.57% | 1.57% | ||||||||
Janus Enterprise Fund – Class S Shares | 17.10% | 61.04% | 6.08% | –5.49% | 9.33% | 1.31% | 1.31% | ||||||||
Janus Enterprise Fund – Class T Shares | 17.27% | 62.00% | 6.34% | –5.26% | 9.54% | 1.03% | 1.03% | ||||||||
Russell Midcap® Growth Index | 19.68% | 63.00% | 4.27% | –1.69% | 8.74% | ||||||||||
Lipper Quartile – Class T Shares | – | 2nd | 1st | 4th | 2nd | ||||||||||
Lipper Ranking – based on total return for Mid-Cap Growth Funds | – | 110/425 | 54/321 | 156/173 | 14/32 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS (52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
36 | MARCH 31, 2010
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs), which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Enterprise Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Enterprise Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Mid Cap Growth Fund (the “JAD predecessor fund”) into corresponding shares of Janus Enterprise Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Enterprise Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
September 3, 1992 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Janus Growth & Core Funds | 37
Janus Enterprise Fund (unaudited)
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the index. The index is unmanaged and is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – September 1, 1992 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,172.20 | $ | 4.72 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.70 | $ | 5.29 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,167.80 | $ | 8.61 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.36 | $ | 9.65 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10 - 3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,085.60 | $ | 1.04 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.79 | $ | 4.18 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,173.60 | $ | 3.28 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.29 | $ | 3.68 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,170.00 | $ | 6.64 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.55 | $ | 7.44 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,171.00 | $ | 5.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.80 | $ | 6.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,172.50 | $ | 4.18 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.05% for Class A Shares, 1.92% for Class C Shares, 0.73% for Class I Shares, 1.48% for Class R Shares, 1.23% for Class S Shares, and 0.93% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.83% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers of Janus Capital. |
38 | MARCH 31, 2010
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Common Stock – 97.0% | ||||||||||||
Advertising Sales – 1.7% | ||||||||||||
1,278,427 | Lamar Advertising Co. – Class A* | $ | 43,913,967 | |||||||||
Aerospace and Defense – 1.5% | ||||||||||||
836,550 | Empresa Brasileira de Aeronautica S.A. (ADR) | 20,043,738 | ||||||||||
377,335 | TransDigm Group, Inc.* | 20,013,848 | ||||||||||
40,057,586 | ||||||||||||
Aerospace and Defense – Equipment – 0.9% | ||||||||||||
274,670 | Alliant Techsystems, Inc.* | 22,330,671 | ||||||||||
Agricultural Chemicals – 1.6% | ||||||||||||
345,335 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 41,215,732 | ||||||||||
Agricultural Operations – 0.4% | ||||||||||||
10,434,320 | Chaoda Modern Agriculture Holdings, Ltd. | 11,114,352 | ||||||||||
Airlines – 1.4% | ||||||||||||
1,332,696 | Ryanair Holdings PLC (ADR)*,** | 36,209,350 | ||||||||||
Apparel Manufacturers – 0.4% | ||||||||||||
1,047,702 | Burberry Group PLC | 11,358,173 | ||||||||||
Applications Software – 0.4% | ||||||||||||
238,065 | Citrix Systems, Inc.* | 11,300,946 | ||||||||||
Auction House – Art Dealer – 1.0% | ||||||||||||
1,222,640 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | 26,311,213 | ||||||||||
Batteries and Battery Systems – 0.6% | ||||||||||||
255,588 | Energizer Holdings, Inc.* | 16,040,703 | ||||||||||
Casino Hotels – 0.9% | ||||||||||||
3,154,543 | Crown, Ltd.** | 23,672,674 | ||||||||||
Commercial Services – 0.5% | ||||||||||||
304,790 | CoStar Group, Inc.* | 12,654,881 | ||||||||||
Commercial Services – Finance – 2.1% | ||||||||||||
562,997 | Global Payments, Inc. | 25,644,513 | ||||||||||
500,382 | Interactive Data Corp | 16,012,224 | ||||||||||
411,733 | Paychex, Inc. | 12,640,203 | ||||||||||
�� | 54,296,940 | |||||||||||
Computer Aided Design – 0.3% | ||||||||||||
209,160 | ANSYS, Inc.* | 9,023,162 | ||||||||||
Computer Services – 2.0% | ||||||||||||
951,780 | IHS, Inc. – Class A* | 50,891,677 | ||||||||||
Computers – 1.4% | ||||||||||||
155,590 | Apple, Inc.* | 36,552,759 | ||||||||||
Consulting Services – 0.7% | ||||||||||||
859,187 | Gartner, Inc.* | 19,108,319 | ||||||||||
Containers – Metal and Glass – 1.3% | ||||||||||||
624,090 | Ball Corp. | 33,313,924 | ||||||||||
Decision Support Software – 2.0% | ||||||||||||
1,426,302 | MSCI, Inc.* | 51,489,502 | ||||||||||
Distribution/Wholesale – 3.4% | ||||||||||||
624,620 | Fastenal Co. | 29,975,514 | ||||||||||
11,918,695 | Li & Fung, Ltd. | 58,641,699 | ||||||||||
88,617,213 | ||||||||||||
Educational Software – 0.7% | ||||||||||||
436,915 | Blackboard, Inc.* | 18,201,879 | ||||||||||
Electric Products – Miscellaneous – 0.8% | ||||||||||||
516,284 | AMETEK, Inc. | 21,405,135 | ||||||||||
Electronic Components – Miscellaneous – 2.1% | ||||||||||||
1,431,925 | Flextronics International Ltd.* | 11,226,292 | ||||||||||
1,559,185 | Tyco Electronics, Ltd. (U.S. Shares) | 42,846,404 | ||||||||||
54,072,696 | ||||||||||||
Electronic Components – Semiconductors – 1.1% | ||||||||||||
7,605,916 | ARM Holdings PLC | 27,500,717 | ||||||||||
Electronic Connectors – 1.9% | ||||||||||||
1,159,250 | Amphenol Corp. – Class A | 48,908,758 | ||||||||||
Electronic Measuring Instruments – 2.1% | ||||||||||||
1,861,751 | Trimble Navigation, Ltd.* | 53,469,489 | ||||||||||
Entertainment Software – 0.7% | ||||||||||||
979,645 | Electronic Arts, Inc.* | 18,280,176 | ||||||||||
Fiduciary Banks – 0.7% | ||||||||||||
325,445 | Northern Trust Corp. | 17,984,091 | ||||||||||
Finance – Other Services – 0.6% | ||||||||||||
48,285 | CME Group, Inc. | 15,263,371 | ||||||||||
Instruments – Controls – 0.7% | ||||||||||||
162,355 | Mettler-Toledo International, Inc.* | 17,729,166 | ||||||||||
Instruments – Scientific – 1.6% | ||||||||||||
832,521 | Thermo Fisher Scientific, Inc.* | 42,824,880 | ||||||||||
Internet Security – 1.6% | ||||||||||||
2,434,465 | Symantec Corp.* | 41,191,148 | ||||||||||
Investment Management and Advisory Services – 2.3% | ||||||||||||
331,893 | Eaton Vance Corp. | 11,131,691 | ||||||||||
1,449,200 | National Financial Partners Corp.* | 20,433,720 | ||||||||||
512,390 | T. Rowe Price Group, Inc. | 28,145,583 | ||||||||||
59,710,994 | ||||||||||||
Machinery – General Industrial – 1.8% | ||||||||||||
827,840 | Roper Industries, Inc. | 47,882,266 | ||||||||||
Medical – Biomedical and Genetic – 6.9% | ||||||||||||
1,418,550 | Celgene Corp.*,** | 87,893,357 | ||||||||||
207,730 | Genzyme Corp.* | 10,766,646 | ||||||||||
547,177 | Gilead Sciences, Inc.* | 24,885,610 | ||||||||||
312,125 | Millipore Corp.* | 32,960,400 | ||||||||||
395,090 | Myriad Genetics, Inc.* | 9,501,915 | ||||||||||
330,390 | Vertex Pharmaceuticals, Inc.* | 13,503,039 | ||||||||||
179,510,967 | ||||||||||||
Medical – Drugs – 1.3% | ||||||||||||
325,840 | Shire PLC (ADR) | 21,492,406 | ||||||||||
263,581 | Valeant Pharmaceuticals International* | 11,310,261 | ||||||||||
32,802,667 | ||||||||||||
Medical Information Systems – 0.6% | ||||||||||||
420,120 | athenahealth, Inc.* | 15,359,587 | ||||||||||
Medical Instruments – 2.8% | ||||||||||||
1,387,330 | St. Jude Medical, Inc.* | 56,949,897 | ||||||||||
249,115 | Techne Corp. | 15,866,134 | ||||||||||
72,816,031 | ||||||||||||
Medical Products – 4.9% | ||||||||||||
994,150 | Covidien PLC (U.S. Shares)** | 49,985,862 | ||||||||||
418,070 | Henry Schein, Inc.* | 24,624,323 | ||||||||||
984,033 | Varian Medical Systems, Inc.* | 54,446,545 | ||||||||||
129,056,730 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 39
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Metal Processors and Fabricators – 1.8% | ||||||||||||
362,010 | Precision Castparts Corp. | $ | 45,870,287 | |||||||||
Networking Products – 1.2% | ||||||||||||
987,355 | Juniper Networks, Inc.* | 30,292,051 | ||||||||||
Oil Companies – Exploration and Production – 2.4% | ||||||||||||
198,855 | EOG Resources, Inc. | 18,481,584 | ||||||||||
930,414 | Ultra Petroleum Corp. (U.S. Shares)* | 43,385,205 | ||||||||||
61,866,789 | ||||||||||||
Oil Companies – Integrated – 1.0% | ||||||||||||
434,084 | Hess Corp. | 27,151,954 | ||||||||||
Oil Field Machinery and Equipment – 0.9% | ||||||||||||
732,835 | Dresser-Rand Group, Inc.* | 23,025,676 | ||||||||||
Physical Practice Management – 0.3% | ||||||||||||
117,079 | Mednax, Inc.* | 6,812,827 | ||||||||||
Pipelines – 2.4% | ||||||||||||
666,057 | Energy Transfer Equity LP | 22,472,763 | ||||||||||
706,744 | Kinder Morgan Management LLC* | 41,429,333 | ||||||||||
63,902,096 | ||||||||||||
Printing – Commercial – 1.1% | ||||||||||||
525,089 | VistaPrint NV (U.S. Shares)*,** | 30,061,345 | ||||||||||
Real Estate Management/Services – 1.5% | ||||||||||||
550,903 | Jones Lang LaSalle, Inc. | 40,155,320 | ||||||||||
Reinsurance – 1.2% | ||||||||||||
398,305 | Berkshire Hathaway, Inc. – Class B* | 32,370,247 | ||||||||||
Retail – Apparel and Shoe – 0.7% | ||||||||||||
1,016,160 | American Eagle Outfitters, Inc. | 18,819,283 | ||||||||||
Retail – Automobile – 0.7% | ||||||||||||
532,755 | Copart, Inc.* | 18,966,078 | ||||||||||
Retail – Office Supplies – 0.7% | ||||||||||||
816,827 | Staples, Inc. | 19,105,584 | ||||||||||
Retail – Regional Department Stores – 0.7% | ||||||||||||
345,455 | Kohl’s Corp.* | 18,924,025 | ||||||||||
Semiconductor Components/Integrated Circuits – 2.2% | ||||||||||||
11,522,822 | Atmel Corp.* | 57,959,795 | ||||||||||
Semiconductor Equipment – 1.6% | ||||||||||||
1,325,685 | KLA-Tencor Corp. | 40,990,180 | ||||||||||
Telecommunication Equipment – 0.7% | ||||||||||||
659,209 | CommScope, Inc.* | 18,471,036 | ||||||||||
Telecommunication Equipment – Fiber Optics – 0.7% | ||||||||||||
923,300 | Corning, Inc. | 18,659,893 | ||||||||||
Telecommunication Services – 2.8% | ||||||||||||
1,582,725 | Amdocs, Ltd. (U.S. Shares)* | 47,655,850 | ||||||||||
1,436,779 | tw telecom, inc.* | 26,077,539 | ||||||||||
73,733,389 | ||||||||||||
Toys – 1.1% | ||||||||||||
1,296,789 | Mattel, Inc. | 29,488,982 | ||||||||||
Transactional Software – 1.5% | ||||||||||||
990,235 | Solera Holdings, Inc. | 38,272,583 | ||||||||||
Transportation – Railroad – 1.3% | ||||||||||||
582,045 | Canadian National Railway Co. (U.S. Shares) | 35,266,107 | ||||||||||
Transportation – Services – 2.0% | ||||||||||||
562,730 | C.H. Robinson Worldwide, Inc. | 31,428,471 | ||||||||||
548,995 | Expeditors International of Washington, Inc. | 20,268,895 | ||||||||||
51,697,366 | ||||||||||||
Transportation – Truck – 1.0% | ||||||||||||
597,825 | Landstar System, Inc. | 25,096,694 | ||||||||||
Vitamins and Nutrition Products – 0.8% | ||||||||||||
380,809 | Mead Johnson Nutrition Co. – Class A | 19,813,492 | ||||||||||
Web Hosting/Design – 1.2% | ||||||||||||
330,376 | Equinix, Inc.* | 32,158,800 | ||||||||||
Wireless Equipment – 3.7% | ||||||||||||
2,533,278 | Crown Castle International Corp.* | 96,847,217 | ||||||||||
Total Common Stock (cost $2,057,316,254) | 2,529,223,588 | |||||||||||
Money Market – 3.1% | ||||||||||||
80,891,615 | Janus Cash Liquidity Fund LLC, 0% (cost $80,891,615) | 80,891,615 | ||||||||||
Total Investments (total cost $2,138,207,869) – 100.1% | 2,610,115,203 | |||||||||||
Liabilities, net of Cash, Receivables and Other Assets—-(0.1)% | (3,126,265) | |||||||||||
Net Assets – 100% | $ | 2,606,988,938 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 23,672,674 | 1.0% | |||||
Bermuda | 58,641,699 | 2.2% | ||||||
Brazil | 20,043,738 | 0.8% | ||||||
Canada | 146,178,257 | 5.6% | ||||||
Cayman Islands | 11,114,352 | 0.4% | ||||||
Guernsey | 47,655,850 | 1.8% | ||||||
Ireland | 86,195,212 | 3.3% | ||||||
Jersey | 21,492,406 | 0.8% | ||||||
Netherlands | 30,061,345 | 1.2% | ||||||
Singapore | 11,226,292 | 0.4% | ||||||
Switzerland | 42,846,404 | 1.6% | ||||||
United Kingdom | 38,858,890 | 1.5% | ||||||
United States†† | 2,072,128,084 | 79.4% | ||||||
Total | $ | 2,610,115,203 | 100.0% |
†† | Includes Cash Equivalents (76.3% excluding Cash Equivalents) |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value in U.S.$ | Gain/(Loss) | |||||||||
Australian Dollar 4/8/10 | 7,367,000 | $ | 6,755,827 | $ | (258,133) | |||||||
Australian Dollar 4/22/10 | 6,200,000 | 5,675,274 | (123,174) | |||||||||
Australian Dollar 5/6/10 | 8,400,000 | 7,675,792 | (55,312) | |||||||||
Euro 4/8/10 | 7,600,000 | 10,263,775 | 300,225 | |||||||||
Euro 4/22/10 | 3,200,000 | 4,321,657 | 62,599 | |||||||||
Euro 5/6/10 | 11,891,250 | 16,059,532 | 231,006 | |||||||||
Total | $ | 50,751,857 | $ | 157,211 |
See Notes to Schedules of Investments and Financial Statements.
40 | MARCH 31, 2010
Janus Forty Fund (unaudited)
Fund Snapshot We seek to invest in superior business models that exhibit high returns on capital and excess cash flow generation. We focus our analysis on companies with large potential total addressable markets that trade at attractive valuations. We manage focused portfolios that leverage the most compelling large-cap growth ideas of the research team. | ![]() Ron Sachs portfolio manager |
Economic Summary
U.S. equity markets continued to climb a wall of worry, but managed to finish the six-month period near 17-month highs amid upward momentum in the U.S. economy, strength abroad and better-than-expected corporate earnings. While the strength in the economy is encouraging, it has largely been driven by businesses rebuilding depleted inventories and strong government stimulus. Concerns that sovereign debt problems in Europe could spread elsewhere provided for some volatility during the latter part of the period, but government responses helped settle some of those fears. Fading effects of government stimulus, large fiscal deficits and weak labor markets remained key concerns for investors.
Medium- and small-sized companies led markets higher during the period while large-cap growth fared better than large-cap value stocks. The consumer discretionary and industrials sectors, which are similarly weighted in both value and growth indexes, turned in the strongest performance followed by telecommunication stocks, which is tilted more towards value.
Under certain circumstances and market conditions, we may initiate positions in put and call options in order to mitigate the risks and potentially enhance the performance of the portfolio. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Strategy Overview
The Fund’s underperformance versus its primary benchmark, the Russell 1000® Growth Index, was largely generated by holdings within financials and industrials. Prudential PLC, an international insurer based in the U.K., declined during the period amid concerns over potential dilution related to a recent acquisition. We believe the company has one of the best insurance platforms in Asia with great growth potential.
First Solar, Inc., declined during the year, suffering from disappointing quarterly results. The company designs and manufactures solar modules using a thin film semiconductor technology. We were attracted to the low cost manufacturer, but recent long-term contracts it signed clouds its sales prospects and profitability in our view. We sold this position given the lack of transparency.
On a positive note, Apple, Inc. was the top contributor amid continued market share gains in the personal computer and smart phone markets. We think the company’s integration of software and hardware across its product line is a key driver of its market share gains and represents a key competitive advantage. We believe the company is early in its market share gains in the U.S. and that its domestic success can be replicated globally. Oracle Corp., a leading enterprise software company, turned in a strong quarterly earnings report that was highlighted by market share gains in its licensing business and a positive outlook. We are seeing our thesis unfold with the market share gains and think Oracle will be able to increase share of corporate information technology spending through new products and acquisitions. We also remain attracted to the company’s recurring revenue stream.
Outlook
While there are still a number of challenges facing the U.S. economy, we have become a little more constructive in our view of the overall picture. As businesses have become more confident, they have been careful and deliberate in ramping up spending and investment, particularly when it comes to hiring, which has been slow. Though better, unemployment is still relatively high and a concern for us. Other areas of the U.S. economy, namely manufacturing, have seen solid recoveries, while global economic growth continues. Balance sheets have generally become stronger as well. Whether the U.S. private sector can continue the upward momentum without government stimulus remains to be seen. Encouraging developments for us have been strong global growth and evidence of some pent up demand across a
Janus Growth & Core Funds | 41
Janus Forty Fund (unaudited)
number of sectors, which we believe could make for a favorable macroeconomic backdrop for many of our companies. Regardless of the macroeconomic environment, our main focus continues to be individual stock selection and finding companies that are gaining market share and are not dependent on macroeconomic growth for their success. We continue to look for opportunities with company-specific drivers based on what we believe to be a sustainable competitive advantage.
Thank you for your investment in Janus Forty Fund. We look forward to reporting results in the future.
Janus Forty Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Apple, Inc. | 2.06% | |||
Celgene Corp. | 1.32% | |||
Research In Motion, Ltd. (U.S. Shares) | 1.32% | |||
Oracle Corp. | 0.96% | |||
Intuitive Surgical, Inc. | 0.94% |
5 Bottom Performers – Holdings
Contribution | ||||
Prudential PLC | –0.46% | |||
BG Group PLC | –0.16% | |||
CVS Caremark Corp. | –0.08% | |||
Amphenol Corp. – Class A | –0.06% | |||
Petroleo Brasileiro S.A. (ADR) | –0.05% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 5.90% | 33.05% | 32.48% | |||||||||
Health Care | 3.34% | 19.40% | 16.02% | |||||||||
Consumer Discretionary | 1.04% | 4.85% | 10.60% | |||||||||
Materials | 0.80% | 5.52% | 3.90% | |||||||||
Financials | 0.76% | 15.51% | 5.02% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Energy | –0.23% | 3.72% | 4.17% | |||||||||
Utilities | 0.00% | 0.00% | 0.89% | |||||||||
Industrials | 0.34% | 2.47% | 10.30% | |||||||||
Telecommunication Services | 0.54% | 2.88% | 0.59% | |||||||||
Consumer Staples | 0.63% | 12.60% | 16.03% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
42 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Apple, Inc. Computers | 8.2% | |||
Cisco Systems, Inc. Networking Products | 6.2% | |||
Celgene Corp. Medical – Biomedical and Genetic | 5.9% | |||
Anheuser-Busch InBev N.V. Brewery | 5.5% | |||
Research In Motion, Ltd. (U.S. Shares) Computers | 5.0% | |||
30.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif26p06.gif)
Emerging markets comprised 5.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif26t06.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif26c06.gif)
Janus Growth & Core Funds | 43
Janus Forty Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif26m06.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the November 27, 2009 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Forty Fund – Class A Shares | |||||||||||||||
NAV | 8.45% | 50.45% | 8.06% | –0.21% | 10.49% | 1.05% | 1.05% | ||||||||
MOP | 2.22% | 41.82% | 6.79% | –0.67% | 10.09% | ||||||||||
Janus Forty Fund – Class C Shares | |||||||||||||||
NAV | 8.05% | 49.34% | 7.26% | –0.75% | 9.96% | 1.83% | 1.80% | ||||||||
CDSC | 6.97% | 47.85% | 7.26% | –0.75% | 9.96% | ||||||||||
Janus Forty Fund – Class I Shares | 8.66% | 50.91% | 7.81% | –0.21% | 10.49% | 0.69% | 0.69% | ||||||||
Janus Forty Fund – Class R Shares | 8.23% | 49.81% | 7.55% | –0.45% | 10.26% | 1.43% | 1.43% | ||||||||
Janus Forty Fund – Class S Shares | 8.39% | 50.21% | 7.81% | –0.21% | 10.49% | 1.17% | 1.17% | ||||||||
Janus Forty Fund – Class T Shares | 8.52% | 50.21% | 7.81% | –0.21% | 10.49% | 0.93% | 0.93% | ||||||||
Russell 1000® Growth Index | 12.96% | 49.75% | 3.42% | –4.21% | 3.55% | ||||||||||
S&P 500® Index | 11.75% | 49.77% | 1.92% | –0.65% | 4.81% | ||||||||||
Lipper Quartile – Class S Shares | – | 1st | 1st | 1st | 1st | ||||||||||
Lipper Ranking – based on total return for Large-Cap Growth Funds | – | 168/834 | 8/611 | 34/330 | 2/182 | ||||||||||
Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
44 | MARCH 31, 2010
(unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement (applicable to Class R Shares, Class S Shares, and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The fees and expenses shown for all share classes except Class T Shares were determined based on net assets as of the fiscal year ended July 31, 2009. Expense information shown for Class T Shares reflects estimated annualized expenses that the Fund share class expects to incur during the fiscal year. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, and derivatives. Please see a Janus prospectus or janus.com/info for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Class A Shares of the Fund commenced operations on July 6, 2009, after the reorganization of Class A Shares of Janus Adviser Forty Fund (the “JAD predecessor fund”) into Class A Shares of the Fund. Performance shown for Class A Shares reflects the performance of the JAD predecessor fund’s Class A Shares from September 30, 2004 to July 6, 2009, calculated using the fees and expenses of Class A Shares of the JAD predecessor fund, net of any fee and expense limitations or waivers, and the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to September 30, 2004 (prior to the reorganization). The performance shown for certain periods prior to September 30, 2004 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class A Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of those Retirement Shares into the JAD predecessor fund). If Class A Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Class C Shares of the Fund commenced operations on July 6, 2009, after the reorganization of Class C Shares of the JAD predecessor fund into Class C Shares of the Fund. Performance shown for Class C Shares reflects the performance of the JAD predecessor fund’s Class C Shares from September 30, 2002 to July 6, 2009, calculated using the fees and expenses of Class C Shares of the JAD predecessor fund, net of any fee and expense limitations or waivers, and the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to September 30, 2002 (prior to the reorganization). The performance shown for certain periods prior to September 30, 2002 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class C Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of those Retirement Shares into the JAD predecessor fund). If Class C Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Class I Shares of the Fund commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into Class I Shares of Janus Forty Fund. Performance shown for Class I Shares reflects the performance of the JAD predecessor fund’s Class I Shares from November 28, 2005 to July 6, 2009 (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund’s Class I Shares, net of any fee and expense limitations or waivers. For the periods August 1, 2000 to November 28, 2005, the performance shown for Class I Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). Performance shown for certain periods prior to November 28, 2005 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. Performance shown for periods prior to August 1, 2000 reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of those Retirement Shares into the JAD predecessor fund). If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Class R Shares of the Fund commenced operations on July 6, 2009, after the reorganization of Class R Shares of the JAD predecessor fund into Class R Shares of Janus Forty Fund. Performance shown for Class R Shares reflects the performance of the JAD predecessor fund’s Class R Shares from September 30, 2004 to July 6, 2009 (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund’s Class R Shares, net of any fee and expense limitations or waivers. For the periods August 1, 2000 to September 30, 2004, the performance shown for Class R Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). The performance shown for certain periods prior to September 30, 2004 was calculated using the fees and expenses of Class R Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. Performance shown for periods prior to August 1, 2000 reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of those Retirement Shares into the JAD predecessor fund). If Class R Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Janus Growth & Core Funds | 45
Janus Forty Fund (unaudited)
Class S Shares of the Fund commenced operations on July 6, 2009, after the reorganization of Class S Shares of the JAD predecessor fund into Class S Shares of Janus Forty Fund. Performance shown for Class S Shares reflects the performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to July 6, 2009 (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class S Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of those Retirement Shares into the JAD predecessor fund). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. If Class S Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Class T Shares of the Fund commenced operations on July 6, 2009, after the reorganization of the JAD predecessor fund into Janus Forty Fund. Performance shown for Class T Shares reflects the performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to July 6, 2009 (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, without the effect of any fee and expense limitations or waivers. Performance shown for periods prior to August 1, 2000 reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of those Retirement Shares into the JAD predecessor fund). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. If Class T Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class S Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date — May 1, 1997 |
46 | MARCH 31, 2010
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,084.50 | $ | 5.15 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,080.50 | $ | 9.23 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.06 | $ | 8.95 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,086.20 | $ | 3.74 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.34 | $ | 3.63 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,082.30 | $ | 7.42 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,083.90 | $ | 6.08 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (10/1/09) | (3/31/10) | (10/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,085.20 | $ | 4.83 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | ||||||||
† | Expenses are equal to the annualized expense ratio of 0.99% for Class A Shares, 1.78% for Class C Shares, 0.72% for Class I Shares, 1.43% for Class R Shares, 1.17% for Class S Shares and 0.93% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Growth & Core Funds | 47
Janus Forty Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 91.8% | ||||||||||||
Agricultural Chemicals – 2.1% | ||||||||||||
1,132,731 | Monsanto Co. | $ | 80,899,648 | |||||||||
218,940 | Syngenta A.G. | 60,815,513 | ||||||||||
141,715,161 | ||||||||||||
Applications Software – 0.4% | ||||||||||||
332,332 | Salesforce.com, Inc.* | 24,742,117 | ||||||||||
Automotive – Cars and Light Trucks – 1.0% | ||||||||||||
5,504,935 | Ford Motor Co.* | 69,197,033 | ||||||||||
Brewery – 5.5% | ||||||||||||
7,453,983 | Anheuser-Busch InBev N.V. | 375,432,220 | ||||||||||
1,579,816 | Anheuser-Busch InBev N.V. – VVPR Strip* | 14,935 | ||||||||||
375,447,155 | ||||||||||||
Cellular Telecommunications – 0.6% | ||||||||||||
877,380 | America Movil S.A.B. de C.V. – Series L (ADR) | 44,167,309 | ||||||||||
Chemicals – Diversified – 1.0% | ||||||||||||
4,947,393 | Israel Chemicals, Ltd. | 67,001,530 | ||||||||||
Commercial Banks – 1.6% | ||||||||||||
4,135,369 | Standard Chartered PLC | 112,785,073 | ||||||||||
Computers – 13.2% | ||||||||||||
2,391,626 | Apple, Inc.* | 561,864,697 | ||||||||||
4,563,974 | Research In Motion, Ltd. (U.S. Shares)* | 337,505,877 | ||||||||||
899,370,574 | ||||||||||||
Cosmetics and Toiletries – 1.0% | ||||||||||||
808,810 | Colgate-Palmolive Co. | 68,959,141 | ||||||||||
Diversified Banking Institutions – 7.8% | ||||||||||||
16,288,351 | Bank of America Corp. | 290,747,066 | ||||||||||
573,775 | Goldman Sachs Group, Inc. | 97,903,228 | ||||||||||
3,199,095 | JPMorgan Chase & Co. | 143,159,501 | ||||||||||
531,809,795 | ||||||||||||
Diversified Minerals – 1.5% | ||||||||||||
3,139,632 | Cia Vale do Rio Doce (ADR) | 101,064,754 | ||||||||||
Electronic Connectors – 0.9% | ||||||||||||
1,416,575 | Amphenol Corp. – Class A | 59,765,299 | ||||||||||
Enterprise Software/Services – 3.9% | ||||||||||||
10,275,663 | Oracle Corp. | 263,981,782 | ||||||||||
Finance – Investment Bankers/Brokers – 2.2% | ||||||||||||
7,893,371 | Charles Schwab Corp. | 147,527,104 | ||||||||||
Finance – Other Services – 1.9% | ||||||||||||
413,186 | CME Group, Inc. | 130,612,226 | ||||||||||
Medical – Biomedical and Genetic – 11.4% | ||||||||||||
6,534,544 | Celgene Corp.* | 404,880,346 | ||||||||||
7,263,369 | Gilead Sciences, Inc.* | 330,338,022 | ||||||||||
1,131,750 | Vertex Pharmaceuticals, Inc.* | 46,254,623 | ||||||||||
781,472,991 | ||||||||||||
Medical Instruments – 2.1% | ||||||||||||
414,136 | Intuitive Surgical, Inc.* | 144,173,166 | ||||||||||
Multi-Line Insurance – 1.5% | ||||||||||||
1,942,625 | ACE, Ltd. (U.S. Shares) | 101,599,288 | ||||||||||
Multimedia – 3.1% | ||||||||||||
14,915,855 | News Corp. – Class A | 214,937,471 | ||||||||||
Networking Products – 6.2% | ||||||||||||
16,194,002 | Cisco Systems, Inc.* | 421,529,872 | ||||||||||
Oil Companies – Integrated – 3.7% | ||||||||||||
3,338,463 | BG Group PLC | 57,771,057 | ||||||||||
2,889,195 | Petroleo Brasileiro S.A. (ADR) | 128,540,286 | ||||||||||
1,627,956 | Petroleo Brasileiro S.A. (U.S. Shares) | 64,450,778 | ||||||||||
250,762,121 | ||||||||||||
Optical Supplies – 1.9% | ||||||||||||
792,958 | Alcon, Inc. (U.S. Shares) | 128,110,294 | ||||||||||
Real Estate Operating/Development – 0.7% | ||||||||||||
12,080,000 | Hang Lung Properties, Ltd. | 48,699,639 | ||||||||||
Retail – Apparel and Shoe – 1.7% | ||||||||||||
4,589,010 | Limited Brands, Inc. | 112,981,426 | ||||||||||
Retail – Drug Store – 2.6% | ||||||||||||
4,860,143 | CVS Caremark Corp. | 177,686,828 | ||||||||||
Retail – Regional Department Stores – 0.7% | ||||||||||||
848,975 | Kohl’s Corp.* | 46,506,851 | ||||||||||
Soap and Cleaning Preparations – 0.9% | ||||||||||||
1,119,339 | Reckitt Benckiser Group PLC | 61,429,729 | ||||||||||
Telecommunication Equipment – Fiber Optics – 1.1% | ||||||||||||
3,749,645 | Corning, Inc. | 75,780,325 | ||||||||||
Transportation – Services – 1.2% | ||||||||||||
1,285,125 | United Parcel Service, Inc. – Class B | 82,774,901 | ||||||||||
Web Portals/Internet Service Providers – 6.4% | ||||||||||||
530,188 | Google, Inc. – Class A* | 300,621,898 | ||||||||||
8,470,000 | Yahoo!, Inc.* | 139,950,253 | ||||||||||
440,572,151 | ||||||||||||
Wireless Equipment – 2.0% | ||||||||||||
3,494,400 | Crown Castle International Corp.* | 133,590,912 | ||||||||||
Total Common Stock (cost $4,690,151,831) | 6,260,754,018 | |||||||||||
Purchased Options – Puts – 0% | ||||||||||||
1,744 | Custom Copper Metals Basket expires April 2010 exercise price $90.00 | 8,249 | ||||||||||
1,747 | Custom Copper Metals Basket expires April 2010 exercise price $91.16 | 6,027 | ||||||||||
Total Purchased Options – Puts (premiums paid $2,122,558) | 14,276 | |||||||||||
Money Market – 8.0% | ||||||||||||
549,400,286 | Janus Cash Liquidity Fund LLC, 0% (cost $549,400,286) | 549,400,286 | ||||||||||
Total Investments (total cost $5,241,674,675) – 99.8% | 6,810,168,580 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 12,306,561 | |||||||||||
Net Assets – 100% | $ | 6,822,475,141 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
48 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 375,447,155 | 5.5% | |||||
Brazil | 294,055,818 | 4.3% | ||||||
Canada | 337,505,877 | 5.0% | ||||||
Hong Kong | 48,699,639 | 0.7% | ||||||
Israel | 67,001,530 | 1.0% | ||||||
Mexico | 44,167,309 | 0.6% | ||||||
Switzerland | 290,525,095 | 4.3% | ||||||
United Kingdom | 231,985,859 | 3.4% | ||||||
United States†† | 5,120,780,298 | 75.2% | ||||||
Total | $ | 6,810,168,580 | 100.0% |
†† | Includes Cash Equivalents (67.1% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 49
Janus Fund (unaudited)
Fund Snapshot Janus Fund aims to deliver moderate peer- and benchmark-beating returns consistently each year while controlling risk and volatility. This fits our philosophy as investors and how we would choose to manage our own money. Indeed, we are shareholders in the Fund alongside you. We want you to consider the Fund to be a long term, core part of your exposure to large-cap growth equities. In an effort to achieve such consistency, we seek to invest in dominant franchises with robust free cash flow, high and improving returns on capital, diversified revenue streams and aligned management incentives. | ![]() Jonathan Coleman lead co-portfolio manager | ![]() Daniel Riff co-portfolio manager |
Performance Review
One-half of the Fund’s underperformance versus its primary benchmark, the Russell 1000® Growth Index, was driven by stock selection. The other half was driven by sector weightings. Stock selection in consumer staples and financials explained much of the total underperformance for the period.
While we are disappointed by this performance, we should note that the types of stocks that outperformed in the period were smaller capitalization, higher beta names. In fact, equities with market capitalization under $10 billion in the Russell 1000® Growth Index outperformed those with market capitalizations over $50 billion by roughly 30% in the period. And securities with beta greater than 1.55 nearly doubled the performance of securities with beta less than 0.7. Put simply, smaller and more volatile names trounced the larger blue-chip franchises that we are focused on. In our view, these smaller names will succeed in a narrower range of macroeconomic outcomes than the dominant franchises we own.
We continue to watch the companies in which we invest distinguish themselves with market-leading incremental margins, steady share gains and opportunistic capital allocation. Eventually, the market should reward this persistent outperformance (often delivered at lower risk) with higher valuations.
Under certain circumstances and market conditions, we may initiate positions in put and call options in order to mitigate the risks and potentially enhance the performance of the portfolio. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Economic Summary
U.S. equity markets continued to climb a wall of worry, but managed to finish the five-month period near 17-month highs amid upward momentum in the U.S. economy, strength abroad and better-than-expected corporate earnings. While the strength in the economy is encouraging, it has largely been driven by businesses rebuilding depleted inventories and strong government stimulus. Concerns that sovereign debt problems in Europe could spread elsewhere provided for some volatility during the latter part of the period, but government responses helped settle some of those fears. Fading effects of government stimulus, large fiscal deficits and weak labor markets remained key concerns for investors.
Individual Detractors from Relative Performance
Our top five individual detractors were Motorola, Inc., Tesco PLC, Genzyme Corp., Petroleo Brasileiro (also known as Petrobras) and KLA-Tencor.
Motorola dipped as management called off a planned auction of several business units and announced a new corporate structure and spin-off plan. Tesco, the leading U.K. grocer and retailer, underperformed as investors sought higher beta names amidst the economic rebound. Biotech company Genzyme struggled with manufacturing issues at its Allston, MA facility and received a consent decree detailing its shortcomings from the U.S. Food and Drug Administration late in the period. Petrobras struggled on market fears that the company will need to raise significant capital to exploit its significant exploration finds off the coast of Brazil. Finally KLA-Tencor, maker of semiconductor equipment, declined on fears of a slowdown in semiconductor capital equipment purchases.
Individual Contributors to Relative Results
Our top five individual contributors were Apple, Inc., Crown Castle International Corp., Marvell Technology Group, Ltd., Celgene Corp. and Oracle Corp.
50 | MARCH 31, 2010
(unaudited)
Four of our top five contributors benefitted from a common theme – the explosion of mobile data and video. Crown Castle, a leading wireless tower operator, continued to benefit from the carrier capital spending that is required to keep pace with wireless data demand. Apple continued to gain share in PCs, music devices and mobile phones with winning consumer innovation. Marvell, the chip and circuit maker, continued to be placed in share-gaining devices, especially smart phones. And Oracle, a leading enterprise software company, has historically offered a recurring revenue stream while gaining market share. Our last strong performer, Celgene, had a nice recovery tied to optimism around longer duration Revlimid therapy, new country launches and a promising pipeline of future potential drugs.
Outlook
We are cautious by nature, and the market’s strong run has made us more so. Seemingly, fear has receded from professional investors’ mindsets and we are reminded that this is not always a positive backdrop for future equity returns. We worry that large segments of the private economy are still being pumped up by the artificial heart of public stimulus. Removing that stimulus at the right time is likely to be a tricky maneuver for Federal Reserve policymakers.
We remain open to the possibility that a positive feedback loop could emerge where new hiring drives higher incomes, rising confidence and consumer spending again. But small businesses have historically created the bulk of jobs in America and they’re still struggling. In general, businesses are getting mixed signals from Washington D.C., with considerable fiscal and monetary stimulus helping, while tax and regulatory policy add uncertainty.
Against this uncertain backdrop, we continue to believe our approach is prudent. We seek to own the dominant franchises that can take market share in an upturn or buy weaker competitors in a downturn. Companies that we believe can control their own destiny are attractive to us. Over the long term, we believe a conservatively positioned growth portfolio invested in value creators can perform well on both a relative and absolute basis.
Thank you for your investment in Janus Fund.
Janus Growth & Core Funds | 51
Janus Fund (unaudited)
Janus Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Apple, Inc. | 1.10% | |||
Crown Castle International Corp. | 0.97% | |||
Marvell Technology Group, Ltd. | 0.70% | |||
Celgene Corp. | 0.62% | |||
Oracle Corp. | 0.58% |
5 Bottom Performers – Holdings
Contribution | ||||
Motorola, Inc. | –0.08% | |||
KLA-Tencor Corp. | –0.05% | |||
Tesco PLC | –0.05% | |||
Genzyme Corp. | –0.04% | |||
Petroleo Brasileiro S.A. (U.S. Shares) | –0.04% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 4.14% | 30.95% | 32.48% | |||||||||
Industrials | 2.14% | 10.76% | 10.30% | |||||||||
Health Care | 1.85% | 12.73% | 16.02% | |||||||||
Energy | 1.02% | 9.25% | 4.17% | |||||||||
Telecommunication Services | 0.97% | 4.18% | 0.59% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Utilities | 0.01% | 0.43% | 0.89% | |||||||||
Materials | 0.82% | 4.84% | 3.90% | |||||||||
Consumer Staples | 0.84% | 14.20% | 16.03% | |||||||||
Financials | 0.84% | 8.36% | 5.02% | |||||||||
Consumer Discretionary | 0.91% | 4.30% | 10.60% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
52 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Anheuser-Busch InBev N.V. Brewery | 4.9% | |||
Cisco Systems, Inc. Networking Products | 4.6% | |||
Apple, Inc. Computers | 4.4% | |||
Crown Castle International Corp. Wireless Equipment | 3.9% | |||
International Business Machines Corp. Computers | 3.5% | |||
21.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p07.gif)
Emerging markets comprised 3.1% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t07.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c07.gif)
Janus Growth & Core Funds | 53
Janus Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m07.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Fund – Class A Shares | |||||||||||||||
NAV | 13.24% | 48.10% | 3.02% | –4.38% | 12.47% | 1.08% | 1.04% | ||||||||
MOP | 6.73% | 39.58% | 1.80% | –4.95% | 12.31% | ||||||||||
Janus Fund – Class C Shares | |||||||||||||||
NAV | 12.85% | 43.25% | 2.27% | –5.12% | 11.86% | 1.90% | 1.79% | ||||||||
CDSC | 11.72% | 41.82% | 2.27% | –5.12% | 11.86% | ||||||||||
Janus Fund – Class D Shares(1) | 13.23% | 48.17% | 3.04% | –4.33% | 12.50% | 0.83% | 0.83% | ||||||||
Janus Fund – Class I Shares | 13.37% | 48.17% | 3.04% | –4.33% | 12.50% | 0.74% | 0.74% | ||||||||
Janus Fund – Class R Shares | 13.01% | 45.46% | 2.52% | –4.86% | 12.13% | 1.46% | 1.46% | ||||||||
Janus Fund – Class S Shares | 13.16% | 47.00% | 2.77% | –4.62% | 12.31% | 1.21% | 1.21% | ||||||||
Janus Fund – Class T Shares | 13.23% | 48.17% | 3.04% | –4.33% | 12.50% | 0.96% | 0.96% | ||||||||
Russell 1000® Growth Index | 14.51% | 49.75% | 3.42% | –4.21% | N/A** | ||||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 10.16% | ||||||||||
Core Growth Index | 14.19% | 49.77% | 2.69% | –2.39% | N/A** | ||||||||||
Lipper Quartile – Class T Shares | – | 2nd | 2nd | 3rd | 1st | ||||||||||
Lipper Ranking – based on total return for Large-Cap Growth Funds | – | 267/834 | 245/611 | 227/330 | 3/20 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
54 | MARCH 31, 2010
(unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Large Cap Growth Fund (the “JAD predecessor fund”) into corresponding shares of Janus Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – February 5, 1970 | |
** | Since inception return is not shown for the index because the index’s inception date differs significantly from the Fund’s inception date. | |
(1) | Closed to new investors. |
Janus Growth & Core Funds | 55
Janus Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,132.40 | $ | 4.23 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.84 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,128.50 | $ | 7.79 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.11 | $ | 8.90 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,074.10 | $ | 1.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.94 | $ | 4.03 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,133.70 | $ | 3.09 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.44 | $ | 3.53 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,130.10 | $ | 6.34 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.75 | $ | 7.24 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,131.10 | $ | 5.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,132.30 | $ | 3.84 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.59 | $ | 4.38 | ||||||||
† | Expenses are equal to the annualized expense ratio of 0.96% for Class A Shares, 1.77% for Class C Shares, 0.70% for Class I Shares, 1.44% for Class R Shares, 1.19% for Class S Shares and 0.87% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.80% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
56 | MARCH 31, 2010
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 97.6% | ||||||||||||
Aerospace and Defense – Equipment – 0.5% | ||||||||||||
622,820 | United Technologies Corp. | $ | 45,845,780 | |||||||||
Agricultural Chemicals – 1.2% | ||||||||||||
886,424 | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | 105,794,704 | ||||||||||
Applications Software – 1.1% | ||||||||||||
3,515,108 | Microsoft Corp. | 102,887,211 | ||||||||||
Beverages – Non-Alcoholic – 0.4% | ||||||||||||
701,240 | Coca-Cola Co. | 38,568,200 | ||||||||||
Beverages – Wine and Spirits – 0.9% | ||||||||||||
4,670,674 | Diageo PLC** | 78,379,617 | ||||||||||
Brewery – 4.9% | ||||||||||||
8,932,680 | Anheuser-Busch InBev N.V.** | 449,909,248 | ||||||||||
10,131,582 | Anheuser-Busch InBev N.V. – VVPR Strip*,** | 95,778 | ||||||||||
450,005,026 | ||||||||||||
Building Products – Wood – 0.5% | ||||||||||||
3,102,695 | Masco Corp. | 48,153,826 | ||||||||||
Casino Hotels – 0.8% | ||||||||||||
9,358,360 | Crown, Ltd.** | 70,228,051 | ||||||||||
Commercial Banks – 0.8% | ||||||||||||
3,467,559 | ICICI Bank, Ltd. | 73,576,519 | ||||||||||
Computers – 8.6% | ||||||||||||
1,727,717 | Apple, Inc.* | 405,892,555 | ||||||||||
2,496,424 | International Business Machines Corp. | 320,166,378 | ||||||||||
853,693 | Research In Motion, Ltd. (U.S. Shares)* | 63,130,597 | ||||||||||
789,189,530 | ||||||||||||
Cosmetics and Toiletries – 1.3% | ||||||||||||
1,433,231 | Colgate-Palmolive Co. | 122,197,275 | ||||||||||
Diversified Banking Institutions – 4.3% | ||||||||||||
5,246,771 | Bank of America Corp. | 93,654,862 | ||||||||||
745,870 | Goldman Sachs Group, Inc. | 127,267,798 | ||||||||||
3,068,335 | JPMorgan Chase & Co. | 137,307,992 | ||||||||||
1,259,965 | Morgan Stanley | 36,904,375 | ||||||||||
395,135,027 | ||||||||||||
Diversified Operations – 3.6% | ||||||||||||
1,807,733 | Danaher Corp. | 144,455,944 | ||||||||||
1,064,051 | Illinois Tool Works, Inc. | 50,393,455 | ||||||||||
3,670,186 | Tyco International, Ltd. (U.S. Shares)** | 140,384,615 | ||||||||||
335,234,014 | ||||||||||||
E-Commerce/Services – 1.7% | ||||||||||||
5,674,342 | eBay, Inc.* | 152,923,517 | ||||||||||
Electric Products – Miscellaneous – 1.1% | ||||||||||||
1,986,232 | Emerson Electric Co. | 99,986,919 | ||||||||||
Electronic Components – Semiconductors – 0.8% | ||||||||||||
3,005,227 | Texas Instruments, Inc. | 73,537,905 | ||||||||||
Electronic Connectors – 0.9% | ||||||||||||
2,008,909 | Amphenol Corp. – Class A | 84,755,871 | ||||||||||
Enterprise Software/Services – 2.9% | ||||||||||||
10,555,715 | Oracle Corp. | 271,176,318 | ||||||||||
Food – Retail – 2.0% | ||||||||||||
27,312,865 | Tesco PLC** | 180,457,115 | ||||||||||
Forestry – 0.9% | ||||||||||||
1,769,361 | Weyerhaeuser Co. | 80,098,972 | ||||||||||
Gold Mining – 1.0% | ||||||||||||
601,400 | Agnico-Eagle Mines, Ltd. (U.S. Shares) | 33,479,938 | ||||||||||
1,207,185 | Newmont Mining Corp. | 61,481,932 | ||||||||||
94,961,870 | ||||||||||||
Industrial Gases – 1.3% | ||||||||||||
1,432,075 | Praxair, Inc. | 118,862,225 | ||||||||||
Investment Management and Advisory Services – 1.2% | ||||||||||||
2,055,346 | T. Rowe Price Group, Inc. | 112,900,156 | ||||||||||
Life and Health Insurance – 0.4% | ||||||||||||
4,496,559 | Prudential PLC** | 37,353,635 | ||||||||||
Medical – Biomedical and Genetic – 5.4% | ||||||||||||
5,103,847 | Celgene Corp.* | 316,234,361 | ||||||||||
640,875 | Genzyme Corp.* | 33,216,551 | ||||||||||
3,196,940 | Gilead Sciences, Inc.* | 145,396,831 | ||||||||||
494,847,743 | ||||||||||||
Medical – Drugs – 2.7% | ||||||||||||
1,167,655 | Abbott Laboratories | 61,512,065 | ||||||||||
3,564,045 | Bristol-Myers Squibb Co. | 95,160,002 | ||||||||||
564,320 | Roche Holding A.G.** | 91,546,077 | ||||||||||
248,218,144 | ||||||||||||
Medical Instruments – 0.7% | ||||||||||||
1,618,573 | St. Jude Medical, Inc.* | 66,442,422 | ||||||||||
Medical Products – 3.9% | ||||||||||||
1,818,296 | Baxter International, Inc. | 105,824,827 | ||||||||||
4,968,055 | Covidien PLC (U.S. Shares)** | 249,793,806 | ||||||||||
355,618,633 | ||||||||||||
Metal Processors and Fabricators – 1.5% | ||||||||||||
1,064,105 | Precision Castparts Corp. | 134,832,745 | ||||||||||
Multi-Line Insurance – 0.9% | ||||||||||||
1,629,374 | ACE, Ltd. (U.S. Shares)** | 85,216,260 | ||||||||||
Networking Products – 4.6% | ||||||||||||
16,257,590 | Cisco Systems, Inc.* | 423,185,068 | ||||||||||
Oil Companies – Exploration and Production – 6.6% | ||||||||||||
907,435 | Apache Corp. | 92,104,653 | ||||||||||
2,389,161 | EOG Resources, Inc. | 222,048,623 | ||||||||||
3,517,327 | Occidental Petroleum Corp. | 297,354,824 | ||||||||||
611,508,100 | ||||||||||||
Oil Companies – Integrated – 1.4% | ||||||||||||
3,363,899 | Petroleo Brasileiro S.A. (U.S. Shares) | 133,176,761 | ||||||||||
Reinsurance – 0.5% | ||||||||||||
579,360 | Berkshire Hathaway, Inc. – Class B* | 47,084,587 | ||||||||||
Retail – Apparel and Shoe – 0.8% | ||||||||||||
2,951,135 | Limited Brands, Inc. | 72,656,944 | ||||||||||
Retail – Building Products – 1.6% | ||||||||||||
4,474,182 | Home Depot, Inc. | 144,739,788 | ||||||||||
Retail – Drug Store – 2.0% | ||||||||||||
2,388,425 | CVS Caremark Corp. | 87,320,818 | ||||||||||
2,634,000 | Walgreen Co. | 97,695,060 | ||||||||||
185,015,878 | ||||||||||||
Retail – Regional Department Stores – 0.5% | ||||||||||||
855,240 | Kohl’s Corp.* | 46,850,047 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 57
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Retail – Restaurants – 0.6% | ||||||||||||
780,653 | McDonald’s Corp. | $ | 52,085,168 | |||||||||
Semiconductor Components/Integrated Circuits – 2.8% | ||||||||||||
8,666,048 | Marvell Technology Group, Ltd.* | 176,614,059 | ||||||||||
43,305,539 | Taiwan Semiconductor Manufacturing Co., Ltd. | 83,893,739 | ||||||||||
260,507,798 | ||||||||||||
Semiconductor Equipment – 1.0% | ||||||||||||
3,044,944 | KLA-Tencor Corp. | 94,149,668 | ||||||||||
Soap and Cleaning Preparations – 0.7% | ||||||||||||
1,135,198 | Reckitt Benckiser Group PLC** | 62,300,077 | ||||||||||
Steel – Producers – 0.9% | ||||||||||||
1,814,255 | Nucor Corp. | 82,330,892 | ||||||||||
Telecommunication Equipment – Fiber Optics – 0.7% | ||||||||||||
3,317,027 | Corning, Inc. | 67,037,116 | ||||||||||
Television – 0.9% | ||||||||||||
5,970,420 | CBS Corp. – Class B | 83,227,655 | ||||||||||
Tobacco – 0.9% | ||||||||||||
2,136,750 | Altria Group, Inc. | 43,846,110 | ||||||||||
733,655 | Philip Morris International, Inc. | 38,267,445 | ||||||||||
82,113,555 | ||||||||||||
Transportation – Railroad – 1.5% | ||||||||||||
2,342,215 | Canadian National Railway Co. (U.S. Shares) | 141,914,807 | ||||||||||
Transportation – Services – 2.2% | ||||||||||||
1,280,150 | C.H. Robinson Worldwide, Inc. | 71,496,377 | ||||||||||
1,724,086 | Expeditors International of Washington, Inc. | 63,653,255 | ||||||||||
993,119 | United Parcel Service, Inc. – Class B | 63,966,795 | ||||||||||
199,116,427 | ||||||||||||
Web Portals/Internet Service Providers – 3.4% | ||||||||||||
293,015 | Google, Inc. – Class A* | 166,142,435 | ||||||||||
8,604,269 | Yahoo!, Inc.* | 142,228,567 | ||||||||||
308,371,002 | ||||||||||||
Wireless Equipment – 5.8% | ||||||||||||
9,492,462 | Crown Castle International Corp.* | 362,896,823 | ||||||||||
5,142,860 | Motorola, Inc.* | 36,102,877 | ||||||||||
3,311,872 | QUALCOMM, Inc. | 139,065,505 | ||||||||||
538,065,205 | ||||||||||||
Total Common Stock (cost $7,177,661,663) | 8,982,821,773 | |||||||||||
Purchased Option – Put – 0% | ||||||||||||
807 | S&P 500® Index** expires May 2010 exercise price $1,062.00 (premiums paid $1,752,400) | 454,084 | ||||||||||
Money Market – 2.1% | ||||||||||||
195,610,261 | Janus Cash Liquidity Fund LLC, 0% (cost $195,610,261) | 195,610,261 | ||||||||||
Total Investments (total cost $7,375,024,324) – 99.7% | 9,178,886,118 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 24,218,602 | |||||||||||
Net Assets – 100% | $ | 9,203,104,720 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 70,228,051 | 0.8% | |||||
Belgium | 450,005,026 | 4.9% | ||||||
Bermuda | 176,614,058 | 1.9% | ||||||
Brazil | 133,176,762 | 1.4% | ||||||
Canada | 344,320,047 | 3.8% | ||||||
India | 73,576,519 | 0.8% | ||||||
Ireland | 249,793,805 | 2.7% | ||||||
Switzerland | 317,146,952 | 3.5% | ||||||
Taiwan | 83,893,739 | 0.9% | ||||||
United Kingdom | 358,490,445 | 3.9% | ||||||
United States†† | 6,921,640,714 | 75.4% | ||||||
Total | $ | 9,178,886,118 | 100.0% |
†† | Includes Cash Equivalents (73.3% excluding Cash Equivalents). |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
Australian Dollar 4/8/10 | 10,959,000 | $ | 10,049,832 | $ | (383,994) | |||||||
Australian Dollar 4/22/10 | 11,829,000 | 10,827,874 | (235,004) | |||||||||
Australian Dollar 5/6/10 | 13,510,000 | 12,345,232 | (88,960) | |||||||||
British Pound 4/8/10 | 70,380,000 | 106,785,216 | 5,259,745 | |||||||||
British Pound 4/22/10 | 69,960,000 | 106,136,692 | 3,517,323 | |||||||||
British Pound 5/6/10 | 45,259,000 | 68,656,162 | (804,529) | |||||||||
Euro 4/8/10 | 64,700,000 | 87,377,133 | 2,555,867 | |||||||||
Euro 4/22/10 | 152,940,000 | 206,548,211 | 2,463,415 | |||||||||
Euro 5/6/10 | 52,960,000 | 71,524,254 | 859,278 | |||||||||
Swiss Franc 5/6/10 | 50,000,000 | 47,447,897 | (268,293) | |||||||||
Total | $ | 727,698,503 | $ | 12,874,848 |
Schedule of Written Options – Puts | Value | |||
S&P 500® Index expires May 2010 807 contracts exercise price $950.00 (premiums received $484,200) | $ | (91,068) | ||
See Notes to Schedules of Investments and Financial Statements.
58 | MARCH 31, 2010
Janus Growth and Income Fund (unaudited)
Fund Snapshot We seek to generate capital appreciation and income through investing in a diversified portfolio of equities and income-generating assets. We primarily focus our analysis on larger, well-established companies with predictable and sustainable earnings growth. | ![]() Marc Pinto portfolio manager |
Economic Overview
U.S. equity prices finished the period near 17-month highs amid upward momentum in the U.S. economy, strength abroad and better-than-expected corporate earnings. While the strength in the economy is encouraging, it has largely been driven by businesses rebuilding depleted inventories and strong government stimulus. Concerns that sovereign debt problems in Europe could spread elsewhere provided for some volatility late in the period, but government responses helped settle some of those fears. However, the fading effects of government stimulus, large fiscal deficits and weak labor markets remained key concerns for investors. Small-cap and mid-cap stocks outperformed, while value-style indices topped growth. Industrials and consumer discretionary stocks were the best performing group within the S&P 500® Index. Meanwhile, energy, utilities and telecommunication services underperformed. Most commodities finished the period higher, although natural gas prices moved significantly lower.
Strategy Overview
Our holdings within financials and consumer-related sectors provided the largest drag on relative performance during the period. Investment bank/brokerage firm Morgan Stanley was the top individual detractor. Morgan Stanley benefited from the improvement in the capital markets, although its trading business became more competitive. We continue to view its stock as attractively valued. CVS Caremark Corp., a pharmacy operator and pharmacy benefit manager (PBM) suffered during the period after reporting contract losses in its PBM business. While we think the stock is valued attractively, we continue to monitor the situation. Luxury automaker Daimler A.G. was weak during the period amid disappointing results and news that it is suspending its dividend. While we are concerned with the dividend suspension, we think this is likely a short-term issue and that our thesis still holds. Long term, we see a more focused company, following its separation of Chrysler, and that it has large opportunities in emerging markets, particularly China, where its margins have tended to be higher. We also like that it has been streamlining and consolidating production and becoming a more efficient manufacturer.
On a positive note, our selections within information technology and energy aided comparable returns. Enterprise software maker Oracle Corp. reported strong earnings early in the period, which we think confirmed our thesis that its products are considered non-discretionary by information technology purchasing managers and therefore would likely hold up better in an uncertain spending environment. Apple, Inc., a computer and mobile device maker, benefited from continued strong quarterly results. While, we like that Apple continues to introduce its iPhone to new markets, we have been reducing our position on the stock’s strength. Specialty glass maker Corning, Inc., was another name that saw strong quarterly results, highlighted by strong demand for liquid crystal display (LCDs) TVs, particularly in emerging markets. As a leading supplier of glass to the panel manufacturers, we believe Corning will continue to benefit.
Portfolio Positioning
We were overweight consumer staples and consumer discretionary sectors, raising our exposure to the latter with the addition of some retailers that we believe will benefit from uneven or slow economic growth. We also believe some of these additions are well positioned to benefit from volume growth, cost reductions or have been reinventing their business model. We took profits in some financials and broadened our exposure to the sector, specifically reducing our brokerage names and companies potentially in the cross hairs of financial regulatory reform. We continue to like large multinational companies with exposure to emerging markets; some of these include consumer staple names. While emerging markets have been strong and the market consensus is for this region to help pull the global economy along, we think the fundamentals remain sound, particularly in China and Brazil, and that our holdings are well positioned to capitalize on this strength. Overall, we have increased the
Janus Growth & Core Funds | 59
Janus Growth and Income Fund (unaudited)
Fund’s quantity of holdings, maintaining our emphasis on what we believe are high quality names with predictable earnings and cash flows and attractive dividend yields.
Outlook
We are maintaining our somewhat cautious view on the U.S. economy. While data continued to point to an economic recovery, we remain concerned over its sustainability given a number of headwinds. Ongoing high unemployment and waning government support for the housing market, which remains fragile in our view, may continue to weigh on the consumer over the near term. We do not see unemployment coming down quickly given businesses’ cautiousness and spending in other areas first, like technology. We believe inflation will remain subdued and is not a near-term risk because of slow wage growth, deleveraging and overcapacity in the overall U.S. economy.
Despite the continued rally in equity prices, we think valuations are attractive and investor expectations remain reasonable. Corporate balance sheets and profits are in good shape amid aggressive cost reductions, which could help profits hold up in a weak economy and provide leverage in a strengthening economy. We recognize that with the Fund’s cautious approach an accelerating economy or double-dip recession poses a slight risk to relative performance, but think the Fund is positioned appropriately given our outlook. Regardless, we continue to emphasize bottom-up fundamental research and investing for the long term, favoring companies with sustainable cash flows, good dividend yields and strong earnings visibility.
Thank you for your investment in Janus Growth and Income Fund.
Janus Growth and Income Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
Oracle Corp. | 0.69% | |||
Apple, Inc. | 0.68% | |||
Corning, Inc. | 0.68% | |||
Boeing Co. | 0.66% | |||
Research In Motion, Ltd. (U.S. Shares) | 0.44% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Morgan Stanley | –0.35% | |||
CVS Caremark Corp. | –0.14% | |||
Daimler A.G. | –0.12% | |||
Credit Suisse Group A.G. (ADR) | –0.10% | |||
Western Union Co. | –0.09% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Information Technology | 3.43% | 19.57% | 19.12% | |||||||||
Health Care | 2.23% | 16.24% | 12.68% | |||||||||
Consumer Discretionary | 1.76% | 9.82% | 9.68% | |||||||||
Industrials | 1.65% | 6.77% | 10.34% | |||||||||
Consumer Staples | 1.10% | 13.45% | 11.52% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 3.62% | |||||||||
Telecommunication Services | 0.05% | 0.69% | 2.99% | |||||||||
Materials | 0.54% | 4.33% | 3.52% | |||||||||
Financials | 0.63% | 15.28% | 14.97% | |||||||||
Energy | 1.03% | 13.85% | 11.56% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
60 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Nestle S.A. Food – Miscellaneous/Diversified | 2.7% | |||
Morgan Stanley Diversified Banking Institutions | 2.6% | |||
Anheuser-Busch InBev N.V. Brewery | 2.5% | |||
Philip Morris International, Inc. Tobacco | 2.5% | |||
Oracle Corp. Enterprise Software/Services | 2.3% | |||
12.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19p07.gif)
Emerging markets comprised 4.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19t07.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19c07.gif)
Janus Growth & Core Funds | 61
Janus Growth and Income Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19m07.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Growth and Income Fund – Class A Shares | |||||||||||||||
NAV | 11.76% | 47.75% | 1.97% | –1.91% | 10.16% | 1.17% | 0.99% | ||||||||
MOP | 5.35% | 39.25% | 0.77% | –2.49% | 9.81% | ||||||||||
Janus Growth and Income Fund – Class C Shares | |||||||||||||||
NAV | 11.39% | 44.59% | 1.22% | –2.66% | 9.44% | 2.09% | 1.74% | ||||||||
CDSC | 10.28% | 43.15% | 1.22% | –2.66% | 9.44% | ||||||||||
Janus Growth and Income Fund – Class D Shares(1) | 11.82% | 48.02% | 2.06% | –1.83% | 10.21% | 0.83% | 0.83% | ||||||||
Janus Growth and Income Fund – Class I Shares | 11.90% | 48.02% | 2.06% | –1.83% | 10.21% | 0.74% | 0.74% | ||||||||
Janus Growth and Income Fund – Class R Shares | 11.56% | 46.04% | 1.52% | –2.35% | 9.76% | 1.46% | 1.46% | ||||||||
Janus Growth and Income Fund – Class S Shares | 11.66% | 47.03% | 1.77% | –2.11% | 9.99% | 1.21% | 1.21% | ||||||||
Janus Growth and Income Fund – Class T Shares | 11.82% | 48.02% | 2.06% | –1.83% | 10.21% | 0.96% | 0.96% | ||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 8.49% | ||||||||||
Russell 1000® Growth Index | 14.51% | 49.75% | 3.42% | –4.21% | 7.36% | ||||||||||
Lipper Quartile – Class T Shares | – | 2nd | 2nd | 4th | 1st | ||||||||||
Lipper Ranking – based on total return for Large-Cap Core Funds | – | 438/930 | 288/664 | 296/387 | 5/78 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
62 | MARCH 31, 2010
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITS) which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Growth and Income Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Growth and Income Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Growth and Income Fund (the “JAD predecessor fund”) into corresponding shares of Janus Growth and Income Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Growth and Income Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
May 16, 1991 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Janus Growth & Core Funds | 63
Janus Growth and Income Fund (unaudited)
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – May 15, 1991 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,117.60 | $ | 4.38 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.95 | $ | 5.04 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,114.30 | $ | 7.65 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.21 | $ | 8.80 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,079.70 | $ | 1.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.94 | $ | 4.03 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,119.00 | $ | 3.07 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.44 | $ | 3.53 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,115.60 | $ | 6.30 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.75 | $ | 7.24 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,116.60 | $ | 5.21 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,118.20 | $ | 3.86 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.54 | $ | 4.43 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.00% for Class A Shares, 1.75% for Class C Shares, 0.70% for Class I Shares, 1.44% for Class R Shares, 1.19% for Class S Shares and 0.88% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.80% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
64 | MARCH 31, 2010
Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Common Stock – 93.8% | ||||||||||||
Aerospace and Defense – 2.7% | ||||||||||||
840,965 | Boeing Co. | $ | 61,062,469 | |||||||||
1,933,720 | Empresa Brasileira de Aeronautica S.A. (ADR) | 46,331,931 | ||||||||||
107,394,400 | ||||||||||||
Agricultural Chemicals – 3.0% | ||||||||||||
438,670 | Monsanto Co. | 31,329,811 | ||||||||||
1,573,690 | Syngenta A.G. (ADR)** | 87,355,532 | ||||||||||
118,685,343 | ||||||||||||
Applications Software – 0.4% | ||||||||||||
602,210 | Microsoft Corp. | 17,626,687 | ||||||||||
Athletic Footwear – 2.0% | ||||||||||||
1,062,930 | NIKE, Inc. – Class B | 78,125,355 | ||||||||||
Automotive – Cars and Light Trucks – 0.7% | ||||||||||||
617,600 | Daimler A.G.*,** | 29,033,376 | ||||||||||
Brewery – 2.5% | ||||||||||||
1,997,902 | Anheuser-Busch InBev N.V.** | 100,627,648 | ||||||||||
3,776,984 | Anheuser-Busch InBev N.V. – VVPR Strip*,** | 35,706 | ||||||||||
100,663,354 | ||||||||||||
Cable Television – 1.2% | ||||||||||||
1,372,415 | DIRECTV – Class A* | 46,401,351 | ||||||||||
Casino Hotels – 0.3% | ||||||||||||
1,604,594 | Crown, Ltd. | 12,041,374 | ||||||||||
Cellular Telecommunications – 0.7% | ||||||||||||
1,111,655 | Vodafone Group PLC** | 25,890,445 | ||||||||||
Commercial Banks – 2.8% | ||||||||||||
864,600 | ICICI Bank, Ltd. (ADR) | 36,918,420 | ||||||||||
1,235,170 | Itau Unibanco Holding S.A. (ADR) | 27,161,388 | ||||||||||
1,729,238 | Standard Chartered PLC** | 47,161,991 | ||||||||||
111,241,799 | ||||||||||||
Commercial Services – Finance – 1.6% | ||||||||||||
744,355 | Paychex, Inc. | 22,851,699 | ||||||||||
2,416,895 | Western Union Co. | 40,990,539 | ||||||||||
63,842,238 | ||||||||||||
Computers – 5.1% | ||||||||||||
265,938 | Apple, Inc.* | 62,476,814 | ||||||||||
612,375 | International Business Machines Corp. | 78,537,094 | ||||||||||
836,075 | Research In Motion, Ltd. (U.S. Shares)* | 61,827,746 | ||||||||||
202,841,654 | ||||||||||||
Cosmetics and Toiletries – 1.6% | ||||||||||||
744,615 | Colgate-Palmolive Co. | 63,485,875 | ||||||||||
Diversified Banking Institutions – 7.4% | ||||||||||||
4,253,304 | Bank of America Corp. | 75,921,476 | ||||||||||
1,568,965 | Credit Suisse Group A.G. (ADR)** | 80,613,422 | ||||||||||
204,830 | Goldman Sachs Group, Inc. | 34,950,143 | ||||||||||
3,465,480 | Morgan Stanley | 101,503,908 | ||||||||||
292,988,949 | ||||||||||||
Diversified Operations – 1.9% | ||||||||||||
5,870,000 | China Merchants Holdings International Co., Ltd. | 21,623,132 | ||||||||||
576,485 | Danaher Corp. | 46,066,917 | ||||||||||
19,329,275 | Melco International Development, Ltd.* | 8,663,817 | ||||||||||
76,353,866 | ||||||||||||
E-Commerce/Services – 1.3% | ||||||||||||
1,649,570 | eBay, Inc.* | 44,455,911 | ||||||||||
476,635 | Liberty Media Corp. – Interactive – Class A* | 7,297,282 | ||||||||||
51,753,193 | ||||||||||||
Electronic Components – Semiconductors – 0.8% | ||||||||||||
320,920 | Broadcom Corp. – Class A | 10,648,126 | ||||||||||
723,875 | Microchip Technology, Inc. | 20,384,320 | ||||||||||
31,032,446 | ||||||||||||
Electronic Connectors – 0.8% | ||||||||||||
723,345 | Amphenol Corp. – Class A | 30,517,926 | ||||||||||
Enterprise Software/Services – 2.3% | ||||||||||||
3,603,855 | Oracle Corp. | 92,583,035 | ||||||||||
Fiduciary Banks – 0.3% | ||||||||||||
192,854 | Northern Trust Corp. | 10,657,112 | ||||||||||
Finance – Investment Bankers/Brokers – 0.6% | ||||||||||||
1,384,082 | Charles Schwab Corp. | 25,868,493 | ||||||||||
Finance – Other Services – 0.7% | ||||||||||||
1,001,789 | NYSE Euronext | 29,662,972 | ||||||||||
Food – Miscellaneous/Diversified – 2.7% | ||||||||||||
2,062,104 | Nestle S.A.** | 105,638,569 | ||||||||||
Food – Retail – 0.7% | ||||||||||||
4,446,607 | Tesco PLC** | 29,378,898 | ||||||||||
Industrial Gases – 1.0% | ||||||||||||
460,375 | Praxair, Inc. | 38,211,125 | ||||||||||
Medical – Biomedical and Genetic – 2.4% | ||||||||||||
825,920 | Celgene Corp.* | 51,174,003 | ||||||||||
978,360 | Gilead Sciences, Inc.* | 44,495,813 | ||||||||||
95,669,816 | ||||||||||||
Medical – Drugs – 5.0% | ||||||||||||
938,615 | Abbott Laboratories | 49,446,238 | ||||||||||
2,816,335 | Bristol-Myers Squibb Co. | 75,196,144 | ||||||||||
457,558 | Roche Holding A.G.** | 74,226,751 | ||||||||||
198,869,133 | ||||||||||||
Medical – HMO – 0.9% | ||||||||||||
1,120,580 | UnitedHealth Group, Inc. | 36,609,349 | ||||||||||
Medical Products – 4.1% | ||||||||||||
1,061,195 | Baxter International, Inc. | 61,761,549 | ||||||||||
795,590 | Covidien PLC (U.S. Shares)** | 40,002,265 | ||||||||||
927,795 | Johnson & Johnson | 60,492,234 | ||||||||||
162,256,048 | ||||||||||||
Metal Processors and Fabricators – 1.0% | ||||||||||||
321,095 | Precision Castparts Corp. | 40,685,947 | ||||||||||
Multi-Line Insurance – 0.8% | ||||||||||||
617,595 | ACE, Ltd. (U.S. Shares)** | 32,300,219 | ||||||||||
Networking Products – 2.1% | ||||||||||||
3,259,160 | Cisco Systems, Inc.* | 84,835,935 | ||||||||||
Oil and Gas Drilling – 0.7% | ||||||||||||
337,675 | Transocean, Ltd. (U.S. Shares)*,** | 29,168,367 | ||||||||||
Oil Companies – Exploration and Production – 5.8% | ||||||||||||
2,378,673 | EnCana Corp. (U.S. Shares) | 73,810,223 | ||||||||||
726,060 | EOG Resources, Inc. | 67,480,016 | ||||||||||
1,031,895 | Occidental Petroleum Corp. | 87,236,403 | ||||||||||
228,526,642 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 65
Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Oil Companies – Integrated – 5.6% | ||||||||||||
2,378,673 | Cenovus Energy, Inc. | $ | 62,345,019 | |||||||||
1,311,417 | Hess Corp. | 82,029,134 | ||||||||||
1,926,680 | Petroleo Brasileiro S.A. (U.S. Shares) | 76,277,261 | ||||||||||
220,651,414 | ||||||||||||
Optical Supplies – 1.7% | ||||||||||||
426,265 | Alcon, Inc. (U.S. Shares)** | 68,867,373 | ||||||||||
Power Converters and Power Supply Equipment – 0.4% | ||||||||||||
1,046,480 | Suntech Power Holdings Co., Ltd. (ADR)* | 14,671,650 | ||||||||||
Real Estate Operating/Development – 0.8% | ||||||||||||
7,913,520 | Hang Lung Properties, Ltd. | 31,902,779 | ||||||||||
Retail – Building Products – 1.6% | ||||||||||||
1,923,856 | Home Depot, Inc. | 62,236,742 | ||||||||||
Retail – Discount – 0.7% | ||||||||||||
494,115 | Target Corp. | 25,990,449 | ||||||||||
Retail – Drug Store – 0.9% | ||||||||||||
971,589 | CVS Caremark Corp. | 35,521,294 | ||||||||||
Retail – Jewelry – 1.1% | ||||||||||||
883,640 | Tiffany & Co. | 41,964,064 | ||||||||||
Retail – Regional Department Stores – 1.0% | ||||||||||||
741,105 | Kohl’s Corp.* | 40,597,732 | ||||||||||
Semiconductor Components/Integrated Circuits – 0.5% | ||||||||||||
988,120 | Marvell Technology Group, Ltd.* | 20,137,886 | ||||||||||
Soap and Cleaning Preparations – 1.7% | ||||||||||||
1,194,940 | Reckitt Benckiser Group PLC** | 65,578,739 | ||||||||||
Telecommunication Equipment – Fiber Optics – 1.6% | ||||||||||||
3,217,039 | Corning, Inc. | 65,016,358 | ||||||||||
Television – 1.4% | ||||||||||||
3,950,768 | CBS Corp. – Class B | 55,073,706 | ||||||||||
Tobacco – 3.5% | ||||||||||||
1,919,730 | Altria Group, Inc. | 39,392,860 | ||||||||||
1,925,275 | Philip Morris International, Inc. | 100,422,344 | ||||||||||
139,815,204 | ||||||||||||
Toys – 0.6% | ||||||||||||
991,535 | Mattel, Inc. | 22,547,506 | ||||||||||
Transportation – Railroad – 1.2% | ||||||||||||
642,590 | Union Pacific Corp. | 47,101,847 | ||||||||||
Wireless Equipment – 1.6% | ||||||||||||
1,479,325 | QUALCOMM, Inc. | 62,116,857 | ||||||||||
Total Common Stock (cost $3,063,271,471) | 3,720,632,891 | |||||||||||
Corporate Bonds – 2.0% | ||||||||||||
Automotive – Cars and Light Trucks – 0.6% | ||||||||||||
$ | 14,823,000 | Ford Motor Co., 4.2500%, 11/15/16 | 22,178,914 | |||||||||
Building – Residential and Commercial – 0.2% | ||||||||||||
6,467,000 | Meritage Homes Corp. 6.2500%, 3/15/15 | 6,208,320 | ||||||||||
Power Converters and Power Supply Equipment – 1.0% | ||||||||||||
24,709,000 | JA Solar Holdings Co., Ltd. 4.5000%, 5/15/13 | 20,570,242 | ||||||||||
24,090,000 | Suntech Power Holdings Co. Ltd. 3.0000%, 3/15/13 (144A) | 20,536,725 | ||||||||||
41,106,967 | ||||||||||||
REIT – Warehouse/Industrial – 0.2% | ||||||||||||
$ | 9,896,000 | ProLogis, 3.2500%, 3/15/15 | 9,945,480 | |||||||||
Total Corporate Bonds (cost $77,650,779) | 79,439,681 | |||||||||||
Preferred Stock – 0.9% | ||||||||||||
Metal – Copper – 0.9% | ||||||||||||
302,660 | Freeport-McMoRan Copper & Gold, Inc. convertible, 6.7500% (cost $30,729,617) | 35,099,480 | ||||||||||
U.S. Treasury Notes/Bonds – 2.2% | ||||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||||
$ | 19,091,000 | 2.7500%, 7/31/10 | 19,253,579 | |||||||||
26,056,000 | 1.5000%, 10/31/10 | 26,237,167 | ||||||||||
19,091,000 | 4.8750%, 7/31/11 | 20,171,589 | ||||||||||
19,091,000 | 3.3750%, 7/31/13 | 20,090,299 | ||||||||||
Total U.S. Treasury Notes/Bonds (cost $84,152,478) | 85,752,634 | |||||||||||
Money Market – 1.6% | ||||||||||||
65,811,736 | Janus Cash Liquidity Fund LLC, 0% (cost $65,811,736) | 65,811,736 | ||||||||||
Total Investments (total cost $3,321,616,081) – 100.5% | 3,986,736,422 | |||||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | (20,296,838) | |||||||||||
Net Assets – 100% | $ | 3,966,439,584 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 12,041,374 | 0.3% | |||||
Belgium | 100,663,354 | 2.5% | ||||||
Bermuda | 20,137,886 | 0.5% | ||||||
Brazil | 149,770,581 | 3.8% | ||||||
Canada | 197,982,989 | 5.0% | ||||||
Cayman Islands | 55,778,617 | 1.4% | ||||||
Germany | 29,033,376 | 0.7% | ||||||
Hong Kong | 62,189,728 | 1.6% | ||||||
India | 36,918,420 | 0.9% | ||||||
Ireland | 40,002,265 | 1.0% | ||||||
Switzerland | 478,170,232 | 12.0% | ||||||
United Kingdom | 168,010,073 | 4.2% | ||||||
United States†† | 2,636,037,527 | 66.1% | ||||||
Total | $ | 3,986,736,422 | 100.0% |
†† | Includes Cash Equivalents (64.5% excluding Cash Equivalents) |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
British Pound 4/8/10 | 10,500,000 | $ | 15,931,298 | $ | (116,198) | |||||||
British Pound 4/22/10 | 20,029,000 | 30,386,104 | 1,139,943 | |||||||||
British Pound 5/6/10 | 23,530,000 | 35,694,105 | (339,809) | |||||||||
Euro 4/8/10 | 7,120,000 | 9,615,536 | 281,264 | |||||||||
Euro 4/22/10 | 12,505,000 | 16,888,227 | 244,624 | |||||||||
Euro 5/6/10 | 7,355,000 | 9,933,174 | 142,882 | |||||||||
Swiss Franc 4/22/10 | 38,910,000 | 36,919,078 | (581,421) | |||||||||
Swiss Franc 5/6/10 | 52,740,000 | 50,048,041 | (282,996) | |||||||||
Total | $ | 205,415,563 | $ | 488,289 |
See Notes to Schedules of Investments and Financial Statements.
66 | MARCH 31, 2010
Janus Orion Fund (unaudited)
Fund Snapshot We believe that investing in companies that are creating value by executing on a strategy to improve economic profit margin but trading below their intrinsic value, will allow us to outperform the index over time. We take a concentrated, opportunistic approach, seeking the most attractive investment opportunities, regardless of market capitalization. | ![]() John Eisinger portfolio manager |
Economic Overview
Continuing their rally from March of 2009, U.S. equities recorded strong gains during the five-month period ended March 31, 2010. A pledge from U.S. Federal Reserve (Fed) Chairman Ben Bernanke that the Fed would maintain its accommodative monetary policy for an “extended period” and improving economic data that indicated the economic recovery was on track were partially offset by sovereign debt worries, primarily in Greece. Markets retreated modestly in mid-January into early February; however, they regained their uptrend in March to finish near 17-month highs.
Asset Class Overview
Small-cap and mid-cap stocks significantly outperformed large-caps during the period, while value-style indices slightly outperformed growth. Top performing sectors within our primary benchmark, the Russell 3000® Growth Index, were industrials, consumer discretionary and health care, while utilities, energy and materials lagged.
Investment Process
We believe our ability to add value – to deliver returns over those of the Fund’s primary benchmark index – is predicated on having a different view of the value of a company which is based on that company’s ability to generate cash flow over the long-term. An important metric that we focus on is return on invested capital (ROIC), a measure of how effectively a company uses the capital invested in its operations. Ideally, we try to buy stocks that are under-earning (cash flow) or under-returning (ROIC) relative to what we perceive to be the business’s potential. The impetus to improving ROIC and cash flows could be a new management team, a new product cycle, market share gains or just a new focus on improving the business by the existing management, etc. Given the challenges associated with forecasting future growth, we aim to invest in businesses that trade near or below the level of capital invested in their business and that we think have a reliable path to sustained positive economic profit generation in the future. We believe these stocks often provide the best opportunity for limiting downside risk and the greatest potential for future return. The last important goal of our portfolio management approach is not just picking good stocks, but putting them together to form a diversified portfolio that maximizes the overall risk adjusted discount to intrinsic value of the portfolio as a whole. Stocks we believe have the best risk/reward profiles are at the top of the portfolio and are generally three to five percent of the portfolio each. The second half of the portfolio tends to be made up of stocks where we have identified a path to improving future cash flows and returns, but are monitoring the company’s process to ensure it executes on its plan. Over time as either the progress towards improved returns and cash flow improves or the valuation becomes more compelling we tend to add to these positions to put them at the top of the portfolio. To further diversify the portfolio we focus on minimizing the correlation of each stock within the portfolio. Again, it is not enough to just put together undervalued stocks, but rather to try to put together a portfolio of undervalued stocks that together act in different ways in all markets. We believe this is diversification. Conversely, we sell stocks when they achieve our price targets or if they fail to progress along our identified path of future value creation.
We used derivatives, such as buying put options or selling call options, to both hedge market exposure and express views on stocks. An example of this over the past five months was our purchase of put option contracts on the S&P 500 Index in an attempt to lessen the impact of a downward move in the overall market. Please see the “Notes to Financial Statements” for a discussion of derivatives used in the Fund.
Strategy Overview
Stock selection drove the Fund’s outperformance relative to its primary benchmark during the period, particularly in information technology, materials, consumer discretionary and telecommunications sectors. One of the largest holdings, Crown Castle International Co., was also among
Janus Growth & Core Funds | 67
Janus Orion Fund (unaudited)
our largest individual contributors during the period. The wireless tower company’s fundamentals remain strong and the need for wireless carriers to upgrade their networks should continue to be a driver of the firm’s growth and returns on invested capital.
UAL, the parent company of United Airlines, returned over 200% during the period, as it benefited from revenue growth against a backdrop of an improved cost structure. The airline industry has been aggressive in reducing capacity and cutting costs, which has helped drive improved pricing. Thus far the industry has remained disciplined, which should help drive returns on capital higher than is currently being valued in the stock price for UAL.
Limited Brands, a specialty retailer, also recorded strong gains. Limited’s sales have been improving, which has helped drive incremental margins higher. We initiated a position in this retailer of women’s apparel and beauty products during the second quarter of 2009, as the market price suggested a very dire scenario for the business. Since then, the company has been aggressive in reducing costs and managing inventory.
Our holdings in financials were the primary detractor during the period followed distantly by our overweight in energy and holdings in health care. Two financial holdings, investment bank/brokerage firm Morgan Stanley and Belgium-based insurer Fortis, were among top detractors during the period. We believe Morgan Stanley, a top five holding, will gain market share and that management is focused on capital allocation and unlocking value across its businesses. Fortis suffered from concerns over its exposure to Greece in the quarter. We think the market overreacted given the small percentage of book value Greek bonds represented on Fortis’ balance sheet. Longer term, we see the company deploying capital to improve returns and creating more value in its Asian operations which together are not fully discounted in the stock price.
CVS Caremark Corp., a pharmacy benefits management (PBM) company that provides prescription and related health-care services and operates retail pharmacies, suffered from poor execution in its PBM business and doubts about the potential synergies between the PBM and retail pharmacy businesses. We exited the position.
Conclusion
We believe there continues to be considerable skepticism surrounding companies’ ability to grow broadly. We are finding many companies that we feel will show very attractive growth that is not being priced into the stocks currently. Our focus remains on companies that are growing economic profits and improving ROIC where the price of the stock does not reflect this view. We think focusing on quality stock specific ideas will give us the best opportunity to generate strong long-term performance.
Thank you for your continued investment in Janus Orion Fund.
68 | MARCH 31, 2010
(unaudited)
Janus Orion Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
UAL Corp. | 1.70% | |||
Crown Castle International Corp. | 1.48% | |||
Limited Brands, Inc. | 1.36% | |||
Ivanhoe Mines, Ltd. | 1.17% | |||
Atmel Corp. | 0.96% |
5 Bottom Performers – Holdings
Contribution | ||||
Morgan Stanley | –0.41% | |||
Fortis | –0.35% | |||
CVS Caremark Corp. | –0.30% | |||
Wynn Resorts, Ltd. | –0.28% | |||
Banco Santander Central Hispano S.A. | –0.12% |
5 Top Performers – Sectors*
Fund Weighting | Russell 3000® Growth | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Information Technology | 4.19% | 19.51% | 32.04% | |||||||||
Consumer Discretionary | 3.62% | 11.27% | 11.03% | |||||||||
Industrials | 2.97% | 10.77% | 10.61% | |||||||||
Health Care | 2.34% | 14.75% | 16.64% | |||||||||
Materials | 2.22% | 5.97% | 3.79% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 3000® Growth | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 0.84% | |||||||||
Other** | 0.01% | 0.06% | 0.00% | |||||||||
Consumer Staples | 0.22% | 5.62% | 15.12% | |||||||||
Energy | 0.74% | 8.86% | 4.18% | |||||||||
Financials | 1.32% | 16.42% | 5.08% |
* | 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. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 69
Janus Orion Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Illinois Tool Works, Inc. Diversified Operations | 5.5% | |||
Crown Castle International Corp. Wireless Equipment | 5.4% | |||
Johnson & Johnson Medical Products | 3.8% | |||
Morgan Stanley Diversified Banking Institutions | 3.6% | |||
Wesco International, Inc. Distribution/Wholesale | 3.0% | |||
21.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p02.gif)
Emerging markets comprised 7.3% of total net assets.
*Includes Securities Sold Short of (3.8)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c02.gif)
70 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m02.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Orion Fund – Class A Shares | |||||||||||||
NAV | 18.16% | 74.64% | 9.47% | 0.94% | 1.20% | 1.17% | |||||||
MOP | 11.38% | 64.60% | 8.18% | 0.33% | |||||||||
Janus Orion Fund – Class C Shares | |||||||||||||
NAV | 17.76% | 72.23% | 8.64% | 0.18% | 2.14% | 1.92% | |||||||
CDSC | 16.58% | 70.51% | 8.64% | 0.18% | |||||||||
Janus Orion Fund – Class D Shares(1) | 18.31% | 74.89% | 9.52% | 0.97% | 0.90% | 0.90% | |||||||
Janus Orion Fund – Class I Shares | 18.41% | 74.89% | 9.52% | 0.97% | 0.83% | 0.83% | |||||||
Janus Orion Fund – Class R Shares | 17.96% | 73.31% | 8.97% | 0.49% | 1.50% | 1.50% | |||||||
Janus Orion Fund – Class S Shares | 18.05% | 74.10% | 9.24% | 0.74% | 1.25% | 1.25% | |||||||
Janus Orion Fund – Class T Shares | 18.31% | 74.89% | 9.52% | 0.97% | 1.03% | 1.03% | |||||||
Russell 3000® Growth Index | 14.94% | 50.50% | 3.46% | –3.80% | |||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.40% | |||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 1st | |||||||||
Lipper Ranking – based on total return for Multi-Cap Growth Funds | – | 5/456 | 4/298 | 32/186 | |||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Growth & Core Funds | 71
Janus Orion Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
A hedging strategy is one that attempts to minimize or protect against loss by strategically using instruments in the market to offset the risk of any adverse price movements. It involves counterbalancing one transaction against another. Hedging does not prevent a negative event from happening. It attempts to reduce the impact of the event. A reduction in such risk usually means a reduction in potential profits. Hedging, for the most part, is a technique not by which you will necessarily make money but by which you can reduce potential loss.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Effective February 16, 2010, Janus Orion Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Orion Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Orion Fund (the “JAD predecessor fund”) into corresponding shares of Janus Orion Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Orion Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
72 | MARCH 31, 2010
(unaudited)
Lipper ranking is for Class T Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – June 30, 2000 | |
(1) | Closed to new investors. |
Janus Growth & Core Funds | 73
Janus Orion Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,181.60 | $ | 5.10 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,177.60 | $ | 8.74 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.26 | $ | 9.75 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,087.60 | $ | 1.08 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,184.10 | $ | 3.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.04 | $ | 3.93 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,179.60 | $ | 6.72 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.50 | $ | 7.49 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,180.50 | $ | 5.59 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.75 | $ | 6.24 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,183.10 | $ | 4.15 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.13% for Class A Shares, 1.94% for Class C Shares, 0.78% for Class I Shares, 1.49% for Class R Shares, 1.24% for Class S Shares and 0.92% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect the five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.86% for Class D Shares, multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers of Janus Capital. |
74 | MARCH 31, 2010
Janus Orion Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 98.5% | ||||||||||||
Advertising Sales – 0.3% | ||||||||||||
351,921 | Lamar Advertising Co. – Class A* | $ | 12,088,486 | |||||||||
Agricultural Chemicals – 0.4% | ||||||||||||
494,905 | Intrepid Potash, Inc.* | 15,010,469 | ||||||||||
Airlines – 1.4% | ||||||||||||
2,614,165 | UAL Corp.* | 51,106,926 | ||||||||||
Brewery – 2.0% | ||||||||||||
1,480,454 | Anheuser-Busch InBev N.V.** | 74,565,522 | ||||||||||
Building – Residential and Commercial – 0.7% | ||||||||||||
3,786,300 | MRV Engenharia e Participacoes S.A.** | 26,434,871 | ||||||||||
Cable Television – 0.3% | ||||||||||||
9,629 | Jupiter Telecommunications Co., Ltd. | 11,125,837 | ||||||||||
Chemicals – Diversified – 1.4% | ||||||||||||
3,806,878 | Israel Chemicals, Ltd. | 51,555,769 | ||||||||||
Coatings and Paint Products – 2.1% | ||||||||||||
1,132,305 | Sherwin-Williams Co. | 76,634,402 | ||||||||||
Commercial Banks – 5.8% | ||||||||||||
7,915,353 | Banco Santander Central Hispano S.A.** | 105,185,994 | ||||||||||
3,176,408 | CapitalSource, Inc. | 17,756,121 | ||||||||||
3,489,581 | ICICI Bank, Ltd.** | 74,043,794 | ||||||||||
2,527,014 | Oriental Bank of Commerce** | 18,067,390 | ||||||||||
215,053,299 | ||||||||||||
Commercial Services – Finance – 3.5% | ||||||||||||
2,980,100 | Paychex, Inc. | 91,489,070 | ||||||||||
2,393,695 | Total System Services, Inc. | 37,485,264 | ||||||||||
128,974,334 | ||||||||||||
Computers – 2.3% | ||||||||||||
397,225 | International Business Machines Corp. | 50,944,106 | ||||||||||
489,040 | Research In Motion, Ltd. (U.S. Shares)* | 36,164,508 | ||||||||||
87,108,614 | ||||||||||||
Disposable Medical Products – 2.0% | ||||||||||||
868,710 | C.R. Bard, Inc. | 75,247,660 | ||||||||||
Distribution/Wholesale – 3.0% | ||||||||||||
3,196,115 | Wesco International, Inc.*,£ | 110,937,152 | ||||||||||
Diversified Banking Institutions – 4.5% | ||||||||||||
212,950 | Goldman Sachs Group, Inc. | 36,335,659 | ||||||||||
4,519,995 | Morgan Stanley | 132,390,653 | ||||||||||
168,726,312 | ||||||||||||
Diversified Operations – 6.5% | ||||||||||||
9,958,000 | China Resources Enterprise Ltd. | 37,002,615 | ||||||||||
4,356,590 | Illinois Tool Works, Inc.** | 206,328,103 | ||||||||||
243,330,718 | ||||||||||||
Electronic Components – Miscellaneous – 2.5% | ||||||||||||
3,354,143 | Tyco Electronics, Ltd. (U.S. Shares)** | 92,171,850 | ||||||||||
Electronic Components – Semiconductors – 2.1% | ||||||||||||
9,896,619 | ON Semiconductor Corp.* | 79,172,952 | ||||||||||
Entertainment Software – 2.4% | ||||||||||||
4,674,445 | Electronic Arts, Inc.* | 87,225,144 | ||||||||||
Internet Gambling – 1.4% | ||||||||||||
10,844,126 | PartyGaming PLC* | 52,668,225 | ||||||||||
Medical – Biomedical and Genetic – 1.9% | ||||||||||||
860,625 | Celgene Corp.* | 53,324,325 | ||||||||||
448,525 | Vertex Pharmaceuticals, Inc.* | 18,331,217 | ||||||||||
71,655,542 | ||||||||||||
Medical – Drugs – 2.6% | ||||||||||||
2,363,475 | Biovail, Corp. | 39,635,476 | ||||||||||
2,131,215 | Bristol-Myers Squibb Co. | 56,903,440 | ||||||||||
96,538,916 | ||||||||||||
Medical Instruments – 2.5% | ||||||||||||
2,231,985 | St. Jude Medical, Inc.* | 91,622,984 | ||||||||||
Medical Products – 5.2% | ||||||||||||
2,186,875 | Johnson & Johnson** | 142,584,250 | ||||||||||
941,920 | Varian Medical Systems, Inc.* | 52,116,434 | ||||||||||
194,700,684 | ||||||||||||
Metal – Diversified – 2.4% | ||||||||||||
5,194,845 | Ivanhoe Mines, Ltd.* | 90,810,024 | ||||||||||
Multi-Line Insurance – 1.9% | ||||||||||||
19,638,164 | Fortis** | 69,909,922 | ||||||||||
Networking Products – 1.9% | ||||||||||||
2,772,290 | Cisco Systems, Inc.* | 72,162,709 | ||||||||||
Oil and Gas Drilling – 1.5% | ||||||||||||
1,235,950 | Ensco International PLC** | 55,345,841 | ||||||||||
Oil Companies – Exploration and Production – 6.3% | ||||||||||||
1,080,660 | Anadarko Petroleum Corp. | 78,704,468 | ||||||||||
881,195 | Occidental Petroleum Corp. | 74,496,225 | ||||||||||
1,706,390 | Ultra Petroleum Corp. (U.S. Shares)* | 79,568,967 | ||||||||||
232,769,660 | ||||||||||||
Real Estate Management/Services – 2.3% | ||||||||||||
1,148,814 | Jones Lang LaSalle, Inc. | 83,737,052 | ||||||||||
Real Estate Operating/Development – 0.5% | ||||||||||||
2,674,083 | Rossi Residencial S.A.** | 18,639,600 | ||||||||||
Retail – Apparel and Shoe – 3.9% | ||||||||||||
1,692,878 | Foot Locker, Inc. | 25,460,885 | ||||||||||
3,732,630 | Limited Brands, Inc.** | 91,897,350 | ||||||||||
4,915,170 | Pacific Sunwear of California, Inc.*,£ | 26,099,553 | ||||||||||
143,457,788 | ||||||||||||
Semiconductor Components/Integrated Circuits – 4.7% | ||||||||||||
21,347,354 | Atmel Corp.* ,** | 107,377,190 | ||||||||||
3,347,510 | Marvell Technology Group, Ltd.* | 68,222,254 | ||||||||||
175,599,444 | ||||||||||||
Shipbuilding – 1.0% | ||||||||||||
94,000 | OSX Brasil SA*,** | 37,018,284 | ||||||||||
Steel – Producers – 1.3% | ||||||||||||
12,349,505 | Al Ezz Steel Rebars S.A.E.* | 47,418,688 | ||||||||||
Telecommunication Equipment – 2.5% | ||||||||||||
12,322,260 | Tellabs Inc. | 93,279,508 | ||||||||||
Transportation – Marine – 1.2% | ||||||||||||
942,535 | Tidewater, Inc. | 44,553,629 | ||||||||||
Transportation – Services – 1.9% | ||||||||||||
1,296,155 | C.H. Robinson Worldwide, Inc. | 72,390,257 | ||||||||||
Web Portals/Internet Service Providers – 2.0% | ||||||||||||
4,469,565 | Yahoo!, Inc.* | 73,881,909 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 75
Janus Orion Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Wireless Equipment – 6.4% | ||||||||||||
5,265,746 | Crown Castle International Corp.*,** | $ | 201,309,470 | |||||||||
1,020,665 | SBA Communications Corp. – Class A* | 36,815,387 | ||||||||||
238,124,857 | ||||||||||||
Total Common Stock (cost $2,875,278,893) | 3,662,755,840 | |||||||||||
Purchased Options – Calls – 0.1% | ||||||||||||
2,378 | Research In Motion, Ltd. (U.S. Shares) expires April 2010 exercise price $75.00 | 596,720 | ||||||||||
4,437 | Research In Motion, Ltd. (U.S. Shares) expires June 2010 exercise price $80.00 | 1,397,385 | ||||||||||
Total Purchased Options – calls (premiums paid $1,815,255) | 1,994,105 | |||||||||||
Money Market – 1.5% | ||||||||||||
57,547,468 | Janus Cash Liquidity Fund LLC, 0% (cost $57,547,468) | 57,547,468 | ||||||||||
Total Investments (total cost $2,934,641,616) – 100.1% | 3,722,297,413 | |||||||||||
Securities Sold Short – (3.8)% | ||||||||||||
Common Stock – (1.8)% | ||||||||||||
Casino Hotels – (1.0)% | ||||||||||||
505,025 | Wynn Resorts, Ltd. | (38,296,046) | ||||||||||
Electronic Components – Semiconductors – (0.8)% | ||||||||||||
404,525 | Cree, Inc.* | (28,405,745) | ||||||||||
Total Common Stock (proceeds $56,835,471) | (66,701,791) | |||||||||||
Exchange-Traded Funds – (2.0)% | ||||||||||||
Sector Fund – Technology – (1.0)% | ||||||||||||
1,370,400 | Semiconductor HOLDRs Trust | (38,165,640) | ||||||||||
Sector Fund – Undefined Equity – (1.0)% | ||||||||||||
894,105 | SPDR S&P Retail ETF | (36,944,419) | ||||||||||
Total Exchange-Traded Funds (proceeds $74,032,897) | (75,110,059) | |||||||||||
Total Securities Sold Short (proceeds $130,868,368) | (141,811,850) | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities** – 3.7% | 138,272,195 | |||||||||||
Net Assets – 100% | $ | 3,718,757,758 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 144,475,444 | 3.9% | |||||
Bermuda | 68,222,254 | 1.8% | ||||||
Brazil | 82,092,755 | 2.2% | ||||||
Canada | 246,178,974 | 6.6% | ||||||
Egypt | 47,418,688 | 1.3% | ||||||
Gibraltar | 52,668,225 | 1.4% | ||||||
Hong Kong | 37,002,615 | 1.0% | ||||||
India | 92,111,184 | 2.5% | ||||||
Israel | 51,555,769 | 1.4% | ||||||
Japan | 11,125,837 | 0.3% | ||||||
Spain | 105,185,995 | 2.8% | ||||||
Switzerland | 92,171,850 | 2.5% | ||||||
United Kingdom | 55,345,841 | 1.5% | ||||||
United States†† | 2,636,741,982 | 70.8% | ||||||
Total | $ | 3,722,297,413 | 100.0% |
†† | Includes Cash Equivalents (69.3% excluding Cash Equivalents). |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
United States | $ | (141,811,850) | 100.0% | |||||
Total | $ | (141,811,850) | 100.0% |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
Brazilian Real 4/22/10 | 13,875,000 | $ | 7,773,851 | $ | (304,133) | |||||||
Brazilian Real 5/6/10 | 34,488,000 | 19,261,252 | 85,769 | |||||||||
British Pound 4/8/10 | 24,897,000 | 37,775,384 | 1,418,490 | |||||||||
British Pound 4/22/10 | 17,300,000 | 26,245,923 | 984,623 | |||||||||
British Pound 5/6/10 | 26,000,000 | 39,441,000 | (375,480) | |||||||||
Euro 4/8/10 | 55,717,000 | 75,245,622 | 898,345 | |||||||||
Euro 4/22/10 | 43,432,000 | 58,655,694 | 849,621 | |||||||||
Euro 5/6/10 | 43,579,000 | 58,854,899 | 846,588 | |||||||||
Indian Rupee 4/22/10 | 1,875,000,000 | 41,699,339 | (1,114,923) | |||||||||
Indian Rupee 5/6/10 | 1,200,000,000 | 26,651,712 | (398,102) | |||||||||
Total | $ | 391,604,676 | $ | 2,890,798 |
Schedule of Written Options – Calls | Value | |||
Limited Brands, Inc. expires May 2010 5,140 contracts exercise price $24.00 (premiums received $737,590) | $ | (788,630) | ||
Schedule of Written Options – Puts | ||||
Cree, Inc. expires April 2010 1,596 contracts exercise price $55.00 | $ | (8,900) | ||
Crown Castle International Corp. expires May 2010 2,622 contracts exercise price $35.00 | (175,801) |
See Notes to Schedules of Investments and Financial Statements.
76 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Value | ||||
Cytogenix, Inc. expires May 2010 5,140 contracts exercise price $25.00 | (242,195) | |||
Ford Motor Co. expires May 2010 16,907 contracts exercise price $11.00 | (338,140) | |||
Ford Motor Co. expires May 2010 7,749 contracts exercise price $12.00 | (387,450) | |||
Morgan Stanley expires May 2010 4,942 contracts exercise price $26.00 | (224,588) | |||
Research In Motion, Ltd. (U.S. Shares) expires June 2010 6,815 contracts exercise price $55.00 | (380,315) | |||
Ultra Petroleum Corp. (U.S. Shares) expires May 2010 1,835 contracts exercise price $40.00 | (97,124) | |||
Ultra Petroleum Corp. (U.S. Shares) expires June 2010 3,678 contracts exercise price $40.00 | (350,004) | |||
Ultra Petroleum Corp. (U.S. Shares) expires June 2010 2,248 contracts exercise price $41.00 | (258,090) | |||
Total Written Options – Puts | ||||
(premiums received $3,190,581) | $ | (2,462,607) | ||
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 77
Janus Research Core Fund (unaudited)
Fund Snapshot Analyst-driven, team-refined investment process attempts to capture the value of our research and manage investment risk. We believe a portfolio reflecting our team’s best ideas can deliver superior risk-adjusted results. | Team Based Approach Led by Jim Goff, Director of Research |
Fund Performance
For the 5-month period ending March 31, 2010, Janus Research Core Fund’s Class T Shares gained 11.97%, underperforming its primary benchmark, the S&P 500® Index, which advanced 13.87%.
Long-Term Investing and Sticking to Conviction
In my opinion, Janus’ investment process has become stronger and more disciplined over the past decade, while striving to maintain a consistent focus on adding value through excellence in research. Our focus is twofold – we strive to generate excellent long term results, while investing in a disciplined manner in an effort to provide consistency of returns for investors. We seek to steadily outperform the market through disciplined investing and by avoiding “big mistakes.” Markets have a way of humbling and challenging investors, though. Consider the severe downturn of late 2008 to early 2009. We wish we were prescient enough to avoid this sharp decline in global stock markets. We believed we would be somewhat protected by owning strong companies with excellent competitive positions in their markets. The key investing decision for most investors over the past 7-8 years was what they did during the depths of the panic and negative headlines. It is said that there are two classes of mistakes – minor ones like wearing white after Labor Day or serious ones like attacking Russia in winter. Moving out of the market or investing defensively during this time was the investment equivalent of “attacking Russia in winter.” Since its low in March of 2009, the S&P 500® Index is up 77.42%. Maintaining a focus on the long-term and finding what we felt were the best risk-rewards offered to us by a panicked market helped us to outperform off the March 2009 lows. Sure, we took our lumps for a time, but our patience paid off over the course of this market cycle. We took an important step toward our goal of great 5-, 10- and 20-year performance for our investors.
Economic Overview
During late 2008 and early 2009, many prognosticators felt the global economy was headed towards another depression. Since then, credit markets have improved greatly and lending is functioning more normally. We believe that we are back from the brink. Europe is stagnant and facing challenges from sovereign debt issues, but we feel that the United States is positioned to grow moderately in 2010 and economic growth in emerging markets appears to be vibrant. Near term, corporate earnings are strong and economic indicators in most global markets are clearly better than expected. Despite these positives, we are still at a point of uncertainty in the global economy. While much of the recent downturn can be attributed to excess borrowing by consumers and overvalued housing, the next downturn could come because many national governments took up the mantle from consumers and borrowed too much. Federal deficits and debts, relative to Gross Domestic Product (GDP), are in many cases in uncharted territories. Strong near-term growth could lead to employment gains and a sustainably growing economy to gradually resolve these debt issues. It is possible, however, that these high government borrowings lead to higher tax rates, inflation and higher interest rates which could depress economic growth for many years. We design this portfolio to benefit from stock picking and not from macro or sector bets. Against the backdrop of an uncertain economy, we think it especially important to focus on stock picking. Our portfolio positioning in Research Core remains balanced; it is positioned for neither ebullient growth nor recession.
Sector Views
Among our seven research sectors within the S&P 500®, communications had the strongest relative performance. Our relative underperformances during the period were led by industrials and financials. Our bottom up approach puts us in touch with thousands of companies and industry participants. And we use those conversations, surveys and other research tools to gain a broader outlook on sectors.
Communications
We anticipated a recovery in advertising, but the pace exceeded our expectations. Television and internet led the recovery while print media lost share. The lines between internet and television are blurring as advertisers tie on-line advertising with television broadcasts and many people watch television online. We also see opportunities
78 | MARCH 31, 2010
(unaudited)
(for infrastructure companies, among others) and challenges (for telecommunication companies, for example) in the growing volume of wireless data.
Consumer
We saw resurgence in consumer demand during the period and improving sentiment, but it was generally off gloomy views from a year ago. Retail sales continue to surprise us and others, especially at the high end. With store utilization lower than average, inventories lean, companies cautious on expenses, and a shift to on-line sales, higher growth means margins expand. Our view on staples is rosier, especially in emerging markets, but we are monitoring how manufacturers offset higher raw material costs.
Energy
In general, the outlook for oil prices is more favorable than that for natural gas. Natural gas production has not fallen in line with the fall in prices for a variety of structural reasons. Refining, which has long suffered from poor profitability, may be near an inflection point if increased demand from refined products sops up excess capacity in the industry. We remain quite impressed with the opportunity for companies with exposure to production in Brazilian waters.
Financials
We are watching the pace and scope of Washington’s efforts at financial sector reform. While we expect a great deal of rhetoric, we generally think the outcome will be less severe than the market fears. Some businesses, such as exchanges, may benefit from the new regulations. Away from Washington, we are anticipating peaks in non-performing loans and charge-offs, which could bode well for bank stocks, especially well-positioned large cap banks with attractive valuations. Our exposure to Greece is minimal, and we found opportunities where the stocks were over-sold in our opinion. Global insurance and real estate are offering investment opportunities as well.
Health Care
With reform behind us, the fundamentals of the sector will likely once again drive performance. In general, coming off several years of underperformance, valuations are low. The health care plan did more to expand healthcare than reform the cost structure. Pharmaceuticals, pharmacy benefit management companies and generic drug companies generally win from the increased patient population. Meanwhile, we’re uncertain if the increased regulation of insurance companies offset the benefit of a bigger pool of patients. We see a big opportunity for healthcare investing in emerging markets. We believe growth in these countries will far outpace GDP growth.
Industrials
The team focuses on companies that we believe are structural earnings growers with high returns and operating leverage that could help them benefit from an economic upturn. We are favoring more stable companies that we feel can do well in a variety of economic outcomes. We also see opportunities in companies with structural changes, such as airlines and the auto sector. Transports – which have leverage to the increased shipping needs of a growing economy – offer us some opportunities too. In addition, we think housing has stabilized, meaning good news for the industry and for related companies.
Technology
We saw a modest recovery in the technology sector, but company budgets for spending remained focused at period end. While we are seeing a bounce in demand in the semiconductor space, we believe the long-term winners will be either niche companies or those offering integrated solutions. Some of our investment themes continue to be network infrastructure, wireless, smart phones, web-based software and connectors.
Holdings Overview
Among individual detractors were utilities NRG Energy, Inc. and AES Corp. We believe wholesale power provider NRG could gain from future projects. In addition, we like that the company has been actively buying back shares and think these buybacks will continue along with further debt reduction. Finally, we feel the company could benefit from increasing electrical demand, particularly in Texas. AES, a global power producer, has attractive assets and the potential to improve returns on capital in our opinion. In addition, its stock price at period end was trading at a discount to our view of the company’s fair value.
Semiconductor equipment provider KLA-Tencor Corp. traded modestly lower during the period. Based on the equipment provider’s market-leading metrology and inspection products in the semiconductor industry, we think KLA-Tencor is poised for attractive growth.
Contributors included wireless tower company Crown Castle International Corp., which benefited from strong demand in wireless data transmission and growing market
Janus Growth & Core Funds | 79
Janus Research Core Fund (unaudited)
share. We believe the company is undervalued. We also believe its debt load is manageable.
Bank of America Corp. also posted strong gains during the period. We consider Bank of America to be one of the top franchises in U.S. deposits, wealth management and mortgage banking. In addition, we think the bank has an attractive potential return on equity and is well positioned to benefit from the improvement in the credit markets.
United Parcel Service, Inc. – Class B was another top contributor. We believe UPS has a dominant franchise in global trade with its integrated network and bundled product service that can deliver virtually any size package to almost any location in the world. Industry dynamics improved with the departure of DHL from the U.S. market in 2008. We also like the company’s focus on returns on invested capital, profitability and free-cash-flow generation.
Derivatives
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
We are committed to the success of Janus Research Core Fund – as managers and as investors. Janus analysts and I have more than $12 million invested in Janus’ U.S. and global research portfolios. We believe this alignment with our shareholders is a good reminder of our commitment to our process. We have a top-notch investment team and a disciplined and repeatable investment process that attempts to capture the value of our research in a highly diversified portfolio. We will go through some periods of underperformance, but by staying disciplined and when needed by staying above the panic, we hope to reward long term investors with continued strong risk-adjusted returns.
Thank you for your investment in Janus Research Core Fund.
Janus Research Core Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Bank of America Corp. | 0.81% | |||
United Parcel Service, Inc. – Class B | 0.58% | |||
Crown Castle International Corp. | 0.57% | |||
Northrop Grumman Corp. | 0.57% | |||
Lamar Advertising Co. – Class A | 0.56% |
5 Bottom Performers – Holdings
Contribution | ||||
NRG Energy, Inc. | –0.27% | |||
AES Corp. | –0.20% | |||
Exxon Mobil Corp. | –0.12% | |||
KLA-Tencor Corp. | –0.12% | |||
Gap, Inc. | –0.07% |
4 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Technology | 2.33% | 16.59% | 16.66% | |||||||||
Industrials | 2.09% | 14.72% | 14.87% | |||||||||
Consumer | 1.98% | 15.83% | 15.75% | |||||||||
Financials | 1.87% | 15.23% | 15.59% |
3 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Energy | 0.27% | 14.99% | 15.18% | |||||||||
Health Care | 1.62% | 14.04% | 13.59% | |||||||||
Communications | 1.80% | 8.60% | 8.36% |
* | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
80 | MARCH 31, 2010
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Bank of America Corp. Diversified Banking Institutions | 4.4% | |||
JPMorgan Chase & Co. Diversified Banking Institutions | 4.2% | |||
EOG Resources, Inc. Oil Companies – Exploration and Production | 3.3% | |||
Reckitt Benckiser Group PLC Soap and Cleaning Preparations | 3.3% | |||
Covidien PLC (U.S. Shares) Medical Products | 2.9% | |||
18.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19p03.gif)
Emerging markets comprised 2.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19c03.gif)
Janus Growth & Core Funds | 81
Janus Research Core Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif19m03.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Research Core Fund – Class A Shares | |||||||||||||||
NAV | 11.94% | 53.11% | 3.18% | 0.15% | 8.70% | 1.45% | 0.91% | ||||||||
MOP | 5.53% | 44.39% | 1.96% | –0.44% | 8.24% | ||||||||||
Janus Research Core Fund – Class C Shares | |||||||||||||||
NAV | 11.63% | 50.53% | 2.41% | –0.59% | 7.98% | 2.35% | 1.66% | ||||||||
CDSC | 10.52% | 49.04% | 2.41% | –0.59% | 7.98% | ||||||||||
Janus Research Core Fund – Class D Shares(1) | 11.97% | 53.11% | 3.22% | 0.20% | 8.74% | 0.92% | 0.78% | ||||||||
Janus Research Core Fund – Class I Shares | 12.02% | 53.11% | 3.22% | 0.20% | 8.74% | 0.84% | 0.66% | ||||||||
Janus Research Core Fund – Class R Shares | 11.68% | 51.50% | 2.68% | –0.32% | 8.27% | 1.63% | 1.41% | ||||||||
Janus Research Core Fund – Class S Shares | 11.83% | 52.45% | 2.95% | –0.06% | 8.51% | 1.37% | 1.16% | ||||||||
Janus Research Core Fund – Class T Shares | 11.97% | 53.11% | 3.22% | 0.20% | 8.74% | 1.05% | 0.91% | ||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 5.97% | ||||||||||
Russell 1000® Growth Index | 14.51% | 49.75% | 3.42% | –4.21% | 4.55% | ||||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 2nd | 1st | ||||||||||
Lipper Ranking – based on total return for Large-Cap Core Funds | – | 170/930 | 123/664 | 160/387 | 7/203 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
82 | MARCH 31, 2010
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs), which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Research Core Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Research Core Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Research Core Fund (the “JAD predecessor fund”) into corresponding shares of Janus Research Core Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Research Core Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares 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.
June 30, 1996 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Janus Growth & Core Funds | 83
Janus Research Core Fund (unaudited)
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – June 28, 1996 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,119.40 | $ | 4.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,116.30 | $ | 7.40 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.50 | $ | 8.50 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,079.30 | $ | 1.02 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,120.90 | $ | 3.03 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,116.80 | $ | 6.31 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.75 | $ | 7.24 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,118.30 | $ | 5.21 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,119.70 | $ | 3.86 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.54 | $ | 4.43 | ||||||||
† | Expenses are equal to the annualized expense ratio of 0.94% for Class A Shares, 1.69% for Class C Shares, 0.69% for Class I Shares, 1.44% for Class R Shares, 1.19% for Class S Shares and 0.88% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.81% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
84 | MARCH 31, 2010
Janus Research Core Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Common Stock – 99.6% | ||||||||||||
Advertising Sales – 1.6% | ||||||||||||
286,350 | Lamar Advertising Co. – Class A* | $ | 9,836,123 | |||||||||
Aerospace and Defense – 0.5% | ||||||||||||
564,260 | BAE Systems PLC** | 3,178,869 | ||||||||||
Aerospace and Defense – Equipment – 2.2% | ||||||||||||
188,251 | United Technologies Corp. | 13,857,156 | ||||||||||
Airlines – 1.9% | ||||||||||||
428,390 | Ryanair Holdings PLC (ADR)*,** | 11,639,356 | ||||||||||
Apparel Manufacturers – 0.4% | ||||||||||||
69,770 | Coach, Inc. | 2,757,310 | ||||||||||
Athletic Footwear – 2.3% | ||||||||||||
195,338 | NIKE, Inc. – Class B | 14,357,343 | ||||||||||
Brewery – 1.4% | ||||||||||||
169,645 | Anheuser-Busch InBev N.V.** | 8,544,452 | ||||||||||
200,168 | Anheuser-Busch InBev N.V. – VVPR Strip*,** | 1,892 | ||||||||||
8,546,344 | ||||||||||||
Building – Residential and Commercial – 2.1% | ||||||||||||
18,512 | NVR, Inc.* | 13,448,968 | ||||||||||
Cable Television – 0.8% | ||||||||||||
529,548 | British Sky Broadcasting Group PLC** | 4,836,935 | ||||||||||
Cellular Telecommunications – 0.4% | ||||||||||||
993,695 | Vodafone Group PLC** | 2,291,739 | ||||||||||
Commercial Banks – 0.9% | ||||||||||||
138,510 | ICICI Bank, Ltd. (ADR) | 5,914,377 | ||||||||||
Computers – 2.1% | ||||||||||||
56,641 | Apple, Inc.* | 13,306,670 | ||||||||||
Consumer Products – Miscellaneous – 1.7% | ||||||||||||
164,896 | Kimberly-Clark Corp. | 10,368,660 | ||||||||||
Containers – Metal and Glass – 1.3% | ||||||||||||
314,676 | Crown Holdings, Inc.* | 8,483,665 | ||||||||||
Cosmetics and Toiletries – 2.3% | ||||||||||||
172,758 | Colgate-Palmolive Co. | 14,729,347 | ||||||||||
Distribution/Wholesale – 0.7% | ||||||||||||
95,470 | Fastenal Co. | 4,581,605 | ||||||||||
Diversified Banking Institutions – 11.9% | ||||||||||||
1,561,648 | Bank of America Corp. | 27,875,417 | ||||||||||
55,147 | Goldman Sachs Group, Inc. | 9,409,733 | ||||||||||
586,765 | JPMorgan Chase & Co. | 26,257,734 | ||||||||||
382,617 | Morgan Stanley | 11,206,852 | ||||||||||
74,749,736 | ||||||||||||
Diversified Operations – 3.1% | ||||||||||||
50,805 | Danaher Corp. | 4,059,828 | ||||||||||
325,786 | Illinois Tool Works, Inc. | 15,429,225 | ||||||||||
19,489,053 | ||||||||||||
E-Commerce/Services – 0.5% | ||||||||||||
119,962 | eBay, Inc.* | 3,232,976 | ||||||||||
Electric – Generation – 0.9% | ||||||||||||
524,789 | AES Corp.* | 5,772,679 | ||||||||||
Electronic Components – Miscellaneous – 0.8% | ||||||||||||
179,119 | Tyco Electronics, Ltd. (U.S. Shares)** | 4,922,190 | ||||||||||
Enterprise Software/Services – 2.1% | ||||||||||||
523,084 | Oracle Corp. | 13,438,028 | ||||||||||
Finance – Other Services – 0.7% | ||||||||||||
13,217 | CME Group, Inc. | 4,178,026 | ||||||||||
Independent Power Producer – 2.3% | ||||||||||||
702,344 | NRG Energy, Inc.* | 14,678,990 | ||||||||||
Internet Security – 0.8% | ||||||||||||
309,912 | Symantec Corp.* | 5,243,711 | ||||||||||
Life and Health Insurance – 2.2% | ||||||||||||
199,540 | AFLAC, Inc. | 10,833,027 | ||||||||||
385,698 | Prudential PLC** | 3,204,055 | ||||||||||
14,037,082 | ||||||||||||
Medical – Biomedical and Genetic – 2.6% | ||||||||||||
68,844 | Celgene Corp.* | 4,265,574 | ||||||||||
72,253 | Genzyme Corp.* | 3,744,873 | ||||||||||
177,681 | Gilead Sciences, Inc.* | 8,080,932 | ||||||||||
16,091,379 | ||||||||||||
Medical – Drugs – 5.3% | ||||||||||||
317,841 | Abbott Laboratories | 16,743,864 | ||||||||||
281,077 | Merck & Co., Inc. | 10,498,226 | ||||||||||
37,855 | Roche Holding A.G.** | 6,140,978 | ||||||||||
33,383,068 | ||||||||||||
Medical Products – 5.0% | ||||||||||||
226,875 | Baxter International, Inc. | 13,204,125 | ||||||||||
360,122 | Covidien PLC (U.S. Shares)** | 18,106,934 | ||||||||||
31,311,059 | ||||||||||||
Multimedia – 1.9% | ||||||||||||
73,333 | News Corp. – Class A | 1,056,729 | ||||||||||
642,095 | News Corp. – Class B | 10,922,035 | ||||||||||
11,978,764 | ||||||||||||
Networking Products – 2.8% | ||||||||||||
681,867 | Cisco Systems, Inc.* | 17,748,998 | ||||||||||
Oil Companies – Exploration and Production – 7.0% | ||||||||||||
117,756 | Devon Energy Corp. | 7,587,019 | ||||||||||
223,710 | EOG Resources, Inc. | 20,791,608 | ||||||||||
181,643 | Occidental Petroleum Corp. | 15,356,099 | ||||||||||
43,734,726 | ||||||||||||
Oil Companies – Integrated – 3.2% | ||||||||||||
144,325 | Exxon Mobil Corp. | 9,666,888 | ||||||||||
227,771 | Petroleo Brasileiro S.A. (ADR) | 10,133,532 | ||||||||||
19,800,420 | ||||||||||||
Pipelines – 0.6% | ||||||||||||
63,396 | Kinder Morgan Management LLC* | 3,716,274 | ||||||||||
Real Estate Operating/Development – 1.2% | ||||||||||||
1,586,000 | CapitaLand, Ltd. | 4,501,945 | ||||||||||
714,000 | Hang Lung Properties, Ltd. | 2,878,439 | ||||||||||
7,380,384 | ||||||||||||
Retail – Apparel and Shoe – 0.6% | ||||||||||||
94,563 | Nordstrom, Inc. | 3,862,899 | ||||||||||
Retail – Building Products – 0.5% | ||||||||||||
89,995 | Home Depot, Inc. | 2,911,338 | ||||||||||
Retail – Consumer Electronics – 0.6% | ||||||||||||
88,994 | Best Buy Co., Inc. | 3,785,805 | ||||||||||
Retail – Regional Department Stores – 0.5% | ||||||||||||
58,965 | Kohl’s Corp.* | 3,230,103 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 85
Janus Research Core Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Retail – Restaurants – 1.2% | ||||||||||||
114,405 | McDonald’s Corp. | $ | 7,633,102 | |||||||||
Semiconductor Equipment – 2.4% | ||||||||||||
485,020 | KLA-Tencor Corp. | 14,996,818 | ||||||||||
Soap and Cleaning Preparations – 3.3% | ||||||||||||
375,030 | Reckitt Benckiser Group PLC** | 20,581,782 | ||||||||||
Telecommunication Equipment – Fiber Optics – 1.1% | ||||||||||||
341,928 | Corning, Inc. | 6,910,365 | ||||||||||
Telecommunication Services – 0.6% | ||||||||||||
126,705 | Amdocs, Ltd. (U.S. Shares)*,** | 3,815,088 | ||||||||||
Tobacco – 0.9% | ||||||||||||
105,915 | Philip Morris International, Inc. | 5,524,526 | ||||||||||
Toys – 1.6% | ||||||||||||
30,000 | Nintendo Co., Ltd.** | 10,046,004 | ||||||||||
Transportation – Services – 2.9% | ||||||||||||
279,684 | United Parcel Service, Inc. – Class B | 18,014,446 | ||||||||||
Web Portals/Internet Service Providers – 1.1% | ||||||||||||
7,244 | Google, Inc. – Class A* | 4,107,420 | ||||||||||
169,190 | Yahoo!, Inc.* | 2,796,711 | ||||||||||
6,904,131 | ||||||||||||
Wireless Equipment – 4.8% | ||||||||||||
394,326 | Crown Castle International Corp.* | 15,075,083 | ||||||||||
357,586 | QUALCOMM, Inc. | 15,015,036 | ||||||||||
30,090,119 | ||||||||||||
Total Common Stock (cost $542,736,453) | 625,328,536 | |||||||||||
Money Market – 0.2% | ||||||||||||
1,111,000 | Janus Cash Liquidity Fund LLC, 0% (cost $1,111,000) | 1,111,000 | ||||||||||
Total Investments (total cost $543,847,453) – 99.8% | 626,439,536 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 1,452,808 | |||||||||||
Net Assets – 100% | $ | 627,892,344 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 8,546,344 | 1.4% | |||||
Brazil | 10,133,532 | 1.6% | ||||||
Guernsey | 3,815,088 | 0.6% | ||||||
Hong Kong | 2,878,439 | 0.5% | ||||||
India | 5,914,377 | 0.9% | ||||||
Ireland | 29,746,290 | 4.8% | ||||||
Japan | 10,046,004 | 1.6% | ||||||
Singapore | 4,501,945 | 0.7% | ||||||
Switzerland | 11,063,168 | 1.8% | ||||||
United Kingdom | 34,093,381 | 5.4% | ||||||
United States†† | 505,700,968 | 80.7% | ||||||
Total | $ | 626,439,536 | 100.0% |
†† | Includes Cash Equivalents (80.6% excluding Cash Equivalents). |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
British Pound 4/8/10 | 527,000 | $ | 799,599 | $ | 24,799 | |||||||
British Pound 4/22/10 | 8,600,000 | 13,047,106 | 489,466 | |||||||||
British Pound 5/6/10 | 2,435,000 | 3,693,801 | (35,165) | |||||||||
Euro 4/8/10 | 2,000,000 | 2,700,993 | 25,367 | |||||||||
Euro 4/22/10 | 978,000 | 1,320,807 | 19,132 | |||||||||
Euro 5/6/10 | 4,240,000 | 5,726,262 | 82,368 | |||||||||
Japanese Yen 4/8/10 | 49,000,000 | 524,244 | 9,752 | |||||||||
Japanese Yen 4/22/10 | 217,000,000 | 2,321,884 | 61,788 | |||||||||
Japanese Yen 5/6/10 | 190,000,000 | 2,033,169 | 62,042 | |||||||||
Swiss Franc 5/6/10 | 3,380,000 | 3,207,478 | (18,137) | |||||||||
Total | $ | 35,375,343 | $ | 721,412 |
See Notes to Schedules of Investments and Financial Statements.
86 | MARCH 31, 2010
Janus Research Fund (unaudited)
Fund Snapshot Analyst-driven, team-refined investment process attempts to capture the value of our research and manage investment risk. We believe a portfolio reflecting our team’s best ideas can deliver superior risk-adjusted results. | Team Based Approach Led by Jim Goff Director of Research |
Fund Performance
For the 5-month period ending March 31, 2010, Janus Research Fund’s Class T Shares gained 15.44%, outperforming its primary benchmark, the Russell 1000® Growth Index, which advanced 14.51%.
Long-Term Investing and Sticking to Conviction
In my opinion, Janus’ investment process has become stronger and more disciplined over the past decade, while striving to maintain a consistent focus on adding value through excellence in research. Our focus is twofold – we strive to generate excellent long term results, while investing in a disciplined manner in an effort to provide consistency of returns for investors. We seek to steadily outperform the market through disciplined investing and by avoiding “big mistakes.” Markets have a way of humbling and challenging investors, though. Consider the severe downturn of late 2008 to early 2009. We wish we were prescient enough to avoid this sharp decline in global stock markets. We believed we would be somewhat protected by owning strong companies with excellent competitive positions in their markets. The key investing decision for most investors over the past 7-8 years was what they did during the depths of the panic and negative headlines. It is said that there are two classes of mistakes – minor ones like wearing white after Labor Day or serious ones like “attacking Russia in winter.” Moving out of the market or investing defensively during this time was the investment equivalent of attacking Russia in winter. Since its low in March of 2009, the Russell 1000® Growth Index is up 75.00%. Maintaining a focus on the long-term and finding what we felt were the best risk-rewards offered to us by a panicked market helped us to outperform off the March 2009 lows. Sure, we took our lumps for a time, but our patience paid off over the course of this market cycle. We took an important step toward our goal of great 5-, 10- and 20-year performance for our investors.
Economic Overview
During late 2008 and early 2009, many prognosticators felt the global economy was headed towards another depression. Since then, credit markets have improved greatly and lending is functioning more normally. We believe that we are back from the brink. Europe is stagnant and facing challenges from sovereign debt issues, but we feel that the United States is positioned to grow moderately in 2010 and economic growth in emerging markets appears to be vibrant. Near term, corporate earnings are strong and economic indicators in most global markets are clearly better than expected. Despite these positives, we are still at a point of uncertainty in the global economy. While much of the recent downturn can be attributed to excess borrowing by consumers and overvalued housing, the next downturn could come because many national governments took up the mantle from consumers and borrowed too much. Federal deficits and debts, relative to Gross Domestic Product (GDP), are in many cases in uncharted territories. Strong near-term growth could lead to employment gains and a sustainably growing economy to gradually resolve these debt issues. It is possible, however, that these high government borrowings lead to higher tax rates, inflation and higher interest rates which could depress economic growth for many years. We design this portfolio to benefit from stock picking and not from macro or sector bets. Against the backdrop of an uncertain economy, we think it especially important to focus on stock picking. Our portfolio positioning in Research remains balanced; it is positioned for neither ebullient growth nor recession.
Sector Views
Among our seven research sectors within the Russell 1000® Growth Index, technology had the strongest relative performance followed by consumer. Our relative underperformances during the period were in industrials and health care. Our bottom-up approach puts us in touch with thousands of companies and industry participants and we use those conversations, surveys and other research tools to gain a broader outlook on sectors.
Communications
We anticipated a recovery in advertising, but the pace exceeded our expectations. Television and internet led the recovery while print media lost share. The lines between internet and television are blurring as advertisers tie on-line advertising with television broadcasts and many
Janus Growth & Core Funds | 87
Janus Research Fund (unaudited)
people watch television online. We also see opportunities (for infrastructure companies, among others) and challenges (for telecommunication companies, for example) in the growing volume of wireless data.
Consumer
We saw resurgence in consumer demand during the period and improving sentiment, but it was generally off gloomy views from a year ago. Retail sales continue to surprise us and others, especially at the high end. With store utilization lower than average, inventories lean, companies cautious on expenses, and a shift to on-line sales, higher growth means margins expand. Our view on staples is rosier, especially in emerging markets, but we are monitoring how manufacturers offset higher raw material costs.
Energy
In general, the outlook for oil prices is more favorable than that for natural gas. Natural gas production has not fallen in line with the fall in prices for a variety of structural reasons. Refining, which has long suffered from poor profitability, may be near an inflection point if increased demand from refined products sops up excess capacity in the industry. We remain quite impressed with the opportunity for companies with exposure to production in Brazilian waters.
Financials
We are watching the pace and scope of Washington’s efforts at financial sector reform. While we expect a great deal of rhetoric, we generally think the outcome will be less severe than the market fears. Some businesses, such as exchanges, may benefit from the new regulations. Away from Washington, we are anticipating peaks in non-performing loans and charge-offs, which could bode well for bank stocks, especially well-positioned large cap banks with attractive valuations. Our exposure to Greece is minimal, and we found opportunities where the stocks were over-sold in our opinion. Global insurance and real estate are offering investment opportunities as well.
Health Care
With reform behind us, the fundamentals of the sector will likely once again drive performance. In general, coming off several years of underperformance, valuations are low. The health care plan did more to expand healthcare than reform the cost structure. Pharmaceuticals, pharmacy benefit management companies and generic drug companies generally win from the increased patient population. Meanwhile, we’re uncertain if the increased regulation of insurance companies offset the benefit of a bigger pool of patients. We see a big opportunity for healthcare investing in emerging markets. We believe growth in these countries will far outpace GDP growth.
Industrials
The team focuses on companies that we believe are structural earnings growers with high returns and operating leverage that could help them benefit from an economic upturn. We are favoring more stable companies that we feel can do well in a variety of economic outcomes. We also see opportunities in companies with structural changes, such as airlines and the auto sector. Transports – which have leverage to the increased shipping needs of a growing economy – offer us some opportunities too. In addition, we think housing has stabilized, meaning good news for the industry and for related companies.
Technology
We saw a modest recovery in the technology sector, but company budgets for spending remained focused at period end. While we are seeing a bounce in demand in the semiconductor space, we believe the long-term winners will be either niche companies or those offering integrated solutions. Some of our investment themes continue to be network infrastructure, wireless, smart phones, web-based software and connectors.
Holdings Overview
Within technology, ARM Holdings PLC was a top contributor. The U.K.-based semiconductor intellectual property licensing company has experienced increasing royalty revenues from the growth in smart phones, which routinely use ARM-based chips.
Marvell Technology Group, Ltd. also posted strong returns. The leading semiconductor company sells to a diverse set of customers in the computing, wireless, communications and storage industries. We remain attracted to Marvell’s business model and potential to gain market share.
Nintendo Co., Ltd. was also significantly higher during the period. We think the Japan-based company is in a multi-year growth cycle given its leading game platform the Wii, which has expanded the gaming market. In addition, we think the company can benefit from new products that could drive higher margin software sales.
Detractors included our holdings in industrials and health care. The largest individual detractors were Bayerische
88 | MARCH 31, 2010
(unaudited)
Motoren Werke A.G. (BMW) and Gap, Inc., both of which we sold to invest in other names that we felt offered better risk-reward opportunities.
NRG Energy, Inc. was also weak during the period. We believe the wholesale power provider could gain from future projects. In addition, we like that the company has been actively buying back shares and think these buybacks will continue along with further debt reduction. Finally, we feel the company could benefit from increasing electrical demand, particularly in Texas.
Derivatives
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
We are committed to the success of Janus Research Fund – as managers and as investors. Janus analysts and I have more than $12 million invested in Janus’ U.S. and global research portfolios. . We believe this alignment with our shareholders is a good reminder of our commitment to our process. We have a top-notch investment team and a disciplined and repeatable investment process that attempts to capture the value of our research in a highly diversified portfolio. We will go through some periods of underperformance, but by staying disciplined and when needed by staying above the panic, we hope to reward long term investors with continued strong risk-adjusted returns.
Thank you for your investment in Janus Research Fund.
Janus Research Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
ARM Holdings PLC | 0.87% | |||
Marvell Technology Group, Ltd. | 0.73% | |||
Nintendo Co., Ltd. | 0.72% | |||
Apple, Inc. | 0.72% | |||
Corning, Inc. | 0.41% |
5 Bottom Performers – Holdings
Contribution | ||||
Gap, Inc. | –0.09% | |||
Bayerische Motoren Werke A.G. | –0.08% | |||
NRG Energy, Inc. | –0.08% | |||
Telefonaktiebolaget L.M. Ericsson – Class B | –0.08% | |||
Devon Energy Corp. | –0.06% |
4 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Technology | 5.86% | 28.01% | 28.19% | |||||||||
Consumer | 3.66% | 23.43% | 23.00% | |||||||||
Industrials | 2.10% | 14.19% | 14.53% | |||||||||
Health Care | 1.94% | 17.08% | 16.97% |
3 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Energy | 0.14% | 5.13% | 5.13% | |||||||||
Financials | 0.60% | 6.46% | 6.31% | |||||||||
Communications | 1.02% | 5.70% | 5.87% |
* | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Growth & Core Funds | 89
Janus Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Apple, Inc. Computers | 3.2% | |||
Cisco Systems, Inc. Networking Products | 2.8% | |||
ARM Holdings PLC Electronic Components – Semiconductors | 2.4% | |||
Nintendo Co., Ltd. Toys | 2.3% | |||
Oracle Corp. Enterprise Software/Services | 2.2% | |||
12.9% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p03.gif)
Emerging markets comprised 2.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c03.gif)
90 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m03.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Research Fund – Class A Shares | |||||||||||||
NAV | 15.43% | 59.53% | 4.64% | –5.07% | 9.99% | 1.07% | |||||||
MOP | 8.81% | 50.35% | 3.41% | –5.64% | 9.61% | ||||||||
Janus Research Fund – Class C Shares | |||||||||||||
NAV | 15.07% | 56.13% | 3.91% | –5.73% | 9.25% | 1.82% | |||||||
CDSC | 13.92% | 54.58% | 3.91% | –5.73% | 9.25% | ||||||||
Janus Research Fund – Class D Shares(1) | 15.44% | 60.28% | 4.86% | –4.84% | 10.23% | 0.94% | |||||||
Janus Research Fund – Class I Shares | 15.53% | 60.28% | 4.86% | –4.84% | 10.23% | 0.82% | |||||||
Janus Research Fund – Class S Shares | 15.32% | 58.72% | 4.47% | –5.22% | 9.84% | 1.32% | |||||||
Janus Research Fund – Class T Shares | 15.44% | 60.28% | 4.86% | –4.84% | 10.23% | 1.07% | |||||||
Russell 1000® Growth Index | 14.51% | 49.75% | 3.42% | –4.21% | 6.96% | ||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 7.98% | ||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 4th | 1st | ||||||||
Lipper Ranking – based on total return for Large-Cap Growth Funds | – | 28/834 | 71/611 | 261/330 | 5/86 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
Janus Growth & Core Funds | 91
Janus Research Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in real estate investment trusts (REITs), which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Research Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Research Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each class, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, the initial share class, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
Lipper ranking is for Class T Shares only; other classes may have different performance characteristics.
May 6, 1993 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
92 | MARCH 31, 2010
(unaudited)
* | The Fund’s inception date – May 3, 1993 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,154.30 | $ | 4.90 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.45 | $ | 5.54 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,150.70 | $ | 8.23 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.71 | $ | 9.30 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,091.00 | $ | 1.13 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.44 | $ | 4.53 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,155.30 | $ | 3.66 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.84 | $ | 4.13 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,153.20 | $ | 5.97 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.25 | $ | 6.74 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,154.40 | $ | 4.63 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.75 | $ | 5.24 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.10% for Class A Shares, 1.85% for Class C Shares, 0.82% for Class I Shares, 1.34% for Class S Shares and 1.04% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares ( February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.90% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Growth & Core Funds | 93
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Common Stock – 99.1% | ||||||||||||
Advertising Sales – 0.6% | ||||||||||||
573,593 | Lamar Advertising Co. – Class A* | $ | 19,702,920 | |||||||||
Aerospace and Defense – Equipment – 1.0% | ||||||||||||
443,833 | United Technologies Corp. | 32,670,547 | ||||||||||
Airlines – 1.8% | ||||||||||||
1,950,832 | Delta Air Lines, Inc.* | 28,462,639 | ||||||||||
2,761,000 | Singapore Airlines, Ltd.* | 30,006,578 | ||||||||||
58,469,217 | ||||||||||||
Apparel Manufacturers – 1.0% | ||||||||||||
795,240 | Coach, Inc. | 31,427,885 | ||||||||||
Athletic Footwear – 1.3% | ||||||||||||
575,083 | NIKE, Inc. – Class B | 42,268,601 | ||||||||||
Automotive – Cars and Light Trucks – 0.7% | ||||||||||||
8,797,000 | Isuzu Motors, Ltd.** | 23,811,287 | ||||||||||
Automotive – Medium and Heavy Duty Trucks – 1.4% | ||||||||||||
1,038,596 | PACCAR, Inc. | 45,012,751 | ||||||||||
Beverages – Wine and Spirits – 0.7% | ||||||||||||
1,440,594 | Diageo PLC** | 24,174,928 | ||||||||||
Brewery – 0.6% | ||||||||||||
400,337 | Anheuser-Busch InBev N.V.** | 20,163,637 | ||||||||||
243,632 | Anheuser-Busch InBev N.V. – VVPR Strip*,** | 2,303 | ||||||||||
20,165,940 | ||||||||||||
Building – Residential and Commercial – 0.5% | ||||||||||||
20,669 | NVR, Inc.* | 15,016,029 | ||||||||||
Cable Television – 0.5% | ||||||||||||
1,668,551 | British Sky Broadcasting Group PLC** | 15,240,683 | ||||||||||
Casino Hotels – 0.7% | ||||||||||||
3,175,194 | Crown, Ltd. | 23,827,646 | ||||||||||
Casino Services – 0.6% | ||||||||||||
1,030,883 | International Game Technology | 19,019,791 | ||||||||||
Chemicals – Diversified – 0.6% | ||||||||||||
1,565,109 | Israel Chemicals, Ltd. | 21,195,951 | ||||||||||
Chemicals – Specialty – 0.3% | ||||||||||||
7,066,000 | Huabao International Holdings, Ltd. | 8,491,213 | ||||||||||
Commercial Banks – 0.2% | ||||||||||||
352,793 | ICICI Bank, Ltd. | 7,485,750 | ||||||||||
Commercial Services – 0.4% | ||||||||||||
881,582 | Live Nation, Inc.* | 12,782,939 | ||||||||||
Computer Services – 1.4% | ||||||||||||
1,088,280 | Accenture, Ltd. – Class A (U.S. Shares)** | 45,653,346 | ||||||||||
Computers – 4.3% | ||||||||||||
435,458 | Apple, Inc.* | 102,302,148 | ||||||||||
491,474 | Research In Motion, Ltd. (U.S. Shares)* | 36,344,502 | ||||||||||
138,646,650 | ||||||||||||
Consumer Products – Miscellaneous – 1.0% | ||||||||||||
515,172 | Kimberly-Clark Corp. | 32,394,015 | ||||||||||
Containers – Metal and Glass – 0.5% | ||||||||||||
568,815 | Crown Holdings, Inc.* | 15,335,252 | ||||||||||
Cosmetics and Toiletries – 2.5% | ||||||||||||
630,862 | Colgate-Palmolive Co. | 53,787,294 | ||||||||||
453,775 | Procter & Gamble Co. | 28,710,344 | ||||||||||
82,497,638 | ||||||||||||
Decision Support Software – 0.2% | ||||||||||||
209,036 | MSCI, Inc.* | 7,546,200 | ||||||||||
Distribution/Wholesale – 1.1% | ||||||||||||
320,405 | Fastenal Co. | 15,376,236 | ||||||||||
3,966,000 | Li & Fung, Ltd. | 19,513,292 | ||||||||||
34,889,528 | ||||||||||||
Diversified Banking Institutions – 2.4% | ||||||||||||
1,308,231 | Bank of America Corp. | 23,351,924 | ||||||||||
101,445 | Goldman Sachs Group, Inc. | 17,309,560 | ||||||||||
432,595 | JPMorgan Chase & Co. | 19,358,626 | ||||||||||
606,556 | Morgan Stanley | 17,766,025 | ||||||||||
77,786,135 | ||||||||||||
Diversified Minerals – 1.0% | ||||||||||||
968,217 | Cia Vale do Rio Doce (ADR) | 31,166,905 | ||||||||||
Diversified Operations – 2.5% | ||||||||||||
550,748 | Danaher Corp. | 44,010,273 | ||||||||||
752,617 | Illinois Tool Works, Inc. | 35,643,941 | ||||||||||
79,654,214 | ||||||||||||
E-Commerce/Services – 0.6% | ||||||||||||
769,155 | eBay, Inc.* | 20,728,727 | ||||||||||
Electronic Components – Miscellaneous – 1.2% | ||||||||||||
1,452,231 | Tyco Electronics, Ltd. (U.S. Shares)** | 39,907,308 | ||||||||||
Electronic Components – Semiconductors – 2.4% | ||||||||||||
21,102,586 | ARM Holdings PLC** | 76,300,639 | ||||||||||
Electronic Connectors – 0.5% | ||||||||||||
395,900 | Amphenol Corp. – Class A | 16,703,021 | ||||||||||
Enterprise Software/Services – 2.2% | ||||||||||||
2,794,475 | Oracle Corp. | 71,790,063 | ||||||||||
Finance – Credit Card – 0.2% | ||||||||||||
500,160 | Discover Financial Services | 7,452,384 | ||||||||||
Finance – Investment Bankers/Brokers – 0.6% | ||||||||||||
1,003,372 | Charles Schwab Corp. | 18,753,023 | ||||||||||
Finance – Other Services – 0.6% | ||||||||||||
60,000 | CME Group, Inc. | 18,966,600 | ||||||||||
Food – Miscellaneous/Diversified – 1.8% | ||||||||||||
569,780 | General Mills, Inc. | 40,334,726 | ||||||||||
322,024 | Nestle S.A.** | 16,496,818 | ||||||||||
56,831,544 | ||||||||||||
Gold Mining – 1.2% | ||||||||||||
310,983 | Agnico-Eagle Mines, Ltd. (U.S. Shares) | 17,312,424 | ||||||||||
432,849 | Newmont Mining Corp. | 22,044,999 | ||||||||||
39,357,423 | ||||||||||||
Independent Power Producer – 0.5% | ||||||||||||
742,793 | NRG Energy, Inc.* | 15,524,374 | ||||||||||
Instruments – Scientific – 0.6% | ||||||||||||
409,168 | Thermo Fisher Scientific, Inc.* | 21,047,602 | ||||||||||
Internet Security – 0.9% | ||||||||||||
1,805,325 | Symantec Corp.* | 30,546,099 | ||||||||||
Life and Health Insurance – 0.6% | ||||||||||||
220,389 | AFLAC, Inc. | 11,964,918 | ||||||||||
1,051,812 | Prudential PLC** | 8,737,571 | ||||||||||
20,702,489 | ||||||||||||
Machinery – General Industrial – 0.5% | ||||||||||||
280,185 | Roper Industries, Inc. | 16,205,900 |
See Notes to Schedules of Investments and Financial Statements.
94 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Medical – Biomedical and Genetic – 6.8% | ||||||||||||
925,987 | Alexion Pharmaceuticals, Inc.* | $ | 50,345,913 | |||||||||
1,086,772 | Celgene Corp.* | 67,336,393 | ||||||||||
702,639 | Genzyme Corp.* | 36,417,779 | ||||||||||
628,784 | Gilead Sciences, Inc.* | 28,597,096 | ||||||||||
1,599,885 | Myriad Genetics, Inc.* | 38,477,234 | ||||||||||
221,174,415 | ||||||||||||
Medical – Drugs – 4.9% | ||||||||||||
460,430 | Abbott Laboratories | 24,255,452 | ||||||||||
960,091 | Bristol-Myers Squibb Co. | 25,634,430 | ||||||||||
1,788,385 | GlaxoSmithKline PLC** | 34,339,315 | ||||||||||
655,451 | Merck & Co., Inc. | 24,481,095 | ||||||||||
304,205 | Roche Holding A.G.** | 49,349,259 | ||||||||||
158,059,551 | ||||||||||||
Medical Instruments – 1.2% | ||||||||||||
943,457 | St. Jude Medical, Inc.* | 38,728,910 | ||||||||||
Medical Products – 2.3% | ||||||||||||
344,493 | Baxter International, Inc. | 20,049,493 | ||||||||||
578,261 | Covidien PLC (U.S. Shares)** | 29,074,963 | ||||||||||
381,187 | Johnson & Johnson | 24,853,392 | ||||||||||
73,977,848 | ||||||||||||
Metal – Diversified – 0.5% | ||||||||||||
883,217 | Ivanhoe Mines, Ltd.* | 15,439,336 | ||||||||||
Multi-Line Insurance – 0.3% | ||||||||||||
169,838 | ACE, Ltd. (U.S. Shares)** | 8,882,527 | ||||||||||
Multimedia – 1.3% | ||||||||||||
1,446,967 | News Corp. – Class A | 20,850,795 | ||||||||||
1,927,925 | WPP PLC | 19,979,255 | ||||||||||
40,830,050 | ||||||||||||
Networking Products – 2.8% | ||||||||||||
3,479,557 | Cisco Systems, Inc.* | 90,572,869 | ||||||||||
Oil Companies – Exploration and Production – 2.2% | ||||||||||||
342,931 | Devon Energy Corp. | 22,095,044 | ||||||||||
275,227 | EOG Resources, Inc. | 25,579,598 | ||||||||||
292,596 | Occidental Petroleum Corp. | 24,736,066 | ||||||||||
72,410,708 | ||||||||||||
Oil Companies – Integrated – 1.6% | ||||||||||||
940,179 | BG Group PLC** | 16,269,503 | ||||||||||
393,027 | Exxon Mobil Corp. | 26,324,949 | ||||||||||
216,547 | Petroleo Brasileiro S.A. (ADR) | 9,634,176 | ||||||||||
52,228,628 | ||||||||||||
Oil Refining and Marketing – 0.4% | ||||||||||||
546,283 | Reliance Industries, Ltd. | 13,072,945 | ||||||||||
Optical Supplies – 0.8% | ||||||||||||
158,403 | Alcon, Inc. (U.S. Shares)** | 25,591,589 | ||||||||||
Property and Casualty Insurance – 0.2% | ||||||||||||
355,642 | Reliance Capital, Ltd. | 5,989,823 | ||||||||||
Real Estate Management/Services – 0.4% | ||||||||||||
185,015 | Jones Lang LaSalle, Inc. | 13,485,743 | ||||||||||
Real Estate Operating/Development – 0.5% | ||||||||||||
1,813,000 | CapitaLand, Ltd. | 5,146,296 | ||||||||||
2,480,000 | Hang Lung Properties, Ltd. | 9,997,940 | ||||||||||
15,144,236 | ||||||||||||
Retail – Apparel and Shoe – 2.6% | ||||||||||||
183,433 | Inditex S.A.** | 12,090,223 | ||||||||||
1,238,160 | Limited Brands, Inc. | 30,483,500 | ||||||||||
583,520 | Nordstrom, Inc. | 23,836,792 | ||||||||||
433,612 | Urban Outfitters, Inc.* | 16,490,264 | ||||||||||
82,900,779 | ||||||||||||
Retail – Building Products – 1.0% | ||||||||||||
964,091 | Home Depot, Inc. | 31,188,344 | ||||||||||
Retail – Consumer Electronics – 1.0% | ||||||||||||
757,543 | Best Buy Co., Inc. | 32,225,879 | ||||||||||
Retail – Discount – 0.7% | ||||||||||||
665,091 | Family Dollar Stores, Inc. | 24,348,982 | ||||||||||
Retail – Jewelry – 1.2% | ||||||||||||
360,865 | Compagnie Financiere Richemont S.A.** | 13,977,913 | ||||||||||
522,343 | Tiffany & Co. | 24,806,069 | ||||||||||
38,783,982 | ||||||||||||
Retail – Regional Department Stores – 0.7% | ||||||||||||
426,498 | Kohl’s Corp.* | 23,363,560 | ||||||||||
Retail – Restaurants – 1.0% | ||||||||||||
499,579 | McDonald’s Corp. | 33,331,911 | ||||||||||
Semiconductor Components/Integrated Circuits – 3.1% | ||||||||||||
7,332,774 | Atmel Corp.* | 36,883,853 | ||||||||||
3,049,008 | Marvell Technology Group, Ltd.* | 62,138,783 | ||||||||||
99,022,636 | ||||||||||||
Semiconductor Equipment – 0.6% | ||||||||||||
612,051 | KLA-Tencor Corp. | 18,924,617 | ||||||||||
Soap and Cleaning Preparations – 1.0% | ||||||||||||
577,084 | Reckitt Benckiser Group PLC** | 31,670,579 | ||||||||||
Telecommunication Equipment – 1.5% | ||||||||||||
1,007,723 | CommScope, Inc.* | 28,236,399 | ||||||||||
2,657,413 | Tellabs Inc. | 20,116,616 | ||||||||||
48,353,015 | ||||||||||||
Telecommunication Equipment – Fiber Optics – 1.7% | ||||||||||||
2,796,035 | Corning, Inc. | 56,507,867 | ||||||||||
Telecommunication Services – 0.5% | ||||||||||||
527,021 | Amdocs, Ltd. (U.S. Shares)* | 15,868,602 | ||||||||||
Tobacco – 2.0% | ||||||||||||
4,182 | Japan Tobacco, Inc.** | 15,570,087 | ||||||||||
946,555 | Philip Morris International, Inc. | 49,372,308 | ||||||||||
64,942,395 | ||||||||||||
Toys – 3.1% | ||||||||||||
1,041,700 | Mattel, Inc. | 23,688,258 | ||||||||||
225,200 | Nintendo Co., Ltd.** | 75,412,004 | ||||||||||
99,100,262 | ||||||||||||
Transactional Software – 0.7% | ||||||||||||
577,647 | Solera Holdings, Inc. | 22,326,057 | ||||||||||
Transportation – Services – 2.0% | ||||||||||||
533,633 | C.H. Robinson Worldwide, Inc. | 29,803,403 | ||||||||||
562,248 | United Parcel Service, Inc. – Class B | 36,214,394 | ||||||||||
66,017,797 | ||||||||||||
Web Portals/Internet Service Providers – 1.4% | ||||||||||||
54,512 | Google, Inc. – Class A* | 30,908,849 | ||||||||||
875,026 | Yahoo!, Inc.* | 14,464,180 | ||||||||||
45,373,029 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 95
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Wireless Equipment – 2.9% | ||||||||||||
818,669 | Crown Castle International Corp.* | $ | 31,297,716 | |||||||||
1,480,787 | QUALCOMM, Inc. | 62,178,246 | ||||||||||
93,475,962 | ||||||||||||
Total Common Stock (cost $2,651,640,686) | 3,210,466,590 | |||||||||||
Money Market – 0.8% | ||||||||||||
26,776,631 | Janus Cash Liquidity Fund LLC, 0% (cost $26,776,631) | 26,776,631 | ||||||||||
Total Investments (total cost $2,678,417,317) – 99.9% | 3,237,243,221 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 1,558,411 | |||||||||||
Net Assets – 100% | $ | 3,238,801,632 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 23,827,646 | 0.7% | |||||
Belgium | 20,165,940 | 0.6% | ||||||
Bermuda | 90,143,289 | 2.8% | ||||||
Brazil | 40,801,081 | 1.3% | ||||||
Canada | 69,096,262 | 2.1% | ||||||
Guernsey | 15,868,602 | 0.5% | ||||||
Hong Kong | 9,997,939 | 0.3% | ||||||
India | 26,548,518 | 0.8% | ||||||
Ireland | 74,728,309 | 2.3% | ||||||
Israel | 21,195,951 | 0.7% | ||||||
Japan | 114,793,378 | 3.5% | ||||||
Jersey | 19,979,255 | 0.6% | ||||||
Singapore | 35,152,874 | 1.1% | ||||||
Spain | 12,090,223 | 0.4% | ||||||
Switzerland | 154,205,415 | 4.8% | ||||||
United Kingdom | 206,733,218 | 6.4% | ||||||
United States†† | 2,301,915,321 | 71.1% | ||||||
Total | $ | 3,237,243,221 | 100.0% |
†† | Includes Cash Equivalents (70.3% excluding Cash Equivalents) |
Forward Currency Contracts, Open
Currency Sold and | Currency | Currency | Unrealized | |||||||||
Settlement Date | Units Sold | Value U.S. $ | Gain/(Loss) | |||||||||
British Pound 4/8/10 | 22,800,000 | $ | 34,593,676 | $ | 1,342,154 | |||||||
British Pound 4/22/10 | 31,000,000 | 47,030,267 | 1,764,354 | |||||||||
British Pound 5/6/10 | 17,700,000 | 26,850,219 | (255,615) | |||||||||
Euro 4/8/10 | 700,000 | 945,348 | 8,878 | |||||||||
Euro 4/22/10 | 5,800,000 | 7,833,004 | 113,460 | |||||||||
Euro 5/6/10 | 5,800,000 | 7,833,094 | 112,674 | |||||||||
Japanese Yen 4/8/10 | 1,749,000,000 | 18,712,290 | 425,410 | |||||||||
Japanese Yen 4/22/10 | 1,801,500,000 | 19,275,920 | 512,955 | |||||||||
Japanese Yen 5/6/10 | 1,170,000,000 | 12,520,037 | 382,050 | |||||||||
Swiss Franc 4/22/10 | 17,600,000 | 16,699,454 | (262,992) | |||||||||
Swiss Franc 5/6/10 | 20,300,000 | 19,263,846 | (108,927) | |||||||||
Total | $ | 211,557,155 | $ | 4,034,401 |
See Notes to Schedules of Investments and Financial Statements.
96 | MARCH 31, 2010
Janus Triton Fund (unaudited)
Fund Snapshot We believe a fundamentally-driven investment process focused on identifying smaller cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. Identifying strong small cap companies with the ability to hold our positions as they grow into the mid cap space allows us the flexibility to capture a longer growth period as a company progresses through its life cycle. | ![]() Chad Meade co-portfolio manager | ![]() Brian Schaub co-portfolio manager |
Economic Overview
Continuing their rally from March of 2009, U.S. equities recorded strong gains during the five-month period ended March 31, 2010. A pledge from U.S. Federal Reserve (Fed) Chairman Ben Bernanke that the Fed would maintain its accommodative monetary policy for an “extended period” and upbeat economic news that indicated the economic recovery was on track were partially offset by sovereign debt worries, primarily in Greece. Markets retreated modestly in mid-January into early February; however, they regained their uptrend in March to finish near 18-month highs.
Asset Class Overview
The Russell 2500TM Growth Index reached an 18-month high during the period, but slightly lagged its value counterpart. Small-caps outperformed mid-cap stocks during the period, while small- and mid-cap indices significantly outperformed large caps to continue a trend off the market lows reached in March of 2009. Within our benchmark, the Russell 2500TM Growth Index, higher beta, lower returning, non-earning stocks outperformed many of our higher quality growth companies. The best performing sectors within the index were consumer discretionary, health care and materials, while laggards included utilities, consumer staples and financials.
Strategy Overview
Against this backdrop of an index driven by volatility and risk-taking, we would expect some modest relative underperformance. Many of our stocks have done quite well, however, and that is reflected in the strong absolute returns over the five-month period.
Our holdings in industrials, consumer discretionary and energy were the largest negatives during the period. Clean Harbors, Inc., a new holding for the Fund in the industrial sector, was a laggard. The company owns the largest amount of incinerator capacity in the U.S. for disposal of hazardous materials. It has a strong competitive advantage, in our view, based on the challenges in obtaining permits for new incinerators. An acquisition made late in 2009 struggled in early 2010 and caused Clean Harbors to miss consensus estimates in the first quarter. We believe the acquisition will prove to be a good one and that the setback was temporary.
Within the consumer discretionary sector, Brazilian homebuilder Rodobens Negocios Imobiliarios S.A. suffered from cost overruns, which impacted profitability in its latest quarter. However, sales were strong which supports our view that the market opportunity is large as home buyers in Brazil have access to residential real estate financing for the first time in a generation.
Euronet Worldwide, Inc. was also a detractor during the period. The company’s electronic payment business has been negatively impacted by the strengthening dollar and its exposure to central European countries, where sovereign debt issues are a concern. We continue to believe Euronet is well positioned given the scale advantages and low-cost position the company enjoys in its two key segments, ATM outsourcing and prepaid mobile top-up. The company’s smallest segment, money transfer, has been a drag on overall growth and returns as Euronet has invested in its global sending and receiving platform. However, we believe growth and returns are poised to improve as volumes expand across its global network.
Our financial holdings were the largest contributors to performance. The top individual contributor for the Fund in the period was Jones Lang LaSalle, Inc. The company was a beneficiary of improving credit markets and expanding leasing volumes in the period. With a dominant global infrastructure that facilitates the purchase, sale, lease or management of commercial real estate, we believe Jones Lang LaSalle is well positioned for growth as commercial real estate markets recover.
Janus Growth & Core Funds | 97
Janus Triton Fund (unaudited)
Riskmetrics Group, Inc. posted strong gains, as the provider of risk management and corporate governance products was acquired by another Fund holding, MSCI, Inc. The premium price verified the underlying value we saw in the name. From MSCI’s perspective, we believe revenue and cost synergies will enable the company to earn a good return on its acquisition of Riskmetrics.
ARM Holdings PLC was another top contributor. The company has experienced rapid growth in royalty revenues owing to the proliferation of smart phones and other consumer electronic devices that require low power, high performance microprocessors. We believe the company continues to offer an attractive means of participating in the growth of mobile devices without having to worry about which companies’ products end up being successful.
Outlook
While we are seeing some clear signs of economic stabilization such as inventory restocking, we continue to expect many years of slower growth. The leveraging process that began in the early part of the decade as a result of the low interest rate environment has come to an end, and the transition to a de-leveraging process will take time to play out. We also believe transitioning debt from the private to public sector is not a long-term solution and will likely prolong the sluggish growth environment. Against a still uncertain macroeconomic backdrop, we believe it is imperative to find dynamic growth companies whose fate and prosperity are determined by their competitive positions, the size of their addressable markets, and the ability of their management teams to execute in difficult times. We are less interested in companies that are wholly dependent on the underlying health of the macroeconomic environment. Our goal is to invest in companies that can perform well in a bad environment and great in a good environment. To this end, we feel our investment philosophy and process are uniquely positioned to capitalize on the many attractive investment opportunities that are often presented in volatile and uncertain times. We continue to uncover companies that we feel will prosper across multiple economic scenarios.
Thank you for your investment in Janus Triton Fund.
98 | MARCH 31, 2010
(unaudited)
Janus Triton Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Jones Lang LaSalle, Inc. | 0.91% | |||
Riskmetrics Group, Inc. | 0.87% | |||
ARM Holdings PLC | 0.86% | |||
TransDigm Group, Inc. | 0.80% | |||
Trimble Navigation, Ltd. | 0.79% |
5 Bottom Performers – Holdings
Contribution | ||||
Euronet Worldwide, Inc. | –0.42% | |||
Rodobens Negocios Imobiliarios S.A. | –0.32% | |||
BJ’s Restaurants, Inc. | –0.16% | |||
Clean Harbors, Inc. | –0.11% | |||
Sierra Wireless, Inc. (U.S. Shares) | –0.10% |
5 Top Performers – Sectors*
Fund Weighting | Russell 2500tm | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Industrials | 4.39% | 28.69% | 14.87% | |||||||||
Information Technology | 4.15% | 24.56% | 24.04% | |||||||||
Financials | 3.93% | 10.72% | 8.26% | |||||||||
Health Care | 2.67% | 12.79% | 19.21% | |||||||||
Consumer Discretionary | 2.49% | 13.22% | 16.94% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 2500tm | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Utilities | 0.00% | 0.00% | 1.12% | |||||||||
Consumer Staples | 0.00% | 0.00% | 4.51% | |||||||||
Materials | 0.09% | 0.14% | 4.81% | |||||||||
Energy | 0.70% | 6.97% | 4.76% | |||||||||
Telecommunication Services | 0.87% | 2.91% | 1.47% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Growth & Core Funds | 99
Janus Triton Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
SBA Communications Corp. – Class A Wireless Equipment | 2.5% | |||
Landstar System, Inc. Transportation – Truck | 2.1% | |||
TransDigm Group, Inc. Aerospace and Defense | 2.0% | |||
ARM Holdings PLC Electronic Components – Semiconductors | 2.0% | |||
Varian Medical Systems, Inc. Medical Products | 2.0% | |||
10.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p04.gif)
Emerging markets comprised 0.4% of total net assets.
*Includes Securities Sold Short of (0.3)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c04.gif)
100 | MARCH 31, 2010
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m04.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Triton Fund – Class A Shares | |||||||||||||
NAV | 17.04% | 61.54% | 9.67% | 9.11% | 1.33% | 1.32% | |||||||
MOP | 10.30% | 52.25% | 8.38% | 7.85% | |||||||||
Janus Triton Fund – Class C Shares | |||||||||||||
NAV | 16.71% | 60.18% | 8.89% | 8.34% | 2.13% | 2.07% | |||||||
CDSC | 15.54% | 58.58% | 8.89% | 8.34% | |||||||||
Janus Triton Fund – Class D Shares(1) | 17.16% | 61.79% | 9.84% | 9.28% | 1.12% | 1.12% | |||||||
Janus Triton Fund – Class I Shares | 17.21% | 61.79% | 9.84% | 9.28% | 1.00% | 1.00% | |||||||
Janus Triton Fund – Class R Shares | 16.84% | 61.16% | 9.27% | 8.72% | 1.75% | 1.75% | |||||||
Janus Triton Fund – Class S Shares | 17.04% | 61.18% | 9.47% | 8.91% | 1.50% | 1.50% | |||||||
Janus Triton Fund – Class T Shares | 17.16% | 61.79% | 9.84% | 9.28% | 1.25% | 1.25% | |||||||
Russell 2500tm Growth Index | 21.55% | 63.92% | 4.65% | 3.87% | |||||||||
Lipper Quartile – Class T Shares | – | 2nd | 1st | 1st | |||||||||
Lipper Ranking – based on total return for Small-Cap Growth Funds | – | 196/536 | 6/396 | 6/392 | |||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
Janus Growth & Core Funds | 101
Janus Triton Fund (unaudited)
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative fees payable pursuant to the Transfer Agency Agreement (applicable to Class D Shares, Class R Shares, Class S Shares and Class T Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to certain limits until at least February 16, 2011. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund Operating Expenses.” All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, derivatives and companies with relatively small market capitalizations. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Effective February 16, 2010, Janus Triton Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Triton Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Small-Mid Growth Fund (the “JAD predecessor fund”) into corresponding shares of Janus Triton Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund, respectively, without the effect of any fee and expense limitations or waivers. If each class of the Fund had been available during periods prior to July 6, 2009, the performance shown for each respective class 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 fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Class I Shares commenced operations on July 6, 2009, after the reorganization of Class I Shares of the JAD predecessor fund into the corresponding share class of Janus Triton Fund. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of Class J Shares, without the effect of any fee and expense limitations or waivers. If Class I Shares of the Fund had been available during periods prior to July 6, 2009, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any fee and expense limitations or waivers.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads.
February 28, 2005 is the date used to calculate the since-inception Lipper ranking, which is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.
Lipper ranking is for Class T Shares 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the index. The index is unmanaged and is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – February 25, 2005 | |
(1) | Closed to new investors. |
102 | MARCH 31, 2010
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class A Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,170.60 | $ | 4.80 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.60 | $ | 5.39 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,167.20 | $ | 8.02 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.01 | $ | 9.00 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10-3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,095.30 | $ | 1.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.49 | $ | 4.48 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,172.10 | $ | 3.68 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.84 | $ | 4.13 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,168.40 | $ | 7.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.15 | $ | 7.85 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,169.60 | $ | 5.88 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.40 | $ | 6.59 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/01/09) | (3/31/10) | (11/01/09-3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,170.70 | $ | 4.58 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.85 | $ | 5.14 | ||||||||
† | Expenses are equal to the annualized expense ratio of 1.07% for Class A Shares, 1.79% for Class C Shares, 0.81% for Class I Shares, 1.56% for Class R Shares, 1.31% for Class S Shares and 1.02% for Class T Shares multiplied by the average account value over the period, multiplied by 151/365 (to reflect a five-month period). Expenses include effect of contractual waivers by Janus Capital. Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses for these classes are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. | |
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.89% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Growth & Core Funds | 103
Janus Triton Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Common Stock – 93.4% | ||||||||||||
Advertising Sales – 0.8% | ||||||||||||
112,123 | Lamar Advertising Co. – Class A* | $ | 3,851,425 | |||||||||
Aerospace and Defense – 2.0% | ||||||||||||
190,405 | TransDigm Group, Inc.* | 10,099,081 | ||||||||||
Agricultural Chemicals – 1.0% | ||||||||||||
168,515 | Intrepid Potash, Inc.* | 5,111,060 | ||||||||||
Apparel Manufacturers – 1.0% | ||||||||||||
166,225 | Under Armour, Inc. – Class A* | 4,888,677 | ||||||||||
Auction House – Art Dealer – 1.3% | ||||||||||||
303,005 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | 6,520,668 | ||||||||||
Audio and Video Products – 1.9% | ||||||||||||
279,864 | DTS, Inc.* | 9,526,571 | ||||||||||
Commercial Banks – 1.8% | ||||||||||||
530,650 | CapitalSource, Inc. | 2,966,334 | ||||||||||
126,475 | SVB Financial Group* | 5,901,323 | ||||||||||
8,867,657 | ||||||||||||
Commercial Services – 3.7% | ||||||||||||
156,625 | CoStar Group, Inc.* | 6,503,070 | ||||||||||
158,345 | Iron Mountain, Inc. | 4,338,653 | ||||||||||
454,972 | Standard Parking Corp.* | 7,470,639 | ||||||||||
18,312,362 | ||||||||||||
Commercial Services – Finance – 4.9% | ||||||||||||
279,620 | Euronet Worldwide, Inc.* | 5,153,396 | ||||||||||
108,060 | Global Payments, Inc. | 4,922,133 | ||||||||||
159,410 | Interactive Data Corp | 5,101,120 | ||||||||||
399,880 | Riskmetrics Group, Inc.* | 9,041,286 | ||||||||||
24,217,935 | ||||||||||||
Computer Services – 1.6% | ||||||||||||
145,710 | IHS, Inc. – Class A* | 7,791,114 | ||||||||||
Computer Software – 1.0% | ||||||||||||
316,030 | SS&C Technologies Holdings* | 4,765,732 | ||||||||||
Consulting Services – 1.5% | ||||||||||||
334,645 | Gartner, Inc.* | 7,442,505 | ||||||||||
Decision Support Software – 1.9% | ||||||||||||
261,524 | MSCI, Inc.* | 9,441,016 | ||||||||||
Diagnostic Equipment – 1.0% | ||||||||||||
102,740 | Gen-Probe, Inc.* | 5,137,000 | ||||||||||
Diagnostic Kits – 0.7% | ||||||||||||
58,190 | Idexx Laboratories, Inc.* | 3,348,835 | ||||||||||
Distribution/Wholesale – 2.9% | ||||||||||||
101,330 | Fastenal Co. | 4,862,827 | ||||||||||
108,411 | MWI Veterinary Supply, Inc.* | 4,379,804 | ||||||||||
148,065 | Wesco International, Inc.* | 5,139,336 | ||||||||||
14,381,967 | ||||||||||||
Educational Software – 1.9% | ||||||||||||
228,420 | Blackboard, Inc.* | 9,515,977 | ||||||||||
Electronic Components – Semiconductors – 2.0% | ||||||||||||
2,762,894 | ARM Holdings PLC | 9,989,798 | ||||||||||
Electronic Connectors – 1.2% | ||||||||||||
147,750 | Amphenol Corp. – Class A | 6,233,573 | ||||||||||
Electronic Measuring Instruments – 1.5% | ||||||||||||
259,069 | Trimble Navigation, Ltd.* | 7,440,462 | ||||||||||
Enterprise Software/Services – 0.5% | ||||||||||||
231,770 | PROS Holdings, Inc.* | 2,289,888 | ||||||||||
Finance – Other Services – 1.8% | ||||||||||||
575,673 | MarketAxess Holdings, Inc. | 9,055,336 | ||||||||||
Footwear and Related Apparel – 2.0% | ||||||||||||
293,095 | Iconix Brand Group, Inc.* | 4,501,939 | ||||||||||
196,270 | Wolverine World Wide, Inc. | 5,723,233 | ||||||||||
10,225,172 | ||||||||||||
Hazardous Waste Disposal – 2.3% | ||||||||||||
87,780 | Clean Harbors, Inc.* | 4,877,057 | ||||||||||
117,240 | Stericycle, Inc.* | 6,389,580 | ||||||||||
11,266,637 | ||||||||||||
Heart Monitors – 0.9% | ||||||||||||
105,002 | HeartWare International, Inc.* | 4,669,439 | ||||||||||
Human Resources – 0.9% | ||||||||||||
242,740 | Resources Connection, Inc.* | 4,653,326 | ||||||||||
Internet Applications Software – 1.2% | ||||||||||||
316,445 | DealerTrack Holdings, Inc.* | 5,404,881 | ||||||||||
1,145 | e-Seikatsu Co., Ltd. | 471,622 | ||||||||||
5,876,503 | ||||||||||||
Investment Management and Advisory Services – 2.5% | ||||||||||||
85,475 | Eaton Vance Corp. | 2,866,832 | ||||||||||
314,352 | Epoch Holding Corp. | 3,549,034 | ||||||||||
122,618 | Financial Engines, Inc.* | 2,072,244 | ||||||||||
190,050 | Gluskin Sheff + Associates, Inc. | 4,164,479 | ||||||||||
12,652,589 | ||||||||||||
Machinery – General Industrial – 3.1% | ||||||||||||
120,555 | Roper Industries, Inc. | 6,972,901 | ||||||||||
200,745 | Wabtec Corp. | 8,455,380 | ||||||||||
15,428,281 | ||||||||||||
Medical – Biomedical and Genetic – 1.3% | ||||||||||||
36,315 | Alexion Pharmaceuticals, Inc.* | 1,974,447 | ||||||||||
173,825 | Incyte Corp., Ltd.* | 2,426,597 | ||||||||||
93,205 | Myriad Genetics, Inc.* | 2,241,580 | ||||||||||
6,642,624 | ||||||||||||
Medical – Drugs – 0.4% | ||||||||||||
815,192 | Achillion Pharmaceuticals, Inc.* | 2,258,082 | ||||||||||
Medical Information Systems – 1.3% | ||||||||||||
171,925 | athenahealth, Inc.* | 6,285,578 | ||||||||||
Medical Instruments – 2.3% | ||||||||||||
235,535 | Conceptus, Inc.* | 4,701,279 | ||||||||||
92,388 | Conmed Corp.* | 2,199,758 | ||||||||||
72,380 | Techne Corp. | 4,609,882 | ||||||||||
11,510,919 | ||||||||||||
Medical Products – 3.5% | ||||||||||||
130,225 | Haemonetics Corp.* | 7,442,359 | ||||||||||
71,131 | TomoTherapy, Inc.* | 242,557 | ||||||||||
176,755 | Varian Medical Systems, Inc.* | 9,779,853 | ||||||||||
17,464,769 | ||||||||||||
Miscellaneous Manufacturing – 0.5% | ||||||||||||
111,117 | FreightCar America, Inc. | 2,684,587 | ||||||||||
Multimedia – 0.8% | ||||||||||||
52,905 | FactSet Research Systems, Inc. | 3,881,640 |
See Notes to Schedules of Investments and Financial Statements.
104 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares | Value | |||||||||||
Oil Companies – Exploration and Production – 0.7% | ||||||||||||
72,305 | Ultra Petroleum Corp. (U.S. Shares)* | $ | 3,371,582 | |||||||||
Oil Field Machinery and Equipment – 1.4% | ||||||||||||
230,685 | Dresser-Rand Group, Inc.*,** | 7,248,123 | ||||||||||
Pipelines – 2.0% | ||||||||||||
141,530 | Buckeye GP Holdings LP | 4,860,140 | ||||||||||
85,788 | Kinder Morgan Management LLC* | 5,028,893 | ||||||||||
9,889,033 | ||||||||||||
Printing – Commercial – 1.0% | ||||||||||||
85,893 | VistaPrint NV (U.S. Shares)* | 4,917,374 | ||||||||||
Protection – Safety – 1.1% | ||||||||||||
125,085 | Brinks Co.* | 5,322,367 | ||||||||||
Real Estate Management/Services – 1.5% | ||||||||||||
105,560 | Jones Lang LaSalle, Inc. | 7,694,268 | ||||||||||
Real Estate Operating/Development – 0.4% | ||||||||||||
313,600 | Rodobens Negocios Imobiliarios S.A. | 2,205,345 | ||||||||||
Recreational Vehicles – 1.2% | ||||||||||||
114,955 | Polaris Industries, Inc. | 5,881,098 | ||||||||||
Retail – Apparel and Shoe – 1.0% | ||||||||||||
269,145 | American Eagle Outfitters, Inc. | 4,984,565 | ||||||||||
Retail – Automobile – 2.1% | ||||||||||||
138,960 | Copart, Inc.* | 4,946,976 | ||||||||||
455,530 | Rush Enterprises, Inc.* | 5,603,019 | ||||||||||
10,549,995 | ||||||||||||
Retail – Catalog Shopping – 1.0% | ||||||||||||
95,915 | MSC Industrial Direct Co. – Class A | 4,859,054 | ||||||||||
Retail – Gardening Products – 1.1% | ||||||||||||
94,620 | Tractor Supply Co. | 5,492,691 | ||||||||||
Retail – Petroleum Products – 1.4% | ||||||||||||
269,391 | World Fuel Services Corp. | 7,176,576 | ||||||||||
Schools – 0.8% | ||||||||||||
17,051 | Strayer Education, Inc. | 4,152,260 | ||||||||||
Semiconductor Components/Integrated Circuits – 1.7% | ||||||||||||
1,640,580 | Atmel Corp.* | 8,252,117 | ||||||||||
Telecommunication Equipment – 0.6% | ||||||||||||
110,570 | CommScope, Inc.* | 3,098,171 | ||||||||||
Telecommunication Services – 0.6% | ||||||||||||
174,960 | SAVVIS, Inc.* | 2,886,840 | ||||||||||
Theaters – 1.2% | ||||||||||||
335,345 | National CineMedia, Inc. | 5,788,055 | ||||||||||
Therapeutics – 0.6% | ||||||||||||
209,985 | Theravance, Inc.* | 2,797,000 | ||||||||||
Transactional Software – 1.4% | ||||||||||||
187,630 | Solera Holdings, Inc. | 7,251,900 | ||||||||||
Transportation – Marine – 0.6% | ||||||||||||
573,559 | Horizon Lines, Inc. – Class A | 3,120,161 | ||||||||||
Transportation – Services – 2.0% | ||||||||||||
144,530 | Expeditors International of Washington, Inc. | 5,336,047 | ||||||||||
2,645,000 | Integrated Distribution Services Group, Ltd. | 4,837,584 | ||||||||||
10,173,631 | ||||||||||||
Transportation – Truck – 3.5% | ||||||||||||
74,000 | Forward Air Corp. | 1,946,200 | ||||||||||
246,450 | Landstar System, Inc. | 10,345,971 | ||||||||||
148,130 | Old Dominion Freight Line, Inc.* | 4,946,061 | ||||||||||
17,238,232 | ||||||||||||
Web Hosting/Design – 1.1% | ||||||||||||
56,615 | Equinix, Inc.*,** | 5,510,904 | ||||||||||
Wireless Equipment – 2.5% | ||||||||||||
349,865 | SBA Communications Corp. – Class A* | 12,619,631 | ||||||||||
Total Common Stock (cost $384,001,794) | 466,209,758 | |||||||||||
Money Market – 9.3% | ||||||||||||
46,463,392 | Janus Cash Liquidity Fund LLC, 0% (cost $46,463,392) | 46,463,392 | ||||||||||
Total Investments (total cost $430,465,186) – 102.7% | 512,673,150 | |||||||||||
Security Sold Short – (0.3)% | ||||||||||||
Retail – Restaurants – (0.3)% | ||||||||||||
72,645 | BJ’s Restaurants, Inc.* (proceeds $1,164,843) | (1,692,629) | ||||||||||
Liabilities, net of Cash, Receivables and Other Assets** – (2.4)% | (12,068,989) | |||||||||||
Net Assets – 100% | $ | 498,911,532 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 4,837,584 | 0.9% | |||||
Brazil | 2,205,345 | 0.4% | ||||||
Canada | 14,056,729 | 2.7% | ||||||
Japan | 471,622 | 0.1% | ||||||
Netherlands | 4,917,374 | 1.0% | ||||||
United Kingdom | 9,989,798 | 2.0% | ||||||
United States†† | 476,194,698 | 92.9% | ||||||
Total | $ | 512,673,150 | 100.0% |
†† | Includes Cash Equivalents (83.8% excluding Cash Equivalents) |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
United States | $ | (1,692,629) | 100.0% | |||||
Total | $ | (1,692,629) | 100.0% |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 105
Janus Twenty Fund (unaudited)(closed to new investors)
Fund Snapshot We seek to invest in superior business models that exhibit high returns on capital and excess cash flow generation. We focus our analysis on companies with large potential total addressable markets that trade at attractive valuations. We manage focused portfolios that leverage the most compelling large-cap growth ideas of the research team. | ![]() Ron Sachs portfolio manager |
Economic Summary
U.S. equity markets continued to climb a wall of worry, but managed to finish the five-month period near 17-month highs amid upward momentum in the U.S. economy, strength abroad and better-than-expected corporate earnings. While the strength in the economy is encouraging, it has largely been driven by businesses rebuilding depleted inventories and strong government stimulus. Concerns that sovereign debt problems in Europe could spread elsewhere provided for some volatility during the latter part of the period, but government responses helped settle some of those fears. Fading effects of government stimulus, large fiscal deficits and weak labor markets remained key concerns for investors.
Small-cap and mid-cap stocks led markets higher during the period while large-cap value slightly outperformed large-cap growth stocks. The industrials sector, which is similarly, weighted in both value and growth indices, turned in the strongest performance followed by telecommunication stocks, which is tilted more towards value.
Under certain circumstances and market conditions, we may initiate positions in put and call options in order to mitigate the risks and potentially enhance the performance of the portfolio. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Strategy Overview
The Fund’s underperformance versus its primary benchmark, the Russell 1000® Growth Index, was largely generated by holdings within financials and industrials. Prudential PLC, an international insurer based in the U.K., declined during the period amid concerns over potential dilution related to a recent acquisition. We believe the company has one of the best insurance platforms in Asia with great growth potential. BG Group PLC, a U.K-based oil and gas company with large oil discoveries off the coast of Brazil, was another top detractor. We do not think the market was giving the company credit for its large oil resources in Brazil and their reserve potential. In addition, we believe the company can do well in a variety of pricing environments for oil and natural gas given its trading business.
On a positive note, Apple, Inc. was the top contributor amid continued market share gains in the personal computer and smart phone markets. We think the company’s integration of software and hardware across its product line is a key driver of its market share gains and represents a key competitive advantage. We believe the company is early in its market share gains in the U.S. and that its domestic success can be replicated globally. Celgene Corp., a biotechnology company, continued its recent strength amid some greater clarity surrounding health-care reform. We think it has a strong cancer-fighting drug franchise with good growth potential given its uses as a maintenance therapy.
Outlook
While there are still a number of challenges facing the U.S. economy, we have become a little more constructive in our view of the overall picture. As businesses have become more confident, they have been careful and deliberate in ramping up spending and investment, particularly when it comes to hiring, which has been slow. Though better, unemployment is still relatively high and a concern for us. Other areas of the U.S. economy, namely manufacturing, have seen solid recoveries, while global economic growth continues. Balance sheets have generally become stronger as well. Whether the U.S. private sector can continue the upward momentum without government stimulus remains to be seen. Encouraging developments for us have been strong global growth and evidence of some pent up demand across a number of sectors, which we believe could make for a favorable macroeconomic backdrop for many of our companies. Regardless of the macroeconomic environment, our main focus continues to be individual stock selection and finding companies that are gaining
106 | MARCH 31, 2010
(unaudited)(closed to new investors)
market share and are not dependent on macroeconomic growth for their success. We continue to look for opportunities with company-specific drivers based on what we believe to be a sustainable distinct competitive advantage.
Thank you for your investment in Janus Twenty Fund. We look forward to reporting results in the future.
Janus Twenty Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Apple, Inc. | 2.25% | |||
Celgene Corp. | 1.47% | |||
Research In Motion, Ltd. (U.S. Shares) | 1.46% | |||
Oracle Corp. | 0.99% | |||
Cisco Systems, Inc. | 0.81% |
5 Bottom Performers – Holdings
Contribution | ||||
Prudential PLC | –0.42% | |||
BG Group PLC | –0.15% | |||
CVS Caremark Corp. | –0.07% | |||
Amphenol Corp. – Class A | –0.05% | |||
Petroleo Brasileiro S.A. (ADR) | –0.05% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 6.21% | 34.17% | 32.48% | |||||||||
Health Care | 2.51% | 18.34% | 16.02% | |||||||||
Consumer Discretionary | 1.01% | 4.77% | 10.59% | |||||||||
Materials | 0.97% | 5.75% | 3.91% | |||||||||
Financials | 0.75% | 15.25% | 5.02% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Energy | –0.21% | 3.68% | 4.17% | |||||||||
Utilities | 0.00% | 0.00% | 0.89% | |||||||||
Industrials | 0.34% | 2.44% | 10.30% | |||||||||
Telecommunication Services | 0.54% | 2.85% | 0.59% | |||||||||
Consumer Staples | 0.67% | 12.75% | 16.03% |
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Growth & Core Funds | 107
Janus Twenty Fund (unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Apple, Inc. Computers | 9.5% | |||
Celgene Corp. Medical – Biomedical and Genetic | 7.2% | |||
Cisco Systems, Inc. Networking Products | 6.2% | |||
Anheuser-Busch InBev N.V. Brewery | 6.2% | |||
Research In Motion, Ltd. (U.S. Shares) Computers | 5.7% | |||
34.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p09.gif)
Emerging markets comprised 6.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t09.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c09.gif)
108 | MARCH 31, 2010
(unaudited)(closed to new investors)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m09.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Twenty Fund – Class D Shares(1) | 12.21% | 48.50% | 9.21% | –2.56% | 12.29% | 0.81% | |||||||
Janus Twenty Fund – Class T Shares(1) | 12.21% | 48.50% | 9.21% | –2.56% | 12.29% | 0.94% | |||||||
Russell 1000® Growth Index | 14.51% | 49.75% | 3.42% | –4.21% | 9.67% | ||||||||
S&P 500® Index | 13.87% | 49.77% | 1.92% | –0.65% | 10.42% | ||||||||
Lipper Quartile – Class T Shares | – | 2nd | 1st | 2nd | 1st | ||||||||
Lipper Ranking – based on total return for Large-Cap Growth Funds | – | 255/834 | 6/611 | 128/330 | 2/37 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
Janus Growth & Core Funds | 109
Janus Twenty Fund (unaudited)(closed to new investors)
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption 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.
Effective February 16, 2010, Janus Twenty Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Twenty Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.
Lipper ranking is for Class T Shares only; other classes may have different performance characteristics.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – April 30, 1985 | |
(1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10- 3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,083.30 | $ | 0.99 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.99 | $ | 3.98 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09- 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,122.10 | $ | 3.82 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.59 | $ | 4.38 | ||||||||
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.79% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). | |
† | Expenses are equal to the annualized expense ratio of 0.87% for Class T Shares, multiplied by the average account value over the period, multiplied by 151/365 for Class T Shares (to reflect a five-month period). Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. |
110 | MARCH 31, 2010
Janus Twenty Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Contract Amounts | Value | |||||||||||
Common Stock – 98.1% | �� | |||||||||||
Agricultural Chemicals – 1.8% | ||||||||||||
911,244 | Monsanto Co. | $ | 65,081,046 | |||||||||
415,381 | Syngenta A.G. | 115,381,422 | ||||||||||
180,462,468 | ||||||||||||
Applications Software – 0.3% | ||||||||||||
418,171 | Salesforce.com, Inc.* | 31,132,831 | ||||||||||
Automotive – Cars and Light Trucks – 1.1% | ||||||||||||
8,427,095 | Ford Motor Co.* | 105,928,584 | ||||||||||
Brewery – 6.2% | ||||||||||||
12,087,797 | Anheuser-Busch InBev N.V. | 608,821,950 | ||||||||||
2,849,864 | Anheuser-Busch InBev N.V. – VVPR Strip* | 26,941 | ||||||||||
608,848,891 | ||||||||||||
Cellular Telecommunications – 0.7% | ||||||||||||
1,414,990 | America Movil S.A.B. de C.V. – Series L (ADR) | 71,230,597 | ||||||||||
Chemicals – Diversified – 1.0% | ||||||||||||
7,358,509 | Israel Chemicals, Ltd. | 99,654,781 | ||||||||||
Commercial Banks – 1.7% | ||||||||||||
6,141,395 | Standard Chartered PLC | 167,495,979 | ||||||||||
Computers – 15.2% | ||||||||||||
3,990,988 | Apple, Inc.* | 937,602,811 | ||||||||||
7,551,751 | Research In Motion, Ltd. (U.S. Shares)* | 558,451,986 | ||||||||||
1,496,054,797 | ||||||||||||
Cosmetics and Toiletries – 1.0% | ||||||||||||
1,203,885 | Colgate-Palmolive Co. | 102,643,235 | ||||||||||
Diversified Banking Institutions – 8.2% | ||||||||||||
24,479,410 | Bank of America Corp. | 436,957,468 | ||||||||||
892,535 | Goldman Sachs Group, Inc. | 152,293,247 | ||||||||||
4,937,190 | JPMorgan Chase & Co. | 220,939,253 | ||||||||||
810,189,968 | ||||||||||||
Diversified Minerals – 1.8% | ||||||||||||
5,566,550 | Cia Vale do Rio Doce (ADR) | 179,187,245 | ||||||||||
Electronic Connectors – 1.0% | ||||||||||||
2,213,990 | Amphenol Corp. – Class A | 93,408,238 | ||||||||||
Enterprise Software/Services – 4.5% | ||||||||||||
17,184,338 | Oracle Corp. | 441,465,643 | ||||||||||
Finance – Investment Bankers/Brokers – 2.2% | ||||||||||||
11,377,789 | Charles Schwab Corp. | 212,650,876 | ||||||||||
Finance – Other Services – 2.0% | ||||||||||||
615,555 | CME Group, Inc. | 194,583,091 | ||||||||||
Medical – Biomedical and Genetic – 13.1% | ||||||||||||
11,465,933 | Celgene Corp.* | 710,429,209 | ||||||||||
11,547,690 | Gilead Sciences, Inc.* | 525,188,941 | ||||||||||
1,427,535 | Vertex Pharmaceuticals, Inc.* | 58,343,355 | ||||||||||
1,293,961,505 | ||||||||||||
Multi-Line Insurance – 1.6% | ||||||||||||
3,036,635 | ACE, Ltd. (U.S. Shares) | 158,816,011 | ||||||||||
Multimedia – 3.2% | ||||||||||||
22,159,875 | News Corp. – Class A | 319,323,799 | ||||||||||
Networking Products – 6.2% | ||||||||||||
23,461,975 | Cisco Systems, Inc.* | 610,715,209 | ||||||||||
Oil Companies – Integrated – 3.9% | ||||||||||||
5,110,606 | BG Group PLC | 88,437,437 | ||||||||||
4,379,655 | Petroleo Brasileiro S.A. (ADR) | 194,850,851 | ||||||||||
2,501,829 | Petroleo Brasileiro S.A. (U.S. Shares) | 99,047,410 | ||||||||||
382,335,698 | ||||||||||||
Optical Supplies – 2.7% | ||||||||||||
1,654,390 | Alcon, Inc. (U.S. Shares) | 267,283,248 | ||||||||||
Real Estate Operating/Development – 0.7% | ||||||||||||
17,976,000 | Hang Lung Properties, Ltd. | 72,468,934 | ||||||||||
Retail – Apparel and Shoe – 1.7% | ||||||||||||
6,895,600 | Limited Brands, Inc. | 169,769,672 | ||||||||||
Retail – Drug Store – 3.0% | ||||||||||||
7,973,417 | CVS Caremark Corp. | 291,508,126 | ||||||||||
Retail – Regional Department Stores – 0.8% | ||||||||||||
1,416,695 | Kohl’s Corp.* | 77,606,552 | ||||||||||
Soap and Cleaning Preparations – 1.0% | ||||||||||||
1,863,590 | Reckitt Benckiser Group PLC | 102,274,493 | ||||||||||
Telecommunication Equipment – Fiber Optics – 1.2% | ||||||||||||
6,008,190 | Corning, Inc. | 121,425,520 | ||||||||||
Transportation – Services – 1.4% | ||||||||||||
2,123,970 | United Parcel Service, Inc. – Class B | 136,804,908 | ||||||||||
Web Portals/Internet Service Providers – 6.8% | ||||||||||||
819,466 | Google, Inc. – Class A* | 464,645,416 | ||||||||||
12,187,005 | Yahoo!, Inc.* | 201,451,193 | ||||||||||
666,096,609 | ||||||||||||
Wireless Equipment – 2.1% | ||||||||||||
5,501,665 | Crown Castle International Corp.* | 210,328,653 | ||||||||||
Total Common Stock (cost $6,306,242,426) | 9,675,656,161 | |||||||||||
Purchased Options – Puts – 0% | ||||||||||||
2,619 | Custom Copper Metals Basket expires April 2010 exercise price $90.00 | 12,388 | ||||||||||
2,624 | Custom Copper Metals Basket expires April 2010 exercise price $91.16 | 9,053 | ||||||||||
Total Purchased Options – Puts (premiums paid $3,187,794) | 21,441 | |||||||||||
Money Market – 1.8% | ||||||||||||
179,672,000 | Janus Cash Liquidity Fund LLC, 0% (cost $179,672,000) | 179,672,000 | ||||||||||
Total Investments (total cost $6,489,102,220) – 99.9% | 9,855,349,602 | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 9,532,673 | |||||||||||
Net Assets – 100% | $ | 9,864,882,275 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 111
Janus Twenty Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 608,848,891 | 6.2% | |||||
Brazil | 473,085,506 | 4.8% | ||||||
Canada | 558,451,986 | 5.7% | ||||||
Hong Kong | 72,468,933 | 0.7% | ||||||
Israel | 99,654,781 | 1.0% | ||||||
Mexico | 71,230,597 | 0.7% | ||||||
Switzerland | 541,480,681 | 5.5% | ||||||
United Kingdom | 358,207,909 | 3.6% | ||||||
United States†† | 7,071,920,318 | 71.8% | ||||||
Total | $ | 9,855,349,602 | 100.0% |
†† | Includes Cash Equivalents (69.9% excluding Cash Equivalents) |
See Notes to Schedules of Investments and Financial Statements.
112 | MARCH 31, 2010
Janus Venture Fund (unaudited)(closed to new investors)
Fund Snapshot We believe that investing in small companies with recurring revenue and that are poised for growth will allow us to outperform our benchmark and peers over time. We emphasize businesses with strong management teams, long-term earnings growth and an attractive risk/reward. | ![]() Will Bales portfolio manager |
Economic Overview
Continuing the rally from the previous March, U.S. equities recorded strong gains during the five-month period ended March 31, 2010. A pledge from U.S. Federal Reserve (Fed) Chairman Ben Bernanke that the Fed would maintain its accommodative monetary policy for an “extended period” and upbeat economic news that indicated the economic recovery was on track were partially offset by sovereign debt worries, primarily in Greece. Markets retreated modestly in mid-January into early February; however, they regained their uptrend in March to finish near 18-month highs.
Asset Class Overview
The Russell 2000® Growth Index reached an 18-month high during the period, but slightly lagged its value counterpart. Small caps outperformed mid cap stocks during the period, while small and mid cap indices significantly outperformed large caps during the period to continue a trend off the market lows reached in March of 2009. Within the index, it was the largest of the small caps (market capitalizations greater than $3 billion) that performed the strongest during the period. Returns declined sequentially through the lower market cap ranges. The best performing sectors within the index were consumer discretionary, consumer staples and health care, while laggards included utilities, telecommunications and financials. The strongest performing industries were transportation, household/personal products and media; meanwhile, commercial/professional services, insurance and utilities were among relative underperformers.
Strategy Overview
Stock selection was the most significant driver of the Fund’s outperformance during the period led by our holdings in consumer discretionary, financials and health care. In terms of the market capitalization, our holdings in the $1 billion to $2 billion range were the largest contributors to relative performance. An overweight to larger companies (over $3 billion in market cap) also boosted performance. It is important to note many of these companies like Jarden Corp., a top performer within this group, are long time holdings that have grown in size while in the portfolio.
Strong performers in the health care equipment/services industry aided performance led by SXC Health Solutions Corp. (U.S. Shares), a pharmacy benefit manager. SXC has benefited from the successful integration of a recent acquisition, which enabled it to expand its business. Within consumer discretionary, our holdings in two education companies, Bridgepoint Education, Inc. and American Public Education, Inc., were significant contributors. We like both companies for their exposure to online learning, the fastest-growing segment within the industry. American Public Education also benefits from a stable client base which includes U.S. government employees and military personnel.
Our holdings within the software and services industry also contributed to performance led by our largest position during the period and long-term holding, Ultimate Software Group, Inc. The subscription-based provider of human resource software and services has a recurring revenue stream and strong earnings in our view. In addition, Ultimate Software has been able to add customers even in this difficult environment, which we think supports our thesis that the company’s products are a value-added proposition for clients.
Our holdings in energy and industrials weighed on performance. Our industrial holdings in the commercial and professional services industry weighed on performance, including our position in Intermap Technologies Corp. The firm is building a large database of high-resolution 3D mapping data, which we believe is unique among data providers. Intermap also offers strong competitive advantages in its proprietary data collection process and could leverage its data with the current 2D mapping database providers to serve insurance companies and auto manufacturers among others.
Euronet Worldwide, Inc. was also among individual detractors. The company’s electronic payment business
Janus Growth & Core Funds | 113
Janus Venture Fund (unaudited)(closed to new investors)
has been negatively impacted by the strengthening dollar and its exposure to central European countries as well as Mexico. We like the company for its repeating revenues. Euronet also has an attractive ATM outsourcing business with market leading positions in Europe, India and China.
Boutique investment bank/brokerage firm Broadpoint Gleacher Securities Group, Inc. also declined during the period. The company has a unique niche in finding arbitrage opportunities within mispriced assets, particularly mortgages. We felt the company had become too closely aligned with its mortgage business, so we sold the position, as our thesis surrounding their growth potential depended on business outside of just mortgages.
Derivatives
The Fund employed some basic derivative strategies during the period. These strategies included selling put and call options at or around our research-driven target prices to generate income and exercise price discipline for purchases and sales of the underlying stock or security. We also utilized long put options in some cases to hedge downside risk in individual positions. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
We are seeing signs of economic improvement with unemployment stabilizing and general signs of recovery among the various industries we cover. Notably, in industries like technology, where inventory levels have been tight, we are seeing a pickup in orders likely as a result of restocking. We’ve also seen improvements in shipping volumes among transportation companies, which is usually a leading indicator for economic recovery.
Company outlooks are improving as we move past what many believe to be the worst of the credit crisis and economic turmoil. We believe we’re still in the early stages of the recovery but challenges remain ahead. We take heart that the stock market is a good indicator of economic activity and look forward to a period where stock picking matters and fundamentals drive equity performance.
Thank you for your investment in Janus Venture Fund.
114 | MARCH 31, 2010
(unaudited)(closed to new investors)
Janus Venture Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
SXC Health Solutions Corp. (U.S. Shares) | 1.30% | |||
Bridgepoint Education, Inc. | 1.11% | |||
Imax Corp. (U.S. Shares) | 1.06% | |||
Ultimate Software Group, Inc. | 1.04% | |||
Skechers U.S.A., Inc. – Class A | 0.97% |
5 Bottom Performers – Holdings
Contribution | ||||
Euronet Worldwide, Inc. | –0.38% | |||
Intermap Technologies Corp. | –0.22% | |||
Broadpoint Gleacher Securities Group, Inc. | –0.22% | |||
Concord Medical Services Holding, Ltd. (ADR) | –0.16% | |||
Columbia Sportswear Co. | –0.14% |
5 Top Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 6.79% | 34.38% | 26.65% | |||||||||
Consumer Discretionary | 6.15% | 18.59% | 16.39% | |||||||||
Health Care | 5.39% | 22.34% | 24.32% | |||||||||
Financials | 1.38% | 5.53% | 5.83% | |||||||||
Industrials | 1.37% | 11.51% | 14.51% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Utilities | –0.09% | 0.01% | 0.21% | |||||||||
Other** | –0.05% | 0.06% | 0.00% | |||||||||
Consumer Staples | –0.00% | 0.26% | 3.98% | |||||||||
Energy | 0.21% | 3.54% | 4.23% | |||||||||
Materials | 0.23% | 1.69% | 2.39% |
* | 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. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 115
Janus Venture Fund (unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2010
Ultimate Software Group, Inc. Enterprise Software/Services | 3.6% | |||
Solera Holdings, Inc. Transactional Software | 3.2% | |||
Jarden Corp. Consumer Products – Miscellaneous | 3.0% | |||
SXC Health Solutions Corp. (U.S. Shares) Pharmacy Services | 3.0% | |||
VistaPrint, N.V. (U.S. Shares) Printing – Commercial | 2.9% | |||
15.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20p05.gif)
Emerging markets comprised 2.5% of total net assets.
* Includes Securities Sold Short of (0.5)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2010
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20c05.gif)
116 | MARCH 31, 2010
(unaudited)(closed to new investors)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-10-053876/d73278jif20m05.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2010 | per the February 16, 2010 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Venture Fund – Class D Shares(1) | 21.23% | 71.70% | 4.60% | –2.72% | 11.57% | 0.90% | |||||||
Janus Venture Fund – Class T Shares(1) | 21.23% | 71.70% | 4.60% | –2.72% | 11.57% | 1.03% | |||||||
Russell 2000® Growth Index | 20.44% | 60.32% | 3.82% | –1.53% | 6.82% | ||||||||
Russell 2000® Index | 21.30% | 62.76% | 3.36% | 3.68% | 9.13% | ||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 4th | 1st | ||||||||
Lipper Ranking – based on total return for Small-Cap Growth Funds | – | 59/536 | 99/396 | 169/223 | 1/11 | ||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
Janus Growth & Core Funds | 117
Janus Venture Fund (unaudited)(closed to new investors)
Expense information shown reflects estimated annualized expenses that the share classes of the Fund expect to incur during the fiscal year. The expense information shown includes administrative fee expenses, if applicable. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “fund of funds” portfolios. Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings, derivatives and companies with relatively small market capitalizations. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
Returns include reinvestment of dividends from net investment income and distributions of capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Total Annual Fund Operating Expenses include dividends or interest on short sales, which are paid to the lender of borrowed securities. Such expenses will vary depending on whether the securities the Fund sells short pay dividends or interest and the amount of such dividends or interest.
Effective February 16, 2010, Janus Venture Fund renamed Class J Shares to Class T Shares.
Effective February 16, 2010, Janus Venture Fund’s Class J Shares accounts held directly with Janus were moved into newly created Class D Shares.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance for Class D Shares for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares. If Class D Shares had been available during periods prior to February 16, 2010, the performance shown may have been different.
Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.
Lipper ranking is for Class T Shares only; other classes may have different performance characteristics.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – April 30, 1985 | |
(1) | Closed to new investors. |
118 | MARCH 31, 2010
(unaudited)(closed to new investors)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (2/16/10) | (3/31/10) | (2/16/10 - 3/31/10)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,127.40 | $ | 1.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.59 | $ | 4.38 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (11/1/09) | (3/31/10) | (11/1/09 - 3/31/10)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,212.50 | $ | 4.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.44 | $ | 4.53 | ||||||||
* | Actual expenses paid reflect only the inception period for Class D Shares (February 16, 2010 to March 31, 2010). Therefore, actual expenses shown are lower than would be expected in a six-month period. Actual expenses are equal to the annualized expense ratio of 0.87% for Class D Shares multiplied by the average account value over the period, multiplied by 44/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a six-month period). | |
† | Expenses are equal to the annualized expense ratio of 0.90% for Class T Shares, multiplied by the average account value over the period, multiplied by 151/365 for Class T Shares (to reflect a five-month period). Due to the change in the Fund’s fiscal year end, the actual expenses paid reflect only a five-month period. Therefore, actual expenses are lower than would be expected for a six-month period. Hypothetical expenses reflect a six-month period. |
Janus Growth & Core Funds | 119
Janus Venture Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Common Stock – 100.0% | ||||||||||||
Advertising Agencies – 0.5% | ||||||||||||
539,695 | MDC Partners, Inc. – Class A (U.S. Shares) | $ | 5,585,843 | |||||||||
Aerospace and Defense – 0.4% | ||||||||||||
74,750 | TransDigm Group, Inc.* | 3,964,740 | ||||||||||
Agricultural Biotechnology – 0.7% | ||||||||||||
881,140 | Yongye International, Inc.* | 7,119,611 | ||||||||||
Appliances – 0.8% | ||||||||||||
704,040 | Deer Consumer Products, Inc.* | 8,547,046 | ||||||||||
Applications Software – 0.4% | ||||||||||||
1,602,098 | inContact, Inc.*,£ | 4,565,979 | ||||||||||
Auction House – Art Dealer – 0.6% | ||||||||||||
323,650 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | 6,964,948 | ||||||||||
Audio and Video Products – 1.6% | ||||||||||||
522,055 | DTS, Inc.* | 17,770,752 | ||||||||||
Broadcast Services and Programming – 2.0% | ||||||||||||
563,145 | DG FastChannel, Inc.* | 17,992,483 | ||||||||||
9,700 | Genius Products, Inc.*,°°,§ | 48,015 | ||||||||||
748,777 | Genius Products, Inc. – Private Placement*,°°,§,£ | 3,088,705 | ||||||||||
21,129,203 | ||||||||||||
Casino Hotels – 0.2% | ||||||||||||
965,512 | Century Casinos, Inc.*,£ | 2,413,780 | ||||||||||
Commercial Services – 4.8% | ||||||||||||
484,275 | CoStar Group, Inc.* | 20,107,097 | ||||||||||
268,355 | HMS Holdings Corp.* | 13,683,421 | ||||||||||
2,105,739 | Intermap Technologies Corp.* | 3,110,704 | ||||||||||
229,805 | Providence Service Corp.* | 3,490,738 | ||||||||||
714,185 | Standard Parking Corp.* | 11,726,918 | ||||||||||
52,118,878 | ||||||||||||
Commercial Services – Finance – 1.7% | ||||||||||||
480,225 | Cardtronics, Inc.* | 6,036,428 | ||||||||||
645,080 | Euronet Worldwide, Inc.* | 11,888,825 | ||||||||||
17,925,253 | ||||||||||||
Computer Data Security – 0.2% | ||||||||||||
110,220 | Fortinet, Inc.* | 1,937,668 | ||||||||||
Computer Graphics – 0.7% | ||||||||||||
817,532 | Monotype Imaging Holdings, Inc.* | 7,954,586 | ||||||||||
Computer Services – 2.2% | ||||||||||||
3,140,420 | LivePerson, Inc.*,£ | 24,087,021 | ||||||||||
Computers – Integrated Systems – 0.1% | ||||||||||||
43,755 | Micros Systems, Inc.* | 1,438,664 | ||||||||||
Consulting Services – 1.4% | ||||||||||||
379,030 | Gartner, Inc.* | 8,429,627 | ||||||||||
1,961,073 | Information Services Group, Inc.*,£ | 6,687,259 | ||||||||||
96,841 | UTEK Corp.* | 397,048 | ||||||||||
15,513,934 | ||||||||||||
Computer Software – 0.2% | ||||||||||||
165,385 | SS&C Technologies Holdings, Inc.* | 2,494,006 | ||||||||||
Consumer Products – Miscellaneous – 3.0% | ||||||||||||
983,640 | Jarden Corp.** | 32,745,376 | ||||||||||
Decision Support Software – 1.3% | ||||||||||||
403,910 | MSCI, Inc.* | 14,581,151 | ||||||||||
Distribution/Wholesale – 0.8% | ||||||||||||
210,556 | MWI Veterinary Supply, Inc.* | 8,506,462 | ||||||||||
Diversified Operations – 0.8% | ||||||||||||
302,885 | Barnes Group, Inc. | 5,894,142 | ||||||||||
867,990 | Digital Domain – Private Placement*,°°,§ | 3,037,965 | ||||||||||
8,932,107 | ||||||||||||
Educational Software – 0.6% | ||||||||||||
155,107 | Blackboard, Inc.* | 6,461,758 | ||||||||||
Electric Products – Miscellaneous – 1.8% | ||||||||||||
895,305 | Harbin Electric, Inc.* | 19,329,635 | ||||||||||
E-Marketing/Information – 0.8% | ||||||||||||
356,440 | Constant Contact, Inc.* | 8,276,537 | ||||||||||
Enterprise Software/Services – 5.1% | ||||||||||||
192,030 | Concur Technologies, Inc.* | 7,875,150 | ||||||||||
44,180 | Informatica Corp.* | 1,186,675 | ||||||||||
262,550 | MedAssets, Inc.* | 5,513,550 | ||||||||||
400,540 | Salary.com, Inc.* | 1,161,566 | ||||||||||
1,191,950 | Ultimate Software Group, Inc.*,£ | 39,274,752 | ||||||||||
55,011,693 | ||||||||||||
E-Services/Consulting – 2.1% | ||||||||||||
804,165 | GSI Commerce, Inc.* | 22,251,246 | ||||||||||
Finance – Other Services – 0.8% | ||||||||||||
554,666 | MarketAxess Holdings, Inc. | 8,724,896 | ||||||||||
Footwear and Related Apparel – 1.8% | ||||||||||||
527,545 | Skechers U.S.A., Inc. – Class A* | 19,160,434 | ||||||||||
Gambling – Non-Hotel – 0.6% | ||||||||||||
907,650 | Great Canadian Gaming Corp.* | 6,570,049 | ||||||||||
Hotels and Motels – 1.2% | ||||||||||||
87,445 | China Lodging Group, Ltd.* | 1,309,926 | ||||||||||
1,901,500 | Kingdom Hotel Investments (GDR)* | 9,317,350 | ||||||||||
445,760 | Morgans Hotel Group Co.* | 2,857,322 | ||||||||||
13,484,598 | ||||||||||||
Human Resources – 2.1% | ||||||||||||
645,725 | Resources Connection, Inc.* | 12,378,548 | ||||||||||
547,090 | SuccessFactors, Inc.* | 10,416,594 | ||||||||||
22,795,142 | ||||||||||||
Identification Systems and Devices – 0.7% | ||||||||||||
864,775 | L-1 Identity Solutions, Inc.* | 7,722,441 | ||||||||||
Industrial Audio and Video Products – 2.0% | ||||||||||||
1,216,370 | Imax Corp. (U.S. Shares)* | 21,882,496 | ||||||||||
Internet Applications Software – 1.8% | ||||||||||||
534,045 | DealerTrack Holdings, Inc.* | 9,121,489 | ||||||||||
604,468 | Vocus, Inc.* | 10,306,179 | ||||||||||
19,427,668 | ||||||||||||
Internet Content – Information/News – 1.6% | ||||||||||||
286,495 | Archipelago Learning, Inc.* | 4,177,097 | ||||||||||
1,640,185 | Health Grades, Inc.*,£ | 10,431,576 | ||||||||||
416,620 | TechTarget, Inc.* | 2,178,923 | ||||||||||
16,787,596 | ||||||||||||
Investment Management and Advisory Services – 0.3% | ||||||||||||
108,203 | Epoch Holding Corp. | 1,221,612 | ||||||||||
143,335 | Financial Engines, Inc.* | 2,422,361 | ||||||||||
3,643,973 |
See Notes to Schedules of Investments and Financial Statements.
120 | MARCH 31, 2010
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Machinery – General Industrial – 0.6% | ||||||||||||
150,000 | Wabtec Corp. | $ | 6,318,000 | |||||||||
Marine Services – 0.2% | ||||||||||||
1,548,955 | Odyssey Marine Exploration, Inc.* | 2,029,131 | ||||||||||
Medical – Biomedical and Genetic – 2.9% | ||||||||||||
359,330 | Acorda Therapeutics, Inc.* | 12,289,086 | ||||||||||
674,510 | Incyte Corp., Ltd.* | 9,416,160 | ||||||||||
423,085 | Myriad Genetics, Inc.* | 10,175,194 | ||||||||||
31,880,440 | ||||||||||||
Medical – Drugs – 0.2% | ||||||||||||
735,032 | Achillion Pharmaceuticals, Inc.* | 2,036,039 | ||||||||||
Medical – Outpatient and Home Medical Care – 1.7% | ||||||||||||
547,450 | LHC Group, Inc.* | 18,355,999 | ||||||||||
Medical Information Systems – 1.0% | ||||||||||||
290,515 | athenahealth, Inc.* | 10,621,228 | ||||||||||
Medical Instruments – 1.9% | ||||||||||||
151,957 | Conmed Corp.* | 3,618,096 | ||||||||||
503,185 | Natus Medical, Inc.* | 8,005,673 | ||||||||||
135,825 | Techne Corp. | 8,650,695 | ||||||||||
20,274,464 | ||||||||||||
Medical Labs and Testing Services – 1.9% | ||||||||||||
205,893 | Bio-Reference Labs, Inc.* | 9,053,116 | ||||||||||
525,420 | Concord Medical Services Holding, Ltd. (ADR)* | 3,609,635 | ||||||||||
235,792 | Genoptix, Inc.* | 8,368,258 | ||||||||||
21,031,009 | ||||||||||||
Medical Products – 1.6% | ||||||||||||
727,740 | PSS World Medical, Inc.* | 17,109,167 | ||||||||||
Motion Pictures and Services – 2.1% | ||||||||||||
66,230 | DreamWorks Animation SKG, Inc. – Class A* | 2,608,800 | ||||||||||
3,227,765 | Lions Gate Entertainment Corp. (U.S. Shares)* | 20,141,253 | ||||||||||
22,750,053 | ||||||||||||
MRI and Medical Diagnostic Imaging Center – 0.6% | ||||||||||||
710,845 | Alliance Healthcare Service* | 3,994,949 | ||||||||||
659,020 | RadNet, Inc.* | 2,095,684 | ||||||||||
6,090,633 | ||||||||||||
Oil Field Machinery and Equipment – 1.1% | ||||||||||||
363,625 | Dresser-Rand Group, Inc.* | 11,425,098 | ||||||||||
Pharmacy Services – 5.1% | ||||||||||||
546,780 | Catalyst Health Solutions, Inc.* | 22,625,756 | ||||||||||
483,340 | SXC Health Solutions Corp. (U.S. Shares)* | 32,519,115 | ||||||||||
55,144,871 | ||||||||||||
Physical Practice Management – 1.2% | ||||||||||||
232,410 | Mednax, Inc.* | 13,523,938 | ||||||||||
Physical Therapy and Rehabilitation Centers – 1.0% | ||||||||||||
368,880 | Psychiatric Solutions, Inc.* | 10,992,624 | ||||||||||
Poultry – 0.2% | ||||||||||||
264,315 | Yuhe International, Inc.* | 2,458,130 | ||||||||||
Printing – Commercial – 2.9% | ||||||||||||
556,078 | VistaPrint, N.V. (U.S. Shares)* | 31,835,466 | ||||||||||
Real Estate Management/Services – 2.5% | ||||||||||||
1,851,377 | LPS Brasil Consultoria de Imoveis S.A. | 26,768,151 | ||||||||||
Retail – Apparel and Shoe – 0.6% | ||||||||||||
200,939 | Rue21, Inc.* | 6,966,555 | ||||||||||
Retail – Automobile – 0.3% | ||||||||||||
88,465 | Copart, Inc.* | 3,149,354 | ||||||||||
Retail – Major Department Stores – 0.7% | ||||||||||||
914,690 | Saks, Inc.* | 7,866,334 | ||||||||||
Retail – Petroleum Products – 1.8% | ||||||||||||
735,385 | World Fuel Services Corp. | 19,590,656 | ||||||||||
Savings/Loan/Thrifts – 0.4% | ||||||||||||
264,545 | Northwest Bancshares, Inc. | 3,105,759 | ||||||||||
88,245 | Territorial Bancorp, Inc. | 1,679,302 | ||||||||||
4,785,061 | ||||||||||||
Schools – 5.0% | ||||||||||||
366,464 | American Public Education, Inc.* | 17,077,222 | ||||||||||
847,320 | Bridgepoint Education, Inc.* | 20,827,125 | ||||||||||
967,355 | ChinaCast Education Corp.* | 7,071,365 | ||||||||||
350,864 | Grand Canyon Education, Inc.* | 9,171,585 | ||||||||||
54,147,297 | ||||||||||||
Semiconductor Components/Integrated Circuits – 1.8% | ||||||||||||
3,778,340 | Atmel Corp.* | 19,005,050 | ||||||||||
Telecommunication Equipment – 0.4% | ||||||||||||
155,560 | CommScope, Inc.* | 4,358,791 | ||||||||||
Telecommunication Services – 0.8% | ||||||||||||
515,205 | SAVVIS, Inc.* | 8,500,883 | ||||||||||
Theaters – 1.5% | ||||||||||||
961,147 | National CineMedia, Inc. | 16,589,397 | ||||||||||
Transactional Software – 3.2% | ||||||||||||
900,410 | Solera Holdings, Inc. | 34,800,847 | ||||||||||
Transportation – Marine – 0.8% | ||||||||||||
1,671,033 | Horizon Lines, Inc. – Class A£ | 9,090,420 | ||||||||||
Transportation – Truck – 1.9% | ||||||||||||
340,065 | Forward Air Corp. | 8,943,709 | ||||||||||
93,160 | Landstar System, Inc. | 3,910,857 | ||||||||||
218,025 | Old Dominion Freight Line, Inc.* | 7,279,855 | ||||||||||
20,134,421 | ||||||||||||
Water Treatment Systems – 1.1% | ||||||||||||
492,690 | Nalco Holding Co. | 11,987,148 | ||||||||||
Web Hosting/Design – 1.7% | ||||||||||||
3,704,519 | NaviSite, Inc.*,£ | 9,520,614 | ||||||||||
1,176,625 | NIC, Inc.* | 9,260,039 | ||||||||||
18,780,653 | ||||||||||||
Wireless Equipment – 1.6% | ||||||||||||
469,400 | SBA Communications Corp. – Class A* | 16,931,258 | ||||||||||
Total Common Stock (cost $850,888,732) | 1,085,155,736 | |||||||||||
Promissory Note – 0.2% | ||||||||||||
Broadcast Services and Programming – 0.2% | ||||||||||||
2,000,000 | Genius Products, Inc., 5.0000% – expires 12/31/10°° ,§ (cost $2,000,000) | 2,000,000 | ||||||||||
Warrants – 0% | ||||||||||||
Automotive – Truck Parts and Equipment – Replacement – 0% | ||||||||||||
88,303 | Motorcar Parts of America, Inc. – Private Placement – expires 5/17/12*,°° ,§ | 769 |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 121
Janus Venture Fund
Schedule of Investments (unaudited)
As of March 31, 2010
Shares or Principal Amounts | Value | |||||||||||
Casino Services – 0% | ||||||||||||
146,926 | Pokertek, Inc. – Private Placement – expires 4/23/12*,°° ,§ | $ | 28,161 | |||||||||
Networking Products – 0% | ||||||||||||
2,090 | Lantronix, Inc. – expires 2/9/11*,°° | 1 | ||||||||||
Total Warrants (cost $911,295) | 28,931 | |||||||||||
Total Investments (total cost $853,800,027) – 100.2% | 1,087,184,667 | |||||||||||
Securities Sold Short – (0.5)% | ||||||||||||
Apparel Manufacturers – (0.3)% | ||||||||||||
55,000 | Columbia Sportswear Co. | (2,889,150) | ||||||||||
Athletic Footwear – (0.1)% | ||||||||||||
89,954 | K-Swiss, Inc.* | (940,919) | ||||||||||
Commercial Banks – (0.1)% | ||||||||||||
750,000 | Pacific Capital Bancorp* | (1,357,500) | ||||||||||
Total Securities Sold Short (proceeds $4,029,046) | (5,187,569) | |||||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 2,819,406 | |||||||||||
Net Assets – 100% | $ | 1,084,816,504 | ||||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Brazil | $ | 26,768,151 | 2.5% | |||||
Canada | 96,774,409 | 8.9% | ||||||
Cayman Islands | 10,627,276 | 1.0% | ||||||
Netherlands | 31,835,466 | 2.9% | ||||||
United States | 921,179,365 | 84.7% | ||||||
Total | $ | 1,087,184,667 | 100.0% |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
United States | $ | (5,187,569) | 100.0% | |||||
Total | $ | (5,187,569) | 100.0% |
See Notes to Schedules of Investments and Financial Statements.
122 | MARCH 31, 2010
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Janus Growth & Core Funds | 123
Statements of Assets and Liabilities
Janus | Janus | Janus | Janus Growth | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||||
As of March 31, 2010 (unaudited) | Balanced | Contrarian | Enterprise | Janus Forty | Janus | and Income | Janus Orion | Research | Research | Janus Triton | Twenty | Venture | ||||||||||||||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Fund | Fund | Fund | Fund | Fund | Fund | Fund | Core Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments at cost | $ | 4,960,051 | $ | 4,147,018 | $ | 2,138,208 | $ | 5,241,675 | $ | 7,375,024 | $ | 3,321,616 | $ | 2,934,642 | $ | 543,847 | $ | 2,678,417 | $ | 430,465 | $ | 6,489,102 | $ | 853,800 | ||||||||||||||||||||||||
Unaffiliated investments at value | $ | 5,481,970 | $ | 4,469,687 | $ | 2,529,223 | $ | 6,260,769 | $ | 8,983,276 | $ | 3,920,924 | $ | 3,664,750 | $ | 625,329 | $ | 3,210,466 | $ | 466,210 | $ | 9,675,678 | $ | 1,087,185 | ||||||||||||||||||||||||
Affiliated money market investments | 191,578 | 96,575 | 80,892 | 549,400 | 195,610 | 65,812 | 57,547 | 1,111 | 26,777 | 46,463 | 179,672 | - | ||||||||||||||||||||||||||||||||||||
Cash | 1,133 | - | 46 | 73 | 99 | 121 | 1,168 | - | 67 | - | 89 | - | ||||||||||||||||||||||||||||||||||||
Cash denominated in foreign currency(1) | - | - | - | - | - | - | 2,088 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Restricted cash (Note 1) | - | 11,630 | - | - | - | - | 140 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Deposits with broker for short sales | - | - | - | - | - | - | 130,868 | - | - | 1,165 | - | 4,029 | ||||||||||||||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||
Investments sold | 13,885 | 1,669 | 5,306 | - | 75 | 1,110 | 42,464 | 563 | 21,798 | 3,766 | - | 10,928 | ||||||||||||||||||||||||||||||||||||
Fund shares sold | 10,414 | 2,255 | 2,277 | 18,893 | 10,629 | 9,754 | 2,159 | 111 | 1,041 | 1,632 | 3,579 | 73 | ||||||||||||||||||||||||||||||||||||
Dividends | 9,414 | 13,226 | 1,185 | 10,397 | 14,907 | 1,244 | 7,107 | 1,394 | 8,200 | 136 | 16,244 | 281 | ||||||||||||||||||||||||||||||||||||
Interest | 29,440 | 350 | - | - | - | - | - | - | - | - | - | 112 | ||||||||||||||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation | 139 | 110 | 64 | 167 | 226 | 97 | 91 | 15 | 79 | 12 | 242 | 27 | ||||||||||||||||||||||||||||||||||||
Other assets | 49 | 16 | 1,341 | 121 | 109 | 44 | 336 | 3 | 7,066 | 1 | 83 | 1 | ||||||||||||||||||||||||||||||||||||
Forward currency contracts | 2,758 | 8,327 | 594 | - | 14,656 | 1,809 | 5,084 | 774 | 4,662 | - | - | - | ||||||||||||||||||||||||||||||||||||
Total Assets | 5,740,780 | 4,603,845 | 2,620,928 | 6,839,820 | 9,219,587 | 4,000,915 | 3,913,802 | 629,300 | 3,280,156 | 519,385 | 9,875,587 | 1,102,636 | ||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||||||||||||||||||
Short sales, at value(2) | - | - | - | - | - | - | 141,812 | - | - | 1,693 | - | 5,188 | ||||||||||||||||||||||||||||||||||||
Options Written, at value(3) | - | 44,184 | - | - | 91 | - | 3,251 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Due to Custodian | - | 696 | - | - | - | - | - | 147 | - | 3 | - | 2,394 | ||||||||||||||||||||||||||||||||||||
Investments purchased | 54,478 | 75,014 | 8,480 | - | - | 26,610 | 42,501 | - | 36,029 | 17,861 | - | 9,030 | ||||||||||||||||||||||||||||||||||||
Fund shares repurchased | 7,088 | 3,025 | 2,509 | 11,271 | 5,917 | 3,220 | 1,883 | 391 | 1,924 | 302 | 3,463 | 290 | ||||||||||||||||||||||||||||||||||||
Dividends and distributions | 1,493 | 14 | 5 | - | - | 144 | - | 1 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Advisory fees | 2,597 | 2,256 | 1,412 | 3,530 | 5,000 | 2,075 | 1,990 | 304 | 1,803 | 264 | 5,310 | 583 | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class D Shares | 100 | 225 | 82 | N/A | 499 | 193 | 217 | 32 | 179 | 18 | 542 | 88 | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class R Shares | 17 | 1 | 11 | 45 | - | 1 | - | - | N/A | - | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class S Shares | 129 | 2 | 48 | 666 | 18 | 14 | 3 | 5 | - | 1 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class T Shares(4) | 623 | 400 | 189 | 1 | 842 | 401 | 307 | 56 | 292 | 51 | 945 | 45 | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 92 | 16 | 17 | 211 | 26 | 4 | 6 | 1 | - | 5 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 289 | 58 | 21 | 557 | 5 | 5 | 10 | 7 | - | 7 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | 34 | 1 | 21 | 91 | 1 | 1 | 1 | 1 | N/A | 1 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 129 | 2 | 48 | 666 | 18 | 14 | 3 | 5 | - | 1 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Networking fees - Class A Shares | - | 63 | 4 | 13 | - | 10 | 12 | 5 | - | - | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Networking fees - Class C Shares | - | 87 | 23 | 64 | - | 3 | 9 | 14 | - | - | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Networking fees - Class I Shares | - | - | - | 43 | - | - | - | - | - | - | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | 26 | 23 | 23 | - | 59 | 25 | 18 | 3 | 17 | - | 58 | 5 | ||||||||||||||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation fees | 139 | 110 | 64 | 167 | 226 | 97 | 91 | 15 | 79 | 12 | 242 | 27 | ||||||||||||||||||||||||||||||||||||
Foreign tax liability | - | 3,702 | - | - | 1,899 | - | 651 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Accrued expenses and other payables | 64 | 73 | 545 | 20 | 100 | 337 | 86 | 368 | 403 | 254 | 145 | 169 | ||||||||||||||||||||||||||||||||||||
Forward currency contracts | 903 | 871 | 437 | - | 1,781 | 1,321 | 2,193 | 53 | 628 | - | - | - | ||||||||||||||||||||||||||||||||||||
Total Liabilities | 68,201 | 130,823 | 13,939 | 17,345 | 16,482 | 34,475 | 195,044 | 1,408 | 41,354 | 20,473 | 10,705 | 17,819 | ||||||||||||||||||||||||||||||||||||
Net Assets | $ | 5,672,579 | $ | 4,473,022 | $ | 2,606,989 | $ | 6,822,475 | $ | 9,203,105 | $ | 3,966,440 | $ | 3,718,758 | $ | 627,892 | $ | 3,238,802 | $ | 498,912 | $ | 9,864,882 | $ | 1,084,817 |
124 | MARCH 31, 2010
See footnotes at the end of the Statement.
See Notes to Financial Statements.
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125
Statements of Assets and Liabilities (continued)
Janus | Janus | Janus | Janus Growth | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||||
As of March 31, 2010 (unaudited) | Balanced | Contrarian | Enterprise | Janus Forty | Janus | and Income | Janus Orion | Research | Research | Janus Triton | Twenty | Venture | ||||||||||||||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Fund | Fund | Fund | Fund | Fund | Fund | Fund | Core Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 4,926,843 | $ | 4,935,296 | $ | 3,702,309 | $ | 6,514,146 | $ | 12,186,705 | $ | 4,321,462 | $ | 4,435,584 | $ | 711,343 | $ | 6,211,028 | $ | 434,130 | $ | 7,202,241 | $ | 1,031,263 | ||||||||||||||||||||||||
Undistributed net investment income/(loss)* | 7,513 | 5,303 | (3,659) | (15,051) | 9,803 | 2,138 | 4,303 | 1,167 | 8,458 | (706) | (2,466) | (1,982) | ||||||||||||||||||||||||||||||||||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions* | 22,843 | (918,561) | (1,563,723) | (1,245,153) | (4,808,739) | (1,022,813) | (1,500,766) | (167,935) | (3,543,337) | (16,192) | (701,203) | (176,690) | ||||||||||||||||||||||||||||||||||||
Unrealized appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(5) | 715,380 | 450,984 | 472,062 | 1,568,533 | 1,815,336 | 665,653 | 779,637 | 83,317 | 562,653 | 81,680 | 3,366,310 | 232,226 | ||||||||||||||||||||||||||||||||||||
Total Net Assets | $ | 5,672,579 | $ | 4,473,022 | $ | 2,606,989 | $ | 6,822,475 | $ | 9,203,105 | $ | 3,966,440 | $ | 3,718,758 | $ | 627,892 | $ | 3,238,802 | $ | 498,912 | $ | 9,864,882 | $ | 1,084,817 | ||||||||||||||||||||||||
Net Assets - Class A Shares | $ | 448,355 | $ | 77,739 | $ | 81,222 | $ | 1,017,410 | $ | 147,492 | $ | 18,902 | $ | 30,792 | $ | 5,472 | $ | 288 | $ | 22,754 | N/A | N/A | ||||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 17,745 | 5,445 | 1,632 | 30,740 | 5,443 | 641 | 2,886 | 273 | 11 | 1,678 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 25.27 | $ | 14.28 | $ | 49.77 | $ | 33.10 | $ | 27.10 | $ | 29.51 | $ | 10.67 | $ | 20.04 | $ | 25.88 | $ | 13.56 | N/A | N/A | ||||||||||||||||||||||||||
Maximum Offering Price Per Share(7) | $ | 26.81 | $ | 15.15 | $ | 52.81 | $ | 35.12 | $ | 28.75 | $ | 31.31 | $ | 11.32 | $ | 21.26 | $ | 27.46 | $ | 14.39 | N/A | N/A | ||||||||||||||||||||||||||
Net Assets - Class C Shares | $ | 354,794 | $ | 70,499 | $ | 24,473 | $ | 672,803 | $ | 6,423 | $ | 5,398 | $ | 12,662 | $ | 8,654 | $ | 115 | $ | 9,375 | N/A | N/A | ||||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 14,040 | 4,965 | 495 | 21,153 | 238 | 183 | 1,194 | 434 | 4 | 692 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 25.27 | $ | 14.20 | $ | 49.47 | $ | 31.81 | $ | 26.97 | $ | 29.44 | $ | 10.61 | $ | 19.96 | $ | 25.76 | $ | 13.54 | N/A | N/A | ||||||||||||||||||||||||||
Net Assets - Class D Shares | $ | 987,532 | $ | 2,270,944 | $ | 808,073 | N/A | $ | 4,938,417 | $ | 1,911,305 | $ | 2,160,458 | $ | 320,269 | $ | 1,785,367 | $ | 183,828 | $ | 5,371,421 | $ | 870,025 | |||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 39,092 | 158,789 | 16,215 | N/A | 182,182 | 64,787 | 202,244 | 16,014 | 68,922 | 13,554 | 83,963 | 18,548 | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 25.26 | $ | 14.30 | $ | 49.83 | N/A | $ | 27.11 | $ | 29.50 | $ | 10.68 | $ | 20.00 | $ | 25.90 | $ | 13.56 | $ | 63.97 | $ | 46.91 | |||||||||||||||||||||||||
Net Assets - Class I Shares | $ | 199,716 | $ | 104,325 | $ | 525,041 | $ | 1,723,096 | $ | 127,281 | $ | 59,282 | $ | 31,208 | $ | 5,369 | $ | 50,777 | $ | 20,137 | N/A | N/A | ||||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,908 | 7,294 | 10,524 | 51,818 | 4,692 | 2,010 | 2,920 | 268 | 1,960 | 1,482 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 25.25 | $ | 14.30 | $ | 49.89 | $ | 33.25 | $ | 27.13 | $ | 29.49 | $ | 10.69 | $ | 20.00 | $ | 25.91 | $ | 13.59 | N/A | N/A | ||||||||||||||||||||||||||
Net Assets - Class R Shares | $ | 83,895 | $ | 3,107 | $ | 51,333 | $ | 222,503 | $ | 1,221 | $ | 2,181 | $ | 2,380 | $ | 1,402 | N/A | $ | 2,190 | N/A | N/A | |||||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,321 | 218 | 1,035 | 6,908 | 45 | 74 | 224 | 70 | N/A | 161 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 25.26 | $ | 14.25 | $ | 49.62 | $ | 32.21 | $ | 27.02 | $ | 29.49 | $ | 10.64 | $ | 19.99 | N/A | $ | 13.60 | N/A | N/A | |||||||||||||||||||||||||||
Net Assets - Class S Shares | $ | 617,392 | $ | 8,675 | $ | 228,393 | $ | 3,180,540 | $ | 83,553 | $ | 67,867 | $ | 14,583 | $ | 23,232 | $ | 13 | $ | 7,643 | N/A | N/A | ||||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 24,425 | 608 | 4,594 | 97,274 | 3,084 | 2,300 | 1,368 | 1,161 | 489(8) | 564 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 25.28 | $ | 14.28 | $ | 49.71 | $ | 32.70 | $ | 27.09 | $ | 29.51 | $ | 10.66 | $ | 20.02 | $ | 25.82 | $ | 13.55 | N/A | N/A | ||||||||||||||||||||||||||
Net Assets - Class T Shares(4) | $ | 2,980,895 | $ | 1,937,733 | $ | 888,454 | $ | 6,123 | $ | 3,898,718 | $ | 1,901,505 | $ | 1,466,675 | $ | 263,494 | $ | 1,402,242 | $ | 252,985 | $ | 4,493,461 | $ | 214,792 | ||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 118,005 | 135,511 | 17,831 | 187 | 143,850 | 64,458 | 137,321 | 13,178 | 54,141 | 18,656 | 70,251 | 4,580 | ||||||||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 25.26 | $ | 14.30 | $ | 49.83 | $ | 32.75 | $ | 27.10 | $ | 29.50 | $ | 10.68 | $ | 20.00 | $ | 25.90 | $ | 13.56 | $ | 63.96 | $ | 46.90 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of $2,088,427 for Janus Orion Fund. | |
(2) | Includes proceeds of $130,868,368, $1,164,843, and $4,029,046 on short sales for Janus Orion Fund, Janus Triton Fund, and Janus Venture Fund, respectively. | |
(3) | Includes premiums of $72,148,945, $484,200 and $3,928,171 on written options for Janus Contrarian Fund, Janus Fund and Janus Orion Fund, respectively. | |
(4) | Formerly named Class J Shares for all Funds except Janus Forty Fund. | |
(5) | Net of foreign tax on investments of $3,701,828, $1,899,067 and $650,872 for Janus Contrarian Fund, Janus Fund and Janus Orion Fund, respectively. | |
(6) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(7) | Maximum offering price is computed at 100/94.25 of net asset value. | |
(8) | Shares outstanding are not in thousands. |
126 | MARCH 31, 2010
See Notes to Financial Statements.
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127
Statements of Operations
Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||
For the five- or six-month period ended March 31, 2010 (unaudited) | Balanced | Contrarian | Enterprise | Forty | Janus | Growth and Income | Janus Orion | Research | Research | Triton | Twenty | Venture | ||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | Fund(1) | Fund(1) | Fund(1) | Fund | Fund(1) | Fund(1) | Fund(1) | Core Fund(1) | Fund(1) | Fund(1) | Fund(1) | Fund(1) | ||||||||||||||||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest | $ | 46,225 | $ | 1,183 | $ | - | $ | - | $ | - | $ | 2,262 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 42 | ||||||||||||||||||||||||
Interest proceeds from short sales | - | - | - | - | - | - | 6 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Dividends | 24,631 | 25,511 | 6,121 | 19,611 | 42,468 | 26,033 | 18,639 | 4,097 | 21,910 | 1,512 | 32,543 | 1,400 | ||||||||||||||||||||||||||||||||||||
Dividends from affiliates | 111 | 16 | 45 | 512 | 238 | 116 | 84 | 1 | 16 | 28 | 229 | 363 | ||||||||||||||||||||||||||||||||||||
Foreign tax withheld | (874) | (458) | (156) | (910) | (769) | (1,145) | 68 | (49) | (417) | (8) | (1,351) | (18) | ||||||||||||||||||||||||||||||||||||
Total Investment Income | 70,093 | 26,252 | 6,010 | 19,213 | 41,937 | 27,266 | 18,797 | 4,049 | 21,509 | 1,532 | 31,421 | 1,787 | ||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Advisory fees | 11,795 | 11,306 | 6,566 | 19,759 | 23,519 | 9,941 | 9,220 | 1,543 | 9,728 | 1,089 | 25,128 | 2,672 | ||||||||||||||||||||||||||||||||||||
Registration fees | 103 | 72 | 125 | 166 | 93 | 63 | 57 | 53 | 27 | 53 | 32 | 15 | ||||||||||||||||||||||||||||||||||||
Custodian fees | 33 | 62 | 15 | 66 | 48 | 40 | 128 | 8 | 67 | 9 | 66 | 16 | ||||||||||||||||||||||||||||||||||||
Audit fees | 11 | 11 | 11 | 15 | 10 | 11 | 11 | 10 | 12 | 9 | 11 | 10 | ||||||||||||||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | 70 | 58 | 39 | 89 | 135 | 58 | 48 | 8 | 44 | 4 | 142 | 14 | ||||||||||||||||||||||||||||||||||||
Short sales dividend expense | - | - | - | - | - | - | 108 | - | - | - | - | 44 | ||||||||||||||||||||||||||||||||||||
Short sales interest expense | - | - | - | - | - | - | 4 | - | - | 3 | - | 26 | ||||||||||||||||||||||||||||||||||||
Stock loan fees | - | - | - | - | - | - | 24 | - | - | 1 | - | 24 | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class D Shares | 137 | 309 | 112 | N/A | 686 | 265 | 298 | 45 | 245 | 25 | 744 | 119 | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class R Shares | 67 | 3 | 49 | 229 | 1 | 2 | 2 | 1 | N/A | 1 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class S Shares | 585 | 7 | 229 | 3,707 | 87 | 71 | 15 | 24 | - | 6 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Administrative fees - Class T Shares(2) | 3,190 | 2,661 | 1,167 | 3 | 5,708 | 2,617 | 2,143 | 387 | 2,002 | 273 | 6,300 | 489 | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 400 | 76 | 82 | 1,218 | 63 | 20 | 28 | 6 | - | 18 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 1,231 | 281 | 96 | 2,974 | 26 | 21 | 45 | 35 | - | 30 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | 134 | 6 | 98 | 458 | 2 | 4 | 4 | 3 | N/A | 3 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 585 | 7 | 229 | 3,707 | 87 | 71 | 15 | 24 | - | 6 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Networking fees - Class A Shares | 38 | 59 | 24 | 348 | 2 | 8 | 16 | 4 | - | 1 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Networking fees - Class C Shares | 50 | 79 | 18 | 425 | 2 | 3 | 9 | 12 | - | - | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Networking fees - Class I Shares | 10 | 11 | 7 | 350 | 2 | 1 | 2 | - | - | - | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Other expenses | 476 | 1,093 | 761 | 740 | 1,500 | 909 | 1,090 | 331 | 950 | 210 | 1,270 | 318 | ||||||||||||||||||||||||||||||||||||
Non-recurring costs (Note 4) | 1 | - | - | - | 1 | 1 | - | - | 1 | N/A | 1 | - | ||||||||||||||||||||||||||||||||||||
Costs assumed by Janus Capital Management LLC (Note 4) | (1) | - | - | - | (1) | (1) | - | - | (1) | N/A | (1) | - | ||||||||||||||||||||||||||||||||||||
Total Expenses | 18,915 | 16,101 | 9,628 | 34,254 | 31,971 | 14,105 | 13,267 | 2,494 | 13,075 | 1,741 | 33,693 | 3,747 | ||||||||||||||||||||||||||||||||||||
Expense and Fee Offset | (4) | (22) | (15) | - | (37) | (20) | (25) | (4) | (22) | (2) | (25) | - | ||||||||||||||||||||||||||||||||||||
Net Expenses | 18,911 | 16,079 | 9,613 | 34,254 | 31,934 | 14,085 | 13,242 | 2,490 | 13,053 | 1,739 | 33,668 | 3,747 | ||||||||||||||||||||||||||||||||||||
Less: Excess Expense Reimbursement | - | (23) | - | (100) | - | (5) | - | (185) | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Net Expenses after Expense Reimbursement | 18,911 | 16,056 | 9,613 | 34,154 | 31,934 | 14,080 | 13,242 | 2,305 | 13,053 | 1,739 | 33,668 | 3,747 | ||||||||||||||||||||||||||||||||||||
Net Investment Income/(Loss) | 51,182 | 10,196 | (3,603) | (14,941) | 10,003 | 13,186 | 5,555 | 1,744 | 8,456 | (207) | (2,247) | (1,960) | ||||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 135,355 | 317,105 | 63,007 | (49,628) | 299,122 | 158,900 | 447,428 | 6,371 | 79,276 | 8,658 | 100,086 | (3,044) | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from futures contracts | (1,657) | - | - | - | - | - | (4,336) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from short sales | - | - | - | - | - | - | (1,617) | - | - | (522) | - | 553 | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from swap contracts | - | - | - | - | - | - | 2,586 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from options contracts | - | (13,780) | - | - | 466 | - | 4,237 | - | - | - | - | 739 | ||||||||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(3) | 242,996 | 525,708 | 330,305 | 568,625 | 781,044 | 259,683 | 123,299 | 61,752 | 353,243 | 55,376 | 991,967 | 197,129 | ||||||||||||||||||||||||||||||||||||
Net Gain/(Loss) on Investments | 376,694 | 829,033 | 393,312 | 518,997 | 1,080,632 | 418,583 | 571,597 | 68,123 | 432,519 | 63,512 | 1,092,053 | 195,377 | ||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 427,876 | $ | 839,229 | $ | 389,709 | $ | 504,056 | $ | 1,090,635 | $ | 431,769 | $ | 577,152 | $ | 69,867 | $ | 440,975 | $ | 63,305 | $ | 1,089,806 | $ | 193,417 |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Formerly named Class J Shares for all Funds except Janus Forty Fund. | |
(3) | Net of foreign tax on investments of $3,701,828, $1,899,067 and $650,872 for Janus Contrarian Fund, Janus Fund and Janus Orion Fund, respectively. |
128 | MARCH 31, 2010
See Notes to Financial Statements.
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129
Statements of Changes in Net Assets
For the five- or six-month period ended March 31, 2010 (unaudited), | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 | Balanced | Contrarian | Enterprise | Forty | Growth and | |||||||||||||||||||||||||||||||||||||||||||||||
and the fiscal years ended July 31, 2009 or October 31, 2009 | Fund | Fund | Fund | Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | |||||||||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | 51,182 | $ | 82,015 | $ | 10,196 | $ | 304 | $ | (3,603) | $ | (1,440) | $ | (14,941) | $ | (7,028) | $ | (12,383)(5) | $ | 10,003 | $ | 36,057 | $ | 13,186 | $ | 39,564 | ||||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 135,355 | (66,509) | 317,105 | (970,261) | 63,007 | (248,916) | (49,628) | (81,573) | (1,002,691)(5) | 299,122 | (1,697,312) | 158,900 | (627,685) | |||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from futures contracts | (1,657) | - | - | - | - | - | - | - | (27,551) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from short sales | - | - | - | (5,566) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from swap contracts | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from options contracts | - | - | (13,780) | (239,677) | - | - | - | - | 456 | 466 | 30,877 | - | (59,830) | |||||||||||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 242,996 | 656,231 | 525,708 | 1,525,672 | 330,305 | 538,854 | 568,625 | 323,215 | (458,778)(5) | 781,044 | 2,960,657 | 259,683 | 1,310,185 | |||||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 427,876 | 671,737 | 839,229 | 310,472 | 389,709 | 288,498 | 504,056 | 234,614 | (1,500,947) | 1,090,635 | 1,330,279 | 431,769 | 662,234 | |||||||||||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income* | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (3,396) | (1,386) | - | - | - | - | - | - | - | (45) | - | (47) | (21) | |||||||||||||||||||||||||||||||||||||||
Class C Shares | (1,325) | (685) | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class D Shares | (4,695) | N/A | - | N/A | - | N/A | N/A | N/A | N/A | - | N/A | (3,325) | N/A | |||||||||||||||||||||||||||||||||||||||
Class I Shares | (1,725) | (278) | (83) | - | - | - | - | - | - | (43) | - | (195) | (3) | |||||||||||||||||||||||||||||||||||||||
Class R Shares | (435) | (152) | - | - | - | - | - | - | - | - | - | (1) | - | |||||||||||||||||||||||||||||||||||||||
Class S Shares | (3,989) | (1,946) | - | - | - | - | - | - | - | - | - | (82) | (49) | |||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | (27,871) | (87,861) | (1,643) | (18,634) | - | - | - | - | - | (5,694) | (96,855) | (9,452) | (37,774) | |||||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment transactions* | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | - | - | - | - | - | - | (47,005) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | - | - | - | (18,207) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | N/A | N/A | N/A | - | N/A | - | N/A | |||||||||||||||||||||||||||||||||||||||
Class I Shares | - | - | - | - | - | - | - | - | (21,827) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class R Shares | - | - | - | - | - | - | - | - | (4,420) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | - | - | - | - | - | (108,361) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | - | (68,357) | - | (127,435) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Return of Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | N/A | (11) | N/A | N/A | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Class C Shares | N/A | (6) | N/A | N/A | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Class I Shares | N/A | (2) | N/A | N/A | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | (1) | N/A | N/A | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Class S Shares | N/A | (16) | N/A | N/A | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | N/A | (407) | N/A | (1,859) | N/A | N/A | N/A | N/A | - | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
Net (Decrease) from Dividends and Distributions | (43,436) | (161,108) | (1,726) | (147,928) | - | - | - | - | (199,820) | (5,782) | (96,855) | (13,102) | (37,847) |
130 | MARCH 31, 2010
See footnotes at the end of the Statement.
See Notes to Financial Statements.
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131
Statements of Changes in Net Assets (continued)
For the five- or six-month period ended March 31, 2010 (unaudited), | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 | Balanced | Contrarian | Enterprise | Forty | Growth and | |||||||||||||||||||||||||||||||||||||||||||||||
and the fiscal years ended July 31, 2009 or October 31, 2009 | Fund | Fund | Fund | Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | |||||||||||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | 134,635 | 94,630 | 4,485 | 5,459 | 9,902 | 9,110 | 254,572 | 154,502 | 1,918,969 | 151,886 | 1,978 | 740 | 1,116 | |||||||||||||||||||||||||||||||||||||||
Class C Shares | 101,685 | 80,039 | 3,517 | 2,844 | 1,833 | 2,479 | 144,039 | 51,950 | 663,907 | 1,255 | 494 | 403 | 491 | |||||||||||||||||||||||||||||||||||||||
Class D Shares | 14,787 | N/A | 14,124 | N/A | 5,304 | N/A | N/A | N/A | N/A | 14,551 | N/A | 10,388 | N/A | |||||||||||||||||||||||||||||||||||||||
Class I Shares | 111,458 | 62,887 | 43,420 | 43,446 | 76,168 | 72,432 | 1,021,335 | 84,415 | 964,866 | 98,293 | 14,638 | 54,262 | 5,901 | |||||||||||||||||||||||||||||||||||||||
Class R Shares | 35,485 | 29,554 | 356 | 196 | 6,060 | 7,905 | 68,368 | 13,711 | 215,202 | 529 | 293 | 305 | 215 | |||||||||||||||||||||||||||||||||||||||
Class S Shares | 135,912 | 67,087 | 3,708 | 1,786 | 17,266 | 21,057 | 475,846 | 174,634 | 3,791,339 | 9,816 | 5,527 | 5,622 | 3,369 | |||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | 515,064 | 1,099,177 | 119,441 | 350,283 | 59,066 | 229,687 | 5,788 | 371 | 1 | 316,301 | 1,032,025 | 96,135 | 245,940 | |||||||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | 936,300 | N/A | 2,080,686 | N/A | 750,225 | N/A | N/A | N/A | N/A | 4,642,520 | N/A | 1,816,396 | N/A | |||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | N/A | 230,834 | N/A | 90,442 | N/A | 81,741 | N/A | N/A | N/A | N/A | 6,877 | N/A | 33,776 | |||||||||||||||||||||||||||||||||||||||
Class C Shares | N/A | 157,683 | N/A | 76,851 | N/A | 21,758 | N/A | N/A | N/A | N/A | 4,751 | N/A | 3,384 | |||||||||||||||||||||||||||||||||||||||
Class I Shares | N/A | 46,096 | N/A | 16,860 | N/A | 365,389 | N/A | N/A | N/A | N/A | 18,670 | N/A | 1,370 | |||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | 25,133 | N/A | 2,074 | N/A | 33,459 | N/A | N/A | N/A | N/A | 590 | N/A | 2,645 | |||||||||||||||||||||||||||||||||||||||
Class S Shares | N/A | 409,342 | N/A | 4,907 | N/A | 190,930 | N/A | N/A | N/A | N/A | 74,574 | N/A | 48,609 | |||||||||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | 2,847 | 1,129 | - | - | - | - | - | - | 19,460 | 44 | - | 45 | 20 | |||||||||||||||||||||||||||||||||||||||
Class C Shares | 958 | 499 | - | - | - | - | - | - | 8,743 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Class D Shares | 4,578 | N/A | - | N/A | - | N/A | N/A | N/A | N/A | - | N/A | 3,238 | N/A | |||||||||||||||||||||||||||||||||||||||
Class I Shares | 1,023 | 260 | 41 | - | - | - | - | - | 11,587 | 35 | - | 171 | 3 | |||||||||||||||||||||||||||||||||||||||
Class R Shares | 361 | 120 | - | - | - | - | - | - | 3,316 | - | - | 1 | - | |||||||||||||||||||||||||||||||||||||||
Class S Shares | 3,955 | 1,944 | - | - | - | - | - | - | 107,230 | - | - | 81 | 48 | |||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | 27,452 | 153,711 | 1,609 | 143,558 | - | - | - | - | - | 5,562 | 94,594 | 9,269 | 36,921 | |||||||||||||||||||||||||||||||||||||||
Shares repurchased | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (32,271) | (38,326) | (9,554) | (17,010) | (15,741) | (15,927) | (769,857) | (100,509) | (1,806,596) | (14,632) | (2,632) | (3,127) | (2,625) | |||||||||||||||||||||||||||||||||||||||
Class C Shares | (18,129) | (9,932) | (10,330) | (7,338) | (2,618) | (2,119) | (60,896) | (18,579) | (574,856) | (970) | (343) | (312) | (408) | |||||||||||||||||||||||||||||||||||||||
Class D Shares | (13,736) | N/A | (38,004) | N/A | (11,668) | N/A | N/A | N/A | N/A | (61,015) | N/A | (57,316) | N/A | |||||||||||||||||||||||||||||||||||||||
Class I Shares | (27,213) | (7,118) | (12,441) | (2,630) | (41,490) | (39,192) | (181,005) | (31,504) | (874,752) | (5,178) | (1,314) | (5,964) | (165) | |||||||||||||||||||||||||||||||||||||||
Class R Shares | (6,353) | (8,626) | (366) | (241) | (5,877) | (3,932) | (20,154) | (5,242) | (155,894) | (216) | (102) | (129) | (358) | |||||||||||||||||||||||||||||||||||||||
Class S Shares | (67,474) | (42,738) | (801) | (2,864) | (42,137) | (19,809) | (413,115) | (235,083) | (4,093,540) | (21,038) | (15,612) | (11,406) | (7,540) | |||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | (295,965) | (567,449) | (322,073) | (947,072) | (134,832) | (344,565) | (317) | - | - | (598,213) | (1,775,700) | (273,154) | (621,124) | |||||||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(6) | (935,322) | N/A | (2,094,379) | N/A | (750,598) | N/A | N/A | N/A | N/A | (4,642,304) | N/A | (1,819,551) | N/A | |||||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 630,037 | 1,785,936 | (216,561) | (238,449) | (79,137) | 610,403 | 524,604 | 88,666 | 198,982 | (102,774) | (540,692) | (173,903) | (248,412) | |||||||||||||||||||||||||||||||||||||||
Net Increase/Decrease in Net Assets | 1,014,477 | 2,296,565 | 620,942 | (75,905) | 310,572 | 898,901 | 1,028,660 | 323,280 | (1,501,785) | 982,079 | 692,732 | 244,764 | 375,975 | |||||||||||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 4,658,102 | 2,361,537 | 3,852,080 | 3,927,985 | 2,296,417 | 1,397,516 | 5,793,815 | 5,470,535 | 6,972,320 | 8,221,026 | 7,528,294 | 3,721,676 | 3,345,701 | |||||||||||||||||||||||||||||||||||||||
End of period | $ | 5,672,579 | $ | 4,658,102 | $ | 4,473,022 | $ | 3,852,080 | $ | 2,606,989 | $ | 2,296,417 | $ | 6,822,475 | $ | 5,793,815 | $ | 5,470,535 | $ | 9,203,105 | $ | 8,221,026 | $ | 3,966,440 | $ | 3,721,676 | ||||||||||||||||||||||||||
Undistributed net investment income/(loss)* | $ | 7,513 | $ | (233) | $ | 5,303 | $ | (3,167) | $ | (3,659) | $ | (56) | $ | (15,051) | $ | (110) | $ | (1,110)(5) | $ | 9,803 | $ | 5,582 | $ | 2,138 | $ | 2,054 |
* | See Note 5 in Notes to Financial Statements | |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from November 1, 2008 through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Prior year amounts have been reclassified due to the recharacterization of dividend income to return of capital with no impact to net assets. | |
(6) | Formerly named Class J Shares for all Funds except Janus Forty Fund. |
132 | MARCH 31, 2010
See Notes to Financial Statements.
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133
Statements of Changes in Net Assets (continued)
Janus | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||||||
For the five-month period ended March 31, 2010 (unaudited) | Orion | Research | Research | Triton | Twenty | Venture | ||||||||||||||||||||||||||||||||||||||||||
and the fiscal year ended October 31, 2009 | Fund | Core Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2010(1) | 2009 | 2010(1) | 2009 | 2010(1) | 2009 | 2010(1) | 2009 | 2010(1) | 2009 | 2010(1) | 2009 | ||||||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | 5,555 | $ | 3,436 | $ | 1,744 | $ | 4,207 | $ | 8,456 | $ | 14,867 | $ | (207) | $ | 169 | $ | (2,247) | $ | (7,985) | $ | (1,960) | $ | (3,689) | ||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 447,428 | (1,148,994) | 6,371 | (153,918) | 79,276 | (648,661) | 8,658 | (15,104) | 100,086 | 7,848 | (3,044) | (156,432) | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from futures contracts | (4,336) | (75,144) | - | - | - | - | - | - | - | (31,492) | - | - | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from short sales | (1,617) | (16,120) | - | - | - | - | (522) | 561 | - | - | 553 | 90 | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from swap contracts | 2,586 | 28,469 | - | - | - | 2,642 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from options contracts | 4,237 | (13,065) | - | 12 | - | 596 | - | 77 | - | 831 | 739 | (235) | ||||||||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 123,299 | 1,902,262 | 61,752 | 229,183 | 353,243 | 1,180,316 | 55,376 | 72,013 | 991,967 | 1,724,202 | 197,129 | 371,760 | ||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 577,152 | 680,844 | 69,867 | 79,484 | 440,975 | 549,760 | 63,305 | 57,716 | 1,089,806 | 1,693,404 | 193,417 | 211,494 | ||||||||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income* | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | (12) | - | - | - | (23) | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | - | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | ||||||||||||||||||||||||||||||||||||
Class I Shares | (13) | - | (10) | - | (50) | - | (14) | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | - | - | - | - | N/A | N/A | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | (24) | - | - | - | (6) | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class T Shares(2) | (1,030) | (24,663) | (1,569) | (8,146) | (7,477) | (20,900) | (548) | (60) | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment transactions* | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | - | - | - | - | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | - | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | ||||||||||||||||||||||||||||||||||||
Class I Shares | - | - | - | - | - | - | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | - | - | - | - | N/A | N/A | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | - | - | - | - | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class T Shares(2) | - | - | - | (18,689) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Return of Capital | ||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(2) | N/A | (2,380) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | (1,411) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Net (Decrease) from Dividends and Distributions | (1,043) | (27,043) | (1,615) | (26,835) | (7,527) | (20,900) | (591) | (60) | - | (1,411) | - | - |
134 | MARCH 31, 2010
See footnotes at the end of the Statement.
See Notes to Financial Statements.
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135
Statements of Changes in Net Assets (continued)
For the five- or six-month period ended March 31, 2010 (unaudited), | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||||||||||||||||
the two-month fiscal period ended September 30, 2009 | Balanced | Contrarian | Enterprise | Forty | Growth and | |||||||||||||||||||||||||||||||||||||||||||||||
and the fiscal years ended July 31, 2009 or October 31, 2009 | Fund | Fund | Fund | Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | |||||||||||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | 5,035 | 2,765 | 86 | 91 | 179 | 89 | 8,698 | 11,395 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class C Shares | 2,601 | 801 | 172 | 96 | 38 | 69 | 3,142 | 2,774 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class D Shares | 24,845 | N/A | 1,504 | N/A | 8,570 | N/A | 10,602 | N/A | 17,639 | N/A | 5,553 | N/A | ||||||||||||||||||||||||||||||||||||||||
Class I Shares | 20,471 | 8,481 | 2,863 | 1,773 | 41,366 | 7,266 | 16,212 | 3,786 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class R Shares | 760 | 494 | 90 | 38 | N/A | N/A | 930 | 407 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class S Shares | 1,873 | 4,793 | 1,644 | 1,362 | 1 | 11 | 3,982 | 3,011 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class T Shares(2) | 157,592 | 304,003 | 8,969 | 29,864 | 91,031 | 220,437 | 99,980 | 197,026 | 197,418 | 468,313 | 8,239 | 19,837 | ||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | 2,003,611 | N/A | 300,162 | N/A | 1,672,534 | N/A | 161,907 | N/A | 4,996,304 | N/A | 778,198 | N/A | ||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | N/A | 21,320 | N/A | 12,273 | N/A | N/A | N/A | 5,739 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class C Shares | N/A | 7,379 | N/A | 8,089 | N/A | N/A | N/A | 3,039 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class I Shares | N/A | 1,203 | N/A | 1,139 | N/A | N/A | N/A | 774 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class R Shares | N/A | 543 | N/A | 1,391 | N/A | N/A | N/A | 910 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class S Shares | N/A | 6,068 | N/A | 26,045 | N/A | N/A | N/A | 815 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | - | - | 12 | - | 1 | N/A | 23 | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class C Shares | - | - | - | - | - | N/A | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class D Shares | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | - | N/A | ||||||||||||||||||||||||||||||||||||||||
Class I Shares | 2 | - | 4 | - | 26 | N/A | 6 | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class R Shares | - | - | - | - | N/A | N/A | - | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class S Shares | - | - | 24 | - | - | N/A | 6 | - | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class T Shares(2) | 1,013 | 26,546 | 1,542 | 26,351 | 7,368 | 20,515 | 543 | 60 | - | 1,381 | - | - | ||||||||||||||||||||||||||||||||||||||||
Shares repurchased | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (2,514) | (4,160) | (1,388) | (1,396) | (3) | - | (2,235) | (4,824) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class C Shares | (1,276) | (860) | (703) | (537) | (5) | - | (873) | (321) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class D Shares | (41,925) | N/A | (5,143) | N/A | (45,929) | N/A | (4,207) | N/A | (58,625) | N/A | (12,445) | N/A | ||||||||||||||||||||||||||||||||||||||||
Class I Shares | (1,556) | (194) | (418) | (233) | (2,079) | (92) | (1,840) | (28) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class R Shares | (286) | (139) | (137) | (153) | N/A | N/A | (130) | (114) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class S Shares | (2,892) | (510) | (3,779) | (8,558) | (1) | - | (981) | (128) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Class T Shares(2) | (207,312) | (536,130) | (38,119) | (111,596) | (183,294) | (470,609) | (35,278) | (60,462) | (396,135) | (816,669) | (31,127) | (70,827) | ||||||||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class T Shares(2) | (2,008,478) | N/A | (302,883) | N/A | (1,681,516) | N/A | (168,656) | N/A | (4,997,782) | N/A | (778,402) | N/A | ||||||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (48,436) | (157,597) | (35,498) | (13,961) | (91,713) | (222,314) | 91,831 | 163,859 | (241,181) | (346,975) | (29,984) | (50,990) | ||||||||||||||||||||||||||||||||||||||||
Net Increase/Decrease in Net Assets | 527,673 | 496,204 | 32,754 | 38,688 | 341,735 | 306,546 | 154,545 | 221,515 | 848,625 | 1,345,018 | 163,433 | 160,504 | ||||||||||||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 3,191,085 | 2,694,881 | 595,138 | 556,450 | 2,897,067 | 2,590,521 | 344,367 | 122,852 | 9,016,257 | 7,671,239 | 921,384 | 760,880 | ||||||||||||||||||||||||||||||||||||||||
End of period | $ | 3,718,758 | $ | 3,191,085 | $ | 627,892 | $ | 595,138 | $ | 3,238,802 | $ | 2,897,067 | $ | 498,912 | $ | 344,367 | $ | 9,864,882 | $ | 9,016,257 | $ | 1,084,817 | $ | 921,384 | ||||||||||||||||||||||||||||
Undistributed net investment income/(loss)* | $ | 4,303 | $ | (209) | $ | 1,167 | $ | 1,038 | $ | 8,458 | $ | 7,529 | $ | (706) | $ | 92 | $ | (2,466) | $ | (219) | $ | (1,982) | $ | (22) |
* | See Note 5 in Notes to Financial Statements | |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Formerly named Class J Shares. |
136 | MARCH 31, 2010
See Notes to Financial Statements.
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137
Financial Highlights
Class A Shares
For a share outstanding during the five-month period ended | Janus Balanced Fund | Janus Contrarian Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.43 | $21.31 | $11.68 | $10.42 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .27 | (.05) | .02 | (.02) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.78 | 2.28 | 2.58 | 1.28 | ||||||||||||||
Total from Investment Operations | 2.05 | 2.23 | 2.60 | 1.26 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.21) | (.11) | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Return of Capital | N/A | –(3) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (.21) | (.11) | – | – | ||||||||||||||
Net Asset Value, End of Period | $25.27 | $23.43 | $14.28 | $11.68 | ||||||||||||||
Total Return** | 8.75% | 10.43% | 22.26% | 12.09% | ||||||||||||||
Net Assets, End of Period (in thousands) | $448,355 | $314,935 | $77,739 | $68,166 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $386,667 | $288,992 | $73,459 | $76,549 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.86% | 0.89% | 1.17% | 1.36% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.86% | 0.89% | 1.17% | 1.34% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.43% | 2.35% | 0.34% | (0.36)% | ||||||||||||||
Portfolio Turnover Rate*** | 71% | 158% | 92% | 80% |
Class A Shares
For a share outstanding during the five-month period ended | Janus Enterprise Fund | |||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | ||||||||
Net Asset Value, Beginning of Period | $42.46 | $36.63 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.09) | – | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.40 | 5.83 | ||||||||
Total from Investment Operations | 7.31 | 5.83 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $49.77 | $42.46 | ||||||||
Total Return** | 17.22% | 15.92% | ||||||||
Net Assets, End of Period (in thousands) | $81,222 | $74,709 | ||||||||
Average Net Assets for the Period (in thousands) | $79,395 | $79,792 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.05% | 1.20% | ||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.05% | 1.19% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.47)% | (0.23)% | ||||||||
Portfolio Turnover Rate*** | 20% | 41% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. |
138 | MARCH 31, 2010
Financial Highlights (continued)
Class A Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended March 31, 2010 (unaudited), the two-month | ||||||||||||||||||||||||||||||
fiscal period ended September 30, 2009 and each | Janus Forty Fund | |||||||||||||||||||||||||||||
fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $30.52 | $29.27 | $39.79 | $34.52 | $28.44 | $27.41 | $22.32 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | .02 | .01 | .03 | .03 | .04 | .06 | .02 | |||||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.56 | 1.24 | (9.30) | 5.32 | 7.11 | .97 | 5.07 | |||||||||||||||||||||||
Total from Investment Operations | 2.58 | 1.25 | (9.27) | 5.35 | 7.15 | 1.03 | 5.09 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | (.07) | (.03) | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | (1.25) | (.01) | (1.04) | – | – | |||||||||||||||||||||||
Return of Capital | N/A | N/A | –(3) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | – | – | (1.25) | (.08) | (1.07) | – | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $33.10 | $30.52 | $29.27 | $39.79 | $34.52 | $28.44 | $27.41 | |||||||||||||||||||||||
Total Return** | 8.45% | 4.27% | (22.29)% | 15.49% | 25.58% | 3.76% | 22.80% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,017,410 | $1,440,986 | $1,328,541 | $1,639,379 | $654,807 | $285,721 | $30,042 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $977,287 | $1,373,788 | $1,060,695 | $1,152,690 | $377,917 | $216,262 | $7,814 | |||||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.99% | 0.97% | 0.93% | 0.92% | 0.95%(5) | 0.93%(5) | 0.92% | |||||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.99% | 0.97% | 0.93% | 0.92% | 0.94%(5) | 0.93%(5) | 0.91% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.21)% | (0.61)% | (0.11)%(6) | (0.02)%(6) | 0.33% | 0.39% | 0.13% | |||||||||||||||||||||||
Portfolio Turnover Rate*** | 44% | 22% | 53% | 40% | 22% | 55% | 45% |
Class A Shares
Janus | ||||||||||||||||||
Growth and Income | ||||||||||||||||||
For a share outstanding during the five-month period ended | Janus Fund | Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(7) | 2009(8) | 2010(7) | 2009(8) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.96 | $20.86 | $26.47 | $23.24 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .03 | .01 | .08 | .03 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.14 | 3.09 | 3.03 | 3.23 | ||||||||||||||
Total from Investment Operations | 3.17 | 3.10 | 3.11 | 3.26 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.03) | – | (.07) | (.03) | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.03) | – | (.07) | (.03) | ||||||||||||||
Net Asset Value, End of Period | $27.10 | $23.96 | $29.51 | $26.47 | ||||||||||||||
Total Return** | 13.24% | 14.86% | 11.76% | 14.02% | ||||||||||||||
Net Assets, End of Period (in thousands) | $147,492 | $4,237 | $18,902 | $19,157 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $61,363 | $5,256 | $19,202 | $19,612 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.96% | 1.04% | 1.00% | 0.99% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.96% | 1.03% | 1.00% | 0.98% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.45% | 0.09% | 0.69% | 0.31% | ||||||||||||||
Portfolio Turnover Rate*** | 41% | 60% | 45% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from September 30, 2004 (inception date) through July 31, 2005. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.92% and 0.92%, respectively, in 2007 and 0.92% and 0.92%, respectively, in 2006 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.12% in 2008. The adjustment had no impact on total net assets or total return of the class. | |
(7) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(8) | Period from July 6, 2009 (inception date) through October 31, 2009. |
139 | MARCH 31, 2010
Financial Highlights (continued)
Class A Shares
For a share outstanding during the five-month period ended | Janus Orion Fund | Janus Research Core Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.03 | $7.59 | $17.94 | $15.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .01 | (.01) | .06 | .04 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.63 | 1.45 | 2.08 | 2.46 | ||||||||||||||
Total from Investment Operations | 1.64 | 1.44 | 2.14 | 2.50 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | (.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | (.04) | – | ||||||||||||||
Net Asset Value, End of Period | $10.67 | $9.03 | $20.04 | $17.94 | ||||||||||||||
Total Return** | 18.16% | 18.97% | 11.94% | 16.19% | ||||||||||||||
Net Assets, End of Period (in thousands) | $30,792 | $23,859 | $5,472 | $6,107 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $27,322 | $24,760 | $5,832 | $6,725 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.13%(4) | 1.18%(4) | 0.94% | 0.95% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.13%(4) | 1.16%(4) | 0.94% | 0.93% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.19% | (0.36)% | 0.61% | 0.57% | ||||||||||||||
Portfolio Turnover Rate*** | 125% | 125% | 30% | 58% |
Class A Shares
For a share outstanding during the five-month period ended | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $22.49 | $19.41 | $11.60 | $10.26 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .07 | .02 | (.01) | .03 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.40 | 3.06 | 1.99 | 1.31 | ||||||||||||||
Total from Investment Operations | 3.47 | 3.08 | 1.98 | 1.34 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.08) | – | (.02) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.08) | – | (.02) | – | ||||||||||||||
Net Asset Value, End of Period | $25.88 | $22.49 | $13.56 | $11.60 | ||||||||||||||
Total Return** | 15.43% | 15.87% | 17.06% | 13.06% | ||||||||||||||
Net Assets, End of Period (in thousands) | $288 | $88 | $22,754 | $13,610 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $179 | $24 | $17,817 | $11,470 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.10% | 1.24% | 1.07%(4) | 1.34%(4) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.10% | 1.17% | 1.07%(4) | 1.33%(4) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.75% | 0.02% | (0.19)% | 0.99% | ||||||||||||||
Portfolio Turnover Rate*** | 72% | 83% | 34% | 50% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.12% and 1.12%, respectively, in 2010 and 1.16% and 1.14%, respectively, in 2009 for Janus Orion Fund and 1.07% and 1.07%, respectively, in 2010 and 1.34% and 1.33%, respectively, in 2009 for Janus Triton Fund without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
140 | MARCH 31, 2010
Class C Shares
For a share outstanding during the five-month period ended | Janus Balanced Fund | Janus Contrarian Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.40 | $21.31 | $11.65 | $10.42 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .19 | (.09) | (.03) | (.05) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.78 | 2.25 | 2.58 | 1.28 | ||||||||||||||
Total from Investment Operations | 1.97 | 2.16 | 2.55 | 1.23 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.10) | (.07) | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Return of Capital | N/A | –(3) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (.10) | (.07) | – | – | ||||||||||||||
Net Asset Value, End of Period | $25.27 | $23.40 | $14.20 | $11.65 | ||||||||||||||
Total Return** | 8.41% | 10.13% | 21.89% | 11.80% | ||||||||||||||
Net Assets, End of Period (in thousands) | $354,794 | $248,071 | $70,499 | $64,036 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $297,673 | $208,912 | $67,850 | $67,507 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.62% | 1.70% | 1.93% | 2.11% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.62% | 1.69% | 1.93% | 2.09% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.66% | 1.54% | (0.43)% | (1.12)% | ||||||||||||||
Portfolio Turnover Rate*** | 71% | 158% | 92% | 80% |
Class C Shares
For a share outstanding during the five-month period ended | Janus Enterprise Fund | |||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | ||||||||
Net Asset Value, Beginning of Period | $42.36 | $36.63 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.26) | (.10) | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.37 | 5.83 | ||||||||
Total from Investment Operations | 7.11 | 5.73 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $49.47 | $42.36 | ||||||||
Total Return** | 16.78% | 15.64% | ||||||||
Net Assets, End of Period (in thousands) | $24,473 | $21,706 | ||||||||
Average Net Assets for the Period (in thousands) | $23,196 | $21,146 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.92% | 1.96% | ||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.92% | 1.94% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.34)% | (0.98)% | ||||||||
Portfolio Turnover Rate*** | 20% | 41% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. |
Janus Growth & Core Funds | 141
Financial Highlights (continued)
Class C Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended March 31, 2010 (unaudited), the two-month | ||||||||||||||||||||||||||||||
fiscal period ended September 30, 2009 and each | Janus Forty Fund | |||||||||||||||||||||||||||||
fiscal year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $29.44 | $28.27 | $38.78 | $33.83 | $28.07 | $27.25 | $21.21 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (.13) | (.01) | (.10) | (.01) | .04 | .06 | (.06) | |||||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.50 | 1.18 | (9.16) | 4.97 | 6.76 | .76 | 6.10 | |||||||||||||||||||||||
Total from Investment Operations | 2.37 | 1.17 | (9.26) | 4.96 | 6.80 | .82 | 6.04 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | (1.25) | (.01) | (1.04) | – | – | |||||||||||||||||||||||
Return of Capital | N/A | N/A | –(2) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | – | – | (1.25) | (.01) | (1.04) | – | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $31.81 | $29.44 | $28.27 | $38.78 | $33.83 | $28.07 | $27.25 | |||||||||||||||||||||||
Total Return** | 8.05% | 4.14% | (22.87)% | 14.65% | 24.62% | 3.01% | 28.48% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $672,803 | $542,666 | $488,278 | $537,822 | $139,470 | $51,976 | $24,766 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $596,346 | $512,462 | $386,072 | $320,123 | $81,438 | $39,687 | $18,839 | |||||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.78% | 1.75% | 1.68% | 1.67% | 1.70%(4) | 1.68%(4) | 1.67% | |||||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.78% | 1.75% | 1.68% | 1.67% | 1.70%(4) | 1.68%(4) | 1.67% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.17)% | (1.40)% | (0.87)%(5) | (0.80)%(5) | (0.42)% | (0.40)% | (0.72)% | |||||||||||||||||||||||
Portfolio Turnover Rate*** | 44% | 22% | 53% | 40% | 22% | 55% | 45% |
Class C Shares
Janus | ||||||||||||||||||
Growth and Income | ||||||||||||||||||
For a share outstanding during the five-month period ended | Janus Fund | Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(6) | 2009(7) | 2010(6) | 2009(7) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.90 | $20.86 | $26.42 | $23.24 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.07) | (.05) | – | (.03) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.14 | 3.09 | 3.02 | 3.21 | ||||||||||||||
Total from Investment Operations | 3.07 | 3.04 | 3.02 | 3.18 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $26.97 | $23.90 | $29.44 | $26.42 | ||||||||||||||
Total Return** | 12.85% | 14.57% | 11.43% | 13.68% | ||||||||||||||
Net Assets, End of Period (in thousands) | $6,423 | $5,443 | $5,398 | $4,760 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $6,197 | $5,221 | $5,133 | $4,673 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.77% | 1.79% | 1.75% | 1.74% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.77% | 1.78% | 1.75% | 1.73% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.64)% | (0.69)% | (0.04)% | (0.43)% | ||||||||||||||
Portfolio Turnover Rate*** | 41% | 60% | 45% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Return of Capital aggregated less than $.01 on a per share basis. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes dividends on short positions. For the fiscal years 2007 and 2006, the ratios would have been 1.67% and 1.67%, respectively, in 2007, and 1.67% and 1.67%, respectively, in 2006, without the inclusion of dividends on short positions. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.14% in 2008. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(7) | Period from July 6, 2009 (inception date) through October 31, 2009. |
142 | MARCH 31, 2010
Class C Shares
For a share outstanding during the five-month period ended | Janus Orion Fund | Janus Research Core Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.01 | $7.59 | $17.88 | $15.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.02) | (.03) | (.01) | (.01) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.62 | 1.45 | 2.09 | 2.45 | ||||||||||||||
Total from Investment Operations | 1.60 | 1.42 | 2.08 | 2.44 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $10.61 | $9.01 | $19.96 | $17.88 | ||||||||||||||
Total Return** | 17.76% | 18.71% | 11.63% | 15.80% | ||||||||||||||
Net Assets, End of Period (in thousands) | $12,662 | $9,611 | $8,654 | $8,251 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $10,805 | $9,297 | $8,566 | $8,280 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.94%(4) | 1.95%(4) | 1.69% | 1.70% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.94%(4) | 1.93%(4) | 1.69% | 1.68% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.60)% | (1.14)% | (0.12)% | (0.19)% | ||||||||||||||
Portfolio Turnover Rate*** | 125% | 125% | 30% | 58% |
Class C Shares
For a share outstanding during the five-month period ended | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $22.44 | $19.41 | $11.60 | $10.26 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.01) | .01 | (.04) | – | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.39 | 3.02 | 1.98 | 1.34 | ||||||||||||||
Total from Investment Operations | 3.38 | 3.03 | 1.94 | 1.34 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.06) | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.06) | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $25.76 | $22.44 | $13.54 | $11.60 | ||||||||||||||
Total Return** | 15.07% | 15.61% | 16.72% | 13.06% | ||||||||||||||
Net Assets, End of Period (in thousands) | $115 | $69 | $9,375 | $6,018 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $101 | $25 | $7,283 | $4,585 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.85% | 1.94% | 1.79%(4) | 2.09%(4) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.85% | 1.89% | 1.79%(4) | 2.07%(4) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.11)% | (0.47)% | (0.88)% | (0.02)% | ||||||||||||||
Portfolio Turnover Rate*** | 72% | 83% | 34% | 50% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.93% and 1.93%, respectively, in 2010 and 1.93% and 1.91%, respectively, in 2009 for Janus Orion Fund and 1.79% and 1.79%, respectively, in 2010 and 2.09% and 2.07%, respectively, in 2009 for Janus Triton Fund without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Growth & Core Funds | 143
Financial Highlights (continued)
Class D Shares
Janus Balanced | Janus Contrarian | |||||||||
For a share outstanding during the period | Fund | Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $24.09 | $12.96 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .10 | .04 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.19 | 1.30 | ||||||||
Total from Investment Operations | 1.29 | 1.34 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (.12) | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (.12) | – | ||||||||
Net Asset Value, End of Period | $25.26 | $14.30 | ||||||||
Total Return** | 5.36% | 10.34% | ||||||||
Net Assets, End of Period (in thousands) | $987,532 | $2,270,944 | ||||||||
Average Net Assets for the Period (in thousands) | $968,928 | $2,183,262 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(2) | 0.70% | 0.80% | ||||||||
Ratio of Net Expenses to Average Net Assets***(2) | 0.70% | 0.80% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 3.31% | 2.32% | ||||||||
Portfolio Turnover Rate*** | 71% | 92% |
Class D Shares
Janus Enterprise | Janus | |||||||||
For a share outstanding during the period | Fund | Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $45.90 | $25.24 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.02) | .03 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.95 | 1.84 | ||||||||
Total from Investment Operations | 3.93 | 1.87 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $49.83 | $27.11 | ||||||||
Total Return** | 8.56% | 7.41% | ||||||||
Net Assets, End of Period (in thousands) | $808,073 | $4,938,417 | ||||||||
Average Net Assets for the Period (in thousands) | $792,416 | $4,849,384 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(2) | 0.83% | 0.81% | ||||||||
Ratio of Net Expenses to Average Net Assets***(2) | 0.83% | 0.80% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.37)% | 1.09% | ||||||||
Portfolio Turnover Rate*** | 20% | 41% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through March 31, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. | |
(2) | See Note 6 in Notes to Financial Statements. |
144 | MARCH 31, 2010
Class D Shares
Janus Growth and | Janus Orion | |||||||||
For a share outstanding during the period | Income Fund | Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $27.37 | $9.82 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .07 | .02 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.11 | .84 | ||||||||
Total from Investment Operations | 2.18 | .86 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (.05) | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (.05) | – | ||||||||
Net Asset Value, End of Period | $29.50 | $10.68 | ||||||||
Total Return** | 7.97% | 8.76% | ||||||||
Net Assets, End of Period (in thousands) | $1,911,305 | $2,160,458 | ||||||||
Average Net Assets for the Period (in thousands) | $1,873,492 | $2,104,847 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(2) | 0.80% | 0.87%(3) | ||||||||
Ratio of Net Expenses to Average Net Assets***(2) | 0.80% | 0.86%(3) | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.08% | 1.35% | ||||||||
Portfolio Turnover Rate*** | 45% | 125% |
Class D Shares
Janus Research | Janus Research | |||||||||
For a share outstanding during the period | Core Fund | Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $18.53 | $23.74 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | .04 | .06 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.43 | 2.10 | ||||||||
Total from Investment Operations | 1.47 | 2.16 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $20.00 | $25.90 | ||||||||
Total Return** | 7.93% | 9.10% | ||||||||
Net Assets, End of Period (in thousands) | $320,269 | $1,785,367 | ||||||||
Average Net Assets for the Period (in thousands) | $314,344 | $1,734,425 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(2) | 0.81% | 0.91% | ||||||||
Ratio of Net Expenses to Average Net Assets***(2) | 0.81% | 0.90% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.54% | 1.92% | ||||||||
Portfolio Turnover Rate*** | 30% | 72% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through March 31, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. | |
(2) | See Note 6 in Notes to Financial Statements. | |
(3) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.85% and 0.84%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Growth & Core Funds | 145
Financial Highlights (continued)
Class D Shares
Janus Triton | Janus Twenty | |||||||||
For a share outstanding during the period | Fund | Fund | ||||||||
ended March 31, 2010 (unaudited) | 2010(1) | 2010(1) | ||||||||
Net Asset Value, Beginning of Period | $12.38 | $59.05 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.01) | .07 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.19 | 4.85 | ||||||||
Total from Investment Operations | 1.18 | 4.92 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $13.56 | $63.97 | ||||||||
Total Return** | 9.53% | 8.33% | ||||||||
Net Assets, End of Period (in thousands) | $183,828 | $5,371,421 | ||||||||
Average Net Assets for the Period (in thousands) | $174,846 | $5,257,779 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(2) | 0.90% | 0.79% | ||||||||
Ratio of Net Expenses to Average Net Assets***(2) | 0.89% | 0.79% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.39)% | 0.95% | ||||||||
Portfolio Turnover Rate*** | 34% | 46% |
Class D Shares
Janus Venture | ||||||
For a share outstanding during the period | Fund | |||||
ended March 31, 2010 (unaudited) | 2010(1) | |||||
Net Asset Value, Beginning of Period | $41.61 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | (.03) | |||||
Net gains/(losses) on investments (both realized and unrealized) | 5.33 | |||||
Total from Investment Operations | 5.30 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $46.91 | |||||
Total Return** | 12.74% | |||||
Net Assets, End of Period (in thousands) | $870,025 | |||||
Average Net Assets for the Period (in thousands) | $841,367 | |||||
Ratio of Gross Expenses to Average Net Assets***(2) | 0.87%(3) | |||||
Ratio of Net Expenses to Average Net Assets***(2) | 0.87%(3) | |||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.46)% | |||||
Portfolio Turnover Rate*** | 28% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through March 31, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. | |
(2) | See Note 6 in Notes to Financial Statements. | |
(3) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.84% and 0.84%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
146 | MARCH 31, 2010
Class I Shares
For a share outstanding during the five-month period ended | Janus Balanced Fund | Janus Contrarian Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.43 | $21.31 | $11.70 | $10.42 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .28 | .04 | .05 | – | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.79 | 2.20 | 2.57 | 1.28 | ||||||||||||||
Total from Investment Operations | 2.07 | 2.24 | 2.62 | 1.28 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.25) | (.12) | (.02) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Return of Capital | N/A | –(3) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (.25) | (.12) | (.02) | – | ||||||||||||||
Net Asset Value, End of Period | $25.25 | $23.43 | $14.30 | $11.70 | ||||||||||||||
Total Return** | 8.84% | 10.50% | 22.38% | 12.28% | ||||||||||||||
Net Assets, End of Period (in thousands) | $199,716 | $104,063 | $104,325 | $57,734 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $153,903 | $56,942 | $72,953 | $27,329 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.60% | 0.63% | 0.76% | 0.94% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.60% | 0.62% | 0.76% | 0.90% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.72% | 2.57% | 0.95% | (0.13)% | ||||||||||||||
Portfolio Turnover Rate*** | 71% | 158% | 92% | 80% |
Class I Shares
For a share outstanding during the five-month period ended | Janus Enterprise Fund | |||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | ||||||||
Net Asset Value, Beginning of Period | $42.51 | $36.63 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.03) | .05 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.41 | 5.83 | ||||||||
Total from Investment Operations | 7.38 | 5.88 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $49.89 | $42.51 | ||||||||
Total Return** | 17.36% | 16.05% | ||||||||
Net Assets, End of Period (in thousands) | $525,041 | $416,272 | ||||||||
Average Net Assets for the Period (in thousands) | $473,413 | $395,409 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.74% | 0.82% | ||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.73% | 0.81% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.15)% | 0.16% | ||||||||
Portfolio Turnover Rate*** | 20% | 41% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. |
Janus Growth & Core Funds | 147
Financial Highlights (continued)
Class I Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||
ended March 31, 2010 (unaudited), the two-month | ||||||||||||||||||||||||||
fiscal period ended September 30, 2009 and each | Janus Forty Fund | |||||||||||||||||||||||||
fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | 2006(2)(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $30.61 | $29.34 | $39.79 | $34.48 | $28.40 | $28.80 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.10) | .02 | .09 | .12 | .07 | .09 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.74 | 1.25 | (9.29) | 5.35 | 7.15 | (.49) | ||||||||||||||||||||
Total from Investment Operations | 2.64 | 1.27 | (9.20) | 5.47 | 7.22 | (.40) | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | (.15) | (.10) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | (1.25) | (.01) | (1.04) | – | ||||||||||||||||||||
Return of Capital | N/A | N/A | –(4) | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | – | – | (1.25) | (.16) | (1.14) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $33.25 | $30.61 | $29.34 | $39.79 | $34.48 | $28.40 | ||||||||||||||||||||
Total Return** | 8.62% | 4.33% | (22.11)% | 15.84% | 25.86% | (1.39)% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,723,096 | $771,852 | $688,074 | $783,030 | $97,395 | $8,532 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,457,674 | $723,953 | $512,019 | $364,025 | $39,961 | $5,846 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(5) | 0.72% | 0.67% | 0.67% | 0.65% | 0.68%(6) | 0.69%(6) | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(5) | 0.72% | 0.67% | 0.67% | 0.65% | 0.68%(6) | 0.69%(6) | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.22)% | (0.31)% | 0.15%(7) | 0.22%(7) | 0.60% | 0.72% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 44% | 22% | 53% | 40% | 22% | 55% |
Class I Shares
Janus | ||||||||||||||||||
Growth and Income | ||||||||||||||||||
For a share outstanding during the five-month period ended | Janus Fund | Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(8) | 2009(9) | 2010(8) | 2009(9) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.96 | $20.86 | $26.48 | $23.24 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .04 | .02 | .14 | .04 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.16 | 3.08 | 3.01 | 3.24 | ||||||||||||||
Total from Investment Operations | 3.20 | 3.10 | 3.15 | 3.28 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.03) | – | (.14) | (.04) | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.03) | – | (.14) | (.04) | ||||||||||||||
Net Asset Value, End of Period | $27.13 | $23.96 | $29.49 | $26.48 | ||||||||||||||
Total Return** | 13.37% | 14.86% | 11.90% | 14.12% | ||||||||||||||
Net Assets, End of Period (in thousands) | $127,281 | $25,857 | $59,282 | $6,761 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $52,102 | $18,996 | $32,742 | $2,059 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(5) | 0.70% | 0.73% | 0.70% | 0.72% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(5) | 0.70% | 0.71% | 0.70% | 0.67% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.82% | 0.31% | 1.41% | 0.42% | ||||||||||||||
Portfolio Turnover Rate*** | 41% | 60% | 45% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from November 28, 2005 (inception date) through July 31, 2006. | |
(3) | Certain prior year amounts have been reclassified to conform with current year presentation. | |
(4) | Return of Capital aggregated less than $.01 on a per share basis. | |
(5) | See Note 6 in Notes to Financial Statements. | |
(6) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.66% and 0.66%, respectively, for the fiscal year ended July 31, 2007, and 0.68% and 0.68%, respectively, for the fiscal year ended July 31, 2006, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(7) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the year ended July 31, 2009 and 0.14% in the year ended July 31, 2008 for Class I Shares. The adjustment had no impact on total net assets or total return of the class. | |
(8) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(9) | Period from July 6, 2009 (inception date) through October 31, 2009. |
148 | MARCH 31, 2010
Class I Shares
For a share outstanding during the five-month period ended | Janus Orion Fund | Janus Research Core Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.04 | $7.59 | $17.91 | $15.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .03 | – | .08 | .01 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.63 | 1.45 | 2.08 | 2.46 | ||||||||||||||
Total from Investment Operations | 1.66 | 1.45 | 2.16 | 2.47 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.01) | – | (.07) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.01) | – | (.07) | – | ||||||||||||||
Net Asset Value, End of Period | $10.69 | $9.04 | $20.00 | $17.91 | ||||||||||||||
Total Return** | 18.41% | 19.10% | 12.09% | 16.00% | ||||||||||||||
Net Assets, End of Period (in thousands) | $31,208 | $9,121 | $5,369 | $2,437 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $15,334 | $2,354 | $3,354 | $1,092 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.78%(4) | 0.74%(4) | 0.69% | 0.69% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.78%(4) | 0.66%(4) | 0.69% | 0.65% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.88% | (0.31)% | 1.07% | 0.58% | ||||||||||||||
Portfolio Turnover Rate*** | 125% | 125% | 30% | 58% |
Class I Shares
For a share outstanding during the five-month period ended | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $22.50 | $19.41 | $11.63 | $10.26 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .12 | – | .02 | .01 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.37 | 3.09 | 1.98 | 1.36 | ||||||||||||||
Total from Investment Operations | 3.49 | 3.09 | 2.00 | 1.37 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.08) | – | (.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.08) | – | (.04) | – | ||||||||||||||
Net Asset Value, End of Period | $25.91 | $22.50 | $13.59 | $11.63 | ||||||||||||||
Total Return** | 15.53% | 15.92% | 17.21% | 13.35% | ||||||||||||||
Net Assets, End of Period (in thousands) | $50,777 | $6,821 | $20,137 | $4,377 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $22,873 | $794 | $6,986 | $1,277 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.83% | 1.02% | 0.82%(4) | 1.01%(4) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.82% | 0.85% | 0.81%(4) | 0.97%(4) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.37% | (0.57)% | (0.10)% | 0.73% | ||||||||||||||
Portfolio Turnover Rate*** | 72% | 83% | 34% | 50% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.77% and 0.76%, respectively, for the period ended March 31, 2010 and 0.73% and 0.65%, respectively, for the fiscal period ended October 31, 2009 for Janus Orion Fund and 0.82% and 0.81%, respectively, for the period ended March 31, 2010 and 1.01% and 0.97%, respectively, for the fiscal period ended October 31, 2009 for Janus Triton Fund without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Growth & Core Funds | 149
Financial Highlights (continued)
Class R Shares
For a share outstanding during the five-month period ended | Janus Balanced Fund | Janus Contrarian Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.41 | $21.31 | $11.67 | $10.42 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .23 | (.06) | – | (.03) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.77 | 2.24 | 2.58 | 1.28 | ||||||||||||||
Total from Investment Operations | 2.00 | 2.18 | 2.58 | 1.25 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.15) | (.08) | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Return of Capital | N/A | –(3) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (.15) | (.08) | – | – | ||||||||||||||
Net Asset Value, End of Period | $25.26 | $23.41 | $14.25 | $11.67 | ||||||||||||||
Total Return** | 8.53% | 10.25% | 22.11% | 12.00% | ||||||||||||||
Net Assets, End of Period (in thousands) | $83,895 | $49,678 | $3,107 | $2,549 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $65,036 | $39,380 | $2,834 | $2,682 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.33% | 1.35% | 1.48% | 1.67% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.33% | 1.34% | 1.48% | 1.65% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.97% | 1.88% | 0.05% | (0.68)% | ||||||||||||||
Portfolio Turnover Rate*** | 71% | 158% | 92% | 80% |
Class R Shares
For a share outstanding during the five-month period ended | Janus Enterprise Fund | |||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | ||||||||
Net Asset Value, Beginning of Period | $42.41 | $36.63 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.17) | (.05) | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.38 | 5.83 | ||||||||
Total from Investment Operations | 7.21 | 5.78 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $49.62 | $42.41 | ||||||||
Total Return** | 17.00% | 15.78% | ||||||||
Net Assets, End of Period (in thousands) | $51,333 | $43,798 | ||||||||
Average Net Assets for the Period (in thousands) | $47,533 | $41,524 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.48% | 1.57% | ||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.48% | 1.55% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.90)% | (0.58)% | ||||||||
Portfolio Turnover Rate*** | 20% | 41% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis for the period ended October 31, 2009. | |
(4) | See Note 6 in Notes to Financial Statements. |
150 | MARCH 31, 2010
Class R Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended March 31, 2010 (unaudited), the two-month | ||||||||||||||||||||||||||||||
fiscal period ended September 30, 2009 and each | Janus Forty Fund | |||||||||||||||||||||||||||||
fiscal year or period ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | 2006 | 2005(2) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $29.76 | $28.56 | $39.07 | $33.99 | $28.18 | $27.28 | $22.32 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (.08) | – | (.02) | (.02) | – | .05 | (.05) | |||||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.53 | 1.20 | (9.24) | 5.11 | 6.90 | .85 | 5.01 | |||||||||||||||||||||||
Total from Investment Operations | 2.45 | 1.20 | (9.26) | 5.09 | 6.90 | .90 | 4.96 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | (.05) | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | (1.25) | (.01) | (1.04) | – | – | |||||||||||||||||||||||
Return of Capital | N/A | N/A | –(3) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | – | – | (1.25) | (.01) | (1.09) | – | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $32.21 | $29.76 | $28.56 | $39.07 | $33.99 | $28.18 | $27.28 | |||||||||||||||||||||||
Total Return** | 8.23% | 4.20% | (22.69)% | 14.96% | 24.92% | 3.30% | 22.22% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $222,503 | $159,146 | $144,400 | $101,590 | $21,923 | $6,849 | $12 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $183,768 | $151,006 | $98,570 | $53,811 | $12,731 | $2,130 | $11 | |||||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.43% | 1.41% | 1.41% | 1.40% | 1.43%(5) | 1.45%(5) | 1.42% | |||||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.43% | 1.41% | 1.41% | 1.39% | 1.43%(5) | 1.44%(5) | 1.42% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.78)% | (1.05)% | (0.58)%(6) | (0.53)%(6) | (0.15)% | 0.05% | (0.51)% | |||||||||||||||||||||||
Portfolio Turnover Rate*** | 44% | 22% | 53% | 40% | 22% | 55% | 45% |
Class R Shares
Janus | ||||||||||||||||||
Growth and Income | ||||||||||||||||||
For a share outstanding during the five-month period ended | Janus Fund | Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(7) | 2009(8) | 2010(7) | 2009(8) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.91 | $20.86 | $26.45 | $23.24 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.01) | (.02) | .03 | (.01) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.12 | 3.07 | 3.03 | 3.23 | ||||||||||||||
Total from Investment Operations | 3.11 | 3.05 | 3.06 | 3.22 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | (.02) | (.01) | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | (.02) | (.01) | ||||||||||||||
Net Asset Value, End of Period | $27.02 | $23.91 | $29.49 | $26.45 | ||||||||||||||
Total Return** | 13.01% | 14.62% | 11.56% | 13.83% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,221 | $781 | $2,181 | $1,789 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $927 | $776 | $2,021 | $1,853 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.44% | 1.45% | 1.44% | 1.45% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.44% | 1.44% | 1.44% | 1.44% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.22)% | (0.34)% | 0.28% | (0.14)% | ||||||||||||||
Portfolio Turnover Rate*** | 41% | 60% | 45% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from September 30, 2004 (inception date) through July 31, 2005. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis for the period ended July 31, 2009. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.40% and 1.40%, respectively, in 2007, and 1.42% and 1.42%, respectively, in 2006 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the year ended July 31, 2009 and 0.15% in the year ended July 31, 2008 for Class R Shares. The adjustment had no impact on total net assets or total return of the class. | |
(7) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(8) | Period from July 6, 2009 (inception date) through October 31, 2009. |
Janus Growth & Core Funds | 151
Financial Highlights (continued)
Class R Shares
For a share outstanding during the five-month period ended | Janus Orion Fund | Janus Research Core Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.02 | $7.59 | $17.90 | $15.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | – | (.01) | .01 | – | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.62 | 1.44 | 2.08 | 2.46 | ||||||||||||||
Total from Investment Operations | 1.62 | 1.43 | 2.09 | 2.46 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $10.64 | $9.02 | $19.99 | $17.90 | ||||||||||||||
Total Return** | 17.96% | 18.84% | 11.68% | 15.93% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,380 | $1,597 | $1,402 | $1,298 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,862 | $1,374 | $1,364 | $1,361 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.49%(4) | 1.49%(4) | 1.44% | 1.45% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.49%(4) | 1.47%(4) | 1.44% | 1.43% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.12)% | (0.71)% | 0.13% | 0.07% | ||||||||||||||
Portfolio Turnover Rate*** | 125% | 125% | 30% | 58% |
Class R Shares
For a share outstanding during the five-month period ended | Janus Triton Fund | |||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | ||||||||
Net Asset Value, Beginning of Period | $11.64 | $10.26 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.03) | .01 | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.99 | 1.37 | ||||||||
Total from Investment Operations | 1.96 | 1.38 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $13.60 | $11.64 | ||||||||
Total Return** | 16.84% | 13.45% | ||||||||
Net Assets, End of Period (in thousands) | $2,190 | $1,167 | ||||||||
Average Net Assets for the Period (in thousands) | $1,429 | $983 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.56%(4) | 1.81%(4) | ||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.56%(4) | 1.80%(4) | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.67)% | 0.21% | ||||||||
Portfolio Turnover Rate*** | 34% | 50% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.48% and 1.48%, respectively, for the period ended March 31, 2010 and 1.48% and 1.45%, respectively, for the fiscal period ended October 31, 2009 for Janus Orion Fund and 1.56% and 1.56%, respectively, for the period ended March 31, 2010 and 1.81% and 1.80%, respectively, for the fiscal period ended October 31, 2009 for Janus Triton Fund without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
152 | MARCH 31, 2010
Class S Shares
For a share outstanding during the five-month period ended | Janus Balanced Fund | Janus Contrarian Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.42 | $21.31 | $11.68 | $10.42 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .23 | (.06) | .02 | (.02) | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.80 | 2.26 | 2.58 | 1.28 | ||||||||||||||
Total from Investment Operations | 2.03 | 2.20 | 2.60 | 1.26 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (.17) | (.09) | – | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Return of Capital | N/A | –(3) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (.17) | (.09) | – | – | ||||||||||||||
Net Asset Value, End of Period | $25.28 | $23.42 | $14.28 | $11.68 | ||||||||||||||
Total Return** | 8.67% | 10.33% | 22.26% | 12.09% | ||||||||||||||
Net Assets, End of Period (in thousands) | $617,392 | $502,602 | $8,675 | $4,493 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $565,634 | $480,565 | $6,844 | $4,551 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.08% | 1.10% | 1.23% | 1.42% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.08% | 1.09% | 1.23% | 1.40% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.19% | 2.15% | 0.37% | (0.46)% | ||||||||||||||
Portfolio Turnover Rate*** | 71% | 158% | 92% | 80% |
Class S Shares
For a share outstanding during the five-month period ended | Janus Enterprise Fund | |||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | ||||||||
Net Asset Value, Beginning of Period | $42.45 | $36.63 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (.13) | (.02) | ||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.39 | 5.84 | ||||||||
Total from Investment Operations | 7.26 | 5.82 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $49.71 | $42.45 | ||||||||
Total Return** | 17.10% | 15.89% | ||||||||
Net Assets, End of Period (in thousands) | $228,393 | $218,354 | ||||||||
Average Net Assets for the Period (in thousands) | $221,417 | $215,750 | ||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 1.23% | 1.31% | ||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 1.23% | 1.30% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.64)% | (0.34)% | ||||||||
Portfolio Turnover Rate*** | 20% | 41% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis for the period ended October 31, 2009. | |
(4) | See Note 6 in Notes to Financial Statements. |
Janus Growth & Core Funds | 153
Financial Highlights (continued)
Class S Shares
For a share outstanding during the six-month | ||||||||||||||||||||||||||||||
period ended March 31, 2010 (unaudited), | ||||||||||||||||||||||||||||||
the two-month fiscal period ended | ||||||||||||||||||||||||||||||
September 30, 2009 and each fiscal | Janus Forty Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2010 | 2009(1) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $30.17 | $28.94 | $39.47 | $34.27 | $28.30 | $27.34 | $21.17 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (.08) | – | (.01) | (.01) | .03 | .02 | – | |||||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.61 | 1.23 | (9.27) | 5.24 | 7.00 | .94 | 6.17 | |||||||||||||||||||||||
Total from Investment Operations | 2.53 | 1.23 | (9.28) | 5.23 | 7.03 | .96 | 6.17 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | (.02) | (.02) | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | (1.25) | (.01) | (1.04) | – | – | |||||||||||||||||||||||
Return of Capital | N/A | N/A | –(2) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | – | – | (1.25) | (.03) | (1.06) | – | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $32.70 | $30.17 | $28.94 | $39.47 | $34.27 | $28.30 | $27.34 | |||||||||||||||||||||||
Total Return** | 8.39% | 4.25% | (22.51)% | 15.24% | 25.27% | 3.51% | 29.15% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,180,540 | $2,878,790 | $2,821,241 | $3,910,499 | $2,671,702 | $1,440,502 | $1,085,499 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,974,066 | $2,835,097 | $2,383,060 | $3,535,839 | $1,966,832 | $1,326,557 | $1,079,025 | |||||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.17% | 1.16% | 1.15% | 1.14% | 1.18%(4) | 1.18%(4) | 1.16% | |||||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.17% | 1.16% | 1.15% | 1.14% | 1.18%(4) | 1.18%(4) | 1.16% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.55)% | (0.80)% | (0.34)%(5) | (0.21)%(5) | 0.09% | 0.08% | (0.22)% | |||||||||||||||||||||||
Portfolio Turnover Rate*** | 44% | 22% | 53% | 40% | 22% | 55% | 45% |
Class S Shares
Janus | ||||||||||||||||||
Growth and Income | ||||||||||||||||||
For a share outstanding during the five-month period ended | Janus Fund | Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(6) | 2009(7) | 2010(6) | 2009(7) | ||||||||||||||
Net Asset Value, Beginning of Period | $23.95 | $20.86 | $26.46 | $23.24 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (.01) | – | .06 | .01 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.15 | 3.09 | 3.03 | 3.23 | ||||||||||||||
Total from Investment Operations | 3.14 | 3.09 | 3.09 | 3.24 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | (.04) | (.02) | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | (.04) | (.02) | ||||||||||||||
Net Asset Value, End of Period | $27.09 | $23.95 | $29.51 | $26.46 | ||||||||||||||
Total Return** | 13.11% | 14.81% | 11.66% | 13.94% | ||||||||||||||
Net Assets, End of Period (in thousands) | $83,553 | $84,350 | $67,867 | $66,211 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $84,613 | $85,637 | $68,352 | �� | $66,895 | |||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.19% | 1.20% | 1.19% | 1.20% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.19% | 1.19% | 1.19% | 1.19% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.06)% | (0.08)% | 0.50% | 0.10% | ||||||||||||||
Portfolio Turnover Rate*** | 41% | 60% | 45% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Return of Capital aggregated less than $.01 on a per share basis for the period ended July 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.15% and 1.15%, respectively, in 2007, and 1.17% and 1.17%, respectively, in 2006 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the year ended July 31, 2009 and 0.10% in the year ended July 31, 2008 for Class S Shares. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(7) | Period from July 6, 2009 (inception date) through October 31, 2009. |
154 | MARCH 31, 2010
Class S Shares
For a share outstanding during the five-month period ended | Janus Orion Fund | Janus Research Core Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.03 | $7.59 | $17.92 | $15.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | – | (.01) | .03 | .02 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.63 | 1.45 | 2.09 | 2.46 | ||||||||||||||
Total from Investment Operations | 1.63 | 1.44 | 2.12 | 2.48 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | (.02) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | – | – | (.02) | – | ||||||||||||||
Net Asset Value, End of Period | $10.66 | $9.03 | $20.02 | $17.92 | ||||||||||||||
Total Return** | 18.05% | 18.97% | 11.83% | 16.06% | ||||||||||||||
Net Assets, End of Period (in thousands) | $14,583 | $13,346 | $23,232 | $22,749 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $14,104 | $10,379 | $23,267 | $24,710 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.24%(4) | 1.24%(4) | 1.19% | 1.20% | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.24%(4) | 1.21%(4) | 1.19% | 1.18% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.04% | (0.46)% | 0.38% | 0.30% | ||||||||||||||
Portfolio Turnover Rate*** | 125% | 125% | 30% | 58% |
Class S Shares
For a share outstanding during the five-month period ended | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
March 31, 2010 (unaudited) and the fiscal period ended October 31, 2009 | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $22.46 | $19.41 | $11.60 | $10.26 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | .03 | – | (.02) | .01 | ||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.41 | 3.05 | 1.99 | 1.33 | ||||||||||||||
Total from Investment Operations | 3.44 | 3.05 | 1.97 | 1.34 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (.08) | – | (.02) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (.08) | – | (.02) | – | ||||||||||||||
Net Asset Value, End of Period | $25.82 | $22.46 | $13.55 | $11.60 | ||||||||||||||
Total Return** | 15.32% | 15.71% | 16.96% | 13.06% | ||||||||||||||
Net Assets, End of Period (in thousands) | $13 | $11 | $7,643 | $3,845 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $12 | $1 | $5,373 | $2,245 | ||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.34% | 1.66% | 1.31%(4) | 1.59%(4) | ||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.34% | 1.47% | 1.31%(4) | 1.57%(4) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.36% | (0.24)% | (0.45)% | 0.70% | ||||||||||||||
Portfolio Turnover Rate*** | 72% | 83% | 34% | 50% |
* | See Note 5 in Notes to Financial Statements. | |
** | 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 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.23% and 1.23%, respectively, for the period ended March 31, 2010 and 1.22% and 1.19%, respectively, for the fiscal period ended October 31, 2009 for Janus Orion Fund and 1.31% and 1.31%, respectively, for the period ended March 31, 2010 and 1.59% and 1.57%, respectively, for the fiscal period ended October 31, 2009 for Janus Triton Fund without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
Janus Growth & Core Funds | 155
Financial Highlights (continued)
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Balanced Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.42 | $20.58 | $27.00 | $24.07 | $21.62 | $20.33 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .28 | .36 | .59 | .59 | .43 | .42 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.77 | 3.80 | (5.58) | 2.91 | 2.45 | 1.28 | ||||||||||||||||||||
Total from Investment Operations | 2.05 | 4.16 | (4.99) | 3.50 | 2.88 | 1.70 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.21) | (.74) | (.59) | (.57) | (.43) | (.41) | ||||||||||||||||||||
Distributions (from capital gains)* | – | (.58) | (.84) | – | – | – | ||||||||||||||||||||
Return of Capital | N/A | –(3) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | (.21) | (1.32) | (1.43) | (.57) | (.43) | (.41) | ||||||||||||||||||||
Net Asset Value, End of Period | $25.26 | $23.42 | $20.58 | $27.00 | $24.07 | $21.62 | ||||||||||||||||||||
Total Return** | 8.78% | 21.56% | (19.34)% | 14.73% | 13.41% | 8.43% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,980,895 | $3,438,753 | $2,361,537 | $2,786,455 | $2,478,237 | $2,507,307 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,438,997 | $2,749,762 | $2,733,572 | $2,593,935 | $2,499,295 | $2,720,829 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.81% | 0.82% | 0.79% | 0.79% | 0.82% | 0.80% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.81% | 0.82% | 0.79% | 0.79% | 0.81% | 0.79% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.39% | 2.72% | 2.42% | 2.34% | 1.85% | 1.93% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 71% | 158% | 109% | 60% | 50% | 47% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Contrarian Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.69 | $10.90 | $21.19 | $17.44 | $14.20 | $11.74 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.01) | – | .07 | .06 | .21 | .05 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.63 | 1.22 | (9.40) | 5.71 | 3.25 | 2.44 | ||||||||||||||||||||
Total from Investment Operations | 2.62 | 1.22 | (9.33) | 5.77 | 3.46 | 2.49 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.01) | (.05) | (.08) | (.21) | (.04) | (.03) | ||||||||||||||||||||
Distributions (from capital gains)* | – | (.37) | (.88) | (1.81) | (.18) | – | ||||||||||||||||||||
Return of Capital | N/A | (.01) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | (.01) | (.43) | (.96) | (2.02) | (.22) | (.03) | ||||||||||||||||||||
Net Asset Value, End of Period | $14.30 | $11.69 | $10.90 | $21.19 | $17.44 | $14.20 | ||||||||||||||||||||
Total Return** | 22.38% | 12.35% | (46.02)% | 36.17% | 24.60% | 21.19% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,937,733 | $3,655,102 | $3,927,985 | $8,452,208 | $4,002,929 | $2,906,324 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,343,452 | $3,398,196 | $7,251,667 | $6,378,807 | $3,511,568 | $2,716,329 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.92% | 1.01%(5) | 1.01% | 0.97% | 0.95% | 0.93% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.92% | 1.00%(5) | 1.00% | 0.96% | 0.94% | 0.93% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.28% | 0.02% | 0.43% | 0.38% | 1.41% | 0.45% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 92% | 80% | 52% | 28% | 39% | 42% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | Return of Capital aggregated less than $.01 on a per share basis. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.98% and 0.98%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
156 | MARCH 31, 2010
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Enterprise Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $42.50 | $35.71 | $59.39 | $45.65 | $39.48 | $33.73 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.12) | (.01) | .05 | (.01) | (.04) | – | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.45 | 6.80 | (23.73) | 13.75 | 6.21 | 5.75 | ||||||||||||||||||||
Total from Investment Operations | 7.33 | 6.79 | (23.68) | 13.74 | 6.17 | 5.75 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | – | – | – | – | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $49.83 | $42.50 | $35.71 | $59.39 | $45.65 | $39.48 | ||||||||||||||||||||
Total Return** | 17.25% | 19.01% | (39.87)% | 30.10% | 15.63% | 17.05% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $888,454 | $1,521,578 | $1,397,516 | $2,233,224 | $1,743,616 | $1,703,542 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,409,260 | $1,335,838 | $2,025,505 | $1,926,163 | $1,778,532 | $1,728,579 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.93% | 0.99% | 0.92% | 0.94% | 1.00% | 0.96% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.93% | 0.98% | 0.92% | 0.93% | 0.99% | 0.95% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.33)% | (0.09)% | 0.04% | (0.04)% | (0.24)% | (0.30)% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 20% | 41% | 69% | 32% | 40% | 28% |
Class T Shares
For a share outstanding during the six-month period ended March 31, 2010 (unaudited), the two- | Janus Forty Fund | |||||||||||||
month fiscal period ended September 30, 2009 and the fiscal period ended July 31, 2009. | 2010 | 2009(4) | 2009(5) | |||||||||||
Net Asset Value, Beginning of Period | $30.18 | $28.95 | $25.87 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (.01) | (.09) | .09 | |||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.58 | 1.32 | 2.99 | |||||||||||
Total from Investment Operations | 2.57 | 1.23 | 3.08 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $32.75 | $30.18 | $28.95 | |||||||||||
Total Return** | 8.52% | 4.25% | 11.91% | |||||||||||
Net Assets, End of Period (in thousands) | $6,123 | $375 | $1 | |||||||||||
Average Net Assets for the Period (in thousands) | $2,594 | $76 | $1 | |||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.93% | 0.95% | 1.03% | |||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.93% | 0.95% | 1.03% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.14)% | (0.80)% | 1.38%(6) | |||||||||||
Portfolio Turnover Rate*** | 44% | 22% | 53% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(5) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.21% for the fiscal period ended July 31, 2009. The adjustment had no impact on total net assets or total return of the class. |
Janus Growth & Core Funds | 157
Financial Highlights (continued)
Class T Shares(1)
For a share outstanding during the five-month period | ||||||||||||||||||||||||||
ended March 31, 2010 (unaudited) and each | Janus Fund | |||||||||||||||||||||||||
fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.95 | $20.35 | $33.66 | $27.43 | $24.44 | $22.69 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .02 | .11 | .18 | .16 | .09 | .02 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.15 | 3.76 | (13.33) | 6.17 | 2.92 | 1.73 | ||||||||||||||||||||
Total from Investment Operations | 3.17 | 3.87 | (13.15) | 6.33 | 3.01 | 1.75 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.02) | (.27) | (.16) | (.10) | (.02) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (.02) | (.27) | (.16) | (.10) | (.02) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $27.10 | $23.95 | $20.35 | $33.66 | $27.43 | $24.44 | ||||||||||||||||||||
Total Return** | 13.23% | 19.35% | (39.24)% | 23.12% | 12.31% | 7.71% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,898,718 | $8,100,358 | $7,528,294 | $13,038,747 | $11,208,629 | $11,142,921 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,295,676 | $7,312,389 | $10,973,577 | $11,816,878 | $11,232,055 | $12,310,464 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.87% | 0.89% | 0.88% | 0.88% | 0.90% | 0.88% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.87% | 0.88% | 0.87% | 0.87% | 0.90% | 0.87% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.11% | 0.49% | 0.60% | 0.52% | 0.34% | 0.07% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 41% | 60% | 95% | 32% | 69% | 78% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Growth and Income Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $26.47 | $21.90 | $44.20 | $37.36 | $33.97 | $29.29 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .09 | .28 | .38 | .63 | .61 | .24 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.04 | 4.56 | (17.92) | 6.86 | 3.30 | 4.66 | ||||||||||||||||||||
Total from Investment Operations | 3.13 | 4.84 | (17.54) | 7.49 | 3.91 | 4.90 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.10) | (.27) | (.49) | (.65) | (.52) | (.22) | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | (4.27) | – | – | – | ||||||||||||||||||||
Total Distributions | (.10) | (.27) | (4.76) | (.65) | (.52) | (.22) | ||||||||||||||||||||
Net Asset Value, End of Period | $29.50 | $26.47 | $21.90 | $44.20 | $37.36 | $33.97 | ||||||||||||||||||||
Total Return** | 11.82% | 22.32% | (43.79)% | 20.22% | 11.56% | 16.79% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,901,505 | $3,622,998 | $3,345,701 | $7,107,894 | $6,780,817 | $5,734,941 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,214,459 | $3,231,514 | $5,463,501 | $6,738,311 | $6,677,364 | $5,454,668 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.88% | 0.90% | 0.87% | 0.87% | 0.89% | 0.88% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.88% | 0.89% | 0.86% | 0.86% | 0.88% | 0.87% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.61% | 1.22% | 1.17% | 1.98% | 1.90% | 0.68% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 45% | 40% | 76% | 54% | 50% | 38% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | See Note 6 in Notes to Financial Statements. |
158 | MARCH 31, 2010
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Orion Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006(3) | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.03 | $7.14 | $13.57 | $9.49 | $7.80 | $6.25 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .01 | .01 | .08 | .03 | .04 | .03 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.64 | 1.95 | (6.47) | 4.07 | 1.71 | 1.52 | ||||||||||||||||||||
Total from Investment Operations | 1.65 | 1.96 | (6.39) | 4.10 | 1.75 | 1.55 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (.06) | (.04) | (.02) | (.06) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Return of Capital | N/A | (.01) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | – | (.07) | (.04) | (.02) | (.06) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $10.68 | $9.03 | $7.14 | $13.57 | $9.49 | $7.80 | ||||||||||||||||||||
Total Return** | 18.31% | 27.96% | (47.21)% | 43.32% | 22.58% | 24.80% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,466,675 | $3,133,551 | $2,694,881 | $5,188,347 | $3,243,102 | $691,401 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,813,145 | $2,600,372 | $4,709,077 | $3,773,555 | $966,223 | $590,421 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.92%(5) | 0.97%(5) | 0.94%(5) | 0.93% | 1.00% | 1.02% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.92%(5) | 0.96%(5) | 0.94%(5) | 0.92% | 0.99% | 1.01% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.18% | 0.14% | 0.67% | 0.34% | 0.80% | 0.52% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 125% | 125% | 144% | 24% | 63% | 68% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Research Core Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.91 | $16.02 | $30.28 | $25.43 | $22.15 | $18.78 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .06 | .13 | .25 | .14 | .11 | .11 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 2.08 | 2.56 | (12.10) | 4.85 | 3.24 | 3.34 | ||||||||||||||||||||
Total from Investment Operations | 2.14 | 2.69 | (11.85) | 4.99 | 3.35 | 3.45 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.05) | (.25) | (.22) | (.11) | (.07) | (.08) | ||||||||||||||||||||
Distributions (from capital gains)* | – | (.55) | (2.19) | (.03) | – | – | ||||||||||||||||||||
Total Distributions | (.05) | (.80) | (2.41) | (.14) | (.07) | (.08) | ||||||||||||||||||||
Net Asset Value, End of Period | $20.00 | $17.91 | $16.02 | $30.28 | $25.43 | $22.15 | ||||||||||||||||||||
Total Return** | 11.97% | 18.35% | (42.21)% | 19.71% | 15.15% | 18.44% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $263,494 | $554,296 | $556,450 | $1,142,927 | $1,018,315 | $720,889 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $489,557 | $498,688 | $889,958 | $1,067,882 | $955,696 | $652,913 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(4) | 0.88% | 0.94% | 0.91% | 0.87% | 0.92% | 0.90% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(4) | 0.88% | 0.93% | 0.90% | 0.87% | 0.91% | 0.89% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.54% | 0.84% | 1.01%(6) | 0.48% | 0.49% | 0.50% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 30% | 58% | 157% | 33% | 46% | 74% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | Effective October 31, 2006, Janus Olympus Fund merged into Janus Orion Fund. | |
(4) | See Note 6 in Notes to Financial Statements. | |
(5) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.91% and 0.91%, respectively, in 2010, 0.96% and 0.95%, respectively, in 2009 and 0.93% and 0.92%, respectively, in 2008, without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02%. The adjustment had no impact on total net assets or total return of the class. |
Janus Growth & Core Funds | 159
Financial Highlights (continued)
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Research Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $22.49 | $18.25 | $32.09 | $24.19 | $22.05 | $19.48 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | .08 | .17 | .05 | .03 | .02 | .09 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 3.39 | 4.23 | (13.86) | 7.89 | 2.18 | 2.51 | ||||||||||||||||||||
Total from Investment Operations | 3.47 | 4.40 | (13.81) | 7.92 | 2.20 | 2.60 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.06) | (.16) | (.03) | (.02) | (.06) | (.03) | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (.06) | (.16) | (.03) | (.02) | (.06) | (.03) | ||||||||||||||||||||
Net Asset Value, End of Period | $25.90 | $22.49 | $18.25 | $32.09 | $24.19 | $22.05 | ||||||||||||||||||||
Total Return** | 15.44% | 24.29% | (43.08)% | 32.76% | 10.00% | 13.35% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,402,242 | $2,890,078 | $2,590,521 | $5,006,239 | $3,876,997 | $4,473,431 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,566,187 | $2,505,457 | $4,097,719 | $4,266,701 | $4,052,013 | $4,447,616 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.05% | 1.02% | 1.06% | 1.01% | 0.98% | 0.93% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.04% | 1.01% | 1.05% | 1.00% | 0.97% | 0.92% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.41% | 0.59% | 0.24% | 0.11% | 0.11% | 0.42% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 72% | 83% | 102% | 72% | 147% | 38% |
Class T Shares(1)
For a share outstanding during the five-month period ended | Janus Triton Fund | |||||||||||||||||||||||||
March 31, 2010 (unaudited) and each fiscal year or period ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005(4) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.60 | $8.89 | $17.13 | $13.09 | $10.86 | $10.00 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.01) | .01 | .02 | – | .01 | – | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 1.99 | 2.70 | (6.36) | 4.22 | 2.27 | .86 | ||||||||||||||||||||
Total from Investment Operations | 1.98 | 2.71 | (6.34) | 4.22 | 2.28 | .86 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (.02) | –(5) | – | – | (.03) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | (1.90) | (.18) | (.02) | – | ||||||||||||||||||||
Return of Capital | N/A | N/A | –(6) | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | (.02) | – | (1.90) | (.18) | (.05) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $13.56 | $11.60 | $8.89 | $17.13 | $13.09 | $10.86 | ||||||||||||||||||||
Total Return** | 17.07% | 30.55% | (41.05)% | 32.57% | 21.06% | 8.60% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $252,985 | $315,350 | $122,852 | $151,888 | $111,993 | $37,695 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $322,615 | $193,298 | $143,209 | $120,057 | $105,268 | $25,904 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 1.02%(7) | 1.18%(7) | 1.20%(7) | 1.13% | 1.11% | 1.27% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 1.02%(7) | 1.17%(7) | 1.20%(7) | 1.11% | 1.09% | 1.25% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.05)% | 0.06% | (0.23)% | (0.28)% | 0.12% | (0.24)% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 34% | 50% | 88% | 93% | 262% | 48% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Period from February 25, 2005 (inception date) through October 31, 2005. | |
(5) | Dividends (from net investment income) aggregated less than $.01 on a per share basis. | |
(6) | Return of Capital aggregated less than $.01 on a per share basis. | |
(7) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.01% and 1.01%, respectively, in 2010, 1.18% and 1.17%, respectively, in 2009 and 1.16% and 1.16%, respectively, in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
160 | MARCH 31, 2010
Class T Shares(1)
For a share outstanding during the five-month period | ||||||||||||||||||||||||||
ended March 31, 2010 (unaudited) and each fiscal year | Janus Twenty Fund | |||||||||||||||||||||||||
ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $57.00 | $46.29 | $74.70 | $52.93 | $47.63 | $39.60 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.12) | .06 | .01 | .15 | .32 | .10 | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 7.08 | 10.66 | (28.27) | 21.94 | 5.08 | 7.94 | ||||||||||||||||||||
Total from Investment Operations | 6.96 | 10.72 | (28.26) | 22.09 | 5.40 | 8.04 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (.15) | (.32) | (.10) | (.01) | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Return of Capital | N/A | (.01) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | – | (.01) | (.15) | (.32) | (.10) | (.01) | ||||||||||||||||||||
Net Asset Value, End of Period | $63.96 | $57.00 | $46.29 | $74.70 | $52.93 | $47.63 | ||||||||||||||||||||
Total Return** | 12.21% | 23.16% | (37.91)% | 41.95% | 11.35% | 20.31% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $4,493,461 | $9,016,257 | $7,671,239 | $12,769,465 | $9,582,463 | $9,612,503 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,991,977 | $7,846,950 | $11,801,120 | $10,355,207 | $9,511,589 | $9,458,921 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.87% | 0.86% | 0.85% | 0.88%(4) | 0.88%(4) | 0.86% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.87% | 0.86% | 0.84% | 0.88%(4) | 0.87%(4) | 0.86% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.25)% | (0.10)% | (0.07)%(5) | 0.22% | 0.60% | 0.21% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 46% | 32% | 42% | 20% | 41% | 44% |
Class T Shares(1)
For a share outstanding during the five-month period | ||||||||||||||||||||||||||
ended March 31, 2010 (unaudited) and each fiscal year | Janus Venture Fund | |||||||||||||||||||||||||
ended October 31 | 2010(2) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.68 | $29.82 | $79.09 | $65.75 | $56.82 | $51.57 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (.33) | – | .07 | (.02) | (.06) | – | ||||||||||||||||||||
Net gains/(losses) on investments (both realized and unrealized) | 8.55 | 8.86 | (34.87) | 20.85 | 11.92 | 5.25 | ||||||||||||||||||||
Total from Investment Operations | 8.22 | 8.86 | (34.80) | 20.83 | 11.86 | 5.25 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | (14.47) | (7.49) | (2.93) | – | ||||||||||||||||||||
Return of Capital | N/A | N/A | –(6) | N/A | N/A | N/A | ||||||||||||||||||||
Total Distributions and Other | – | – | (14.47) | (7.49) | (2.93) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $46.90 | $38.68 | $29.82 | $79.09 | $65.75 | $56.82 | ||||||||||||||||||||
Total Return** | 21.25% | 29.71% | (52.62)% | 34.68% | 21.69% | 10.18% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $214,792 | $921,384 | $760,880 | $1,764,166 | $1,398,455 | $1,293,150 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $769,160 | $776,334 | $1,268,992 | $1,549,495 | $1,353,079 | $1,367,775 | ||||||||||||||||||||
Ratio of Gross Expenses to Average Net Assets***(3) | 0.90%(4) | 0.93%(4) | 0.90%(4) | 0.88% | 0.91% | 0.87% | ||||||||||||||||||||
Ratio of Net Expenses to Average Net Assets***(3) | 0.90%(4) | 0.93%(4) | 0.90%(4) | 0.87% | 0.91% | 0.87% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.47)% | (0.48)% | (0.46)% | (0.49)% | (0.55)% | (0.64)% | ||||||||||||||||||||
Portfolio Turnover Rate*** | 28% | 40% | 31% | 57% | 55% | 63% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Formerly named Class J Shares. | |
(2) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | See Note 6 in Notes to Financial Statements. | |
(4) | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets includes dividends and interest on short positions and may include stock loan fees. The ratio would be 0.86% and 0.86%, respectively, in 2007 and 0.87% and 0.87%, respectively, in 2006 for Janus Twenty Fund and 0.88% and 0.88%, respectively, in 2010, 0.91% and 0.91%, respectively, in 2009 and 0.89% and 0.89%, respectively, in 2008 for Janus Venture Fund without the inclusion of dividends and interest on short positions and any stock loan fees. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.09% for Class T Shares (formerly named Class J Shares). The adjustment had no impact on total net assets or total return of the class. | |
(6) | Return of Capital aggregated less than $.01 on a per share basis. |
Janus Growth & Core Funds | 161
Notes to Schedules of Investments (unaudited)
Balanced Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the S&P 500® Index (55%) and Barclays Capital U.S. Government/Credit Bond Index (45%). | |
Barclays Capital U.S. Aggregate Bond Index | An unmanaged market value weighted index for U.S. dollar-denominated investment-grade debt issues, including government, corporate, mortgage-backed, and asset-backed securities with maturities of at least one year. | |
Barclays Capital U.S. Government/Credit Bond Index | Composed of all bonds that are investment grade with at least one year until maturity. | |
Core Growth Index | An internally calculated, hypothetical combination of unmanaged indices that combines total returns from the Russell 1000® Growth Index (50%) and the S&P 500® Index (50%). | |
Lipper Large-Cap Core Funds | Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500® Index. | |
Lipper Large-Cap Growth Funds | Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500® Index. | |
Lipper Mid-Cap Growth Funds | Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P MidCap 400 Index. | |
Lipper Mixed-Asset Target Allocation Moderate Funds | Funds that, by portfolio practice, maintain a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents. | |
Lipper Multi-Cap Core Funds | Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating more than 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Multi-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. | |
Lipper Multi-Cap Growth Funds | Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating more than 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Multi-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. | |
Lipper Small-Cap Growth Funds | Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 |
162 | MARCH 31, 2010
Index. Small-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index. | ||
Morgan Stanley Capital International All Country World IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell 1000® Index | Measures the performance of the 1,000 largest companies in the Russell 3000® Index. | |
Russell 2000® Growth Index | Measures the performance of those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell 2000® Index | Measures the performance of the 2,000 smallest companies in the Russell 3000® Index. | |
Russell 2500TMGrowth Index | Measures the performance of those Russell 2500TM Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell 3000® Growth Index | Measures the performance of those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000® Growth or the Russell 2000® Growth Indices. | |
Russell Midcap® Growth Index | Measures the performance of those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
S&P 500® Index | The Standard & Poor’s (“S&P”) 500® Index is a commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. Equity performance. | |
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. | |
ADR | American Depositary Receipt | |
ETF | Exchange-Traded Fund | |
GDR | Global Depositary Receipt | |
HOLDRs | Holding Company Depositary Receipt | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
SPDR | Standard & Poor’s Depositary Receipt | |
ULC | Unlimited Liability Company | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. | |
VVPR Strip | The Voter Verified Paper Record (VVPR) strip is a coupon which, if presented along with the dividend coupon of the ordinary share, allows the benefit of a reduced withholding tax on the dividends paid by the company. This strip is quoted separately from the ordinary share and is freely negotiable. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements and/or securities with extended settlement dates. | |
‡ | Rate is subject to change. Rate shown reflects current rate. |
Janus Growth & Core Funds | 163
Notes to Schedules of Investments (unaudited) (continued)
∞ Schedule of Fair Valued Securities (as of March 31, 2010)
Value as a % | |||||||
Value | of Net Assets | ||||||
Janus Venture Fund | |||||||
Digital Domain – Private Placement | $ | 3,037,965 | 0.3% | ||||
Genius Products, Inc. | 48,015 | 0.0% | |||||
Genius Products, Inc., 5.0000% – expires 12/31/10 | 2,000,000 | 0.2% | |||||
Genius Products, Inc. – Private Placement | 3,088,705 | 0.3% | |||||
Lantronix, Inc. – expires 2/9/11 | 1 | 0.0% | |||||
Motorcar Parts of America, Inc. – Private Placement – expires 5/17/12 | 769 | 0.0% | |||||
Pokertek, Inc. – Private Placement – expires 4/23/12 | 28,161 | 0.0% | |||||
$ | 8,203,616 | 0.8% | |||||
Securities are valued at “fair value” pursuant to procedures adopted by the Funds’ Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to a systematic fair valuation model.
§ Schedule of Restricted and Illiquid Securities (as of March 31, 2010)
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Venture Fund | ||||||||||||
Digital Domain – Private Placement | 7/26/07 | $ | 7,291,119 | $ | 3,037,965 | 0.3% | ||||||
Genius Products, Inc. | 12/5/05-11/16/07 | 8,594,480 | 48,015 | 0.0% | ||||||||
Genius Products, Inc., 5.0000% – expires 12/31/10 | 2/19/09 | 2,000,000 | 2,000,000 | 0.2% | ||||||||
Genius Products, Inc. – Private Placement | 5/1/09 | 37,439 | 3,088,705 | 0.3% | ||||||||
Motorcar Parts of America, Inc. – Private Placement – expires 5/17/12 | 5/17/07 | 198,682 | 769 | 0.0% | ||||||||
Pokertek, Inc. – Private Placement – expires 4/23/12 | 4/23/07 | 712,613 | 28,161 | 0.0% | ||||||||
$ | 18,834,333 | $ | 8,203,615 | 0.8% | ||||||||
The Fund has registration rights for certain restricted securities held as of March 31, 2010. The issuer incurs all registration costs.
£ | The Investment Company Act of 1940, as amended, defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities at any time during the period ended March 31, 2010. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Contrarian Fund | |||||||||||||||||||||
St. Joe Co. | – | $ | – | – | $ | – | $ | – | $ | – | $ | 287,867,186 | |||||||||
Vail Resorts, Inc. | – | – | – | – | – | – | 119,080,931 | ||||||||||||||
– | $ | – | – | $ | – | $ | – | $ | – | $ | 406,948,117 | ||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Orion Fund | |||||||||||||||||||||
Pacific Sunwear of California, Inc. | 4,915,170 | $ | 18,619,198 | – | $ | – | $ | – | $ | – | $ | 26,099,553 | |||||||||
Wesco International, Inc. | 1,933,295 | 54,508,466 | – | – | – | – | 110,937,152 | ||||||||||||||
6,848,465 | $ | 73,127,664 | – | $ | – | $ | – | $ | – | $ | 137,036,705 | ||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/10 | |||||||||||||||
Janus Venture Fund | |||||||||||||||||||||
Century Casinos, Inc. | – | $ | – | 485,624 | $ | 1,127,274 | $ | (9,817) | $ | – | $ | 2,413,780 | |||||||||
Genius Products, Inc. – Private Placement | – | – | – | – | – | – | 3,088,705 | ||||||||||||||
Health Grades, Inc. | – | – | – | – | – | – | 10,431,576 | ||||||||||||||
Horizon Lines, Inc. – Class A | – | – | – | – | – | 267,365 | 9,090,420 | ||||||||||||||
inContact, Inc. | – | – | – | – | – | – | 4,565,979 | ||||||||||||||
Information Services Group, Inc. | – | – | – | – | – | – | 6,687,259 | ||||||||||||||
LivePerson, Inc. | – | – | – | – | – | – | 24,087,021 | ||||||||||||||
NaviSite, Inc. | – | – | – | – | – | – | 9,520,614 | ||||||||||||||
Sturm Ruger and Co., Inc. | – | – | 988,405 | 10,071,359 | (29,508) | 94,887 | – | ||||||||||||||
Ultimate Software Group, Inc. | – | – | 70,700 | 2,122,324 | (1,441) | – | 39,274,752 | ||||||||||||||
– | $ | – | 1,544,729 | $ | 13,320,957 | $ | (40,766) | $ | 362,252 | $ | 109,160,106 | ||||||||||
164 | MARCH 31, 2010
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2010. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2010)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Balanced Fund | |||||||||||
Common Stock | |||||||||||
Aerospace and Defense | $ | 45,376,458 | $ | 35,415,947 | $ | – | |||||
Agricultural Chemicals | 24,333,580 | 65,356,974 | – | ||||||||
Cellular Telecommunications | – | 19,938,872 | – | ||||||||
Commercial Banks | 39,985,490 | 53,389,934 | – | ||||||||
Diversified Banking Institutions | 170,601,380 | 75,115,401 | – | ||||||||
Medical – Drugs | 218,396,379 | 2,114,536 | – | ||||||||
Oil Companies – Integrated | 121,688,197 | 62,863,852 | – | ||||||||
Power Converters and Power Supply Equipment | – | 9,803,836 | – | ||||||||
All Other | 2,391,208,167 | – | – | ||||||||
Corporate Bonds | – | 1,691,568,188 | – | ||||||||
Preferred Stock | – | 16,475,019 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 438,338,381 | – | ||||||||
Money Market | – | 191,577,723 | – | ||||||||
Total Investments in Securities | $ | 3,011,589,651 | $ | 2,661,958,663 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Contrarian Fund | |||||||||||
Common Stock | |||||||||||
Commercial Banks | $ | 200,350,226 | $ | 83,751,951 | $ | – | |||||
Medical – Drugs | 65,321,312 | 46,967,237 | – | ||||||||
Medical – Generic Drugs | 217,796,836 | 43,650,729 | – | ||||||||
Power Converters and Power Supply Equipment | – | 3,780,340 | – | ||||||||
All Other | 3,681,598,650 | – | – | ||||||||
Corporate Bond | – | 30,294,348 | – | ||||||||
Money Market | – | 96,574,956 | – | ||||||||
Total Investments in Securities | $ | 4,165,067,024 | $ | 305,019,561 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Enterprise Fund | |||||||||||
Common Stock | |||||||||||
Aerospace and Defense | $ | 20,013,848 | $ | 20,043,738 | $ | – | |||||
Airlines | – | 36,209,350 | – | ||||||||
Medical – Drugs | 11,310,261 | 21,492,406 | – | ||||||||
All Other | 2,420,153,985 | – | – | ||||||||
Money Market | – | 80,891,615 | – | ||||||||
Total Investments in Securities | $ | 2,451,478,094 | $ | 158,637,109 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Forty Fund | |||||||||||
Common Stock | |||||||||||
Cellular Telecommunications | $ | – | $ | 44,167,309 | $ | – | |||||
Diversified Minerals | – | 101,064,754 | – | ||||||||
Oil Companies – Integrated | 57,771,057 | �� | 192,991,064 | – | |||||||
All Other | 5,864,759,834 | – | – | ||||||||
Money Market | – | 549,400,286 | – | ||||||||
Total Investments in Securities | $ | 5,922,530,891 | $ | 887,623,413 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Fund | |||||||||||
Common Stock | |||||||||||
Oil Companies – Integrated | $ | – | $ | 133,176,761 | $ | – | |||||
All Other | 8,849,645,012 | – | – | ||||||||
Money Market | – | 195,610,261 | – | ||||||||
Total Investments in Securities | $ | 8,849,645,012 | $ | 328,787,022 | $ | – | |||||
Janus Growth & Core Funds | 165
Notes to Schedules of Investments (unaudited) (continued)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Growth and Income Fund | |||||||||||
Common Stock | |||||||||||
Aerospace and Defense | $ | 61,062,469 | $ | 46,331,931 | $ | – | |||||
Agricultural Chemicals | 31,329,811 | 87,355,532 | – | ||||||||
Cellular Telecommunications | – | 25,890,445 | – | ||||||||
Commercial Banks | 47,161,991 | 64,079,808 | – | ||||||||
Diversified Banking Institutions | 212,375,527 | 80,613,422 | – | ||||||||
Oil Companies – Integrated | 144,374,153 | 76,277,261 | – | ||||||||
Power Converters and Power Supply Equipment | – | 14,671,650 | – | ||||||||
All Other | 2,829,108,891 | – | – | ||||||||
Corporate Bonds | – | 79,439,681 | – | ||||||||
Preferred Stock | – | 35,099,480 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 85,752,634 | – | ||||||||
Money Market | – | 65,811,736 | – | ||||||||
Total Investments in Securities | $ | 3,325,412,842 | $ | 661,323,580 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Orion Fund | |||||||||||
Common Stock | |||||||||||
Oil and Gas Drilling | $ | – | $ | 55,345,841 | $ | – | |||||
All Other | 3,607,409,999 | – | – | ||||||||
Money Market | – | 57,547,468 | – | ||||||||
Total Investments in Securities | $ | 3,607,409,999 | $ | 112,893,309 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Research Core Fund | |||||||||||
Common Stock | |||||||||||
Airlines | $ | – | $ | 11,639,356 | $ | – | |||||
Commercial Banks | – | 5,914,377 | – | ||||||||
Oil Companies – Integrated | 9,666,888 | 10,133,532 | – | ||||||||
All Other | 587,974,383 | – | – | ||||||||
Money Market | – | 1,111,000 | – | ||||||||
Total Investments in Securities | $ | 597,641,271 | $ | 28,798,265 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Research Fund | |||||||||||
Common Stock | |||||||||||
Diversified Minerals | $ | – | $ | 31,166,905 | $ | – | |||||
Oil Companies – Integrated | 42,594,452 | 9,634,176 | – | ||||||||
All Other | 3,127,071,057 | – | – | ||||||||
Money Market | – | 26,776,631 | – | ||||||||
Total Investments in Securities | $ | 3,169,665,509 | $ | 67,577,712 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Triton Fund | |||||||||||
Common Stock | $ | 466,209,758 | $ | – | $ | – | |||||
Money Market | – | 46,463,392 | – | ||||||||
Total Investments in Securities | $ | 466,209,758 | $ | 46,463,392 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Twenty Fund | |||||||||||
Common Stock | |||||||||||
Cellular Telecommunications | $ | – | $ | 71,230,597 | $ | – | |||||
Diversified Minerals | – | 179,187,245 | – | ||||||||
Oil Companies – Integrated | 88,437,437 | 293,898,261 | – | ||||||||
All Other | 9,042,902,621 | – | – | ||||||||
Money Market | – | 179,672,000 | – | ||||||||
Total Investments in Securities | $ | 9,131,340,058 | $ | 723,988,103 | $ | – | |||||
166 | MARCH 31, 2010
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Venture Fund | |||||||||||
Common Stock | |||||||||||
Broadcast Services and Programming | $ | 17,992,483 | $ | – | $ | 3,136,720 | |||||
Diversified Operations | 5,894,142 | – | 3,037,965 | ||||||||
Hotels and Motels | 2,857,322 | 10,627,276 | – | ||||||||
Medical Labs and Testing Services | 17,421,374 | 3,609,635 | – | ||||||||
All Other | 1,020,578,819 | – | – | ||||||||
Promissory Note | – | – | 2,000,000 | ||||||||
Warrants | – | 28,931 | – | ||||||||
Total Investments in Securities | $ | 1,064,744,140 | $ | 14,265,842 | $ | 8,174,685 | |||||
Investments in Purchased Options: | |||||||||||
Janus Contrarian Fund | $ | 515,742 | $ | 95,659,371 | $ | – | |||||
Janus Forty Fund | – | 14,276 | – | ||||||||
Janus Fund | – | 454,084 | – | ||||||||
Janus Orion Fund | – | 1,994,105 | – | ||||||||
Janus Twenty Fund | – | 21,441 | – | ||||||||
Investments in Securities Sold Short: | |||||||||||
Janus Orion Fund | $ | (141,811,850) | $ | – | $ | – | |||||
Janus Triton Fund | (1,692,629) | – | – | ||||||||
Janus Venture Fund | (5,187,569) | – | – | ||||||||
Other Financial Instruments(b): | |||||||||||
Janus Balanced Fund | $ | – | $ | 1,854,886 | $ | – | |||||
Janus Contrarian Fund | – | (36,727,637) | – | ||||||||
Janus Enterprise Fund | – | 157,211 | – | ||||||||
Janus Fund | – | 12,783,780 | – | ||||||||
Janus Growth and Income Fund | – | 488,289 | – | ||||||||
Janus Orion Fund | – | (360,439) | – | ||||||||
Janus Research Core Fund | – | 721,412 | – | ||||||||
Janus Research Fund | – | 4,034,401 | – | ||||||||
(a) | Includes fair value factors. | |
(b) | Other financial instruments include futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options are reported at their market value at measurement date. |
Level 3 Valuation Reconciliation of Assets (for the five-month period ended March 31, 2010)
Change in | |||||||||||||||||||||||
Balance | Accrued | Unrealized | Net | Transfers In | Balance | ||||||||||||||||||
as of | Discounts/ | Realized | Appreciation/ | Purchases | and/or | as of | |||||||||||||||||
October 31, 2009 | Premiums | Gain/(Loss) | (Depreciation)(a) | /(Sales) | Out of Level 3 | March 31, 2010 | |||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
Janus Venture Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Broadcast Services and Programming | $ | 3,136,720 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 3,136,720 | |||||||||
Diversified Operations | 7,291,116 | – | – | (4,253,151) | – | – | 3,037,965 | ||||||||||||||||
Promissory Note | |||||||||||||||||||||||
Broadcast Services and Programming | 2,000,000 | – | – | – | – | – | 2,000,000 | ||||||||||||||||
(a) | Included in “Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Operations. |
Janus Growth & Core Funds | 167
Notes to Schedules of Investments (unaudited) (continued)
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates as of March 31, 2010 is noted below.
Fund | Aggregate Value | ||||
Janus Balanced Fund | $ | 853,629,901 | |||
Janus Contrarian Fund | 1,168,559,166 | ||||
Janus Enterprise Fund | 160,376,032 | ||||
Janus Fund | 1,446,118,363 | ||||
Janus Growth and Income Fund | 815,879,300 | ||||
Janus Orion Fund | 890,090,149 | ||||
Janus Research Core Fund | 97,310,275 | ||||
Janus Research Fund | 582,716,483 | ||||
Janus Triton Fund | 6,241,228 | ||||
Janus Venture Fund | 12,483,750 | ||||
168 | MARCH 31, 2010
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus Balanced Fund, Janus Contrarian Fund, Janus Enterprise Fund, Janus Forty Fund, Janus Fund, Janus Growth and Income Fund, Janus Orion Fund, Janus Research Core Fund, Janus Research Fund, Janus Triton Fund, Janus Twenty Fund and Janus Venture Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part 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. On November 1, 2009, all of the Funds, except Janus Forty Fund, changed their fiscal year end from October 31 to September 30. Accordingly, these financial statements include information for the five-month period from November 1, 2009 to March 31, 2010. The Trust offers thirty-eight funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Contrarian Fund, Janus Forty Fund, Janus Orion Fund and Janus Twenty Fund, which are classified as nondiversified.
Each Fund in this report 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 A Shares and Class C 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. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who held accounts directly with the Janus funds as of July 6, 2009 and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
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, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
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 Management LLC (“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, and 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 Funds and are in conformity with accounting principles generally accepted in the United States of America within the investment management industry.
Investment Valuation
Securities are valued at the last sales price or the official closing price for securities traded on a principal securities exchange (U.S. or foreign) and on the NASDAQ National Market. Securities traded on over-the-counter markets and listed securities for which no sales are reported are 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 Funds’ Trustees. Short-term securities with maturities of 60 days or less may be valued at amortized cost, which approximates market value. Debt securities with a remaining maturity of greater than 60 days are valued in accordance with the evaluated bid price supplied by the pricing service. The evaluated bid price supplied by the pricing service is an evaluation that reflects such factors as security prices, yields, maturities and ratings. Short positions shall be valued in accordance with the same methodologies, except that in the event that a last sale price is not available, the latest ask price shall be used instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable
Janus Growth & Core Funds | 169
Notes to Financial Statements (unaudited) (continued)
exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Funds are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Funds’ Trustees. 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 non-significant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a non-valued security and a restricted or non-public security. The Funds may use a systematic fair valuation model provided by an independent pricing service to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Funds’ Trustees.
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 Trust 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
Each Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to each Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class 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.
Foreign Currency Translations
The Funds do 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.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and market risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
Dividends of net investment income for Janus Balanced Fund and Janus Growth and Income Fund are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Funds may be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
The 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
170 | MARCH 31, 2010
REIT’s taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements, as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Funds adopted the provisions of “Income Taxes.” These provisions require an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statements of Operations.
These provisions require management of the Funds to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the five- or six-month period ended March 31, 2010, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examinations in progress and are 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.
Restricted Cash
As of March 31, 2010, Janus Contrarian Fund and Janus Orion Fund had restricted cash in the amounts of $11,630,000 and $140,000, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at March 31, 2010. The restricted cash is held at the Fund’s custodian, State Street Bank and Trust Company. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with FASB guidance, the Funds utilize the “Fair Value Measurements and Disclosures” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit 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. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the security and would be based on the best information available under the circumstances.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2010 to value the Funds’ investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and “Level 3 Valuation Reconciliation of Assets” (if applicable) in the Notes to Schedules of Investments.
In April 2009, FASB issued “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” which provides additional guidance for estimating fair value in accordance with Fair Value Measurements when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a
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Notes to Financial Statements (unaudited) (continued)
transaction is not orderly. Additionally, it amends the Fair Value Measurement Standard by expanding disclosure requirements for reporting entities surrounding the major categories of assets and liabilities carried at fair value. The required disclosures have been incorporated into the “Valuation Inputs Summary” in the Notes to Schedules of Investments. Management believes applying this guidance does not have a material impact on the financial statements.
2. | Derivative Instruments |
The Funds 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 Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the cost of the derivative. The Funds may not use any derivative to gain exposure to an asset or class of assets prohibited by their investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives are generally 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 Funds to additional risks that they would not be subject to if they 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, including counterparty risk, currency risk, leverage risk, liquidity risk, and index risk.
Derivatives may generally be traded over-the-counter (“OTC”) or on an exchange. Derivatives traded OTC, such as structured notes, 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 counterparty credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a 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. 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.
Equity-Linked Structured Notes
The Funds may invest in equity-linked structured notes. Equity-linked structured notes are derivative securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, an equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked structured notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked structured notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is a commitment to purchase or sell a foreign currency at a future date at a negotiated rate. The Funds 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 Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Funds are subject to foreign currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
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 contract is included in “Net realized gain/(loss) from investment
172 | MARCH 31, 2010
and foreign currency transactions” on the Statements of Operations (if applicable).
Forward currency contracts held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
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 Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, market risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds 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 are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds may purchase or write covered and uncovered put and call options on futures contracts and on portfolio securities for hedging purposes or as a substitute for an investment. The Funds are subject to interest rate risk, liquidity risk, market risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use option contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Funds may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Funds may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Funds may also invest in long-term equity anticipation securities, which are long-term option contracts that can be maintained for a period of up to three years. The Funds generally invest in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Funds may also purchase and write exchange-listed and over-the-counter put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which
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Notes to Financial Statements (unaudited) (continued)
the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded over-the-counter expose the Funds to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by having the counterparty post collateral to cover the Funds’ exposure to the counterparty.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments (if applicable). Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written at value” (if applicable).
Realized gains and losses are reported as “Net realized gain/(loss) from options contracts” on the Statements of Operations (if applicable).
The following Funds recognized realized gains/(losses) from written options contracts during the five-month period ended March 31, 2010 as indicated in the tables below:
Fund | Gains/(Losses) | ||||
Janus Contrarian Fund | $ | 5,294,185 | |||
Janus Fund | 466,488 | ||||
Janus Orion Fund | 8,743,165 | ||||
Janus Venture Fund | 739,498 | ||||
The risk in writing call options is that the Funds give up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Funds may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Funds pay a premium whether or not the options are exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Funds’ hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. There is no limit to the loss the Funds may recognize due to written call options.
Written option activity for the five-month period ended March 31, 2010 is indicated in the table below:
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Contrarian Fund | ||||||||
Options outstanding at October 31, 2009 | – | $ | – | |||||
Options written | 217,871 | 23,521,445 | ||||||
Options closed | (87,428) | (5,860,044) | ||||||
Options expired | – | – | ||||||
Options exercised | (19,192) | (1,235,213) | ||||||
Options outstanding at March 31, 2010 | 111,251 | $ | 16,426,188 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Contrarian Fund | ||||||||
Options outstanding at October 31, 2009 | 73,645 | $ | 10,649,067 | |||||
Options written | 1,153,573 | 89,725,724 | ||||||
Options closed | (463,013) | (29,969,331) | ||||||
Options expired | (233,907) | (13,397,699) | ||||||
Options exercised | (10,157) | (1,285,004) | ||||||
Options outstanding at March 31, 2010 | 520,141 | $ | 55,722,757 | |||||
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Fund | ||||||||
Options outstanding at October 31, 2009 | 4,284 | $ | 2,729,223 | |||||
Options written | 9,468 | 466,488 | ||||||
Options closed | – | – | ||||||
Options expired | (9,468) | (466,488) | ||||||
Options exercised | (4,284) | (2,729,223) | ||||||
Options outstanding at March 31, 2010 | – | $ | – | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Fund | ||||||||
Options outstanding at October 31, 2009 | – | $ | – | |||||
Options written | 807 | 484,200 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | 807 | $ | 484,200 | |||||
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Orion Fund | ||||||||
Options outstanding at October 31, 2009 | 8,670 | $ | 2,408,117 | |||||
Options written | 52,424 | 5,030,974 | ||||||
Options closed | (32,231) | (3,424,411) | ||||||
Options expired | (7,680) | (1,476,273) | ||||||
Options exercised | (16,043) | (1,800,817) | ||||||
Options outstanding at March 31, 2010 | 5,140 | $ | 737,590 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Orion Fund | ||||||||
Options outstanding at October 31, 2009 | 31,359 | $ | 3,946,130 | |||||
Options written | 9,755,108 | 8,398,308 | ||||||
Options closed | (4,818,910) | (250,653) | ||||||
Options expired | (4,911,972) | (8,734,858) | ||||||
Options exercised | (2,053) | (168,346) | ||||||
Options outstanding at March 31, 2010 | 53,532 | $ | 3,190,581 | |||||
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Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Venture Fund | ||||||||
Options outstanding at October 31, 2009 | 1,000 | $ | 95,000 | |||||
Options written | 3,500 | 223,567 | ||||||
Options closed | – | – | ||||||
Options expired | (4,000) | (265,998) | ||||||
Options exercised | (500) | (52,569) | ||||||
Options outstanding at March 31, 2010 | – | $ | – | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Venture Fund | ||||||||
Options outstanding at October 31, 2009 | 3,000 | $ | 415,000 | |||||
Options written | 9,500 | 797,000 | ||||||
Options closed | (2,000) | (283,000) | ||||||
Options expired | (10,500) | (929,000) | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2010 | – | $ | – | |||||
Other Options
In addition to the option strategies described above, the Funds may purchase and sell a variety of options with non-standard payout structures or other features (“exotic options”). Exotic options are traded OTC and typically have price movements that can vary markedly from simple put or call options. The risks associated with exotic options are that they cannot be as easily priced and may be subject to liquidity risk. While some exotic options have fairly active markets others are mostly thinly traded instruments. Some options are pure two-party transactions and may have no liquidity. The Funds may treat such instruments as illiquid and will limit their investments in such instruments to no more than 15% of a Fund’s net assets, when combined with all other illiquid investments of a Fund. The Funds may use exotic options to the extent that they are consistent with the Funds’ investment objectives and investment policies, and applicable regulations.
The Funds may purchase and sell exotic options that have values which are determined by the correlation of two or more underlying assets. These types of options include, but are not limited to, outperformance options, yield curve options or other spread options.
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Funds may utilize swap agreements as a means to gain exposure to certain common stocks and/or to “hedge” or protect their portfolios from adverse movements in securities prices or interest rates. The Funds are subject to market risk and interest rate risk in the normal course of pursuing their investment objectives through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a 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 contracts of the Funds are reported as an asset or liability on the Statements of Assets and Liabilities (if applicable). Realized gains and losses of the Funds are reported in “Net realized gain/(loss) from swap contracts” on the Statements of Operations (if applicable).
Various types of swaps such as credit default (funded and unfunded), equity, interest rate, and total return swaps are described below.
Credit default swaps are a specific kind of counterparty agreement that allows the transfer of third-party credit risk from one party to the other. The Funds are subject to credit risk in the normal course of pursuing their investment objectives through their investments in credit default swap contracts. The Funds may enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which they are not otherwise exposed. With a credit default swap, one party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange for regular periodic payments. The Funds’ maximum risk of loss from counterparty risk, either as protection sellers or as protection buyers (undiscounted), is the notional value of the agreement. The risk is mitigated by having a netting arrangement between the Funds and the counterparty and by posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.
Funded (notional value of contract paid up front) or unfunded (notional value only paid in case of default) credit default swaps are based on an index of credit default swaps (“CDXs”) or other similarly structured products. CDXs are designed to track segments of the credit default swap market and provide investors with exposure to specific reference baskets of issuers of bonds or loans. These instruments have the potential to allow an investor to obtain the same investment exposure as an investor who invests in an individual credit default swap, but with the potential added benefit of diversification. The CDX reference baskets are normally priced daily and rebalanced every six months in conjunction with leading market makers in the credit industry. The liquidity of the market for CDXs is normally subject to liquidity in the secured loan and credit
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Notes to Financial Statements (unaudited) (continued)
derivatives markets. A fund investing in CDXs is normally only permitted to take long positions in these instruments.
Equity swaps involve the exchange by two parties of future cash flow (e.g., one cash flow based on a referenced interest rate and the other based on the performance of stock or a stock index).
Interest rate swaps involve the exchange by two parties of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments).
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.
The Funds’ maximum risk of loss for equity swaps, interest rate swaps and total return swaps 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 Funds and the counterparty and by the posting of collateral to the Funds to cover the Funds’ exposure to the counterparty.
In accordance with FASB guidance, the Funds adopted the provisions for “Derivatives and Hedging”, which require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
Fair Value of Derivative Instruments as of March 31, 2010
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Balanced Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 2,758,393 | Forward currency contracts | $ | 903,507 | ||||||
Total | $ | 2,758,393 | $ | 903,507 | ||||||||
Derivatives not accounted | Asset Derivatives | Liability Derivatives | ||||||||||
for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Contrarian Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 96,175,113 | Options written, at value | $ | 44,183,841 | ||||||
Foreign Exchange Contracts | Forward currency contracts | 8,326,833 | Forward currency contracts | 870,629 | ||||||||
Total | $ | 104,501,946 | $ | 45,054,470 | ||||||||
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Enterprise Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 593,830 | Forward currency contracts | $ | 436,619 | ||||||
Total | $ | 593,830 | $ | 436,619 | ||||||||
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Forty Fund | �� | |||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 14,276 | Options written, at value | $ | – | ||||||
Total | $ | 14,276 | $ | – | ||||||||
Derivatives not accounted for | Asset Derivatives | Liability Derivatives | ||||||||||
as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 454,084 | Options written, at value | $ | 91,068 | ||||||
Foreign Exchange Contracts | Forward currency contracts | 14,655,628 | Forward currency contracts | 1,780,780 | ||||||||
Total | $ | 15,109,712 | $ | 1,871,848 | ||||||||
176 | MARCH 31, 2010
Derivatives not accounted for | Asset Derivatives | Liability Derivatives | ||||||||||
as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Growth and Income Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 1,808,713 | Forward currency contracts | $ | 1,320,424 | ||||||
Total | $ | 1,808,713 | $ | 1,320,424 | ||||||||
Derivatives not accounted for | Asset Derivatives | Liability Derivatives | ||||||||||
as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Orion Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 1,994,105 | Options written, at value | $ | 3,251,237 | ||||||
Foreign Exchange Contracts | Forward currency contracts | 5,083,437 | Forward currency contracts | 2,192,638 | ||||||||
Total | $ | 7,077,542 | $ | 5,443,875 | ||||||||
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Research Core Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 774,714 | Forward currency contracts | $ | 53,302 | ||||||
Total | $ | 774,714 | $ | 53,302 | ||||||||
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Research Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 4,661,935 | Forward currency contracts | $ | 627,534 | ||||||
Total | $ | 4,661,935 | $ | 627,534 | ||||||||
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Janus Twenty Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 21,441 | Options, written at value | $ | – | ||||||
Total | $ | 21,441 | $ | – | ||||||||
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2010
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||
Equity Contracts | $ | (1,656,828 | ) | $ | – | $ | – | $ | – | $ | (1,656,828 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 7,478,322 | 7,478,322 | |||||||||||||||
Total | $ | (1,656,828 | ) | $ | – | $ | – | $ | 7,478,322 | $ | 5,821,494 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 2,314,376 | $ | 2,314,376 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 2,314,376 | $ | 2,314,376 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Contrarian Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (13,780,245 | ) | $ | – | $ | (13,780,245 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 9,631,349 | 9,631,349 | |||||||||||||||
Total | $ | – | $ | – | $ | (13,780,245 | ) | $ | 9,631,349 | $ | (4,148,896 | ) | ||||||||
Janus Growth & Core Funds | 177
Notes to Financial Statements (unaudited) (continued)
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Contrarian Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 40,248,104 | $ | – | $ | 40,248,104 | ||||||||||
Foreign Exchange Contracts | – | – | – | 10,968,222 | 10,968,222 | |||||||||||||||
Total | $ | – | $ | – | $ | 40,248,104 | $ | 10,968,222 | $ | 51,216,326 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Enterprise Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 1,117,787 | $ | 1,117,787 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 1,117,787 | $ | 1,117,787 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Enterprise Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 661,937 | $ | 661,937 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 661,937 | $ | 661,937 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Forty Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (2,108,282 | ) | $ | – | $ | (2,108,282 | ) | ||||||||
Total | $ | – | $ | – | $ | (2,108,282 | ) | $ | – | $ | (2,108,282 | ) | ||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 466,488 | $ | – | $ | 466,488 | ||||||||||
Foreign Exchange Contracts | – | – | – | 34,410,757 | 34,410,757 | |||||||||||||||
Total | $ | – | $ | – | $ | 466,488 | $ | 34,410,757 | $ | 34,877,246 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (2,199,267 | ) | $ | – | $ | (2,199,267 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 16,304,902 | 16,304,902 | |||||||||||||||
Total | $ | – | $ | – | $ | (2,199,267 | ) | $ | 16,304,902 | $ | 14,105,635 | |||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 8,304,056 | $ | 8,304,056 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 8,304,056 | $ | 8,304,056 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 2,249,794 | $ | 2,249,794 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 2,249,794 | $ | 2,249,794 | ||||||||||
178 | MARCH 31, 2010
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Orion Fund | ||||||||||||||||||||
Equity Contracts | $ | (4,336,002 | ) | $ | 2,586,305 | $ | 4,236,927 | $ | – | $ | 2,487,229 | |||||||||
Foreign Exchange Contracts | – | – | – | 9,120,170 | 9,120,170 | |||||||||||||||
Total | $ | (4,336,002 | ) | $ | 2,586,305 | $ | 4,236,927 | $ | 9,120,170 | $ | 11,607,399 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Orion Fund | ||||||||||||||||||||
Equity Contracts | $ | (2,190,141 | ) | $ | 3,707,795 | $ | 847,866 | $ | – | $ | 2,365,520 | |||||||||
Foreign Exchange Contracts | – | – | – | 5,708,439 | 5,708,439 | |||||||||||||||
Total | $ | (2,190,141 | ) | $ | 3,707,795 | $ | 847,866 | $ | 5,708,439 | $ | 8,073,959 | |||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Research Core Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 1,422,676 | $ | 1,422,676 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 1,422,676 | $ | 1,422,676 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Research Core Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 898,592 | $ | 898,592 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 898,592 | $ | 898,592 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Research Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 6,753,378 | $ | 6,753,378 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 6,753,378 | $ | 6,753,378 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Research Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 5,559,242 | $ | 5,559,242 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 5,559,242 | $ | 5,559,242 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Twenty Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (3,166,353 | ) | $ | – | $ | (3,166,353 | ) | ||||||||
Total | $ | – | $ | – | $ | (3,166,353 | ) | $ | – | $ | (3,166,353 | ) | ||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Venture Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 739,498 | $ | – | $ | 739,498 | ||||||||||
Total | $ | – | $ | – | $ | 739,498 | $ | – | $ | 739,498 | ||||||||||
Janus Growth & Core Funds | 179
Notes to Financial Statements (unaudited) (continued)
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Venture Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 647,545 | $ | – | $ | 647,545 | ||||||||||
Total | $ | – | $ | – | $ | 647,545 | $ | – | $ | 647,545 | ||||||||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
3. | Other investments and strategies |
Additional Investment Risk
The Funds may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
Unforeseen events in the equity and fixed-income markets may at times result in an unusually high degree of volatility in the markets, both domestic and international. These events and the resulting market upheavals may have an adverse effect on the Funds such as a decline in the value and liquidity of many securities held by the Funds, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in net asset value, and an increase in Fund expenses. Such unforeseen events may make it unusually difficult to identify both investment risks and opportunities and could limit or preclude each Fund’s ability to achieve its investment objective. The market’s behavior may at times be unpredictable. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
Bank Loans
Certain Funds, particularly Janus Balanced Fund, may invest in bank loans, which include institutionally-traded floating rate securities generally acquired as an assignment from another holder of, or participation interest in, loans originated by a bank or financial institution (the “Lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender selling the loan agreement and only upon receipt by the Lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. Assignments and participations involve credit, interest rate, and liquidity risk. Interest rates on floating rate securities adjust with general interest rate changes and/or issuer credit quality. The interest rates paid on a floating rate security in which the Fund invests generally are readjusted periodically to an increment over a designated benchmark rate, such as the one-month, three-month, six-month, or one-year London Interbank Offered Rate (“LIBOR”). LIBOR is a short-term interest rate that banks charge one another and is generally representative of the most competitive and current cash rates.
The Fund may have difficulty trading assignments and participations to third parties. There may be restrictions on transfer and only limited opportunities may exist to sell such securities in secondary markets. As a result, the Fund may be unable to sell assignments or participations at the desired time or may be able to sell only at a price less than fair market value. The Fund utilizes an independent third party to value individual bank loans on a daily basis.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to a 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 a Fund. A 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 a Fund’s exposure to counterparty risk in respect to financial assets approximates their carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
A 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 a Fund’s cash balances are
180 | MARCH 31, 2010
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. A 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 a 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 Funds
The Funds may invest in exchange-traded funds, which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
Exchange-Traded Notes
The Funds may invest directly in exchange-traded notes (“ETNs”), which are senior, unsecured, unsubordinated debt securities whose returns are linked to a particular index and provide exposure to the total returns of various market indices, including indices linked to stocks, bonds, commodities and currencies. This type of debt security differs from other types of bonds and notes. ETN returns are based upon the performance of a market index minus applicable fees; no periodic coupon payments are distributed and no principal protections exist. ETNs do not pay cash distributions. Instead, the value of dividends, interest, and investment gains are captured in the Funds’ total returns. The Funds will invest in these securities when desiring exposure to debt securities or commodities. When evaluating ETNs for investment, Janus Capital will consider the potential risks involved, expected tax efficiency, rate of return, and credit risk. When the Funds invest in ETNs, they will bear their proportionate share of any fees and expenses borne by the ETN. There may be restrictions on the Funds’ right to redeem their investment in an ETN, which is meant to be held until maturity. The Funds’ decision to sell their ETN holdings may be limited by the availability of a secondary market.
Floating Rate Loans
Janus Balanced Fund may invest in floating rate loans. Floating rate loans are debt securities that have floating interest rates, which adjust periodically and are tied to a benchmark lending rate such as LIBOR. In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loans may include fully funded term loans or revolving lines of credit.
Initial Public Offerings
The Funds may invest in initial public offerings (“IPOs”). IPOs and other investment techniques may have a magnified performance impact on a Fund with a small asset base. The Fund may not experience similar performance as its assets grow.
Interfund Lending
As permitted by the Securities and Exchange Commission (“SEC”), or the 1940 Act and rules promulgated thereunder, the Funds may be party to interfund lending agreements between the Funds and other Janus Capital sponsored mutual funds and certain pooled investment vehicles, which permit them to borrow or lend cash at a rate beneficial to both the borrowing and lending funds. Outstanding borrowings from all sources totaling 10% or more of the borrowing Fund’s total assets must be collateralized at 102% of the outstanding principal value of the loan; loans of less than 10% may be unsecured.
Mortgage- and Asset-Backed Securities
The Funds, particularly Janus Balanced Fund, may purchase fixed or variable rate mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Fannie Maes and Freddie Macs are not backed by the full faith and
Janus Growth & Core Funds | 181
Notes to Financial Statements (unaudited) (continued)
credit of the U.S. Government. The Funds may purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying securities fail to perform, these investment vehicles could be forced to sell the assets and recognize losses on such assets, which could impact the Funds’ yield and the Funds’ return. In addition, mortgage-backed securities may be supported by some form of government or private guarantee and/or insurance. However, there is no assurance that the guarantors or insurers will meet their obligations.
Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Prepayment risk, which results from prepayments of the principal of underlying loans, may shorten the effective maturities of these securities and may result in a Fund having to reinvest proceeds at a lower interest rate.
In addition to prepayment risk, investments in mortgage-backed securities, including those comprised of subprime mortgages, and investments in other asset-backed securities comprised of under-performing assets may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
Mortgage- and asset-backed securities are also subject to extension risk, which is the risk that rising interest rates could cause mortgages or other obligations underlying these securities to be paid more slowly than expected, increasing the Fund’s sensitivity to interest changes and causing its price to decline.
Restricted Security Transactions
Restricted securities held by the Funds may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Funds to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Securities Lending
Under procedures adopted by the Trustees, the Funds may seek to earn additional income by lending securities to qualified parties (typically brokers or other financial institutions) who need to borrow securities in order to complete certain transactions such as covering short sales, avoiding failures to deliver securities or completing arbitrage activities. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. Janus Capital makes efforts to balance the benefits and risks from granting such loans.
The Funds do not have the right to vote on securities while they are being lent; however, the Funds may attempt to call back the loan and vote the proxy if time permits. 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 permitted by the SEC. Cash collateral may be invested as permitted by the 1940 Act and rules promulgated thereunder.
Deutsche Bank AG (the “Lending Agent”) may also invest the cash collateral in investments in non-affiliated money market funds or accounts, mutually agreed to by the Funds and the Lending Agent, that comply with Rule 2a-7 of the 1940 Act relating to money market funds.
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 upon this mark-to-market evaluation.
The borrower pays fees at the Funds’ direction to the Lending Agent. The Lending Agent may retain a portion of the interest earned on the cash collateral invested. The cash collateral invested by the Lending Agent is disclosed on the Schedules of Investments (if applicable). The lending fees and the Funds’ portion of the interest income earned on cash collateral are included on the Statements of Operations (if applicable).
The Securities Lending Program was suspended and effective November 19, 2008, the Funds no longer had any securities on loan. Management continues to review the program and may resume securities lending.
182 | MARCH 31, 2010
Short Sales
The Funds may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Funds own or selling short a security that the Funds have the right to obtain, for delivery at a specified date in the future. The Funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The Funds borrow the securities sold short and receive proceeds from the short sale only when they deliver the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Funds lose the opportunity to participate in the gain.
The Funds may also engage in other short sales. The Funds may engage in short sales when the portfolio managers and/or investment personnel anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Funds must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. No more than 10% of a Fund’s net assets may be invested in short sales of stocks, futures, swaps, structured notes, and uncovered written calls. The Funds may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The Funds are also required to pay the lender of the security any dividends or interest that accrues on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, a Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Funds pay stock loan fees on assets borrowed from the security broker.
The Funds may also enter into short positions through derivative instruments such as option contracts, futures contracts, and swap agreements, which may expose the Funds to similar risks. To the extent that the Funds enter into short derivative positions, the Funds may be exposed to risks similar to those associated with short sales, including the risk that the Funds’ losses are theoretically unlimited.
When-Issued Securities
Janus Balanced Fund may purchase or sell securities on a when-issued or forward commitment basis. The price of the underlying securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Fund may hold liquid assets as collateral with the Fund’s custodian sufficient to cover the purchase price.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects certain Funds’ “base” fee rates prior to any performance adjustment and certain Funds’ contractual investment advisory fee rates (expressed as an annual rate).
Average Daily | Contractual Investment | |||||||
Net Assets | Advisory Fee/Base | |||||||
Fund | of the Fund | Fee (%) (annual rate) | ||||||
Janus Balanced Fund | All Asset Levels | 0.55 | ||||||
Janus Contrarian Fund | N/A | 0.64 | ||||||
Janus Enterprise Fund | All Asset Levels | 0.64 | ||||||
Janus Forty Fund | All Asset Levels | 0.64 | ||||||
Janus Fund | All Asset Levels | 0.64 | ||||||
Janus Growth and Income Fund | All Asset Levels | 0.62 | ||||||
Janus Orion Fund | All Asset Levels | 0.64 | ||||||
Janus Research Core Fund | All Asset Levels | 0.60 | ||||||
Janus Research Fund | N/A | 0.64 | ||||||
Janus Triton Fund | All Asset Levels | 0.64 | ||||||
Janus Twenty Fund | All Asset Levels | 0.64 | ||||||
Janus Venture Fund | All Asset Levels | 0.64 | ||||||
For Janus Contrarian Fund and Janus Research Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Janus Contrarian Fund | S&P 500® Index | ||||
Janus Research Fund | Russell 1000® Growth Index | ||||
Only the base fee rate applied until February 2007 for each of Janus Contrarian Fund and Janus Research Fund,
Janus Growth & Core Funds | 183
Notes to Financial Statements (unaudited) (continued)
at which time the calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months. When a Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period is equal to the time that has elapsed since the performance-based fee structure took effect. As noted above, any applicable Performance Adjustments began February 2007 for each of Janus Contrarian Fund and Janus Research Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward performance adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued evenly each day throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
The application of an expense limit, if any, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. For performance measurement periods prior to July 6, 2009, a Fund calculated its Performance Adjustment by comparing the performance of Class T Shares (formerly named Class J Shares) against the investment record of its benchmark index. For periods beginning July 6, 2009, the investment performance of a Fund’s load-waived Class A Shares for the performance measurement period is used to calculate the Performance Adjustment. Because the Performance Adjustment is based on a rolling 36-month performance measurement period, calculations based solely on the performance of a Fund’s load-waived Class A Shares will not be fully implemented for 36 months after July 6, 2009. Until that time, the Fund’s performance will be compared to a blended investment performance record that includes the Fund’s Class T Shares (formerly named Class J Shares) performance (the prior share class used for performance calculations) for the portion of the performance measurement period prior to July 6, 2009, and the Fund’s load-waived Class A Shares for the remainder of the period. After Janus Capital determines whether a particular Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares, or Class T Shares (formerly named Class J Shares) as the case may be, against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of each Fund relative to the record of the Fund’s benchmark index and future changes to the size of each Fund.
184 | MARCH 31, 2010
The Funds’ prospectuses and statements of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the five-month period ended March 31, 2010, the following Funds recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Janus Contrarian Fund | $ | 213,835 | |||
Janus Research Fund | 1,563,816 | ||||
Prior to February 16, 2010, certain Funds paid Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital and the Funds’ transfer agent, an asset-weighted averaged annual fee based on the proportion of Fund’s total net assets sold directly and the proportion of Fund’s net assets sold through intermediaries for Class D Shares. The applicable fee rates were 0.12% of net assets on the proportion of assets sold directly and 0.25% on the proportion of assets sold through intermediaries for Class D Shares.
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 Funds. Certain intermediaries may charge administrative fees 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 Funds to Janus Services, which uses such fees to reimburse intermediaries.
Class D Shares of certain Funds pay an annual administrative fee of 0.12% of net assets. These administrative fees are paid by the Shares of certain Funds for shareholder services provided by Janus Services LLC.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of Class R Shares and Class S Shares of the Funds, as applicable, for providing or arranging for the provision of, administrative services including but not limited to, recordkeeping, subaccounting, order processing for omnibus or networked accounts, or other shareholder services provided on behalf of investors in Class R Shares and Class S Shares of the Funds, as applicable. Janus Services expects to use a significant portion of this fee to compensate retirement plan service providers, and other financial intermediaries for providing these services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class T Shares of the Funds for providing, or arranging for the provision by intermediaries of, administrative services, including recordkeeping, subaccounting, order processing for omnibus or networked accounts, or other shareholder services provided on behalf of the shareholders of these Funds. 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. Janus Services expects to use some or all of this fee to compensate intermediaries for providing these services to their customers who invest in these Funds. 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 these Funds.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds at an annual rate, as determined from time to time by the Board of Trustees, 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, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year is less than the payments made during a calendar year, the Fund will be reimbursed for the difference.
Janus Capital has agreed until at least February 16, 2011 to reimburse certain Funds by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares, the administrative fees payable pursuant to the Transfer Agency Agreement applicable to Class D Shares, Class R Shares, Class S Shares, and Class T Shares, brokerage commissions, interest, dividends, taxes and extraordinary expenses (including, but not limited to, acquired fund fees and expenses), exceed the annual rates noted below. If applicable, amounts reimbursed to the Funds by Janus
Janus Growth & Core Funds | 185
Notes to Financial Statements (unaudited) (continued)
Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Expense | |||||
Fund | Limit (%) | ||||
Janus Balanced Fund | 0.76 | ||||
Janus Contrarian Fund | 0.89 | ||||
Janus Enterprise Fund | 0.90 | ||||
Janus Forty Fund | 0.78 | ||||
Janus Fund | 0.78 | ||||
Janus Growth and Income Fund | 0.73 | ||||
Janus Orion Fund | 0.90 | ||||
Janus Research Core Fund | 0.66 | ||||
Janus Triton Fund | 1.05 | ||||
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 Funds. 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 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 Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2010 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a 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 Statements of Assets and Liabilities. Deferred compensation expenses for the five- or six-month period ended March 31, 2010 are included in “Non-interested Trustees’ fees and expenses” on the Statements 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. No deferred fees were distributed to any Trustee under the Deferred Plan during the five- or six-month period ended March 31, 2010.
For the five- or six-month period ended March 31, 2010, Janus Capital assumed $14,571 of legal, consulting and Trustee costs and fees incurred by the funds in the Trust and Janus Aspen Series together with the Trust (the “Portfolios”), in connection with the regulatory and civil litigation matters discussed in Note 11. These non-recurring costs were allocated to all Portfolios based on the Portfolios’ respective net assets as of July 31, 2004. Unless noted otherwise in the financial highlights, the effect of these non-recurring costs assumed by Janus Capital are included in the ratio of gross expenses to average net assets and were less than 0.01%. No fees were allocated to the Portfolios that commenced operations after July 31, 2004. Additionally, all future non-recurring costs will be allocated to the Portfolios based on the Portfolios’ respective net assets on July 31, 2004. These “Non-recurring costs” and “Costs assumed by Janus Capital” are shown on the Statements of Operations.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Such officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff of the Trust. Total compensation of $186,360 was paid by the Trust during the five- or six-month period ended period ended March 31, 2010. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price for the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the five- or six-month period ended March 31, 2010, Janus Distributors retained the following upfront sales charge:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Balanced Fund | $ | 196,642 | |||
Janus Contrarian Fund | 3,217 | ||||
Janus Enterprise Fund | 1,393 | ||||
Janus Forty Fund | 200,268 | ||||
Janus Fund | 1,582 | ||||
Janus Growth and Income Fund | 1,968 | ||||
Janus Orion Fund | 6,304 | ||||
Janus Research Core Fund | 371 | ||||
Janus Research Fund | 726 | ||||
Janus Triton Fund | 8,242 | ||||
Class A Shares may include a contingent deferred sales charge to Janus Distributors of up to 1.00% imposed on certain redemptions of shares bought without an initial sales charge, which may be waived for certain investors. During the six-month period ended March 31, 2010, redeeming shareholders of Class A Shares paid the following contingent deferred sales charges:
Contingent Deferred | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Forty Fund | $ | 100 | |||
Class C Shares include a 1.00% contingent deferred sales charge paid by the redeeming shareholder to Janus Distributors. The contingent deferred sales charge applies to shares redeemed within 12 months of purchase. The redemption price may differ from the net asset value per share. During the five- or six-month period ended
186 | MARCH 31, 2010
March 31, 2010, redeeming shareholders of Class C Shares paid the following contingent deferred sales charges:
Contingent Deferred | |||||
Fund (Class C Shares) | Sales Charge | ||||
Janus Balanced Fund | $ | 16,502 | |||
Janus Contrarian Fund | 605 | ||||
Janus Enterprise Fund | 56 | ||||
Janus Forty Fund | 16,583 | ||||
Janus Orion Fund | 1,216 | ||||
Janus Triton Fund | 1,218 | ||||
The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statements of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the terms and conditions of an SEC exemptive order and the provisions of the 1940 Act, the Funds may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus 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 Cash Liquidity Fund LLC maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
During the five- or six-month period ended March 31, 2010, the following Funds recorded distributions from affiliated investment companies as affiliated dividend income, and had the following affiliated purchases and sales:
Purchases | Sales | Dividend | Value | |||||||||||
Shares/Cost | Shares/Cost | Income | at 3/31/10 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Balanced Fund | $ | 968,543,634 | $ | (886,502,000) | $ | 111,401 | $ | 191,577,723 | ||||||
Janus Contrarian Fund | 423,688,825 | (455,071,869) | 16,095 | 96,574,956 | ||||||||||
Janus Enterprise Fund | 136,963,435 | (121,892,000) | 44,750 | 80,891,615 | ||||||||||
Janus Forty Fund | 1,145,829,869 | (1,013,783,000) | 511,789 | 549,400,286 | ||||||||||
Janus Fund | 422,841,619 | (562,587,000) | 238,252 | 195,610,261 | ||||||||||
Janus Growth and Income Fund | 381,331,620 | (429,396,000) | 115,615 | 65,811,736 | ||||||||||
Janus Orion Fund | 657,641,565 | (857,037,000) | 84,493 | 57,547,468 | ||||||||||
Janus Research Core Fund | 59,993,193 | (58,882,193) | 930 | 1,111,000 | ||||||||||
Janus Research Fund | 258,787,958 | (236,954,327) | 16,367 | 26,776,631 | ||||||||||
Janus Triton Fund | 98,476,894 | (88,348,000) | 27,921 | 46,463,392 | ||||||||||
Janus Twenty Fund | 938,265,734 | (1,210,438,898) | 228,902 | 179,672,000 | ||||||||||
Janus Venture Fund | 25,215,125 | (27,126,125) | 313 | – | ||||||||||
$ | 5,517,579,471 | $ | (5,948,018,412) | $ | 1,396,828 | $ | 1,491,437,068 | |||||||
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the five- or six-month period ended March 31, 2010, as indicated in the following table.
Seed Capital | ||||||||||||||||||||
at | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | 9/30/09 or 10/31/09* | Purchases | Purchases | Redemptions | Redemptions | at 3/31/10 | ||||||||||||||
Janus Forty Fund - Class T Shares | $ | 1,000 | $ | – | – | $ | – | – | $ | 1,000 | ||||||||||
Janus Research Fund - Class A Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Research Fund - Class C Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Research Fund - Class I Shares | 1,000 | – | – | – | – | 1,000 | ||||||||||||||
Janus Research Fund - Class S Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
Janus Triton Fund - Class R Shares | 164,904(1) | – | – | – | – | 164,904 | ||||||||||||||
Janus Triton Fund - Class S Shares | 220,254(1) | – | – | – | – | 220,254 | ||||||||||||||
* | Seed capital is at 9/30/09 for Janus Forty Fund and is at 10/31/09 for Janus Research Fund and Janus Triton Fund. | |
(1) | Seed capital acquired pursuant to merger. See Note 9. |
Janus Growth & Core Funds | 187
Notes to Financial Statements (unaudited) (continued)
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 Funds have 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 March 31, 2010 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals and passive foreign investment companies.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Balanced Fund | $ | 4,964,253,910 | $ | 761,938,679 | $ | (52,644,275) | $ | 709,294,404 | ||||||
Janus Contrarian Fund | 4,227,321,010 | 832,468,320 | (493,527,632) | 338,940,688 | ||||||||||
Janus Enterprise Fund | 2,141,451,067 | 593,894,654 | (125,230,518) | 468,664,136 | ||||||||||
Janus Forty Fund | 5,275,890,360 | 1,579,181,957 | (44,903,737) | 1,534,278,220 | ||||||||||
Janus Fund | 7,530,472,802 | 1,879,984,368 | (231,571,052) | 1,648,413,316 | ||||||||||
Janus Growth and Income Fund | 3,322,675,316 | 779,560,024 | (115,498,918) | 664,061,106 | ||||||||||
Janus Orion Fund | 2,977,166,679 | 823,819,806 | (78,689,072) | 745,130,734 | ||||||||||
Janus Research Core Fund | 546,555,354 | 105,166,961 | (25,282,779) | 79,884,182 | ||||||||||
Janus Research Fund | 2,699,190,806 | 597,314,493 | (59,262,078) | 538,052,415 | ||||||||||
Janus Triton Fund | 434,492,780 | 85,181,979 | (7,001,609) | 78,180,370 | ||||||||||
Janus Twenty Fund | 6,513,001,347 | 3,440,729,893 | (98,381,638) | 3,342,348,255 | ||||||||||
Janus Venture Fund | 855,303,735 | 354,111,970 | (122,231,038) | 231,880,932 | ||||||||||
Information on the tax components of securities sold short as of March 31, 2010 is as follows:
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | (Appreciation) | Depreciation | (Appreciation) | ||||||||||
Janus Orion Fund | $ | (130,868,368) | $ | (11,182,350) | $ | 238,868 | $ | (10,943,482) | ||||||
Janus Triton Fund | (1,164,843) | (527,786) | – | (527,786) | ||||||||||
Janus Venture Fund | (4,029,046) | (1,158,523) | – | (1,158,523) | ||||||||||
Net capital loss carryovers as of September 30, 2009 and October 31, 2009 are indicated in the table below. These losses may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows the expiration dates of the carryovers.
188 | MARCH 31, 2010
Capital Loss Carryover Expiration Schedule
For the year ended September 30, 2009 or
October 31, 2009
Accumulated | ||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | Capital | |||||||||||||||||||
Fund | 2010 | 2011 | 2012 | 2013 | 2015 | 2016 | 2017 | Losses | ||||||||||||||||||
Janus Balanced Fund(1)(2) | $ | (2,173,497) | $ | – | $ | – | $ | – | $ | – | $ | (31,759,629) | $ | (73,592,750) | $ | (107,525,876) | ||||||||||
Janus Contrarian Fund(1)(2) | – | (39,096,971) | (38,648,243) | (22,132,836) | (1,936,896) | (50,783,165) | (982,367,169) | (1,134,965,280) | ||||||||||||||||||
Janus Enterprise Fund(1)(2) | (1,191,693,717) | (35,756,979) | – | – | – | (138,714,921) | (256,368,816) | (1,622,534,433) | ||||||||||||||||||
Janus Forty Fund(3) | – | – | – | – | – | (502,785,746) | (623,548,714) | (1,126,334,460) | ||||||||||||||||||
Janus Fund(1)(2) | (2,698,955,519) | (574,244,030) | – | – | – | (23,612,026) | (1,652,519,511) | (4,949,331,086) | ||||||||||||||||||
Janus Growth and Income Fund(1)(2) | (8,328,322) | – | – | – | – | (472,623,891) | (701,342,952) | (1,182,295,165) | ||||||||||||||||||
Janus Orion Fund(1)(2) | (584,074,251) | – | – | – | – | (13,091,885) | (1,303,454,084) | (1,900,620,220) | ||||||||||||||||||
Janus Research Core Fund(2) | – | – | – | – | – | (14,155,996) | (157,640,809) | (171,796,805) | ||||||||||||||||||
Janus Research Fund(2) | (2,677,021,633) | (222,598,721) | – | – | – | (40,293,996) | (653,685,189) | (3,593,599,539) | ||||||||||||||||||
Janus Triton Fund(1)(2) | – | – | – | – | – | (6,936,147) | (12,931,687) | (19,867,834) | ||||||||||||||||||
Janus Twenty Fund(2) | (117,584,500) | (643,606,306) | – | – | – | – | (13,642,585) | (774,833,391) | ||||||||||||||||||
Janus Venture Fund(1)(2) | (12,580,788) | – | – | – | – | (4,691,065) | (152,264,350) | (169,536,203) | ||||||||||||||||||
(1) | Capital loss carryovers subject to annual limitations. | |
(2) | For the year ended October 31, 2009. | |
(3) | For the year ended September 30, 2009. |
6. | Expense Ratios |
The expense ratios listed in the Financial Highlights reflect expenses prior to any expense offsets (gross expense ratio) and after expense offsets (net expense ratio). Both expense ratios reflect expenses after waivers (reimbursement). Listed below are the gross expense ratios for the Funds that would have been in effect, absent the waiver of certain fees and offsets.
For the five- or six-month period ended March 31, 2010 (unaudited),
the two-month fiscal period ended September 30, 2009 and
each fiscal year or period ended July 31 or October 31
the two-month fiscal period ended September 30, 2009 and
each fiscal year or period ended July 31 or October 31
Janus | ||||||||||||||||||||||||||||||||||||||||||||||||
Janus | Janus | Janus | Janus | Growth | Janus | Janus | Janus | Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||||||
Balanced | Contrarian | Enterprise | Forty | Janus | and Income | Orion | Research | Research | Triton | Twenty | Venture | |||||||||||||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Core Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
2010(1) | 0.86% | 1.17% | 1.05% | N/A | 0.96% | 1.04% | 1.13% | 1.15% | 1.10% | 1.07% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2010(2) | N/A | N/A | N/A | 0.99% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(3) | N/A | N/A | N/A | 0.97%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(5) | 0.89%(6) | 1.43%(6) | 1.21%(6) | 1.03%(4) | 1.07%(6) | 1.16%(6) | 1.19%(6) | 1.45%(6) | 1.24%(6) | 1.43%(6) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2008 | N/A | N/A | N/A | 0.97%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2007 | N/A | N/A | N/A | 1.05%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2006 | N/A | N/A | N/A | 1.06%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2005 | N/A | N/A | N/A | 0.92%(4)(7) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
2010(1) | 1.62% | 2.01% | 1.92% | N/A | 1.77% | 1.84% | 1.95% | 2.11% | 1.85% | 1.79% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2010(2) | N/A | N/A | N/A | 1.82% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(3) | N/A | N/A | N/A | 1.75%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(5) | 1.70%(6) | 2.37%(6) | 2.39%(6) | 1.81%(4) | 1.89%(6) | 2.08%(6) | 2.13%(6) | 2.35%(6) | 1.94%(6) | 2.19%(6) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2008 | N/A | N/A | N/A | 1.73%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2007 | N/A | N/A | N/A | 1.73%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2006 | N/A | N/A | N/A | 1.70%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2005 | N/A | N/A | N/A | 1.74%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Janus Growth & Core Funds | 189
Notes to Financial Statements (unaudited) (continued)
Janus | ||||||||||||||||||||||||||||||||||||||||||||||||
Janus | Janus | Janus | Janus | Growth | Janus | Janus | Janus | Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||||||
Balanced | Contrarian | Enterprise | Forty | Janus | and Income | Orion | Research | Research | Triton | Twenty | Venture | |||||||||||||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Core Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||||||||
Class D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 0.70%(8) | 0.80%(8) | 0.83%(8) | N/A | 0.81%(8) | 0.80%(8) | 0.87%(8) | 0.86%(8) | 0.91%(8) | 0.90%(8) | 0.79%(8) | 0.87%(8) | ||||||||||||||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
2010(1) | 0.60% | 0.76% | 0.74% | N/A | 0.70% | 0.70% | 0.78% | 0.77% | 0.83% | 0.82% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2010(2) | N/A | N/A | N/A | 0.72% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(3) | N/A | N/A | N/A | 0.67%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(5) | 0.63%(6) | 0.94%(6) | 0.82%(6) | 0.67%(4) | 0.73%(6) | 0.73%(6) | 0.74%(6) | 0.84%(6) | 1.02%(6) | 1.01%(6) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2008 | N/A | N/A | N/A | 0.65%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2007 | N/A | N/A | N/A | 0.68%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2006 | N/A | N/A | N/A | 0.70%(4)(9) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
2010(1) | 1.33% | 1.48% | 1.48% | N/A | 1.44% | 1.44% | 1.49% | 1.51% | N/A | 1.56% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2010(2) | N/A | N/A | N/A | 1.43% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(3) | N/A | N/A | N/A | 1.41%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(5) | 1.35%(6) | 1.67%(6) | 1.57%(6) | 1.41%(4) | 1.45%(6) | 1.45%(6) | 1.49%(6) | 1.63%(6) | N/A | 1.81%(6) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2008 | N/A | N/A | N/A | 1.40%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2007 | N/A | N/A | N/A | 1.43%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2006 | N/A | N/A | N/A | 1.46%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2005 | N/A | N/A | N/A | 1.42%(4)(7) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class S Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
2010(1) | 1.08% | 1.23% | 1.23% | N/A | 1.19% | 1.19% | 1.24% | 1.26% | 1.34% | 1.31% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2010(2) | N/A | N/A | N/A | 1.17% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(3) | N/A | N/A | N/A | 1.16%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(5) | 1.10%(6) | 1.42%(6) | 1.31%(6) | 1.15%(4) | 1.20%(6) | 1.20%(6) | 1.24%(6) | 1.37%(6) | 1.66%(6) | 1.61%(6) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2008 | N/A | N/A | N/A | 1.14%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2007 | N/A | N/A | N/A | 1.18%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2006 | N/A | N/A | N/A | 1.18%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2005 | N/A | N/A | N/A | 1.16%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class T Shares(10) | ||||||||||||||||||||||||||||||||||||||||||||||||
2010(1) | 0.81% | 0.92% | 0.93% | N/A | 0.87% | 0.88% | 0.92% | 0.95% | 1.05% | 1.02% | 0.87% | 0.90% | ||||||||||||||||||||||||||||||||||||
2010(2) | N/A | N/A | N/A | 0.93% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(3) | N/A | N/A | N/A | 0.95%(4) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||
2009(5) | 0.82%(4) | 1.01%(4) | 0.99%(4) | 1.09%(4)(11) | 0.89%(4) | 0.90%(4) | 0.97%(4) | 1.00%(4) | 1.02%(4) | 1.18% | 0.86%(4) | 0.93%(4) | ||||||||||||||||||||||||||||||||||||
2008 | 0.79%(4) | 1.01%(4) | 0.92%(4) | N/A | 0.88%(4) | 0.87%(4) | 0.94%(4) | 0.91%(4) | 1.06%(4) | 1.20% | 0.85%(4) | 0.90%(4) | ||||||||||||||||||||||||||||||||||||
2007 | 0.79%(4) | 0.97%(4) | 0.94%(4) | N/A | 0.88%(4) | 0.87%(4) | 0.93%(4) | 0.87%(4) | 1.01%(4) | 1.13% | 0.88%(4) | 0.88%(4) | ||||||||||||||||||||||||||||||||||||
2006 | 0.82%(4) | 0.95%(4) | 1.00%(4) | N/A | 0.90%(4) | 0.89%(4) | 1.00%(4) | 0.92%(4) | 0.98%(4) | 1.11% | 0.88%(4) | 0.91%(4) | ||||||||||||||||||||||||||||||||||||
2005 | 0.80%(4) | 0.93%(4) | 0.96%(4) | N/A | 0.88%(4) | 0.88%(4) | 1.02%(4) | 0.90%(4) | 0.93%(4) | 1.85% | 0.86%(4) | 0.87%(4) | ||||||||||||||||||||||||||||||||||||
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from October 1, 2009 through March 31, 2010. | |
(3) | Two-month period from August 1, 2009 through September 30, 2009 for Janus Forty Fund. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | The effect of non-recurring costs assumed by Janus Capital (Note 4) is included in the ratio of operating expenses to average net assets without waivers and/or expense reimbursements and was less than 0.01%. | |
(5) | Fiscal year ended October 31, 2009 for all Funds except Janus Forty Fund. Fiscal year ended July 31, 2009 for Janus Forty Fund. | |
(6) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(7) | Period from September 30, 2004 (inception date) through July 31, 2005. | |
(8) | Period from February 16, 2010 (inception date) through March 31, 2010. | |
(9) | Period from November 28, 2005 (inception date) through July 31, 2006. | |
(10) | Formerly named Class J Shares for all Funds except Janus Forty Fund. | |
(11) | Period from July 6, 2009 (inception date) through July 31, 2009. |
190 | MARCH 31, 2010
7. | Capital Share Transactions |
For the five- or six-month period ended March 31, 2010 | ||||||||||||||||||||||||||||||||||||||
(unaudited), the two-month fiscal period ended | Janus Balanced | Janus Contrarian | Janus Enterprise | |||||||||||||||||||||||||||||||||||
September 30, 2009 and the fiscal years ended July 31, | Fund | Fund | Fund | Janus Forty Fund | ||||||||||||||||||||||||||||||||||
2009 or October 31, 2009 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 10,919 | N/A | 6,786 | N/A | 1,905 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 5,502 | 4,114 | 341 | 454 | 212 | 225 | 8,047 | 5,165 | 72,986 | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 115 | 48 | – | – | – | – | – | – | 877 | |||||||||||||||||||||||||||||
Shares repurchased | (1,315) | (1,638) | (732) | (1,404) | (339) | (371) | (24,526) | (3,339) | (69,670) | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 4,302 | 13,443 | (391) | 5,836 | (127) | 1,759 | (16,479) | 1,826 | 4,193 | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 13,443 | – | 5,836 | – | 1,759 | – | 47,219 | 45,393 | 41,200 | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 17,745 | 13,443 | 5,445 | 5,836 | 1,632 | 1,759 | 30,740 | 47,219 | 45,393 | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 7,544 | N/A | 5,873 | N/A | 504 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 4,139 | 3,463 | 268 | 237 | 39 | 59 | 4,731 | 1,809 | 26,002 | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 38 | 21 | – | – | – | – | – | – | 406 | |||||||||||||||||||||||||||||
Shares repurchased | (738) | (427) | (798) | (615) | (56) | (51) | (2,013) | (646) | (23,005) | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,439 | 10,601 | (530) | 5,495 | (17) | 512 | 2,718 | 1,163 | 3,403 | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 10,601 | – | 5,495 | – | 512 | – | 18,435 | 17,272 | 13,869 | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 14,040 | 10,601 | 4,965 | 5,495 | 495 | 512 | 21,153 | 18,435 | 17,272 | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares:(5) | ||||||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | 38,867 | N/A | 160,547 | N/A | 16,345 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 594 | N/A | 1,008 | N/A | 110 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 181 | N/A | – | N/A | – | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares repurchased | (550) | N/A | (2,766) | N/A | (240) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 39,092 | N/A | 158,789 | N/A | 16,215 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | – | N/A | – | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 39,092 | N/A | 158,789 | N/A | 16,215 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 2,107 | N/A | 1,709 | N/A | 8,990 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 4,535 | 2,633 | 3,281 | 3,442 | 1,613 | 1,733 | 32,353 | 2,814 | 36,287 | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 41 | 11 | 3 | – | – | – | – | – | 521 | |||||||||||||||||||||||||||||
Shares repurchased | (1,110) | (309) | (926) | (215) | (881) | (931) | (5,748) | (1,049) | (33,039) | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,466 | 4,442 | 2,358 | 4,936 | 732 | 9,792 | 26,605 | 1,765 | 3,769 | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 4,442 | – | 4,936 | – | 9,792 | – | 25,213 | 23,448 | 19,679 | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 7,908 | 4,442 | 7,294 | 4,936 | 10,524 | 9,792 | 51,818 | 25,213 | 23,448 | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 1,196 | N/A | 221 | N/A | 935 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 1,443 | 1,291 | 27 | 17 | 129 | 194 | 2,217 | 472 | 8,467 | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 14 | 5 | – | – | – | – | – | – | 153 | |||||||||||||||||||||||||||||
Shares repurchased | (258) | (370) | (27) | (20) | (127) | (96) | (657) | (180) | (6,164) | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1,199 | 2,122 | – | 218 | 2 | 1,033 | 1,560 | 292 | 2,456 | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 2,122 | – | 218 | – | 1,033 | – | 5,348 | 5,056 | 2,600 | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 3,321 | 2,122 | 218 | 218 | 1,035 | 1,033 | 6,908 | 5,348 | 5,056 |
Janus Growth & Core Funds | 191
Notes to Financial Statements (unaudited) (continued)
For the five- or six-month period ended March 31, 2010 | ||||||||||||||||||||||||||||||||||||||
(unaudited), the two-month fiscal period ended | Janus Balanced | Janus Contrarian | Janus Enterprise | |||||||||||||||||||||||||||||||||||
September 30, 2009 and the fiscal years ended July 31, | Fund | Fund | Fund | Janus Forty Fund | ||||||||||||||||||||||||||||||||||
2009 or October 31, 2009 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 20,316 | N/A | 488 | N/A | 5,116 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 5,558 | 2,909 | 284 | 146 | 368 | 509 | 15,191 | 5,942 | 146,389 | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 159 | 82 | – | – | – | – | – | – | 4,877 | |||||||||||||||||||||||||||||
Shares repurchased | (2,749) | (1,850) | (61) | (249) | (918) | (481) | (13,334) | (7,995) | (152,882) | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 2,968 | 21,457 | 223 | 385 | (550) | 5,144 | 1,857 | (2,053) | (1,616) | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 21,457 | – | 385 | – | 5,144 | – | 95,417 | 97,470 | 99,086 | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 24,425 | 21,457 | 608 | 385 | 4,594 | 5,144 | 97,274 | 95,417 | 97,470 | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares:(6) | ||||||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | (38,826) | N/A | (161,603) | N/A | (16,353) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Shares sold | 20,987 | 51,122 | 9,053 | 34,357 | 1,285 | 6,671 | 185 | 12 | 39* | |||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1,108 | 7,799 | 124 | 15,986 | – | – | – | – | – | |||||||||||||||||||||||||||||
Shares repurchased | (12,080) | (26,846) | (24,681) | (98,192) | (2,907) | (9,999) | (10) | – | – | |||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (28,811) | 32,075 | (177,107) | (47,849) | (17,975) | (3,328) | 175 | 12 | 39* | |||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 146,816 | 114,741 | 312,618 | 360,467 | 35,806 | 39,134 | 12 | – | – | |||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 118,005 | 146,816 | 135,511 | 312,618 | 17,831 | 35,806 | 187 | 12 | 39* |
* | Shares outstanding are not in thousands. | |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Transactions in Fund Shares for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares are for the period from July 6, 2009 (inception date) to October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares, and July 6, 2009 (inception date) through July 31, 2009 for Class T Shares. | |
(5) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. | |
(6) | Formerly named Class J Shares. |
192 | MARCH 31, 2010
Janus Growth | Janus Research | |||||||||||||||||||||||||||||||||
For the five-month period ended March 31, 2010 (unaudited) and | Janus Fund | and Income Fund | Janus Orion Fund | Core Fund | ||||||||||||||||||||||||||||||
the fiscal year ended October 31, 2009 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 199 | N/A | 781 | N/A | 2,773 | N/A | – | ||||||||||||||||||||||||||
Shares sold | 5,833 | 84 | 26 | 43 | 496 | 317 | 4 | 418 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | 2 | – | 2 | 1 | – | – | 1 | – | ||||||||||||||||||||||||||
Shares repurchased | (569) | (106) | (111) | (101) | (252) | (448) | (72) | (78) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 5,266 | 177 | (83) | 724 | 244 | 2,642 | (67) | 340 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 177 | – | 724 | – | 2,642 | – | 340 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 5,443 | 177 | 641 | 724 | 2,886 | 2,642 | 273 | 340 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 222 | N/A | 177 | N/A | 1,076 | N/A | – | ||||||||||||||||||||||||||
Shares sold | 48 | 21 | 14 | 20 | 256 | 89 | 9 | 492 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | (38) | (15) | (11) | (17) | (129) | (98) | (36) | (31) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 10 | 228 | 3 | 180 | 127 | 1,067 | (27) | 461 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 228 | – | 180 | – | 1,067 | – | 461 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 238 | 228 | 183 | 180 | 1,194 | 1,067 | 434 | 461 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares:(3) | ||||||||||||||||||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | 183,935 | N/A | 66,364 | N/A | 204,033 | N/A | 16,199 | N/A | ||||||||||||||||||||||||||
Shares sold | 544 | N/A | 355 | N/A | 2,312 | N/A | 78 | N/A | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | N/A | 110 | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||||
Shares repurchased | (2,297) | N/A | (2,042) | N/A | (4,101) | N/A | (263) | N/A | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 182,182 | N/A | 64,787 | N/A | 202,244 | N/A | 16,014 | N/A | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | – | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 182,182 | N/A | 64,787 | N/A | 202,244 | N/A | 16,014 | N/A | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 517 | N/A | 48 | N/A | 146 | N/A | – | ||||||||||||||||||||||||||
Shares sold | 3,809 | 618 | 1,959 | 213 | 2,067 | 884 | 154 | 149 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 6 | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | (197) | (56) | (210) | (6) | (156) | (21) | (22) | (13) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,613 | 1,079 | 1,755 | 255 | 1,911 | 1,009 | 132 | 136 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,079 | – | 255 | – | 1,009 | – | 136 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 4,692 | 1,079 | 2,010 | 255 | 2,920 | 1,009 | 268 | 136 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 23 | N/A | 73 | N/A | 136 | N/A | – | ||||||||||||||||||||||||||
Shares sold | 20 | 14 | 11 | 8 | 75 | 58 | 4 | 81 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Shares repurchased | (8) | (4) | (5) | (13) | (29) | (16) | (7) | (8) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 12 | 33 | 6 | 68 | 46 | 178 | (3) | 73 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 33 | – | 68 | – | 178 | – | 73 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 45 | 33 | 74 | 68 | 224 | 178 | 70 | 73 | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | 3,983 | N/A | 2,661 | N/A | 1,012 | N/A | – | ||||||||||||||||||||||||||
Shares sold | 374 | 233 | 199 | 130 | 183 | 523 | 85 | 1,773 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | 3 | 2 | – | – | 1 | – | ||||||||||||||||||||||||||
Shares repurchased | (813) | (693) | (405) | (290) | (293) | (57) | (195) | (503) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (439) | 3,523 | (203) | 2,503 | (110) | 1,478 | (109) | 1,270 | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 3,523 | – | 2,503 | – | 1,478 | – | 1,270 | – | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 3,084 | 3,523 | 2,300 | 2,503 | 1,368 | 1,478 | 1,161 | 1,270 |
Janus Growth & Core Funds | 193
Notes to Financial Statements (unaudited) (continued)
Janus Growth | Janus Research | |||||||||||||||||||||||||||||||||
For the five-month period ended March 31, 2010 (unaudited) and | Janus Fund | and Income Fund | Janus Orion Fund | Core Fund | ||||||||||||||||||||||||||||||
the fiscal year ended October 31, 2009 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares:(4) | ||||||||||||||||||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | (183,926) | N/A | (66,480) | N/A | (204,529) | N/A | (16,346) | N/A | ||||||||||||||||||||||||||
Shares sold | 12,206 | 52,097 | 3,401 | 10,929 | 15,820 | 43,375 | 467 | 2,004 | ||||||||||||||||||||||||||
Reinvested dividends and distributions | 213 | 4,980 | 326 | 1,662 | 102 | 4,234 | 81 | 1,924 | ||||||||||||||||||||||||||
Shares repurchased | (22,912) | (88,759) | (9,664) | (28,493) | (20,913) | (78,440) | (1,980) | (7,708) | ||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (194,419) | (31,682) | (72,417) | (15,902) | (209,520) | (30,831) | (17,778) | (3,780) | ||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 338,269 | 369,951 | 136,875 | 152,777 | 346,841 | 377,672 | 30,956 | 34,736 | ||||||||||||||||||||||||||
Shares Outstanding, End of Period | 143,850 | 338,269 | 64,458 | 136,875 | 137,321 | 346,841 | 13,178 | 30,956 |
* | Shares outstanding are not in thousands. | |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Transactions in Fund Shares for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares are for the period from July 6, 2009 (inception date) to October 31, 2009. | |
(3) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. | |
(4) | Formerly named Class J Shares. |
194 | MARCH 31, 2010
For the five-month period ended March 31, 2010 (unaudited) and the fiscal year | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
ended October 31, 2009 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | 564 | ||||||||||||||
Shares sold | 7 | 4 | 680 | 1,007 | ||||||||||||||
Reinvested dividends and distributions | – | – | 2 | – | ||||||||||||||
Shares repurchased | – | – | (177) | (398) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 7 | 4 | 505 | 1,173 | ||||||||||||||
Shares Outstanding, Beginning of Period | 4 | – | 1,173 | – | ||||||||||||||
Shares Outstanding, End of Period | 11 | 4 | 1,678 | 1,173 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | 306 | ||||||||||||||
Shares sold | 1 | 3 | 243 | 242 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | – | – | (70) | (29) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1 | 3 | 173 | 519 | ||||||||||||||
Shares Outstanding, Beginning of Period | 3 | – | 519 | – | ||||||||||||||
Shares Outstanding, End of Period | 4 | 3 | 692 | 519 | ||||||||||||||
Transactions in Fund Shares – Class D Shares:(3) | ||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | 70,452 | N/A | 13,078 | N/A | ||||||||||||||
Shares sold | 352 | N/A | 794 | N/A | ||||||||||||||
Reinvested dividends and distributions | – | N/A | – | N/A | ||||||||||||||
Shares repurchased | (1,882) | N/A | (318) | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 68,922 | N/A | 13,554 | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | – | N/A | ||||||||||||||
Shares Outstanding, End of Period | 68,922 | N/A | 13,554 | N/A | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | 69 | ||||||||||||||
Shares sold | 1,738 | 307 | 1,259 | 310 | ||||||||||||||
Reinvested dividends and distributions | 1 | – | 1 | – | ||||||||||||||
Shares repurchased | (82) | (4) | (154) | (3) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1,657 | 303 | 1,106 | 376 | ||||||||||||||
Shares Outstanding, Beginning of Period | 303 | – | 376 | – | ||||||||||||||
Shares Outstanding, End of Period | 1,960 | 303 | 1,482 | 376 | ||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | 74 | ||||||||||||||
Shares sold | N/A | N/A | 71 | 35 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | – | – | ||||||||||||||
Shares repurchased | N/A | N/A | (10) | (9) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 61 | 100 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 100 | – | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 161 | 100 | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares issued in connection with acquisition (Note 10) | N/A | N/A | N/A | 78 | ||||||||||||||
Shares sold | 25* | 486* | 308 | 263 | ||||||||||||||
Reinvested dividends and distributions | 2* | – | 1 | – | ||||||||||||||
Shares repurchased | (24)* | – | (76) | (10) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3* | 486* | 233 | 331 | ||||||||||||||
Shares Outstanding, Beginning of Period | 486* | – | 331 | – | ||||||||||||||
Shares Outstanding, End of Period | 489* | 486* | 564 | 331 |
Janus Growth & Core Funds | 195
Notes to Financial Statements (unaudited) (continued)
For the five-month period ended March 31, 2010 (unaudited) and the fiscal year | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
ended October 31, 2009 (all numbers in thousands) | 2010(1) | 2009(2) | 2010(1) | 2009(2) | ||||||||||||||
Transactions in Fund Shares – Class T Shares:(4) | ||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | (70,831) | N/A | (13,623) | N/A | ||||||||||||||
Shares sold | 3,705 | 11,501 | 7,860 | 19,430 | ||||||||||||||
Reinvested dividends and distributions | 303 | 1,126 | 43 | 7 | ||||||||||||||
Shares repurchased | (7,544) | (26,081) | (2,811) | (6,066) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (74,367) | (13,454) | (8,531) | 13,371 | ||||||||||||||
Shares Outstanding, Beginning of Period | 128,508 | 141,962 | 27,187 | 13,816 | ||||||||||||||
Shares Outstanding, End of Period | 54,141 | 128,508 | 18,656 | 27,187 |
* | Shares outstanding are not in thousands. | |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Transactions in Fund Shares for Class A Shares, Class C Shares, Class I Shares, Class R Shares (if applicable) and Class S Shares are for the period from July 6, 2009 (inception date) to October 31, 2009. | |
(3) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. | |
(4) | Formerly named Class J Shares. |
196 | MARCH 31, 2010
For the five-month period ended March 31, 2010 (unaudited) and the fiscal year | Janus Twenty Fund | Janus Venture Fund | ||||||||||||||||
ended October 31, 2009 (all numbers in thousands) | 2010(1) | 2009 | 2010(1) | 2009 | ||||||||||||||
Transactions in Fund Shares – Class D Shares:(2) | ||||||||||||||||||
Shares issued in connection with restructuring (Note 9) | 84,611 | N/A | 18,702 | N/A | ||||||||||||||
Shares sold | 290 | N/A | 128 | N/A | ||||||||||||||
Reinvested dividends and distributions | – | N/A | – | N/A | ||||||||||||||
Shares repurchased | (938) | N/A | (282) | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 83,963 | N/A | 18,548 | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | – | N/A | – | N/A | ||||||||||||||
Shares Outstanding, End of Period | 83,963 | N/A | 18,548 | N/A | ||||||||||||||
Transactions in Fund Shares – Class T Shares:(3) | ||||||||||||||||||
Shares reorganized in connection with restructuring (Note 9) | (84,636) | N/A | (18,707) | N/A | ||||||||||||||
Shares sold | 3,233 | 9,762 | 191 | 651 | ||||||||||||||
Reinvested dividends and distributions | – | 34 | – | – | ||||||||||||||
Shares repurchased | (6,526) | (17,328) | (727) | (2,347) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (87,929) | (7,532) | (19,243) | (1,696) | ||||||||||||||
Shares Outstanding, Beginning of Period | 158,180 | 165,712 | 23,823 | 25,519 | ||||||||||||||
Shares Outstanding, End of Period | 70,251 | 158,180 | 4,580 | 23,823 |
(1) | Period from November 1, 2009 through March 31, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) to March 31, 2010. | |
(3) | Formerly named Class J Shares. |
8. | Purchases and Sales of Investment Securities |
For the five- or six-month period ended March 31, 2010, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and options contracts) was as follows:
Purchases of Long- | Proceeds from Sales | |||||||||||||
Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
Janus Balanced Fund | $ | 1,643,812,705 | $ | 1,194,424,196 | $ | 435,738,433 | $ | 270,295,046 | ||||||
Janus Contrarian Fund | 1,544,649,627 | 1,769,951,302 | – | – | ||||||||||
Janus Enterprise Fund | 198,056,872 | 288,733,026 | – | – | ||||||||||
Janus Forty Fund | 1,618,843,461 | 1,233,350,818 | – | – | ||||||||||
Janus Fund | 1,514,959,800 | 1,440,651,535 | – | – | ||||||||||
Janus Growth and Income Fund | 687,001,841 | 718,026,074 | – | – | ||||||||||
Janus Orion Fund | 1,901,520,241 | 1,714,278,770 | – | – | ||||||||||
Janus Research Core Fund | 76,521,513 | 112,006,566 | – | – | ||||||||||
Janus Research Fund | 891,733,224 | 976,024,234 | – | – | ||||||||||
Janus Triton Fund | 143,991,622 | 51,578,422 | – | – | ||||||||||
Janus Twenty Fund | 1,827,159,152 | 1,742,457,487 | – | – | ||||||||||
Janus Venture Fund | 114,863,759 | 140,534,085 | – | – | ||||||||||
9. | Shares Issued in Connection with Restructuring |
Effective February 16, 2010, Class J Shares were renamed Class T Shares and are available through certain financial intermediary platforms. In addition, Class J Shares held directly with Janus were moved to newly created Class D Shares, a share class dedicated to shareholders investing directly with Janus. Class D Shares commenced operations on February 16, 2010. The shares issued in connection with the restructuring from Class J Shares to Class D Shares are reflected on the Statements of Changes in Net Assets.
10. | Fund Acquisition |
On July 6, 2009, Janus Balanced Fund, Janus Contrarian Fund, Janus Enterprise Fund, Janus Fund, Janus Growth and Income Fund, Janus Orion Fund, Janus Research Core Fund, and Janus Triton Fund acquired all of the net assets of Janus Adviser Balanced Fund, Janus Adviser Contrarian Fund, Janus Adviser Mid Cap Growth Fund, Janus Adviser Large Cap Growth Fund, Janus Adviser Growth and Income Fund, Janus Adviser Orion Fund, Janus Adviser Research Core Fund, and Janus Adviser
Janus Growth & Core Funds | 197
Small-Mid Growth Fund, respectively, pursuant to separate plans of reorganization approved by the Trustees of Janus Investment Fund. The reorganization involved certain funds that were a series of the Janus Adviser Series trust (“JAD Trust”) being merged into various corresponding funds of the Trust. The reorganization was accomplished by a tax-free exchange of the series of the JAD Trust for the series of the Trust. The table below reflects the merger activity.
Target Fund’s | ||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||
Target Fund’s | Target Fund’s | Acquiring Fund’s | Acquiring Fund’s | Combined | Appreciation/ | |||||||||||||||||||
Shares Outstanding | Net Assets | Shares Issued | Net Assets | Net Assets | (Depreciation) | |||||||||||||||||||
Name of Fund | Prior to Merger | Prior to Merger | in Merger | Prior to Merger | after Merger | Prior to Merger | ||||||||||||||||||
Janus Balanced Fund | 40,928,701 | $ | 896,584,133 | 42,082,452 | $ | 2,832,738,531 | $ | 3,729,322,664 | $ | 27,507,614 | ||||||||||||||
Janus Contrarian Fund | 18,603,495 | 157,182,551 | 15,077,988 | 3,379,696,090 | 3,536,878,641 | (33,951,255) | ||||||||||||||||||
Janus Enterprise Fund | 25,257,379 | 639,201,484 | 17,451,403 | 1,372,778,997 | 2,011,980,481 | (54,042,443) | ||||||||||||||||||
Janus Fund | 5,828,515 | 103,109,285 | 4,943,893 | 7,436,101,589 | 7,539,210,874 | (2,352,790) | ||||||||||||||||||
Janus Growth and Income Fund | 8,824,942 | 86,935,742 | 3,740,567 | 3,263,460,830 | 3,350,396,572 | (2,848,005) | ||||||||||||||||||
Janus Orion Fund | 4,043,427 | 39,032,881 | 5,142,393 | 2,684,570,634 | 2,723,603,515 | 2,519,525 | ||||||||||||||||||
Janus Research Core Fund | 3,799,429 | 42,205,476 | 2,733,955 | 495,965,727 | 538,171,203 | (6,731,249) | ||||||||||||||||||
Janus Triton Fund | 1,247,456 | 11,206,551 | 1,092,206 | 229,323,658 | 240,530,209 | (45,415) | ||||||||||||||||||
11. | Pending Legal Matters |
In the fall of 2003, the Securities and Exchange Commission (“SEC”), the Office of the New York State Attorney General (“NYAG”), the Colorado Attorney General (“COAG”), and the Colorado Division of Securities (“CDS”) announced that they were investigating alleged frequent trading practices in the mutual fund industry. On August 18, 2004, Janus Capital announced that it had reached final settlements with the SEC, the NYAG, the COAG, and the CDS related to such regulators’ investigations into Janus Capital’s frequent trading arrangements.
A number of civil lawsuits were brought against Janus Capital and certain of its affiliates, the Janus funds, and related entities and individuals based on allegations similar to those announced by the above regulators and were filed in several state and federal jurisdictions. Such lawsuits alleged a variety of theories for recovery including, but not limited to, the federal securities laws, other federal statutes (including ERISA), and various common law doctrines. The Judicial Panel on Multidistrict Litigation transferred these actions to the U.S. District Court for the District of Maryland (the “Court”) for coordinated proceedings. On September 29, 2004, five consolidated amended complaints were filed with the Court, two of which still remain: (i) claims by a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims on behalf of the shareholders against JCGI and Janus Capital (First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586, formerly referred to as Wiggins, et al. v. Janus Capital Group, Inc., et al., U.S. District Court, District of Maryland, Case No. 04-CV-00818); and (ii) derivative claims by investors in certain Janus funds ostensibly on behalf of such funds (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518).
In the First Derivative Traders case (action (i) above), a Motion to Dismiss was previously granted and the matter was dismissed in May 2007. Plaintiffs appealed that dismissal to the United States Court of Appeals for the Fourth Circuit (“Fourth Circuit”). In May 2009, the Fourth Circuit reversed the order of dismissal and remanded the case back to the Court for further proceedings. In October 2009, JCGI and Janus Capital filed a petition for a writ of certiorari with the United States Supreme Court to review the judgment of the Fourth Circuit. On January 11, 2010, the Supreme Court asked the United States Solicitor General to file a brief on the question of whether the petition should be granted. As a result of these developments at the Supreme Court, the Court has stayed all further proceedings until the Supreme Court rules on the petition for a writ of certiorari. In the Steinberg case (action (ii) above), the Court entered an order on January 20, 2010, granting Janus Capital’s Motion for Summary Judgment and dismissing the remaining claims asserted against the company. However, on February 17, 2010, Plaintiffs filed a Notice of Appeal with the Fourth Circuit.
In addition to the lawsuits described above, the Auditor of the State of West Virginia (“Auditor”), in his capacity as securities commissioner, initiated administrative proceedings against many of the defendants in the market timing cases (including JCGI and Janus Capital) and, as a part of its relief, is seeking disgorgement and other monetary relief based on similar market timing allegations (In the Matter of Janus Capital Group Inc. et al., Before the Securities Commissioner, State of West Virginia, Summary Order No. 05-1320). In September 2006, JCGI
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and Janus Capital filed their answer to the Auditor’s summary order instituting proceedings as well as a Motion to Discharge Order to Show Cause. On July 31, 2009, Janus filed a “Notice that Matter is Deemed Concluded.” At this time, no further proceedings are scheduled in this matter.
Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future. Janus Capital does not currently believe that these pending actions will materially affect its ability to continue providing services it has agreed to provide to the Janus funds.
12. | New Accounting Pronouncements |
In January 2010, the FASB issued Accounting Standards Update 2010-06, “Improving Disclosures About Fair Value Measurements.” This Accounting Standards Update will enhance and clarify existing fair value measurement disclosures. Certain disclosures are effective for interim and annual periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact the adoption of this Accounting Standards Update will have on the Funds’ financial statement disclosures.
13. | Subsequent Events |
Effective May 24, 2010, Janus Balanced Fund will pursue its investment objective by normally investing 35-65% of its assets in equity securities and the remaining investments in fixed-income securities and cash equivalents. This revision is not expected to result in a material change to the way the Fund is currently managed. The Fund will continue to seek an investment objective of long-term capital growth, consistent with preservation of capital and balanced by current income.
A definitive proxy statement was filed on April 7, 2010 with the SEC that seeks shareholder approval on a number of proposals that will impact the Funds. The table below briefly summarizes the proposals shareholders are being asked to approve. A proxy statement describing each of these matters was sent to shareholders that held shares of the Funds as of March 17, 2010. Assuming shareholder approval, the proposals will become effective on or about July 1, 2010.
Fund(s) Affected | Proposal(s) | |
All Funds | Board of Trustees elections | |
Janus Forty Fund Janus Fund Janus Twenty Fund | Addition of performance-based fees as part of the investment advisory fee structure | |
In May 2009, in accordance with FASB guidance, the Funds adopted the provision of “Subsequent Events,” which provides guidance to establish general standards of accounting for and disclosures of events that occur subsequent to the balance sheet date but before financial statements are issued or are available to be issued. The guidance also requires entities to disclose the date through which subsequent events were evaluated as well as the basis for that date. Management has evaluated whether any events or transactions occurred subsequent to March 31, 2010, the date of issuance of the Funds’ financial statements, and determined that there were no other material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
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Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is 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) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
Approval of Advisory Agreements During The Period
In this disclosure, each fund and portfolio of Janus Investment Fund are referred to as “Fund” and, collectively, as “Funds.”
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital (“Independent Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the seven Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Independent Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by their independent fee consultant. Throughout their consideration of the agreements, the Independent Trustees were advised by their independent legal counsel. The Independent Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 11, 2009, 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 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 Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2010 through February 1, 2011, 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.
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 Funds, taking into account the investment objective and strategy of each 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 Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions, serving as the Funds’ administrator, monitoring adherence to the Funds’ investment restrictions, producing shareholder reports, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent
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with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the 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 Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by Lipper, and with the Fund’s benchmark index. They concluded that the performance of many Funds was good to very good under current market conditions. Although the performance of some Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Lipper. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and administrative) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by Lipper.
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. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
The Trustees also reviewed management fees charged by Janus Capital to its separate account clients and to non-affiliated funds subadvised by Janus Capital (for which Janus Capital provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administrative services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted that the spread between the average fee rates charged to the Funds and the fee rates that Janus Capital charged to its separate account clients was significantly smaller than the average spread for such fee rates of other advisers, based on publicly available data and research conducted by the Trustees’ independent fee consultant.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised 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 and the fees Janus Capital and the subadvisers charge to other clients. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the
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Additional Information (unaudited) (continued)
Fund and any expense limitations agreed to 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 Funds increase. They noted that, although most Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the management fee rate paid by each Fund, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by Lipper; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, the Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for several Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the 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 Funds. Based on all of the information they reviewed, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an Independent Trustee, concluded at their December 11, 2009 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
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Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund (from inception) with one or more widely used market indices. The hypothetical example does not represent the returns of any particular investment.
When comparing the performance of a Fund with an index, keep in mind that market indices do not include brokerage commissions that would be incurred if you purchased the individual securities in the index. They also do not include taxes payable on dividends and interest or operating expenses incurred if you maintained a Fund invested in the index.
Average annual total returns are also quoted for each Fund. 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.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized and unsubsidized ratios for the past fiscal year. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting a Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and/or Janus Services and reflects a Fund’s subsidized expense ratio. Both the total annual fund operating expenses ratio and net annual fund operating expenses ratio are estimated for the fiscal year. The ratios also include expenses indirectly incurred by a Fund as a result of investing in other investment companies or pooled investments, which are not reflected in the “Financial Highlights” of this report. As a result, these ratios may be higher or lower than those shown in the “Financial Highlights” in this report. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
2. | Schedules of Investments |
Following the performance overview section is each Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in each 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 a Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports each Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. Each Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
2a. Forward Currency Contracts
A table listing forward currency contracts follows each Fund’s Schedule of Investments (if applicable). Forward currency contracts are agreements to deliver or receive a preset amount of currency at a future date. Forward currency contracts are used to hedge against foreign currency risk in the Funds’ long-term holdings.
The table provides the name of the foreign currency, the settlement date of the contract, the amount of the contract, the value of the currency in U.S. dollars and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the change in currency exchange rates from the time the contract was opened to the last day of the reporting period.
2b. Futures
A table listing futures contracts follows each Fund’s Schedule of Investments (if applicable). Futures contracts are contracts that obligate the buyer to receive and the seller to deliver an instrument or money at a specified price on a specified date. Futures are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, the principal amount, value and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the marked-to-market amount for the last day of the reporting period.
2c. Options
A table listing written options contracts follows each Fund’s Schedule of Investments (if applicable). Written options contracts are contracts that obligate a Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against
Janus Growth & Core Funds | 203
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” It lists the assets and liabilities of the Funds on the last day of the reporting period.
The Funds’ 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 stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Funds’ 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 Funds’ net assets. Because the Funds 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 Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, 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 increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds 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.
5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense 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 per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total return may include adjustments in accordance with generally accepted accounting principles. As a result, the
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total return may differ from the total return reflected for shareholder transactions.
Also included are the expense ratios, or the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios vary across the Funds within the Trust for a number of reasons, including the differences in management fees, the frequency of dividend payments and the extent of foreign investments, which entail greater transaction costs.
The Funds’ expenses may be reduced through expense-reduction arrangements. These arrangements may include the use of balance credits or transfer agent fee offsets. The Statements of Operations reflect total expenses before any such offset, the amount of the offset and the net expenses. The expense ratios listed in the Financial Highlights reflect total expenses prior to any expense offset (gross expense ratio) and after the expense offsets (net expense ratio). Both expense ratios reflect expenses after waivers (reimbursements), if applicable.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of a Fund during the reporting period. Don’t confuse this ratio with a Fund’s yield. The net investment income ratio is not a true measure of a Fund’s yield because it doesn’t 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 a Fund. Portfolio turnover is affected by market conditions, changes in the asset size of a Fund, the nature of the Fund’s investments and the investment style of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio is turned over in a 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 portfolio is traded every six months.
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Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
Core
Janus core funds seek investments in more stable and predictable companies. These funds look for a strategic combination of steady growth and for certain funds, some degree of income.
Fixed Income
Janus bond funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies.
Risk-Managed
Our risk-managed funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.
Value
Janus value funds invest in companies they believe are poised for a turnaround or are trading at a significant discount to fair value. The goal is to gain unique insight into a company’s true value and identify and evaluate potential catalysts that may unlock shareholder value.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
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Please consider the charges, risks, expenses and investment objectives carefully before investing or recommending to clients for investment. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Janus Distributors LLC 151 Detroit Street, Denver, CO 80206 (4/10)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0410-300 | 5-31-10 125-24-93001 05-10 |
Item 2 — Code of Ethics
Not applicable to semiannual reports.
Item 3 — Audit Committee Financial Expert
Not applicable to semiannual reports.
Item 4 — Principal Accountant Fees and Services
Not applicable to semiannual reports.
Item 5 — Audit Committee of Listed Registrants
Not applicable.
Item 6 — Investments
(a) | Please see Schedule of Investments contained in the Reports to Shareholders included under Item 1 of this Form N-CSR. | ||
(b) | Using credible information that is available to the public, the Funds have not divested from any securities of any issuers that conduct or have direct investments in certain business operations in Sudan. |
Item 7 — Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8 — Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9 — Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10 — Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11 — Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date. | ||
(b) | There was no change in the Registrant’s internal control over financial reporting during Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12 — Exhibits
(a)(1) | Not applicable because the Registrant has posted its Code of Ethics (as defined in Item 2(b) of Form N-CSR) on its website pursuant to paragraph (f)(2) of Item 2 of Form N-CSR. | ||
(a)(2) | Separate certifications for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached as Ex99.CERT. | ||
(a)(3) | Not applicable to open-end companies. | ||
(b) | A certification for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, is attached as Ex99.906CERT. The certification furnished pursuant to this paragraph is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Such certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Janus Investment Fund | ||||
By: | /s/ Robin C. Beery | |||
Robin C. Beery, | ||||
President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) | ||||
Date: May 28, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Robin C. Beery | |||
Robin C. Beery, | ||||
President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) | ||||
Date: May 28, 2010
By: | /s/ Jesper Nergaard | |||
Jesper Nergaard, | ||||
Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer of Janus Investment Fund (Principal Accounting Officer and Principal Financial Officer) | ||||
Date: May 28, 2010