| | | |
| | OMB APPROVAL | |
| | OMB Number: 3235-0570 | |
| | Expires: January 31, 2014 | |
| | Estimated average burden
hours per response: 20.6 | |
| |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
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: 3/31/11
Item 1 — Reports to Shareholders
2011 SEMIANNUAL REPORT
Janus Alternative Funds
Janus Global Real Estate FundJanus Long/Short Fund
HIGHLIGHTS
| |
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Alternative Funds
| | | |
| | 1 |
| | 4 |
| | |
| | 6 |
| | 16 |
| | 30 |
| | 32 |
| | 33 |
| | 35 |
| | 42 |
| | 44 |
| | 65 |
| | 68 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Co-Chief Investment Officers’ Market Perspective (unaudited)
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
We would like to take this opportunity to thank you for investing with Janus. We are proud to share that we have been recognized by Lipper for top risk-adjusted performance across many of our funds. For the third year in a row, Janus earned Top Asset Class honors from Lipper with the Mixed-Asset Large Company award for the three-year period, which includes Janus Balanced Fund, Janus Growth Allocation Fund, Janus Moderate Allocation Fund and Janus Conservative Allocation Fund. Additionally, Top Individual Fund honors went to Janus Overseas Fund Class D Shares, Janus Global Real Estate Fund Class I Shares, Janus Conservative Allocation Fund Class D Shares, Janus Moderate Allocation Fund Class D Shares and Janus Growth Allocation Fund Class D Shares. We continue to be committed to our disciplined investment process and believe these awards demonstrate the strong results that Janus’ disciplined investment approach can generate for investors over time.
In the broader economic environment, the global recovery remains on track despite some challenging macro events. We are seeing healthy vital signs in many of the companies that we follow and U.S. equities continue to offer extremely compelling valuations, in our view. Although the overall bond market has become more susceptible to interest rate volatility, we continue to see attractive risk-reward opportunities in corporate credit.
NEW RISKS AND NEW OPPORTUNITIES
Geopolitical concerns and the natural disaster in Japan took center stage during the period, weighing on investor sentiment after a strong start to the year. Some other issues that arose – such as higher oil prices, sovereign debt risk in Europe and rising inflationary pressures – certainly raised risks. However, equity markets rebounded to finish the period higher, rising on improved economic data and confidence. We find this resilience in the face of bad news to be impressive and suggestive of pent-up demand for equities from investors who have fled the asset class in recent years.
While the disaster in Japan took a tragic human toll, the global impact is likely to be limited. Near-term, Japan’s economy will almost certainly weaken, and damage to some factories and infrastructure may lead to supply-chain disruptions. However, we expect these disruptions to be manageable and don’t think Japan’s slowdown will drag significantly on global growth. Rebuilding efforts are likely to stimulate Japan’s economy longer-term, creating opportunities for infrastructure-related companies.
Rising oil prices pose a potentially longer-term challenge. Even before the crisis in the Middle East, demand in 2010 grew at the fastest pace in history, leaving little spare capacity. Japan’s reconstruction will be very energy-intensive and may lead to additional demand for oil and natural gas. The flipside of these pressures is lower demand, which is likely to be substantial if crude prices continue to rise.
U.S. AND GLOBAL OUTLOOK
In the U.S., the economic climate continues to improve. The manufacturing sector continues to strengthen, unemployment is easing and we are seeing early indications of improving confidence at the corporate level, with management teams indicating interest in hiring. We are even seeing some hopeful signs of fiscal discipline in Washington. A bipartisan approach to tackling the debt seems to be emerging, and while there will certainly be politicians from both parties who seek political gain from this issue, we are encouraged that serious members of Congress recognize the need for change.
Non-U.S. markets continue to offer attractive opportunities, albeit with some caveats. Near-term, Europe faces a number of challenges, including the impact of austerity measures, inflationary pressures and monetary tightening. Long-term, we think austerity programs will strengthen euro-zone economies. We are monitoring how core Europe deals with these issues and their banking institutions’ debt exposure to peripheral regions such as Greece and Portugal.
In emerging markets, inflation pressures are a growing concern. Rising energy and food price inflation is a serious issue, especially in India. In addition, rising costs for labor, raw materials and capital are depressing corporate margins and could potentially slow economic growth. Countries such as China and Brazil have been raising
Janus Alternative Funds | 1
Continued
interest rates and tightening capital requirements to contain inflation. Nonetheless, these are real pressures and are among the reasons that emerging markets underperformed last year. We think central banks in these countries are behaving responsibly to contain inflation and promote long-term growth, but we could see a slowdown in the near-term.
EQUITIES: VALUATIONS REMAIN ATTRACTIVE
Equity valuations remain compelling, in our view, particularly for U.S.-based large cap companies. The valuation gap between large- and small-caps is at a 10-year high creating opportunities to invest in global growth businesses at historically discounted prices. Small cap multiples look high, in contrast, but we think many of these companies deserve premium valuations at this stage in the economic cycle. Margins for small-cap stocks are well below their peak of the late 1990s. For small companies with good growth profiles, there is plenty of room for margin expansion. More than anything, we think this reinforces the value of active management and deep fundamental research. Stock selection matters.
Naturally, we do see some trouble spots. Cost pressures are building and we worry that companies can’t or won’t pass through price increases. The U.S. housing market remains worrisome too; prices slipped in January for the sixth month in a row, and foreclosures continue to weigh on inventory. Despite these macro challenges, we remain confident in our security selection. Many of our top holdings trade at a discount to the market with the potential to generate faster growth; other holdings trade at a premium but justify their multiples with strong growth trajectories and opportunities for margin expansion. These characteristics create very compelling risk-reward profiles that we think will result in higher returns long-term.
FIXED INCOME: NAVIGATING CRITICAL CHALLENGES
Volatility was a central theme in the first quarter as investors grew increasingly concerned about building inflationary pressures in the global economy and the potential for changes in the monetary policy positions of central banks around the globe.
Looking beyond the headlines, two key inflation components – wages and housing – remain weak. With unemployment near 9%, we have not seen much evidence of wage inflation, a key component of sustainable inflation. The housing market, meanwhile, continues to struggle. These imbalances help to explain why the Federal Reserve has called recent inflationary pressures “transitory” and hasn’t signaled a change in rate policy (although we do expect the Fed’s quantitative easing program to wind down in June, potentially adding to rising rate pressures).
In light of these challenges, we think an active approach to fixed income – with a slightly more defensive posture – makes sense. Due to the fundamental changes in the fixed income market brought about by the financial crisis the overall bond market is much more susceptible to interest rate volatility. Thus, a passive allocation in fixed income comes with an outright bullish view on interest rates (i.e. that rates will decline), a position with which we fundamentally disagree. Corporate debt or credit remains the primary non-government alternative in the fixed-income markets, and we believe our focus on security selection in this segment represents the most effective way to generate excess returns, as well as to protect against rising rates.
Overall, we believe additional upside remains in fixed income and we are finding attractive opportunities across various sectors in the credit markets. We remain disciplined in our individual security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure.
LOOKING AHEAD
Staying active and maintaining a balanced portfolio is crucial. Uncertainty remains a prevalent theme in today’s market, highlighting the importance of in-depth research both to mitigate risk and to uncover opportunities offering the most attractive risk-adjusted returns. We can’t say that geopolitical risks won’t rise again or that the correlations won’t spike. However, tuning out the short-term noise and staying focused on company fundamentals, we believe,
2 | MARCH 31, 2011
Co-Chief Investment Officers’ Market Perspective (unaudited)
remains the best way to achieve attractive long-term results for our shareholders.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of March 2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Only eligible investors may purchase Class D Shares and Class I Shares. See the prospectus for eligibility requirements.
For Asset Class Group Awards, fund groups with at least five equity, five bond, or three mixed-asset portfolios in the respective asset classes are eligible for a group award. The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period ending 12-31-2010. In cases of identical results the lower average percentile rank will determine the winner.
For Best Individual Funds the calculation periods extend over 36, 60 and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over three, five or ten year periods ending 12-31-2010 only and not for other time periods.
The Mixed-Asset Large Company asset class award was judged against 46 firms. Individual fund award winners were judged against the following number of funds: Janus Overseas Fund – 119 funds for the 3-year period, 81 funds for the 5-year period and 41 funds for the 10-year period; Janus Conservative Allocation Fund, Janus Moderate Allocation Fund and Janus Growth Allocation Fund – 301, 390 and 409 funds respectively for the 5-year period; Janus Global Real Estate Fund – 70 funds for the 3-year period.
Price/Earnings Ratio is a valuation ratio of a company’s current share price compared to its per-share earnings. This ratio represents equity securities within the portfolio, and is not intended to demonstrate the growth of the portfolio, income earned by the portfolio, or distributions made by the portfolio.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 the 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.
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 is 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, 2011. 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 services 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 a 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, 2010 to March 31, 2011.
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 services 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 1, 2012. 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, 2011
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 global real estate investments can be a long-term source of wealth creation through attractive current income and substantial capital appreciation over time. We use intensive fundamental research in an effort to uncover companies with prime assets in strategic locations that practice disciplined capital allocation and show a clear ability to create value.
| | | | | | 
Patrick Brophy
portfolio manager |
Economic Overview
Our grandiose visions of 2011 kicking off with clear signs of a steadily strengthening global economic recovery were clearly a bit on the optimistic side. Maybe it was just that we had grown weary of discussing the unsettled macro backdrop in our commentaries, or maybe we were simply in denial as to the magnitude of both the problems and lack of political will to properly address them. Whatever the cause, it hardly matters now. What matters is that we’re yet another quarter on and rather than fading from the conversation, talk of “double dips” and “sovereign default risks” are back at the forefront.
Last quarter, we added the specter of emerging-market inflation to our volatile mix, pointing out that mounting worries surrounding food inflation in several emerging markets were leading to aggressive policy responses (to say nothing of the role that food inflation has played in the rising unrest – or flat-out revolution – in the Middle East and North Africa). This quarter, we add worries of inflation creeping into developed markets and disconcerting signs that already tenuous recoveries in several of those markets may be losing momentum. Toss in the numerous economic unknowns emanating from Japan post-disaster – certainly important, but trivial in the context of the enormous human tragedy – and we would describe the global economy as fragile, or at the very least muddled.
But there are still some encouraging signs, not least of which is the market’s continuing ability to shrug off bad news. The MSCI World Index climbed 12.4% in the period. It does appear that this Teflon market may prove vulnerable, particularly if the geopolitical landscape remains heated and inflation and/or austerity measures start to bite into corporate profits; however, we believe the global economic recovery, while it may be teetering a bit, is sufficiently entrenched to avoid any sort of double dip, at least on a global scale. And we should point out that slow growth accompanied by only modest inflation and very gradual rate increases is actually a good scenario for commercial real estate. As the landlord to the global economy, commercial real estate would benefit from improving fundamentals, higher asset prices and still-attractive borrowing costs.
Global Real Estate Overview
While real estate trailed the broader market in the period, it did still finish in the black, and, as with the broader market, the developed markets significantly outperformed emerging markets. On a country-specific level, the best performers – looking at just those countries that comprise at least 2% of the index – were Canada, the U.K., and the U.S. Sizeable detractors included Hong Kong, Singapore and Brazil.
Strategy Overview
Janus Global Real Estate Fund’s Class I shares returned 8.20%, while its primary benchmark, the FTSE/EPRA NAREIT Global Index, returned 7.74% for the six-month period ended March 31, 2011. The Fund’s secondary benchmark, the FTSE EPRA/NAREIT Developed Index, returned 9.38% during the period. The bulk of the outperformance versus the primary benchmark was the result of geographic allocation, with the Fund’s sizeable overweight position in the U.S. and underweight position in Hong Kong accounting for the vast majority of the upside. The only other significant geographic positive in the period was an overweight position in Canada. Overall, stock selection proved a modest positive, even though it hurt performance in specific markets, including China, the U.S. and the U.K. Stock selection was strongest in Canada, Brazil and India.
In terms of returns by sector, the top contributors were office REITs and forestry/timber companies. The Fund’s holdings in real estate developers also posted solid gains in the period. Notable detractors included real estate operating companies and diversified REITs. On an absolute return basis, the top two performers among positions with at least a 0.5% weighting were a leading commercial forest plantation operator in China, Sino-Forest Corp., and a global real estate services firm, CB
6 | MARCH 31, 2011
(unaudited)
Richard Ellis Group. The worst performers under the same criteria were a real estate services company in China, E-House, and a residential and commercial developer in India, Indiabulls Real Estate.
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.
Futures, Options and Other Derivatives
The Fund did engage in options trading during the period. In an effort to capitalize on the volatility in the U.S. REIT sector, we periodically sold short-duration, out-of-the-money put and call options in liquid, well-understood names, most of which were core holdings of the Fund. The rationale behind this strategy was to generate additional income for shareholders while limiting risks to potentially having to buy or sell shares at what we viewed as attractive entry/exit prices. It’s unclear how much precisely this strategy contributed to returns during the period, as most of the positions are still active, but it looks as though most will expire worthless, meaning they would potentially generate realized gains of approximately 25 basis points. Overall, our derivatives positions contributed to relative results.
Outlook
Not surprisingly given our macro commentary above, we anticipate a choppy investment environment going forward. As we stated in our 2010 year-end commentary, we believe that the continued volatility – with country-specific and policy-driven issues serving as the catalysts for short-term market moves – will ultimately give way to more of a stock picker’s and less of a macro-driven market. With our bottom-up, research-intensive approach, this is clearly a transition that we would welcome. In the meantime, we remain encouraged by the investment opportunities we’re uncovering, the prospects for commercial real estate in general, and the long term outlook for the Fund.
Thank you for your continued investment in Janus Global Real Estate Fund.
Janus Alternative Funds | 7
Janus Global Real Estate Fund (unaudited)
Janus Global Real Estate Fund At A Glance
5 Top Performers – Equity Holdings
| | | | | |
| | | Contribution |
| |
| ProLogis | | | 0.83% | |
| Sino-Forest Corp. | | | 0.70% | |
| Health Care REIT, Inc. | | | 0.52% | |
| Lexington Realty Trust | | | 0.47% | |
| Macerich Co. | | | 0.44% | |
5 Bottom Performers – Equity Holdings
| | | | | |
| | | Contribution |
| |
| CapitaLand, Ltd. | | | –0.38% | |
| E-House (China) Holdings, Ltd. (ADR) | | | –0.37% | |
| Indiabulls Real Estate, Ltd. | | | –0.34% | |
| Housing Development & Infrastructure, Ltd. | | | –0.19% | |
| Global Logistic Properties, Ltd. | | | –0.19% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | FTSE EPRA/NAREIT Global
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Financials | | | 8.33% | | | | 91.46% | | | | 96.96% | |
| Materials | | | 0.86% | | | | 1.78% | | | | 0.00% | |
| Utilities | | | 0.18% | | | | 1.13% | | | | 0.00% | |
| Industrials | | | 0.03% | | | | 1.26% | | | | 0.29% | |
| Other** | | | 0.02% | | | | 0.05% | | | | 0.01% | |
4 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | FTSE EPRA/NAREIT Global
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Consumer Discretionary | | | –0.09% | | | | 3.61% | | | | 2.69% | |
| Telecommunication Services | | | –0.04% | | | | 0.71% | | | | 0.00% | |
| Information Technology | | | 0.00% | | | | 0.00% | | | | 0.00% | |
| Health Care | | | 0.00% | | | | 0.00% | | | | 0.05% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| ** | | Not a GICS classified sector. |
8 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
CapitaLand, Ltd.
Real Estate Operating/Development | | | 3.1% | |
Hang Lung Properties, Ltd.
Real Estate Operating/Development | | | 3.0% | |
ProLogis
REIT – Warehouse and Industrial | | | 2.3% | |
Macerich Co.
REIT – Regional Malls | | | 1.9% | |
Brookefield Asset Management, Inc. – Class A (U.S. Shares)
Real Estate Operating/Development | | | 1.8% | |
| | | | | |
| | | | 12.1% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 6.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Alternative Funds | 9
Janus Global Real Estate Fund (unaudited)
| | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 8.10% | | 16.98% | | 1.57% | | | 2.04% | | 1.58% |
| MOP | | 1.93% | | 10.28% | | –0.21% | | | | | |
| | | | | | | | | | | | |
| Janus Global Real Estate Fund – Class C Shares | | | | | | | | | | | |
| NAV | | 7.60% | | 16.05% | | 0.99% | | | 2.78% | | 2.32% |
| CDSC | | 6.54% | | 14.91% | | 0.99% | | | | | |
| | | | | | | | | | | | |
| Janus Global Real Estate Fund – Class D Shares(1) | | 8.16% | | 17.40% | | –1.04% | | | 1.83% | | 1.44% |
| | | | | | | | | | | | |
| Janus Global Real Estate Fund – Class I Shares | | 8.20% | | 17.31% | | 1.78% | | | 1.74% | | 1.32% |
| | | | | | | | | | | | |
| Janus Global Real Estate Fund – Class S Shares | | 7.95% | | 16.69% | | 1.41% | | | 2.19% | | 1.82% |
| | | | | | | | | | | | |
| Janus Global Real Estate Fund – Class T Shares | | 8.09% | | 17.08% | | 0.02% | | | 2.22% | | 1.58% |
| | | | | | | | | | | | |
| FTSE EPRA/NAREIT Global Index | | 7.74% | | 18.32% | | –13.44% | | | | | |
| | | | | | | | | | | | |
| FTSE EPRA/NAREIT Developed Index | | 9.38% | | 19.34% | | –12.72% | | | | | |
| | | | | | | | | | | | |
| Lipper Quartile – Class I Shares | | – | | 2nd | | 1st | | | | | |
| | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Real Estate Funds | | – | | 46/98 | | 1/69 | | | | | |
| | | | | | | | | | | | |
| 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, 2011
(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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 general and 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 invests 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 from 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 applicable fee and expense limitations or waivers. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers.
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 calculated using 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. 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
Janus Alternative Funds | 11
Janus Global Real Estate Fund (unaudited)
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. The performance shown for periods following the Fund’s commencement of Class T Shares reflects the fees and expenses of Class T Shares, net of any applicable 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.
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.”
| | | |
| * | | The predecessor Fund’s inception date – November 28, 2007 |
(1) Closed to new investors.
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,081.00 | | | $ | 7.78 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.45 | | | $ | 7.54 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,077.10 | | | $ | 11.29 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,014.06 | | | $ | 10.95 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,081.60 | | | $ | 7.63 | | | |
| |
| |
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 I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,082.00 | | | $ | 6.75 | | | |
| |
| |
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 S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,079.50 | | | $ | 8.40 | | | |
| |
| |
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 T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,080.90 | | | $ | 6.90 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.30 | | | $ | 6.69 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.50% for Class A Shares, 2.18% for Class C Shares, 1.47% for Class D Shares, 1.30% for Class I Shares, 1.62% for Class S Shares and 1.33% 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. |
12 | MARCH 31, 2011
Janus Global Real Estate Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Common Stock – 90.6% | | | | | | |
| Building – Mobile Home and Manufactured Homes – 0% | | | | | | |
| | 645 | | | Maisons France Confort | | $ | 33,826 | | | |
| Building – Residential and Commercial – 0.8% | | | | | | |
| | 11,100 | | | Hajime Construction Co., Ltd. | | | 258,947 | | | |
| | 40,600 | | | MRV Engenharia e Participacoes S.A. | | | 324,919 | | | |
| | | | | | | | 583,866 | | | |
| Building and Construction – Miscellaneous – 0.2% | | | | | | |
| | 6,500 | | | Multiplan Empreendimentos Imobiliarios S.A. | | | 134,429 | | | |
| | 7,383 | | | Oberoi Realty, Ltd.* | | | 42,156 | | | |
| | | | | | | | 176,585 | | | |
| Casino Hotels – 0.6% | | | | | | |
| | 52,946 | | | Crown, Ltd. | | | 446,226 | | | |
| Diversified Operations – 2.3% | | | | | | |
| | 68,000 | | | China Merchants Holdings International Co., Ltd. | | | 287,183 | | | |
| | 180,000 | | | Shanghai Industrial Holdings, Ltd. | | | 689,611 | | | |
| | 95,700 | | | Wharf Holdings, Ltd. | | | 660,081 | | | |
| | | | | | | | 1,636,875 | | | |
| Electric – Distribution – 1.1% | | | | | | |
| | 666,064 | | | Spark Infrastructure Group (144A) | | | 771,434 | | | |
| Electric – Transmission – 0% | | | | | | |
| | 108 | | | Brookfield Infrastructure Partners L.P. | | | 2,400 | | | |
| Energy – Alternate Sources – 0% | | | | | | |
| | 12,676 | | | Hong Kong Energy Holdings, Ltd.* | | | 1,255 | | | |
| Forestry – 1.7% | | | | | | |
| | 2,680 | | | Deltic Timber Corp. | | | 179,131 | | | |
| | 41,210 | | | Sino-Forest Corp.* | | | 1,075,746 | | | |
| | | | | | | | 1,254,877 | | | |
| Metal – Copper – 1.1% | | | | | | |
| | 30,960 | | | Copper Mountain Mining Corp.* | | | 237,662 | | | |
| | 68,420 | | | Copper Mountain Mining Corp. (144A)* | | | 525,222 | | | |
| | | | | | | | 762,884 | | | |
| Real Estate Management/Services – 7.3% | | | | | | |
| | 8,330 | | | Castellum A.B. | | | 121,199 | | | |
| | 18,075 | | | CB Richard Ellis Group, Inc. – Class A* | | | 482,602 | | | |
| | 1,508 | | | Deutsche Euroshop A.G. | | | 57,587 | | | |
| | 37,965 | | | E-House (China) Holdings, Ltd. (ADR) | | | 446,089 | | | |
| | 44,765 | | | First Capital Realty, Inc. | | | 740,849 | | | |
| | 6,370 | | | Jones Lang LaSalle, Inc. | | | 635,344 | | | |
| | 24,500 | | | LPS Brasil Consultoria de Imoveis S.A. | | | 575,005 | | | |
| | 112,847 | | | Meinl European Land, Ltd. | | | 706,773 | | | |
| | 69,000 | | | Mitsubishi Estate Co., Ltd. | | | 1,167,424 | | | |
| | 331 | | | Orco Property Group* | | | 4,376 | | | |
| | 157,856 | | | Songbird Estates PLC* | | | 364,610 | | | |
| | | | | | | | 5,301,858 | | | |
| Real Estate Operating/Development – 19.6% | | | | | | |
| | 4,365 | | | Ablon Group* | | | 3,361 | | | |
| | 41,000 | | | BR Properties S.A. | | | 430,878 | | | |
| | 40,665 | | | Brookefield Asset Management, Inc. – Class A (U.S. Shares)** | | | 1,319,986 | | | |
| | 855,500 | | | CapitaLand, Ltd.** | | | 2,240,240 | | | |
| | 110,725 | | | China Resources Land, Ltd. | | | 207,263 | | | |
| | 30,200 | | | Cyrela Brazil Realty S.A. | | | 286,473 | | | |
| | 47,600 | | | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes | | | 405,442 | | | |
| | 11,843 | | | DB Realty, Ltd.* | | | 31,447 | | | |
| | 7,598 | | | Forestar Group, Inc.* | | | 144,514 | | | |
| | 57,921 | | | GAGFAH S.A. | | | 489,815 | | | |
| | 567,000 | | | Global Logistic Properties, Ltd.* | | | 841,367 | | | |
| | 490,000 | | | Hang Lung Properties, Ltd. | | | 2,145,006 | | | |
| | 624,845 | | | HKC Holdings, Ltd.* | | | 32,936 | | | |
| | 218,500 | | | Hopewell Holdings, Ltd. | | | 655,924 | | | |
| | 71,375 | | | Housing Development & Infrastructure, Ltd.* | | | 283,003 | | | |
| | 15,000 | | | Hysan Development Co., Ltd. | | | 61,710 | | | |
| | 213,713 | | | Indiabulls Real Estate, Ltd.* | | | 595,511 | | | |
| | 24,000 | | | Mitsui Fudosan Co., Ltd. | | | 396,248 | | | |
| | 132,000 | | | New World Development, Ltd. | | | 233,172 | | | |
| | 56,600 | | | PDG Realty S.A. Empreendimentos e Participacoes | | | 317,701 | | | |
| | 112,584 | | | Phoenix Mills, Ltd. | | | 461,420 | | | |
| | 1,224,000 | | | Powerlong Real Estate Holdings, Ltd. | | | 396,549 | | | |
| | 4,012,000 | | | Renhe Commercial Holdings Co., Ltd. | | | 747,901 | | | |
| | 1,465,500 | | | Shui On Land, Ltd. | | | 674,503 | | | |
| | 14,070 | | | St. Joe Co.* | | | 352,735 | | | |
| | 22,000 | | | Sun Hung Kai Properties, Ltd. | | | 348,457 | | | |
| | | | | | | | 14,103,562 | | | |
| REIT – Apartments – 3.8% | | | | | | |
| | 27,255 | | | American Campus Communities | | | 899,415 | | | |
| | 40,500 | | | Associated Estates Realty Corp. | | | 643,140 | | | |
| | 1,430 | | | Boardwalk Real Estate Investment Trust | | | 70,984 | | | |
| | 2,990 | | | Camden Property Trust | | | 169,892 | | | |
| | 22,000 | | | Canadian Apartment Properties REIT | | | 441,725 | | | |
| | 1,200 | | | Essex Property Trust, Inc. | | | 148,800 | | | |
| | 6,415 | | | Home Properties, Inc. | | | 378,164 | | | |
| | | | | | | | 2,752,120 | | | |
| REIT – Diversified – 16.1% | | | | | | |
| | 130,386 | | | Abacus Property Group | | | 316,857 | | | |
| | 32,085 | | | American Assets Trust, Inc. | | | 682,448 | | | |
| | 360 | | | CapLease, Inc. | | | 1,973 | | | |
| | 38,880 | | | Coresite Realty Corp. | | | 615,859 | | | |
| | 6,265 | | | Corio N.V. | | | 438,191 | | | |
| | 16,790 | | | Digital Realty Trust, Inc. | | | 976,171 | | | |
| | 80,045 | | | Duke Realty Corp.** | | | 1,121,431 | | | |
| | 12,440 | | | DuPont Fabros Technology, Inc. | | | 301,670 | | | |
| | 7,620 | | | Entertainment Properties Trust | | | 356,768 | | | |
| | 8,275 | | | Eurocommercial Properties N.V. | | | 409,927 | | | |
| | 337,700 | | | Fibra Uno Administracion S.A. de C.V.* | | | 559,374 | | | |
| | 34,088 | | | Land Securities Group PLC | | | 401,058 | | | |
| | 123,423 | | | Lexington Realty Trust | | | 1,154,005 | | | |
| | 13,735 | | | Liberty Property Trust | | | 451,882 | | | |
| | 1,494,000 | | | Mapletree Logistics Trust | | | 1,072,901 | | | |
| | 31,000 | | | Morguard Real Estate Trust Unit | | | 466,343 | | | |
| | 3,960 | | | Plum Creek Timber Co., Inc. | | | 172,696 | | | |
| | 96,660 | | | Segro PLC | | | 498,463 | | | |
| | 24,860 | | | Shaftesbury PLC | | | 188,651 | | | |
| | 4,204 | | | Unibail-Rodamco | | | 910,533 | | | |
| | 4,172 | | | Vornado Realty Trust | | | 365,050 | | | |
| | 11,000 | | | Winthrop Realty Trust | | | 134,750 | | | |
| | | | | | | | 11,597,001 | | | |
| REIT – Health Care – 3.6% | | | | | | |
| | 11,660 | | | HCP, Inc. | | | 442,381 | | | |
| | 22,655 | | | Heath Care REIT, Inc.** | | | 1,188,028 | | | |
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, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| REIT – Health Care – (continued) | | | | | | |
| | | | | | | | | | | |
| | 25,750 | | | LTC Properties, Inc. | | $ | 729,755 | | | |
| | 4,820 | | | Ventas, Inc. | | | 261,726 | | | |
| | | | | | | | 2,621,890 | | | |
| REIT – Hotels – 3.8% | | | | | | |
| | 745,000 | | | Ascott Residence Trust | | | 709,411 | | | |
| | 68,340 | | | Chatham Lodging Trust | | | 1,110,525 | | | |
| | 55,265 | | | FelCor Lodging Trust, Inc.* | | | 338,774 | | | |
| | 8,630 | | | Hospitality Properties Trust | | | 199,785 | | | |
| | 545 | | | LaSalle Hotel Properties | | | 14,715 | | | |
| | 15,560 | | | Pebblebrook Hotel Trust | | | 344,654 | | | |
| | | | | | | | 2,717,864 | | | |
| REIT – Mortgage – 4.1% | | | | | | |
| | 73,930 | | | Annaly Mortgage Management, Inc. | | | 1,290,079 | | | |
| | 47,615 | | | Colony Financial, Inc. | | | 896,590 | | | |
| | 57,995 | | | Cypress Sharpridge Investments, Inc. | | | 735,377 | | | |
| | 3,452 | | | Gramercy Capital Corp.* | | | 14,636 | | | |
| | | | | | | | 2,936,682 | | | |
| REIT – Office Property – 6.6% | | | | | | |
| | 12,570 | | | Alexandria Real Estate Equities, Inc. | | | 980,083 | | | |
| | 23,855 | | | BioMed Realty Trust, Inc. | | | 453,722 | | | |
| | 6,255 | | | Boston Properties, Inc. | | | 593,287 | | | |
| | 17,905 | | | Corporate Office Properties | | | 647,087 | | | |
| | 6,220 | | | Douglas Emmett, Inc. | | | 116,625 | | | |
| | 75,356 | | | Great Portland Estates PLC | | | 466,321 | | | |
| | 7,685 | | | Highwoods Properties, Inc. | | | 269,052 | | | |
| | 28,855 | | | Kilroy Realty Corp.** | | | 1,120,439 | | | |
| | 20 | | | Tokyu REIT, Inc. | | | 123,617 | | | |
| | | | | | | | 4,770,233 | | | |
| REIT – Regional Malls – 3.7% | | | | | | |
| | 1,850 | | | Feldman Mall Properties, Inc.* | | | 139 | | | |
| | 50,635 | | | General Growth Properties, Inc. | | | 783,830 | | | |
| | 28,216 | | | Macerich Co.** | | | 1,397,538 | | | |
| | 4,432 | | | Simon Property Group, Inc. | | | 474,933 | | | |
| | | | | | | | 2,656,440 | | | |
| REIT – Shopping Centers – 7.0% | | | | | | |
| | 34,199 | | | Acadia Realty Trust | | | 647,045 | | | |
| | 52,945 | | | Cedar Shopping Centers, Inc. | | | 319,258 | | | |
| | 157,687 | | | CFS Retail Property Trust | | | 300,040 | | | |
| | 7,100 | | | Federal Realty Investment Trust | | | 579,076 | | | |
| | 24,783 | | | Kimco Realty Corp. | | | 454,520 | | | |
| | 38,745 | | | Kite Realty Group Trust | | | 205,736 | | | |
| | 40,000 | | | Link REIT | | | 125,220 | | | |
| | 5,145 | | | Regency Centers Corp. | | | 223,705 | | | |
| | 18,800 | | | Weingarten Realty Investors | | | 471,128 | | | |
| | 129,092 | | | Westfield Group | | | 1,246,840 | | | |
| | 171,336 | | | Westfield Retail Trust | | | 464,210 | | | |
| | | | | | | | 5,036,778 | | | |
| REIT – Storage – 0.8% | | | | | | |
| | 14,520 | | | Sovran Self Storage, Inc. | | | 574,266 | | | |
| REIT – Warehouse and Industrial – 3.8% | | | | | | |
| | 4,455 | | | AMB Property Corp. | | | 160,246 | | | |
| | 2,191,000 | | | Amis Amp Capital Industrial | | | 356,416 | | | |
| | 37,735 | | | First Potomac Realty Trust | | | 594,326 | | | |
| | 103,367 | | | ProLogis** | | | 1,651,805 | | | |
| | | | | | | | 2,762,793 | | | |
| Resorts and Theme Parks – 1.1% | | | | | | |
| | 15,825 | | | Vail Resorts, Inc.* | | | 771,627 | | | |
| Retail – Restaurants – 0.6% | | | | | | |
| | 17,590 | | | Whitbread PLC | | | 465,538 | | | |
| Transportation – Marine – 0.2% | | | | | | |
| | 2,980 | | | Alexander & Baldwin, Inc. | | | 136,037 | | | |
| Wireless Equipment – 0.7% | | | | | | |
| | 12,200 | | | Crown Castle International Corp.* | | | 519,110 | | | |
| |
| |
| Total Common Stock (cost $57,203,001) | | | 65,394,027 | | | |
| |
| |
| Corporate Bond – 0.1% | | | | | | |
| REIT – Warehouse and Industrial – 0.1% | | | | | | |
| | $50,000 | | | ProLogis
2.2500%, 4/1/37 (cost $25,854) | | | 49,875 | | | |
| |
| |
| Preferred Stock – 1.2% | | | | | | |
| REIT – Office Property – 0.4% | | | | | | |
| | 4,000 | | | Kilroy Realty Corp., 7.5000% | | | 100,500 | | | |
| | 8,000 | | | SL Green Realty Corp., 7.6250% | | | 200,480 | | | |
| | | | | | | | 300,980 | | | |
| REIT – Regional Malls – 0.8% | | | | | | |
| | 10,200 | | | CBL & Associates Properties, Inc., 7.3750% | | | 247,962 | | | |
| | 13,000 | | | Glimcher Realty Trust, 8.1250% | | | 324,220 | | | |
| | | | | | | | 572,182 | | | |
| |
| |
| Total Preferred Stock (cost $764,625) | | | 873,162 | | | |
| |
| |
| Warrants – 0% | | | | | | |
| Energy – Alternate Sources – 0% | | | | | | |
| | 65,945 | | | HKC Holdings, Ltd. – expires 6/9/11* | | | 85 | | | |
| | 4,371 | | | Hong Kong Energy Holding – expires 5/13/11* | | | 48 | | | |
| |
| |
| Total Warrants (cost $0) | | | 133 | | | |
| |
| |
| Money Market – 9.2% | | | | | | |
| | 6,602,093 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $6,602,093) | | | 6,602,093 | | | |
| |
| |
| Total Investments (total cost $64,595,573) – 101.1% | | | 72,919,290 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (1.1)% | | | (805,943) | | | |
| |
| |
| Net Assets – 100% | | $ | 72,113,347 | | | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
14 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 3,545,607 | | | | 4.8% | |
| Bermuda | | | 35,336 | | | | 0.0% | |
| Brazil | | | 2,474,847 | | | | 3.4% | |
| Canada | | | 4,878,517 | | | | 6.7% | |
| Cayman Islands | | | 2,473,608 | | | | 3.4% | |
| France | | | 944,359 | | | | 1.3% | |
| Germany | | | 57,587 | | | | 0.1% | |
| Guernsey | | | 3,361 | | | | 0.0% | |
| Hong Kong | | | 5,206,449 | | | | 7.1% | |
| India | | | 1,413,537 | | | | 1.9% | |
| Japan | | | 1,946,236 | | | | 2.7% | |
| Jersey | | | 706,773 | | | | 1.0% | |
| Luxembourg | | | 494,191 | | | | 0.7% | |
| Mexico | | | 559,374 | | | | 0.8% | |
| Netherlands | | | 848,118 | | | | 1.2% | |
| Singapore | | | 5,220,335 | | | | 7.1% | |
| Sweden | | | 121,199 | | | | 0.2% | |
| United Kingdom | | | 2,384,641 | | | | 3.3% | |
United States†† | | | 39,605,215 | | | | 54.3% | |
| |
| |
| Total | | $ | 72,919,290 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (45.3% excluding Cash Equivalents). |
| | | | | |
| Schedule of Written Options – Puts | | Value | |
| | |
Avalonbay Communities, Inc.
expires July 2011
150 contracts
exercise price $95.00 | | $ | (13,776) | |
Boston Properties, Inc.
expires July 2011
120 contracts
exercise price $80.00 | | | (9,287) | |
Lennar Corp.
expires May 2011
450 contracts
exercise price $17.00 | | | (24,451) | |
Simon Property Group, Inc.
expires July 2011
200 contracts
exercise price $85.00 | | | (15,667) | |
St. Joe Co.
expires June 2011
325 contracts
exercise price $20.00 | | | (15,844) | |
Starwood Hotels & Resorts Worldwide, Inc.
expires May 2011
200 contracts
exercise price $50.00 | | | (13,251) | |
Vail Resorts, Inc.
expires July 2011
200 contracts
exercise price $37.50 | | | (15,733) | |
| |
| |
Total Written Options – Puts
(premiums received $193,200 ) | | $ | (108,009) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 15
Janus Long/Short Fund (unaudited)
| | | | | | | |
Fund Snapshot
We believe that building a portfolio of long positions across the globe and market-cap spectrum – with short positions to hedge risk and express fundamental views – will drive returns over time, with dampened volatility. We emphasize managing risk in down markets by investing in long positions with a focus on dividend-paying stocks, while using short positions in an effort to reduce beta and call overwriting to generate income to contribute to total return. Our approach results in low net exposure and income yield from both dividends and option sales.
| | | | 
David Decker
lead co-portfolio manager | | 
Daniel Riff
co-portfolio manager |
Performance Summary
For the six-month period ended March 31, 2011, Janus Long/Short Fund’s Class I Shares returned -1.51% versus a gain of 17.31% for the Fund’s primary benchmark, the S&P 500 Index. In aggregate, our long positions rose less than the benchmark, capturing about half of the S&P 500’s upside. Short positions in exchange-traded funds (ETFs) and individual stocks detracted from relative results.
What happened?
Macro concerns returned to the forefront as extreme geopolitical events weighed on investor sentiment in the first quarter. The uprisings in the Middle East were the most significant in modern history and the markets reacted negatively to instability in such a critical region of the world. Not surprisingly, oil spiked on concerns of decreased supplies and fears of the unrest spreading across oil-producing countries, including Saudi Arabia. While the uprisings may eventually improve stability in the region, the near-term impact on the global economy could be severe. The natural disaster and nuclear crisis in Japan added to uncertainty in the quarter and took a terrible human toll.
Several long positions in India were a drag on Fund performance. In addition to a greater sensitivity to oil prices (due to a heavy reliance on imported crude), India’s economy is suffering more than most regions from food inflation and rising agricultural prices. Our Indian holdings fell as the market sold off on inflation fears. Risk tolerance for Indian equities also declined due to ongoing corruption scandals that have eroded confidence in Indian corporate governance. While we continue to hold some Indian names, we believe India faces a more challenging macro climate and unease over the magnitude of corruption. We reduced our exposure to the country but hold a firm conviction in our remaining holdings.
There were a few positives that helped offset the negative contributors to long performance discussed above. CB Richard Ellis Group, a real estate services firm, experienced substantially improved fundamentals as real estate transactions improved globally. The reason this position is in the Fund is that it isn’t solely dependent on an improved commercial real estate market. It benefits from transaction volume, which can occur in both strong and weak environments. CSX continues to benefit from the strength in the U.S. rail industry. With a highly competitive cost structure relative to trucking, the industry has tremendous room to improve price without losing its attractiveness to alternate forms of transportation. Smurfit-Stone Container also performed well. Coming out of bankruptcy, the company had margins substantially below the industry, yet was very attractively valued. We invested in the company last fall and the company was bought out by Rock Tenn early this year.
In the period, the top performing short positions were a lighting company with what we believe had a value destroying business model and a financial services company with what we think has limited competitive advantages and a weak business model. ETF hedges in the short portfolio negatively impacted performance as many markets around the world rose in the quarter.
How are we positioned?
Long
We are often asked if there are good opportunities for investment following a very strong rebound in stocks. While it is obviously the case that investment opportunities are fewer than in the last couple of years, the number of new additions to the portfolio in the last few months suggests that, yes, great opportunities continue to exist. During the period we added a long position in RenaissanceRe, a property-casualty reinsurer that sells near book value despite generating outstanding returns on equity (ROE) through disciplined underwriting standards.
16 | MARCH 31, 2011
(unaudited)
Likewise we added Domtar, a Canadian paper company, selling for less than five times free cash flow due to concerns about the uncoated free sheet business.
These companies – and others in the Fund – have strong free cash flow, which provides the avenue for a return of shareholder value. This is very important because in environments that are not necessarily conducive to multiple expansion (meaning stocks going up because investors are willing to pay more for a given stream of earnings, such as in environments of decreasing interest rates or improving economic growth), the ability to generate strong cash flows and to return those cash flows to shareholders becomes increasingly important. The one common theme of investments we are making today is in companies that are attractively valued relative to their cash flows and which have a commitment to returning that cash to shareholders. Basically, we feel that strong free cash flow relative to share price and a commitment to returning the cash to owners (shareholders and stakeholders), provides valuation support in turbulent markets.
Short
On the short side, we continue to believe that for-profit education companies have a challenged model and will not escape the impact of increasing regulation. Newer single stock short positions include the previously mentioned financial services firm with limited competitive advantages and a value destructive model. The bulk of the short portfolio focuses on ETFs to hedge risk and reduce the volatility of our long positions.
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. Our derivative positions contributed to overall performance during the period. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
The world is very volatile, with many areas of concern on an overall level. The dynamic in the Middle East is unlikely to cool soon. Additionally, there’s the cleanup of the earthquake and tsunami in Japan, debt issues in Europe and the U.S., and the risk of rising inflation globally. In light of these issues, we’re focusing on companies with strong and stable streams of cash flow selling at attractive valuations. Looking forward, we expect the markets will continue to be volatile but that investors will renew their focus on fundamentals. Given this outlook, we feel the Fund’s emphasis on fundamental research as well as lower volatility and downside protection is well-suited to today’s uncertain investing climate.
Thank you for your continued investment in Janus Long/Short Fund.
Janus Alternative Funds | 17
Janus Long/Short Fund (unaudited)
Janus Long/Short Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Approach Resources, Inc. | | | 1.07% | |
| CSX Corp. | | | 0.56% | |
| Smurfit-Stone Container Corp. | | | 0.50% | |
| CB Richard Ellis Group, Inc. – Class A | | | 0.47% | |
| Philip Morris International, Inc. | | | 0.40% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| SPDR S&P 500 Trust (ETF) | | | –1.09% | |
| SPDR S&P Retail (ETF) | | | –0.89% | |
| Molycorp, Inc. | | | –0.87% | |
| PowerShares QQQ Trust (ETF) | | | –0.67% | |
| DB Realty, Ltd. | | | –0.65% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Energy | | | 2.03% | | | | 7.87% | | | | 12.08% | |
| Health Care | | | 0.60% | | | | 11.60% | | | | 11.06% | |
| Utilities | | | 0.58% | | | | 5.95% | | | | 3.34% | |
| Telecommunication Services | | | 0.35% | | | | 4.66% | | | | 3.03% | |
| Industrials | | | 0.29% | | | | 4.19% | | | | 10.96% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Materials | | | –2.41% | | | | –0.29% | | | | 3.64% | |
| Financials | | | –1.81% | | | | 1.25% | | | | 15.86% | |
| Information Technology | | | –1.22% | | | | –5.89% | | | | 18.85% | |
| Consumer Discretionary | | | –0.71% | | | | –0.92% | | | | 10.57% | |
| Other** | | | –0.03% | | | | 0.07% | | | | 0.00% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property
and a service mark of MSCI Inc. and Standard & Poor’s. |
| ** | | Not a GICS classified sector. |
18 | MARCH 31, 2011
(unaudited)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Emerging markets comprised 12.1% of total net assets.
Emerging markets comprised 14.2% of total net assets.
Top Country Allocations – Short Positions (% of Securities Sold Short)
As of March 31, 2011
Emerging markets comprised 3.8% of total net assets.
Emerging markets comprised 1.2% of total net assets.
Janus Alternative Funds | 19
Janus Long/Short Fund (unaudited)
| | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | –1.71% | | 1.67% | | 1.35% | | | 4.47% | | 3.94% |
| MOP | | –7.35% | | –4.17% | | 0.07% | | | | | |
| | | | | | | | | | | | |
| Janus Long/Short Fund – Class C Shares | | | | | | | | | | | |
| NAV | | –2.13% | | 1.30% | | 0.69% | | | 4.73% | | 4.69% |
| CDSC | | –3.11% | | 0.29% | | 0.69% | | | | | |
| | | | | | | | | | | | |
| Janus Long/Short Fund – Class I Shares | | –1.51% | | 1.95% | | 1.68% | | | 3.70% | | 3.68% |
| | | | | | | | | | | | |
| Janus Long/Short Fund – Class R Shares | | –1.83% | | 1.26% | | –0.22% | | | 4.28% | | 4.28% |
| | | | | | | | | | | | |
| Janus Long/Short Fund – Class S Shares | | –1.79% | | 1.56% | | 1.24% | | | 4.03% | | 4.03% |
| | | | | | | | | | | | |
| Janus Long/Short Fund – Class T Shares | | –1.60% | | 1.76% | | 1.66% | | | 3.77% | | 3.77% |
| | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 3.10% | | | | | |
| | | | | | | | | | | | |
| London Interbank Offered Rate (LIBOR) | | 0.15% | | 0.36% | | 2.41% | | | | | |
| | | | | | | | | | | | |
| Lipper Quartile – Class I Shares | | – | | 3rd | | 2nd | | | | | |
| | | | | | | | | | | | |
| Lipper Ranking – based on total return for Long/Short Equity Funds | | – | | 97/137 | | 16/36 | | | | | |
| | | | | | | | | | | | |
| Visit janus.com/advisor/mutual-fund 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.
20 | MARCH 31, 2011
(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 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, real estate investment trusts (“REITs”), initial public offerings, derivatives, and short sales. Please see a Janus prospectus or janus.com/info for more information about risks, portfolio holdings and other details.
The Fund invests in 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 general and 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 invests 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.
Returns include reinvestment of dividends from net investment income and distributions from 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 applicable fee and expense limitations or waivers. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. 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. The performance shown for periods following the Fund’s commencement of Class T Shares reflects the fees and expenses of Class T Shares, net of any applicable 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.
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.
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.
Janus Alternative Funds | 21
Janus Long/Short 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.”
Effective May 12, 2011, Daniel Riff is the portfolio manager of the Fund.
| | | |
| * | | The predecessor Fund’s inception date – August 1, 2006 |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 982.90 | | | $ | 22.15 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,002.59 | | | $ | 22.37 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 979.70 | | | $ | 25.86 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 998.80 | | | $ | 26.11 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 985.80 | | | $ | 20.60 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,004.19 | | | $ | 20.79 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class R Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 981.70 | | | $ | 24.11 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,000.60 | | | $ | 24.34 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 983.10 | | | $ | 22.69 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,002.04 | | | $ | 22.91 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 984.00 | | | $ | 23.35 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,001.40 | | | $ | 23.55 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 4.48% for Class A Shares, 5.24% for Class C Shares, 4.16% for Class I Shares, 4.88% for Class R Shares, 4.59% for Class S Shares and 4.72% 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. |
22 | MARCH 31, 2011
Janus Long/Short Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares/Principal/Contract Amounts | | Value | | | |
| |
| Common Stock± – 103.7% | | | | | | |
| Airlines – 1.7% | | | | | | |
| | 87,995 | | | Republic Airways Holdings, Inc.* | | $ | 565,808 | | | |
| | 30,799 | | | United Continental Holdings, Inc.* | | | 708,069 | | | |
| | | | | | | | 1,273,877 | | | |
| Automotive – Cars and Light Trucks – 0.9% | | | | | | |
| | 4,228 | | | Volkswagen A.G. | | | 648,830 | | | |
| Automotive – Medium and Heavy Duty Trucks – 1.7% | | | | | | |
| | 76,635 | | | Fiat Industrial SpA* | | | 1,100,029 | | | |
| | 10,584 | | | Mahindra & Mahindra, Ltd. | | | 166,237 | | | |
| | | | | | | | 1,266,266 | | | |
| Automotive – Truck Parts and Equipment – Original – 3.2% | | | | | | |
| | 6,115 | | | Visteon Corp.* | | | 382,127 | | | |
| | 31,835 | | | Visteon Corp. (144A)* | | | 1,989,369 | | | |
| | | | | | | | 2,371,496 | | | |
| Brewery – 0.7% | | | | | | |
| | 8,935 | | | Anheuser-Busch InBev N.V. | | | 508,902 | | | |
| | 359,335 | | | Anheuser-Busch InBev N.V. – VVPR Strip* | | | 2,546 | | | |
| | | | | | | | 511,448 | | | |
| Building and Construction – Miscellaneous – 0.1% | | | | | | |
| | 6,489 | | | AS Merko Ehitus | | | 85,512 | | | |
| Casino Hotels – 0.3% | | | | | | |
| | 28,750 | | | Crown, Ltd. | | | 242,304 | | | |
| Casino Services – 0.2% | | | | | | |
| | 1,700 | | | Sankyo Co., Ltd. | | | 87,188 | | | |
| | 1,700 | | | Universal Entertainment Corp. | | | 49,900 | | | |
| | | | | | | | 137,088 | | | |
| Cellular Telecommunications – 1.8% | | | | | | |
| | 45,305 | | | Vodafone Group PLC | | | 1,302,519 | | | |
| Chemicals – Diversified – 0.6% | | | | | | |
| | 7,795 | | | E.I. du Pont de Nemours & Co. | | | 428,491 | | | |
| Coal – 0.8% | | | | | | |
| | 7,685 | | | Peabody Energy Corp. | | | 553,013 | | | |
| Commercial Banks – 4.3% | | | | | | |
| | 156,994 | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 1,904,474 | | | |
| | 3,345 | | | Credicorp, Ltd. | | | 350,991 | | | |
| | 244,605 | | | Popular, Inc.* | | | 711,801 | | | |
| | 66,535 | | | Synovus Financial Corp. | | | 159,684 | | | |
| | | | | | | | 3,126,950 | | | |
| Commercial Services – Finance – 0.7% | | | | | | |
| | 16,220 | | | Paychex, Inc. | | | 508,659 | | | |
| Computers – Integrated Systems – 0.1% | | | | | | |
| | 2,900 | | | Itochu Techno-Solutions Corp. | | | 93,912 | | | |
| Computers – Memory Devices – 1.0% | | | | | | |
| | 20,130 | | | Western Digital Corp.* | | | 750,648 | | | |
| Diversified Operations – 0.5% | | | | | | |
| | 8,185 | | | Tyco International, Ltd. (U.S. Shares) | | | 366,442 | | | |
| Electric – Distribution – 0.5% | | | | | | |
| | 330,170 | | | Spark Infrastructure Group (144A) | | | 382,402 | | | |
| Electric – Generation – 1.3% | | | | | | |
| | 223,857 | | | NTPC, Ltd. | | | 969,428 | | | |
| Electric – Integrated – 1.7% | | | | | | |
| | 78,394 | | | Enel SpA | | | 494,100 | | | |
| | 23,094 | | | Fortum Oyj | | | 784,068 | | | |
| | | | | | | | 1,278,168 | | | |
| Electric – Transmission – 0.6% | | | | | | |
| | 179,267 | | | Power Grid Corp. of India, Ltd. | | | 409,673 | | | |
| Engineering – Research and Development Services – 0.1% | | | | | | |
| | 10,000 | | | Kinden Corp. | | | 91,029 | | | |
| Finance – Consumer Loans – 0.6% | | | | | | |
| | 81,610 | | | African Bank Investments, Ltd. | | | 457,403 | | | |
| Finance – Other Services – 1.0% | | | | | | |
| | 3,825 | | | IntercontinentalExchange, Inc.* | | | 472,540 | | | |
| | 6,470 | | | NYSE Euronext | | | 227,550 | | | |
| | | | | | | | 700,090 | | | |
| Financial Guarantee Insurance – 1.0% | | | | | | |
| | 48,353 | | | Assured Guaranty, Ltd. | | | 720,460 | | | |
| Food – Miscellaneous/Diversified – 0.4% | | | | | | |
| | 5,644 | | | Nestle S.A. | | | 323,629 | | | |
| Internet Gambling – 0.7% | | | | | | |
| | 169,078 | | | Bwin.Party Digital Entertainment PLC* | | | 542,403 | | | |
| Leisure & Recreation Products – 0.1% | | | | | | |
| | 7,700 | | | Yamaha Corp. | | | 87,315 | | | |
| Life and Health Insurance – 0.8% | | | | | | |
| | 48,020 | | | Prudential PLC | | | 544,176 | | | |
| Medical – Drugs – 9.3% | | | | | | |
| | 2,200 | | | Astellas Pharma, Inc. | | | 81,482 | | | |
| | 18,305 | | | AstraZeneca PLC (ADR) | | | 844,227 | | | |
| | 41,805 | | | Bristol-Myers Squibb Co. | | | 1,104,906 | | | |
| | 13,764 | | | GlaxoSmithKline PLC | | | 262,612 | | | |
| | 30,735 | | | GlaxoSmithKline PLC (ADR) | | | 1,180,531 | | | |
| | 22,645 | | | Novartis A.G. | | | 1,230,756 | | | |
| | 99,635 | | | Pfizer, Inc. | | | 2,023,587 | | | |
| | 2,200 | | | Santen Pharmaceutical Co., Ltd. | | | 87,698 | | | |
| | | | | | | | 6,815,799 | | | |
| Medical – Generic Drugs – 2.3% | | | | | | |
| | 73,020 | | | Mylan, Inc.* | | | 1,655,363 | | | |
| Medical – Wholesale Drug Distributors – 0.1% | | | | | | |
| | 2,400 | | | Alfresa Holdings Corp. | | | 92,208 | | | |
| Medical Products – 0.5% | | | | | | |
| | 7,450 | | | Covidien PLC (U.S. Shares) | | | 386,953 | | | |
| Metal Processors and Fabricators – 2.5% | | | | | | |
| | 113,240 | | | AIA Engineering, Ltd. | | | 884,664 | | | |
| | 120,448 | | | Bharat Forge, Ltd. | | | 938,138 | | | |
| | | | | | | | 1,822,802 | | | |
| Multi-Line Insurance – 0.6% | | | | | | |
| | 14,225 | | | Cincinnati Financial Corp. | | | 466,580 | | | |
| Multimedia – 0.4% | | | | | | |
| | 17,765 | | | News Corp. – Class A | | | 311,953 | | | |
| Office Automation and Equipment – 1.0% | | | | | | |
| | 28,610 | | | Pitney Bowes, Inc. | | | 734,991 | | | |
| Oil – Field Services – 3.1% | | | | | | |
| | 37,790 | | | Eurasia Drilling Co., Ltd. (ADR) | | | 1,284,860 | | | |
| | 19,705 | | | Halliburton Co. | | | 982,097 | | | |
| | | | | | | | 2,266,957 | | | |
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, 2011
| | | | | | | | | | | |
| Shares/Principal/Contract Amounts | | Value | | | |
| |
| Oil Companies – Exploration and Production – 12.2% | | | | | | |
| | 56,102 | | | Approach Resources, Inc.* | | $ | 1,885,027 | | | |
| | 10,140 | | | Canadian Natural Resources, Ltd. | | | 501,220 | | | |
| | 46,900 | | | Chesapeake Energy Corp. | | | 1,572,088 | | | |
| | 156,585 | | | Daylight Energy, Ltd. | | | 1,827,256 | | | |
| | 1,900 | | | HRT Participacoes em Petroleo S.A.* | | | 1,980,452 | | | |
| | 6,045 | | | Occidental Petroleum Corp. | | | 631,642 | | | |
| | 7,910 | | | Whitting Petroleum Corp.* | | | 580,990 | | | |
| | | | | | | | 8,978,675 | | | |
| Oil Companies – Integrated – 0.8% | | | | | | |
| | 22,474 | | | ENI SpA | | | 551,882 | | | |
| Paper and Related Products – 4.2% | | | | | | |
| | 72,315 | | | Boise, Inc.* | | | 662,405 | | | |
| | 22,265 | | | Domtar Corp. (U.S. Shares) | | | 2,043,482 | | | |
| | 12,255 | | | International Paper Co. | | | 369,856 | | | |
| | | | | | | | 3,075,743 | | | |
| Pharmacy Services – 0.9% | | | | | | |
| | 20,920 | | | Omnicare, Inc. | | | 627,391 | | | |
| Pipelines – 7.1% | | | | | | |
| | 30,749 | | | Kinder Morgan Management LLC* | | | 2,016,827 | | | |
| | 49,700 | | | Plains All American Pipeline L.P. | | | 3,167,381 | | | |
| | | | | | | | 5,184,208 | | | |
| Printing – Commercial – 0.7% | | | | | | |
| | 20,040 | | | Deluxe Corp. | | | 531,862 | | | |
| Property and Casualty Insurance – 0.3% | | | | | | |
| | 21,085 | | | Lancashire Holdings, Ltd. | | | 202,077 | | | |
| Radio – 0.1% | | | | | | |
| | 313 | | | Citadel Broadcasting Corp. – Class A* | | | 10,720 | | | |
| | 1,075 | | | Citadel Broadcasting Corp. – Class B* | | | 37,034 | | | |
| | | | | | | | 47,754 | | | |
| Real Estate Management/Services – 2.2% | | | | | | |
| | 60,305 | | | CB Richard Ellis Group, Inc. – Class A* | | | 1,610,144 | | | |
| | 8,084 | | | Future Mall Management, Ltd.* | | | 8,457 | | | |
| | | | | | | | 1,618,601 | | | |
| Real Estate Operating/Development – 1.5% | | | | | | |
| | 81,462 | | | DB Realty, Ltd.* | | | 216,306 | | | |
| | 205,000 | | | Hang Lung Properties, Ltd. | | | 897,401 | | | |
| | | | | | | | 1,113,707 | | | |
| Reinsurance – 1.9% | | | | | | |
| | 19,795 | | | RenaissanceRe Holdings, Ltd. | | | 1,365,657 | | | |
| REIT – Diversified – 1.3% | | | | | | |
| | 23,440 | | | Potlatch Corp. | | | 942,288 | | | |
| REIT – Mortgage – 2.3% | | | | | | |
| | 91,040 | | | Annaly Mortgage Management, Inc. | | | 1,588,648 | | | |
| | 25,455 | | | Gramercy Capital Corp.* | | | 107,929 | | | |
| | | | | | | | 1,696,577 | | | |
| Resorts and Theme Parks – 0% | | | | | | |
| | 410 | | | Vail Resorts, Inc.* | | | 19,992 | | | |
| Retail – Apparel and Shoe – 0.6% | | | | | | |
| | 3,700 | | | Fast Retailing Co., Ltd. | | | 463,167 | | | |
| Retail – Auto Parts – 0.5% | | | | | | |
| | 63,389 | | | Halfords Group PLC | | | 354,036 | | | |
| Retail – Major Department Stores – 0.2% | | | | | | |
| | 47,850 | | | Myer Holdings, Ltd. | | | 158,837 | | | |
| Retail – Propane Distribution – 2.4% | | | | | | |
| | 30,840 | | | Suburban Propane Partners L.P. | | | 1,740,301 | | | |
| Semiconductor Components/Integrated Circuits – 1.7% | | | | | | |
| | 104,930 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 1,278,047 | | | |
| Steel – Producers – 3.1% | | | | | | |
| | 8,590 | | | ArcelorMittal | | | 310,528 | | | |
| | 17,300 | | | JFE Holdings, Inc. | | | 506,352 | | | |
| | 71,955 | | | JSW Steel, Ltd. | | | 1,478,636 | | | |
| | | | | | | | 2,295,516 | | | |
| Steel – Specialty – 0% | | | | | | |
| | 429 | | | APERAM (U.S. Shares) | | | 17,156 | | | |
| Telephone – Integrated – 5.8% | | | | | | |
| | 75,039 | | | Freenet A.G. | | | 858,081 | | | |
| | 1,866,668 | | | Telecom Italia SpA | | | 2,869,884 | | | |
| | 21,234 | | | Telefonica S.A. | | | 531,512 | | | |
| | | | | | | | 4,259,477 | | | |
| Tobacco – 3.5% | | | | | | |
| | 16,492 | | | British American Tobacco PLC | | | 661,860 | | | |
| | 29,090 | | | Philip Morris International, Inc. | | | 1,909,176 | | | |
| | | | | | | | 2,571,036 | | | |
| Toys – 0.9% | | | | | | |
| | 24,785 | | | Mattel, Inc. | | | 617,890 | | | |
| Transportation – Railroad – 1.3% | | | | | | |
| | 12,510 | | | CSX Corp. | | | 983,286 | | | |
| Water – 1.0% | | | | | | |
| | 27,070 | | | American Water Works Co., Inc. | | | 759,314 | | | |
| |
| |
| Total Common Stock (cost $66,292,906) | | | 76,181,714 | | | |
| |
| |
| Corporate Bond – 1.5% | | | | | | |
| Printing – Commercial – 1.5% | | | | | | |
| | $1,017,000 | | | American Reprographics Co.
10.5000%, 12/15/16 (144A) (cost $995,734) | | | 1,100,902 | | | |
| |
| |
| Exchange – Traded Funds – 3.9% | | | | | | |
| Commodity – 2.5% | | | | | | |
| | 6,765 | | | SPDR Gold Trust (ETF)* | | | 945,882 | | | |
| | 72,310 | | | Sprott Physical Gold Trust (ETF)* | | | 913,999 | | | |
| | | | | | | | 1,859,881 | | | |
| Country Fund – Russia – 0.7% | | | | | | |
| | 12,185 | | | Market Vectors Russia (ETF) | | | 507,140 | | | |
| Precious Metals – 0.7% | | | | | | |
| | 7,905 | | | Market Vectors – Gold Miners (ETF) | | | 474,774 | | | |
| |
| |
| Total Exchange – Traded Funds (cost $2,438,095) | | | 2,841,795 | | | |
| |
| |
| Purchased Options – Calls – 1.5% | | | | | | |
| | 6,640 | | | Citigroup, Inc.
expires June 2011
exercise price $4.00 | | | 330,780 | | | |
| | 50 | | | CSX Corp.
expires June 2011
exercise price $230.00 | | | 7,969 | | | |
| | 3,533 | | | Ford Motor Co.
expires May 2011
exercise price $17.00 | | | 46,242 | | | |
See Notes to Schedules of Investments and Financial Statements.
24 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares/Principal/Contract Amounts | | Value | | | |
| |
| Purchased Options – Calls – (continued) | | | | | | |
| | | | | | | | | | | |
| | 190 | | | Genworth Financial, Inc. – Class A
expires June 2011
exercise price $15.00 | | $ | 6,718 | | | |
| | 125 | | | International Paper Co.
expires January 2012
exercise price $30.00 | | | 40,606 | | | |
| | 70 | | | K+S A.G.
expires December 2011
exercise price 56.00 EUR | | | 32,965 | | | |
| | 450 | | | Microsoft Corp.
expires January 2012
exercise price $27.50 | | | 51,844 | | | |
| | 190 | | | Microsoft Corp.
expires January 2012
exercise price $30.00 | | | 10,309 | | | |
| | 580 | | | NRG Energy, Inc.
expires January 2013
exercise price $20.00 | | | 236,925 | | | |
| | 140 | | | Raytheon Co.
expires January 2012
exercise price $52.50 | | | 37,638 | | | |
| | 400 | | | St. Joe Co.
expires June 2011
exercise price $23.00 | | | 124,271 | | | |
| | 442 | | | St. Joe Co.
expires June 2011
exercise price $23.00 | | | 137,319 | | | |
| | 155 | | | United Continental Holdings
expires April 2011
exercise price $25.00 | | | 4,277 | | | |
| |
| |
| Total Purchased Options – Calls (premiums paid $1,747,732) | | | 1,067,863 | | | |
| |
| |
| Purchased Options – Puts – 0.2% | | | | | | |
| | 100 | | | S&P 500® Index
expires April 2011
exercise price $1,025.00 | | | 290 | | | |
| | 100 | | | S&P 500® Index
expires May 2011
exercise price $1,275.00 | | | 162,629 | | | |
| |
| |
| Total Purchased Options – Puts (premiums paid $423,050) | | | 162,919 | | | |
| |
| |
| Total Investments (total cost $71,897,517) – 110.8% | | | 81,355,193 | | | |
| |
| |
| Securities Sold Short – (80.9)% | | | | | | |
| Common Stocks Sold Short – (12.0)% | | | | | | |
| Automotive – Truck Parts and Equipment – Original – (0.4)% | | | | | | |
| | 4,085 | | | BorgWarner, Inc* | | | (325,534) | | | |
| Commercial Banks – (2.4)% | | | | | | |
| | 35,315 | | | ICICI Bank, Ltd. (ADR) | | | (1,759,746) | | | |
| Commercial Services – Finance – (1.0)% | | | | | | |
| | 17,560 | | | Green Dot Corp.* | | | (753,500) | | | |
| Diversified Minerals – (0.4)% | | | | | | |
| | 7,625 | | | Cia Vale do Rio Doce (ADR) | | | (254,294) | | | |
| Electronic Components – Semiconductors – (0.3)% | | | | | | |
| | 3,900 | | | Cree, Inc.* | | | (180,024) | | | |
| Enterprise Software/Services – (0.9)% | | | | | | |
| | 24,722 | | | Autonomy Corp. PLC* | | | (630,105) | | | |
| Medical Products – (0.6)% | | | | | | |
| | 7,660 | | | Zimmer Holdings, Inc.* | | | (463,660) | | | |
| Metal – Diversified – (0.9)% | | | | | | |
| | 11,470 | | | Molycorp, Inc.* | | | (688,429) | | | |
| Retail – Apparel and Shoe – (1.0)% | | | | | | |
| | 2,050 | | | American Eagle Outfitters, Inc. | | | (32,574) | | | |
| | 9,750 | | | Ross Stores, Inc. | | | (693,420) | | | |
| | | | | | | | (725,994) | | | |
| Retail – Consumer Electronics – (1.0)% | | | | | | |
| | 17,535 | | | Grupo Elektra S.A. de C.V. | | | (755,755) | | | |
| Schools – (1.6)% | | | | | | |
| | 3,795 | | | Apollo Group, Inc. – Class A* | | | (158,289) | | | |
| | 23,940 | | | Career Education Corp.* | | | (543,917) | | | |
| | 6,375 | | | ITT Educational Services, Inc.* | | | (459,956) | | | |
| | | | | | | | (1,162,162) | | | |
| Transactional Software – (0.8)% | | | | | | |
| | 76,340 | | | Innerworkings, Inc.* | | | (563,389) | | | |
| Wireless Equipment – (0.7)% | | | | | | |
| | 64,125 | | | Nokia OYJ | | | (545,704) | | | |
| |
| |
| Total Common Stocks Sold Short (proceeds $8,746,394 ) | | | (8,808,296) | | | |
| |
| |
| Exchange – Traded Funds Sold Short – (67.9)% | | | | | | |
| Country Fund – Brazil – (0.4)% | | | | | | |
| | 3,900 | | | iShares MSCI Brazil Index Fund (ETF) | | | (302,172) | | | |
| Country Fund – China – (2.3)% | | | | | | |
| | 38,300 | | | iShares FTSE/Xinhua China 25 Index Fund (ETF) | | | (1,721,968) | | | |
| Country Fund – Italy – (2.8)% | | | | | | |
| | 112,200 | | | iShares MSCI Italy Index Fund (ETF) | | | (2,084,676) | | | |
| Emerging Market – Equity – (6.2)% | | | | | | |
| | 93,463 | | | iShares MSCI Emerging Markets Index (ETF) | | | (4,550,714) | | | |
| Financial Services – (1.8)% | | | | | | |
| | 22,015 | | | iShares Dow Jones U.S. Financial Sector Index Fund (ETF) | | | (1,301,747) | | | |
| Government/Agency – Intermediate – (0.8)% | | | | | | |
| | 6,425 | | | iShares Barclays 7-10 Year Trust (ETF) | | | (597,589) | | | |
| Government/Agency – Short Term – (0.6)% | | | | | | |
| | 4,945 | | | iShares Barclays 1-3 Year Trust (ETF) | | | (414,144) | | | |
| Growth – Large Cap – (16.1)% | | | | | | |
| | 72,220 | | | PowerShares QQQ Trust (ETF) | | | (4,147,595) | | | |
| | 57,705 | | | SPDR S&P 500 Trust (ETF) | | | (7,646,489) | | | |
| | | | | | | | (11,794,084) | | | |
| Growth – Small Cap – (5.0)% | | | | | | |
| | 44,100 | | | iShares Russell 2000 Index Fund (ETF) | | | (3,711,897) | | | |
| Health and Biotechnology – (3.6)% | | | | | | |
| | 7,045 | | | iShares Dow Jones US Healthcare Providers Index Fund (ETF) | | | (436,156) | | | |
| | 5,275 | | | iShares Nasdaq Biotechnology Index Fund (ETF) | | | (528,344) | | | |
| | 57,797 | | | PowerShares Dynamic Healthcare Sector Portfolio (ETF) | | | (1,713,103) | | | |
| | | | | | | | (2,677,603) | | | |
| International Equity – (2.8)% | | | | | | |
| | 33,735 | | | iShares MSCI EAFE Index Fund (ETF) | | | (2,027,136) | | | |
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, 2011
| | | | | | | | | | | |
| Shares/Principal/Contract Amounts | | Value | | | |
| |
| Leisure Industry – (5.0)% | | | | | | |
| | 95,045 | | | Consumer Discretionary Select Sector SPDR Fund (ETF) | | $ | (3,707,705) | | | |
| Region Fund – Geo Focused Equity – (0.6)% | | | | | | |
| | 6,445 | | | iShares MSCI Turkey Index Fund (ETF) | | | (411,449) | | | |
| Sector Fund – Real Estate – (0.6)% | | | | | | |
| | 7,090 | | | Vanguard REIT (ETF) | | | (414,694) | | | |
| Sector Fund – Technology – (2.4)% | | | | | | |
| | 51,000 | | | Semiconductor HOLDRs Trust (ETF) | | | (1,765,110) | | | |
| Undefined Equity – (16.9)% | | | | | | |
| | 36,165 | | | Consumer Staples Select Sector SPDR Fund (ETF) | | | (1,082,780) | | | |
| | 50,825 | | | Industrial Select Sector SPDR Fund (ETF) | | | (1,915,086) | | | |
| | 13,820 | | | iShares S&P Global Materials Sector Index Fund (ETF) | | | (1,030,972) | | | |
| | 79,670 | | | Materials Select Sector SPDR Trust (ETF) | | | (3,189,190) | | | |
| | 14,900 | | | Retail HOLDRs Trust (ETF) | | | (1,578,953) | | | |
| | 71,145 | | | SPDR S&P Retail (ETF) | | | (3,614,166) | | | |
| | | | | | | | (12,411,147) | | | |
| |
| |
| Total Exchange – Traded Funds Sold Short (proceeds $44,466,730 ) | | | (49,893,835) | | | |
| |
| |
| Exchange – Traded Note Sold Short – (1.0)% | | | | | | |
| Undefined Equity – (1.0)% | | | | | | |
| | 23,775 | | | iPATH S&P 500 VIX Short-Term Futures (ETN)*
(proceeds $1,101,705) | | | (698,034) | | | |
| |
| |
| Total Securities Sold Short (proceeds $54,314,829 ) | | | (59,400,165) | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities**– 70.1% | | | 51,472,491 | | | |
| |
| |
| Net Assets – 100% | | $ | 73,427,518 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 783,543 | | | | 1.0% | |
| Belgium | | | 511,448 | | | | 0.6% | |
| Bermuda | | | 2,639,185 | | | | 3.2% | |
| Brazil | | | 1,980,452 | | | | 2.4% | |
| Canada | | | 2,328,476 | | | | 2.9% | |
| Cayman Islands | | | 1,284,860 | | | | 1.6% | |
| Estonia | | | 85,512 | | | | 0.1% | |
| Finland | | | 784,068 | | | | 1.0% | |
| Germany | | | 1,506,911 | | | | 1.8% | |
| Gibraltar | | | 542,403 | | | | 0.7% | |
| Hong Kong | | | 897,401 | | | | 1.1% | |
| India | | | 5,071,539 | | | | 6.2% | |
| Ireland | | | 386,953 | | | | 0.5% | |
| Italy | | | 5,015,895 | | | | 6.2% | |
| Japan | | | 1,640,251 | | | | 2.0% | |
| Luxembourg | | | 327,684 | | | | 0.4% | |
| Puerto Rico | | | 711,801 | | | | 0.9% | |
| South Africa | | | 457,403 | | | | 0.6% | |
| Spain | | | 2,435,986 | | | | 3.0% | |
| Switzerland | | | 1,920,827 | | | | 2.3% | |
| Taiwan | | | 1,278,047 | | | | 1.6% | |
| United Kingdom | | | 5,149,961 | | | | 6.3% | |
| United States | | | 43,614,587 | | | | 53.6% | |
| |
| |
| Total | | $ | 81,355,193 | | | | 100.0% | |
Summary of Investments by Country – (Short Positions)
| | | | | | | | | |
| | | | | | % of Securities
| |
| | | Value | | | Sold Short | |
| |
| |
| Brazil | | $ | (254,294) | | | | 0.4% | |
| Finland | | | (545,704) | | | | 0.9% | |
| India | | | (1,759,746) | | | | 3.0% | |
| Mexico | | | (755,755) | | | | 1.3% | |
| United Kingdom | | | (630,105) | | | | 1.1% | |
| United States | | | (55,454,561) | | | | 93.3% | |
| |
| |
| Total | | $ | (59,400,165) | | | | 100.0% | |
| | | | | |
| Schedule of Written Options – Calls | | Value | |
| | |
Abbott Laboratories
expires May 2011
130 contracts
exercise price $50.00 | | $ | (5,515) | |
Anheuser-Busch InBev N.V.
expires June 2011
75 contracts
exercise price 42.00 EUR | | | (7,377) | |
Bristol Myers Squibb Co.
expires April 2011
298 contracts
exercise price $26.00 | | | (20,889) | |
Cincinnati Financial Corp.
expires June 2011
140 contracts
exercise price $35.00 | | | (3,877) | |
See Notes to Schedules of Investments and Financial Statements.
26 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| | | Value | |
| | |
| Schedule of Written Options – Calls – (continued) | |
Deluxe Corp.
expires April 2011
166 contracts
exercise price $25.00 | | $ | (30,912) | |
E.I. du Pont de Nemours & Co.
expires July 2011
43 contracts
exercise price $55.00 | | | (10,720) | |
GlaxoSmithKline PLC
expires May 2011
327 contracts
exercise price $40.00 | | | (9,714) | |
Marathon Oil Corp.
expires July 2011
58 contracts
exercise price $55.00 | | | (15,774) | |
Market Vectors – Gold Miners (ETF)
expires June 2011
21 contracts
exercise price $59.00 | | | (7,584) | |
Market Vectors – Gold Miners (ETF)
expires June 2011
63 contracts
exercise price $60.00 | | | (19,249) | |
Mattel, Inc.
expires April 2011
133 contracts
exercise price $25.00 | | | (10,010) | |
Mattel, Inc.
expires April 2011
144 contracts
exercise price $26.00 | | | (5,452) | |
Novartis A.G.
expires July 2011
193 contracts
exercise price $60.00 | | | (9,656) | |
NYSE Euronext
expires April 2011
69 contracts
exercise price $37.00 | | | (1,714) | |
Occidental Petroleum Corp.
expires May 2011
110 contracts
exercise price $105.00 | | | (41,048) | |
Paychex, Inc.
expires June 2011
90 contracts
exercise price $35.00 | | | (851) | |
Philip Morris International, Inc.
expires September 2011
216 contracts
exercise price $62.50 | | | (109,071) | |
Pitney Bowes, Inc.
expires April 2011
158 contracts
exercise price $25.00 | | | (13,790) | |
S&P 500® Index
expires May 2011
50 contracts
exercise price $1,375.00 | | | (38,023) | |
St. Joe Co.
expires June 2011
124 contracts
exercise price $27.00 | | | (10,738) | |
Tyco International, Ltd.
expires April 2011
20 contracts
exercise price $46.00 | | | (494) | |
United Continental Holdings, Inc.
expires April 2011
155 contracts
exercise price $28.00 | | | (568) | |
Vodafone Group PLC
expires April 2011
321 contracts
exercise price $29.00 | | | (10,976) | |
| |
| |
Total Written Options – Calls
(premiums received $305,265 ) | | $ | (384,002) | |
| |
| |
| Schedule of Written Options – Puts | | | |
Carmax, Inc.
expires April 2011
130 contracts
exercise price $30.00 | | $ | (3,650) | |
Citigroup, Inc.
expires June 2011
1,660 contracts
exercise price $4.50 | | | (42,596) | |
CSX Corp.
expires June 2011
50 contracts
exercise price $210.00 | | | (130,786) | |
Delta Air Lines, Inc.
expires April 2011
31 contracts
exercise price $10.00 | | | (1,461) | |
Delta Air Lines, Inc.
expires April 2011
355 contracts
exercise price $10.00 | | | (16,331) | |
Delta Air Lines, Inc.
expires June 2011
31 contracts
exercise price $9.00 | | | (1,603) | |
Delta Air Lines, Inc.
expires June 2011
355 contracts
exercise price $9.00 | | | (18,158) | |
Ford Motor Co.
expires May 2011
3,533 contracts
exercise price $15.00 | | | (274,103) | |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 27
Janus Long/Short Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| | | Value | |
| | |
| Schedule of Written Options – Puts – (continued) | |
Genworth Financial, Inc. – Class A
expires June 2011
190 contracts
exercise price $13.00 | | $ | (13,810) | |
Hewlett Packard Co.
expires January 2012
120 contracts
exercise price $40.00 | | | (42,071) | |
International Paper Co.
expires January 2012
125 contracts
exercise price $25.00 | | | (21,778) | |
K+S A.G.
expires December 2011
70 contracts
exercise price 48.00 EUR | | | (24,766) | |
Mattel, Inc.
expires April 2011
150 contracts
exercise price $25.00 | | | (12,304) | |
Microsoft Corp.
expires January 2012
415 contracts
exercise price $25.00 | | | (91,713) | |
Millicom International Cellular S.A.
expires April 2011
25 contracts
exercise price $85.00 | | | (473) | |
Millicom International Cellular S.A.
expires April 2011
22 contracts
exercise price $90.00 | | | (1,131) | |
NRG Energy, Inc.
expires January 2013
670 contracts
exercise price $17.50 | | | (97,819) | |
Raytheon Co.
expires January 2012
70 contracts
exercise price $50.00 | | | (29,724) | |
S&P 500® Index
expires May 2011
100 contracts
exercise price $1,150.00 | | | (33,223) | |
St. Joe Co.
expires June 2011
884 contracts
exercise price $20.00 | | | (43,095) | |
St. Joe Co.
expires June 2011
400 contracts
exercise price $23.00 | | | (40,908) | |
United Continental Holdings, Inc.
expires June 2011
210 contracts
exercise price $21.00 | | | (30,913) | |
Vail Resorts
expires July 2011
135 contracts
exercise price $42.50 | | | (21,641) | |
Xerox Corp.
expires July 2011
1,100 contracts
exercise price $10.00 | | | (46,908) | |
| |
| |
Total Written Options – Puts
(premiums received $1,362,102 ) | | $ | (1,040,965) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
28 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
Dividend Swaps outstanding as of March 31, 2011
| | | | | | | | | | | | | | | | |
| | | Notional
| | | Return Paid
| | Return Received
| | | | Unrealized
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | Appreciation |
| |
| |
| Goldman Sachs International | | | 2,198,000 EUR | | | | 20,000 EUR for every 1
dividend Dow Jones Euro
STOXX 50 Index point
decrease in the actual
dividends from the Fixed
Strike | | | 20,000 EUR for every 1
dividend Dow Jones Euro
STOXX 50 Index point
increase in the actual
dividends from the Fixed
Strike | | 12/28/12 | | $ | 331,576 |
| |
| |
| Goldman Sachs International | | | 935,220 EUR | | | | 8,175 EUR for every 1
dividend Dow Jones Euro
STOXX 50 Index point
decrease in the actual
dividends from the Fixed
Strike | | | 8,175 EUR for every 1
dividend Dow Jones Euro
STOXX 50 Index point
increase in the actual
dividends from the Fixed
Strike | | 12/27/13 | | | 35,910 |
| |
| |
| Total | | | | | | | | | | | | | | $ | 367,486 |
| |
| |
Total Return Swaps outstanding as of March 31, 2011
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Unrealized
|
| | | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
| |
| |
| Goldman Sachs International | | $ | (82,353) | | | | Mediatek, Inc. | | | USD LIBOR minus 400 basis points | | 11/17/11 | | $ | 8,498 |
| Goldman Sachs International | | | (364,706) | | | | Mediatek, Inc. | | | USD LIBOR minus 400 basis points | | 11/18/11 | | | 1,919 |
| Morgan Stanley | | | (2,931,019) | | | | Margin Squeeze Basket | | | FED Funds Effective
minus 30 basis points | | 12/30/11 | | | (64,778) |
| Morgan Stanley | | | (376,649) | | | | Mediatek, Inc. | | | FED Funds Effective
minus 350 basis points | | 9/7/12 | | | (14,031) |
| Morgan Stanley | | | 1,835,085 | | | | U.S. Inflation Basket | | | FED Funds Effective
plus 40 basis points | | 12/30/11 | | | 32,249 |
| |
| |
| Total | | | | | | | | | | | | | | $ | (36,143) |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 29
Statements of Assets and Liabilities
| | | | | | | | | |
As of March 31, 2011 (unaudited)
| | Janus Global
| | Janus
|
| (all numbers in thousands except net asset value per share) | | Real Estate Fund | | Long/Short Fund |
|
| |
| Assets: | | | | | | | | |
| Investments at cost | | $ | 64,596 | | | $ | 71,898 | |
| Unaffiliated investments at value | | $ | 66,317 | | | $ | 81,355 | |
| Affiliated investments at value | | | 6,602 | | | | – | |
| Cash | | | 21 | | | | – | |
| Cash denominated in foreign currency(1) | | | 5 | | | | – | |
| Restricted cash (Note 1) | | | – | | | | 550 | |
| Deposits with broker for short sales | | | – | | | | 54,291 | |
| Swap contracts | | | – | | | | 410 | |
| Receivables: | | | | | | | | |
| Investments sold | | | – | | | | 1,683 | |
| Fund shares sold | | | 199 | | | | 27 | |
| Dividends | | | 201 | | | | 238 | |
| Foreign dividend tax reclaim | | | 1 | | | | 258 | |
| Interest | | | 1 | | | | 68 | |
| Non-interested Trustees’ deferred compensation | | | 2 | | | | 2 | |
| Other assets | | | – | | | | 3 | |
| Total Assets | | | 73,349 | | | | 138,885 | |
| Liabilities: | | | | | | | | |
| Payables: | | | | | | | | |
| Short sales, at value(2) | | | – | | | | 59,400 | |
| Options written, at value(3) | | | 108 | | | | 1,425 | |
| Due to custodian | | | – | | | | 2,259 | |
| Investments purchased | | | 962 | | | | 695 | |
| Fund shares repurchased | | | 23 | | | | 910 | |
| Dividends | | | – | | | | 1 | |
| Swap contracts | | | – | | | | 79 | |
| Advisory fees | | | 28 | | | | 148 | |
| Administrative services fees | | | 3 | | | | – | |
| Distribution fees and shareholder servicing fees | | | 5 | | | | 30 | |
| Administrative, networking and omnibus fees | | | 35 | | | | 161 | |
| Non-interested Trustees’ fees and expenses | | | 1 | | | | 1 | |
| Non-interested Trustees’ deferred compensation fees | | | 2 | | | | 2 | |
| Accrued expenses and other payables | | | 69 | | | | 346 | |
| Total Liabilities | | | 1,236 | | | | 65,457 | |
| Net Assets | | $ | 72,113 | | | $ | 73,428 | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
30 | MARCH 31, 2011
| | | | | | | | | |
As of March 31, 2011 (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)* | | $ | 63,873 | | | $ | 306,837 | |
| Undistributed net investment loss* | | | (28) | | | | (924) | |
| Undistributed net realized loss from investment and foreign currency transactions* | | | (141) | | | | (237,428) | |
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 8,409 | | | | 4,943 | |
| Total Net Assets | | $ | 72,113 | | | $ | 73,428 | |
| Net Assets - Class A Shares | | $ | 8,917 | | | $ | 17,882 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 927 | | | | 1,731 | |
Net Asset Value Per Share(4) | | $ | 9.62 | | | $ | 10.33 | |
Maximum Offering Price Per Share(5) | | $ | 10.21 | | | $ | 10.96 | |
| Net Assets - Class C Shares | | $ | 3,672 | | | $ | 29,659 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 383 | | | | 2,933 | |
Net Asset Value Per Share(4) | | $ | 9.60 | | | $ | 10.11 | |
| Net Assets - Class D Shares | | $ | 18,045 | | | | N/A | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,864 | | | | N/A | |
| Net Asset Value Per Share | | $ | 9.68 | | | | N/A | |
| Net Assets - Class I Shares | | $ | 33,520 | | | $ | 24,186 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,467 | | | | 2,318 | |
| Net Asset Value Per Share | | $ | 9.67 | | | $ | 10.44 | |
| Net Assets - Class R Shares | | | N/A | | | $ | 283 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | N/A | | | | 29 | |
| Net Asset Value Per Share | | | N/A | | | $ | 9.68 | |
| Net Assets - Class S Shares | | $ | 757 | | | $ | 1,127 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 79 | | | | 108 | |
| Net Asset Value Per Share | | $ | 9.64 | | | $ | 10.44 | |
| Net Assets - Class T Shares | | $ | 7,202 | | | $ | 291 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 747 | | | | 28 | |
| Net Asset Value Per Share | | $ | 9.64 | | | $ | 10.43 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Includes cost of $5,500 for Janus Global Real Estate Fund. |
| (2) | | Includes proceeds of $54,314,829 on short sales for Janus Long/Short Fund. |
| (3) | | Includes premiums of $193,200 and $1,667,367 on written options for Janus Global Real Estate Fund and Janus Long/Short Fund, respectively. |
| (4) | | Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
| (5) | | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Alternative Funds | 31
Statements of Operations
| | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited)
| | Janus Global
| | Janus
|
| (all numbers in thousands) | | Real Estate Fund | | Long/Short Fund |
|
| |
| Investment Income: | | | | | | | | |
| Interest | | $ | 1 | | | $ | 57 | |
| Interest proceeds from short sales | | | – | | | | 219 | |
| Dividends | | | 1,351 | | | | 1,074 | |
| Dividends from affiliates | | | 7 | | | | – | |
| Fee income | | | – | | | | 3 | |
| Foreign tax withheld | | | (21) | | | | (21) | |
| Total Investment Income | | | 1,338 | | | | 1,332 | |
| Expenses: | | | | | | | | |
| Advisory fees | | | 233 | | | | 560 | |
| Shareholder reports expense | | | 16 | | | | 15 | |
| Transfer agent fees and expenses | | | 8 | | | | 2 | |
| Registration fees | | | 49 | | | | 51 | |
| Custodian fees | | | 7 | | | | 37 | |
| Professional fees | | | 20 | | | | 28 | |
| Non-interested Trustees’ fees and expenses | | | 1 | | | | 2 | |
| Short sales dividend expense | | | – | | | | 477 | |
| Short sales interest expense | | | – | | | | – | |
| Stock loan fees | | | – | | | | 635 | |
| Administrative services fees - Class D Shares | | | 9 | | | | N/A | |
| Administrative services fees - Class R Shares | | | N/A | | | | – | |
| Administrative services fees - Class S Shares | | | 1 | | | | 2 | |
| Administrative services fees - Class T Shares | | | 6 | | | | 1 | |
| Distribution fees and shareholder servicing fees - Class A Shares | | | 9 | | | | 26 | |
| Distribution fees and shareholder servicing fees - Class C Shares | | | 11 | | | | 176 | |
| Distribution fees and shareholder servicing fees - Class R Shares | | | N/A | | | | 1 | |
| Distribution fees and shareholder servicing fees - Class S Shares | | | 1 | | | | 2 | |
| Administrative, networking and omnibus fees - Class A Shares | | | 5 | | | | 78 | |
| Administrative, networking and omnibus fees - Class C Shares | | | 1 | | | | 29 | |
| Administrative, networking and omnibus fees - Class I Shares | | | 44 | | | | 10 | |
| Other expenses | | | 13 | | | | 29 | |
| Total Expenses | | | 434 | | | | 2,161 | |
| Expense and Fee Offset | | | – | | | | – | |
| Net Expenses | | | 434 | | | | 2,161 | |
| Less: Excess Expense Reimbursement | | | (19) | | | | (67) | |
| Net Expenses after Expense Reimbursement | | | 415 | | | | 2,094 | |
| Net Investment Income/(Loss) | | | 923 | | | | (762) | |
| Net Realized and Unrealized Gain/(Loss) on Investments: | | | | | | | | |
| Net realized gain from investment and foreign currency transactions | | | 1,183 | | | | 7,727 | |
| Net realized gain/(loss) from futures contracts | | | – | | | | (896) | |
| Net realized gain/(loss) from short sales | | | – | | | | (1,896) | |
| Net realized gain/(loss) from swap contracts | | | – | | | | (196) | |
| Net realized gain from written options contracts | | | 64 | | | | 1,140 | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 2,187 | | | | (6,735) | |
| Net Gain/(Loss) on Investments | | | 3,434 | | | | (856) | |
| Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | 4,357 | | | $ | (1,618) | |
See Notes to Financial Statements.
32 | MARCH 31, 2011
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | |
| | | Janus Global
| | Janus
|
For the six-month period ended March 31, 2011 (unaudited) and the fiscal year ended September 30, 2010
| | Real Estate Fund | | Long/Short Fund |
| (all numbers in thousands) | | 2011 | | 2010 | | 2011 | | 2010 |
|
| |
| Operations: | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | $ | 923 | | | $ | 508 | | | $ | (762) | | | $ | (2,669) | |
| Net realized gain from investment and foreign currency transactions | | | 1,183 | | | | 281 | | | | 7,727 | | | | 28,888 | |
| Net realized gain/(loss) from futures contracts | | | – | | | | – | | | | (896) | | | | (395) | |
| Net realized gain/(loss) from short sales | | | – | | | | – | | | | (1,896) | | | | (4,204) | |
| Net realized gain/(loss) from swap contracts | | | – | | | | – | | | | (196) | | | | (651) | |
| Net realized gain from written options contracts | | | 64 | | | | 158 | | | | 1,140 | | | | 173 | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 2,187 | | | | 4,710 | | | | (6,735) | | | | (11,977) | |
| Net Increase/(Decrease) in Net Assets Resulting from Operations | | | 4,357 | | | | 5,657 | | | | (1,618) | | | | 9,165 | |
| Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | |
| Net Investment Income* | | | | | | | | | | | | | | | | |
| Class A Shares | | | (165) | | | | (35) | | | | – | | | | – | |
| Class C Shares | | | (32) | | | | (10) | | | | – | | | | – | |
| Class D Shares | | | (330) | | | | – | | | | N/A | | | | N/A | |
| Class I Shares | | | (586) | | | | (263) | | | | – | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | – | | | | – | |
| Class S Shares | | | (9) | | | | (8) | | | | – | | | | – | |
| Class T Shares | | | (100) | | | | (1) | | | | – | | | | – | |
| Net Realized Gain/(Loss) from Investment Transactions* | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | – | | | | – | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | – | | | | – | | | | N/A | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | – | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | – | | | | – | |
| Class S Shares | | | – | | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | – | | | | – | | | | – | |
| Net Decrease from Dividends and Distributions | | | (1,222) | | | | (317) | | | | – | | | | – | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Alternative Funds | 33
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | |
| | | Janus Global
| | Janus
|
For the six-month period ended March 31, 2011 (unaudited) and the fiscal year ended September 30, 2010
| | Real Estate Fund | | Long/Short Fund |
| (all numbers in thousands) | | 2011 | | 2010 | | 2011 | | 2010 |
|
| |
| Capital Share Transactions: | | | | | | | | | | | | | | | | |
| Shares Sold | | | | | | | | | | | | | | | | |
| Class A Shares | | | 6,241 | | | | 4,905 | | | | 3,506 | | | | 3,239 | |
| Class C Shares | | | 2,346 | | | | 714 | | | | 1,918 | | | | 2,526 | |
| Class D Shares | | | 10,570 | | | | 11,522 | | | | N/A | | | | N/A | |
| Class I Shares | | | 9,609 | | | | 8,824 | | | | 6,002 | | | | 25,121 | |
| Class R Shares | | | N/A | | | | N/A | | | | 64 | | | | 115 | |
| Class S Shares | | | 178 | | | | 48 | | | | 181 | | | | 253 | |
| Class T Shares | | | 4,483 | | | | 2,829 | | | | 749 | | | | 1,386 | |
| Redemption Fees | | | | | | | | | | | | | | | | |
| Class A Shares | | | N/A | | | | N/A | | | | 3 | | | | – | |
| Class C Shares | | | N/A | | | | N/A | | | | 5 | | | | – | |
| Class D Shares | | | 10 | | | | 8 | | | | N/A | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | 7 | | | | 10 | |
| Class R Shares | | | N/A | | | | N/A | | | | – | | | | – | |
| Class S Shares | | | – | | | | – | | | | – | | | | 1 | |
| Class T Shares | | | – | | | | – | | | | – | | | | – | |
| Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | |
| Class A Shares | | | 155 | | | | 35 | | | | – | | | | – | |
| Class C Shares | | | 25 | | | | 9 | | | | – | | | | – | |
| Class D Shares | | | 328 | | | | – | | | | N/A | | | | N/A | |
| Class I Shares | | | 550 | | | | 261 | | | | – | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | – | | | | – | |
| Class S Shares | | | 9 | | | | 8 | | | | – | | | | – | |
| Class T Shares | | | 99 | | | | 1 | | | | – | | | | – | |
| Shares Repurchased | | | | | | | | | | | | | | | | |
| Class A Shares | | | (4,079) | | | | (1,188) | | | | (8,451) | | | | (40,753) | |
| Class C Shares | | | (70) | | | | (99) | | | | (10,745) | | | | (38,852) | |
| Class D Shares | | | (5,021) | | | | (789) | | | | N/A | | | | N/A | |
| Class I Shares | | | (1,375) | | | | (1,804) | | | | (16,664) | | | | (37,038) | |
| Class R Shares | | | N/A | | | | N/A | | | | (18) | | | | (58) | |
| Class S Shares | | | (9) | | | | (15) | | | | (699) | | | | (1,436) | |
| Class T Shares | | | (451) | | | | (230) | | | | (1,852) | | | | (26) | |
| Net Increase/(Decrease) from Capital Share Transactions | | | 23,598 | | | | 25,039 | | | | (25,994) | | | | (85,512) | |
| Net Increase/(Decrease) in Net Assets | | | 26,733 | | | | 30,379 | | | | (27,612) | | | | (76,347) | |
| Net Assets: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 45,380 | | | | 15,001 | | | | 101,040 | | | | 177,387 | |
| End of period | | $ | 72,113 | | | $ | 45,380 | | | $ | 73,428 | | | $ | 101,040 | |
| | | | | | | | | | | | | | | | | |
| Undistributed Net Investment Income/(Loss)* | | $ | (28) | | | $ | 271 | | | $ | (924) | | | $ | (162) | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
See Notes to Financial Statements.
34 | MARCH 31, 2011
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | | | | | | | | | | | |
(unaudited), the fiscal year ended September 30, 2010, the two-month fiscal
| | | | | | | | | | | | |
period ended September 30, 2009 and each fiscal year or period ended
| | Janus Global Real Estate Fund |
| July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $9.09 | | | | $7.49 | | | | $6.50 | | | | $8.65 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .14 | | | | .16 | | | | .03 | | | | .12 | | | | .13 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .59 | | | | 1.58 | | | | .96 | | | | (2.00) | | | | (1.48) | | | |
| Total from Investment Operations | | | .73 | | | | 1.74 | | | | .99 | | | | (1.88) | | | | (1.35) | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.20) | | | | (.14) | | | | – | | | | (.27) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.20) | | | | (.14) | | | | – | | | | (.27) | | | | – | | | |
| Net Asset Value, End of Period | | | $9.62 | | | | $9.09 | | | | $7.49 | | | | $6.50 | | | | $8.65 | | | |
| Total Return** | | | 8.10% | | | | 23.57% | | | | 15.23% | | | | (20.87)% | | | | (13.50)% | | | |
| Net Assets, End of Period (in thousands) | | | $8,917 | | | | $6,197 | | | | $1,716 | | | | $701 | | | | $471 | | | |
| Average Net Assets for the Period (in thousands) | | | $7,368 | | | | $3,136 | | | | $1,218 | | | | $423 | | | | $444 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.50% | | | | 1.57% | | | | 1.64% | | | | 1.39% | | | | 1.50% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.50% | | | | 1.57% | | | | 1.63% | | | | 1.39% | | | | 1.50% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 3.24% | | | | 1.82% | | | | 2.30% | | | | 2.22% | | | | 2.31% | | | |
| Portfolio Turnover Rate*** | | | 37% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Long/Short Fund | | |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
| |
| Net Asset Value, Beginning of Period | | | $10.51 | | | | $9.72 | | | | $8.93 | | | | $11.54 | | | | $12.69 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.04) | | | | .11 | | | | .07 | | | | .07 | | | | .04 | | | | .13 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | (.14) | | | | .68 | | | | .72 | | | | (2.52) | | | | (1.11) | | | | 2.62 | | | |
| Total from Investment Operations | | | (.18) | | | | .79 | | | | .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 | | | –(5) | | | | –(5) | | | | – | | | | .01 | | | | – | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (.16) | | | | (.08) | | | | (.06) | | | |
| Net Asset Value, End of Period | | | $10.33 | | | | $10.51 | | | | $9.72 | | | | $8.93 | | | | $11.54 | | | | $12.69 | | | |
| Total Return** | | | (1.71)% | | | | 8.13% | | | | 8.85% | | | | (21.22)% | | | | (8.47)% | | | | 27.62% | | | |
| Net Assets, End of Period (in thousands) | | | $17,882 | | | | $23,200 | | | | $58,152 | | | | $68,971 | | | | $409,082 | | | | $67,879 | | | |
| Average Net Assets for the Period (in thousands) | | | $20,916 | | | | $31,998 | | | | $64,709 | | | | $184,762 | | | | $327,208 | | | | $18,205 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 4.48%(6) | | | | 3.95%(6) | | | | 5.61%(6) | | | | 4.00%(6) | | | | 3.38%(6) | | | | 3.46%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 4.48%(6) | | | | 3.94%(6) | | | | 5.60%(6) | | | | 4.00%(6) | | | | 3.38%(6) | | | | 3.45%(6) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.49)% | | | | (2.04)% | | | | (3.79)% | | | | (2.08)%(7) | | | | 0.41% | | | | 1.46% | | | |
| Portfolio Turnover Rate*** | | | 118% | | | | 140% | | | | 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 August 1, 2008 through July 31, 2009. |
| (3) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
| (4) | | See Note 6 in Notes to Financial Statements. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.01% and 2.01%, respectively, in 2011, 2.03% and 2.02%, 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. |
| (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%. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Alternative Funds | 35
Financial Highlights (continued)
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | | | | | | | | | | | |
(unaudited), the fiscal year ended September 30, 2010, the two-month fiscal
| | | | | | | | | | | | |
period ended September 30, 2009 and each fiscal year or period ended
| | Janus Global Real Estate Fund |
| July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $9.06 | | | | $7.52 | | | | $6.53 | | | | $8.61 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .13 | | | | .10 | | | | .02 | | | | .14 | | | | .09 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .56 | | | | 1.58 | | | | .97 | | | | (2.01) | | | | (1.48) | | | |
| Total from Investment Operations | | | .69 | | | | 1.68 | | | | .99 | | | | (1.87) | | | | (1.39) | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.15) | | | | (.14) | | | | – | | | | (.21) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.15) | | | | (.14) | | | | – | | | | (.21) | | | | – | | | |
| Net Asset Value, End of Period | | | $9.60 | | | | $9.06 | | | | $7.52 | | | | $6.53 | | | | $8.61 | | | |
| Total Return** | | | 7.71% | | | | 22.72% | | | | 15.16% | | | | (21.06)% | | | | (13.90)% | | | |
| Net Assets, End of Period (in thousands) | | | $3,672 | | | | $1,252 | | | | $469 | | | | $405 | | | | $459 | | | |
| Average Net Assets for the Period (in thousands) | | | $2,210 | | | | $844 | | | | $443 | | | | $309 | | | | $441 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 2.18% | | | | 2.32% | | | | 2.37% | | | | 1.34%(5) | | | | 2.25% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 2.18% | | | | 2.32% | | | | 2.36% | | | | 1.34%(5) | | | | 2.25% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.35% | | | | 1.04% | | | | 1.52% | | | | 2.47% | | | | 1.56% | | | |
| Portfolio Turnover Rate*** | | | 37% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Long/Short Fund | | |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
| |
| Net Asset Value, Beginning of Period | | | $10.32 | | | | $9.58 | | | | $8.81 | | | | $11.40 | | | | $12.62 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.31) | | | | (.32) | | | | – | | | | (.18) | | | | (.01) | | | | .08 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .10 | | | | 1.06 | | | | .77 | | | | (2.31) | | | | (1.13) | | | | 2.58 | | | |
| Total from Investment Operations | | | (.21) | | | | .74 | | | | .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 | | | –(6) | | | | –(6) | | | | – | | | | .01 | | | | – | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (.10) | | | | (.08) | | | | (.04) | | | |
| Net Asset Value, End of Period | | | $10.11 | | | | $10.32 | | | | $9.58 | | | | $8.81 | | | | $11.40 | | | | $12.62 | | | |
| Total Return** | | | (2.03)% | | | | 7.72% | | | | 8.74% | | | | (21.81)% | | | | (9.11)% | | | | 26.62% | | | |
| Net Assets, End of Period (in thousands) | | | $29,659 | | | | $39,220 | | | | $71,942 | | | | $79,412 | | | | $225,517 | | | | $26,945 | | | |
| Average Net Assets for the Period (in thousands) | | | $35,196 | | | | $50,895 | | | | $76,074 | | | | $134,956 | | | | $158,175 | | | | $7,707 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 5.24%(7) | | | | 4.35%(7) | | | | 6.36%(7) | | | | 4.85%(7) | | | | 4.18%(7) | | | | 4.20%(7) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 5.24%(7) | | | | 4.34%(7) | | | | 6.36%(7) | | | | 4.85%(7) | | | | 4.17%(7) | | | | 4.20%(7) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (2.26)% | | | | (2.47)% | | | | (4.89)% | | | | (2.99)%(8) | | | | (0.37)% | | | | 0.62% | | | |
| Portfolio Turnover Rate*** | | | 118% | | | | 140% | | | | 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 August 1, 2008 through July 31, 2009. |
| (3) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
| (4) | | See Note 6 in Notes to Financial Statements. |
| (5) | | 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 waiver of these fees and expenses. |
| (6) | | Redemption fees 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.76% and 2.76%, respectively, in 2011, 2.43% and 2.42%, 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. |
| (8) | | 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%. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
36 | MARCH 31, 2011
Class D Shares
| | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited) and the fiscal period
| | Janus Global Real Estate Fund | | |
| ended September 30, 2010 | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $9.15 | | | | $7.64 | | | |
| Income from Investment Operations: | | | | | | | | | | |
| Net investment income | | | .14 | | | | .05 | | | |
| Net gain on investments (both realized and unrealized) | | | .59 | | | | 1.45 | | | |
| Total from Investment Operations | | | .73 | | | | 1.50 | | | |
| Less Distributions and Other: | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.21) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | |
| Redemption fees | | | .01 | | | | .01 | | | |
| Total Distributions and Other | | | (.20) | | | | .01 | | | |
| Net Asset Value, End of Period | | | $9.68 | | | | $9.15 | | | |
| Total Return** | | | 8.16% | | | | 19.76% | | | |
| Net Assets, End of Period (in thousands) | | | $18,045 | | | | $11,388 | | | |
| Average Net Assets for the Period (in thousands) | | | $15,923 | | | | $4,756 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.47% | | | | 1.44% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.47% | | | | 1.43% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 3.03% | | | | 2.21% | | | |
| Portfolio Turnover Rate*** | | | 37% | | | | 14% | | | |
| | | |
| * | | 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 September 30, 2010. |
| (2) | | See Note 6 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Alternative Funds | 37
Financial Highlights (continued)
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | | | | | | | | | | | |
(unaudited), the fiscal year ended September 30, 2010, the two-month
| | | | | | | | | | | | |
fiscal period ended September 30, 2009 and each fiscal year or period
| | Janus Global Real Estate Fund |
| ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $9.14 | | | | $7.51 | | | | $6.52 | | | | $8.66 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .15 | | | | .16 | | | | .03 | | | | .17 | | | | .13 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .59 | | | | 1.61 | | | | .96 | | | | (2.04) | | | | (1.47) | | | |
| Total from Investment Operations | | | .74 | | | | 1.77 | | | | .99 | | | | (1.87) | | | | (1.34) | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.21) | | | | (.14) | | | | – | | | | (.27) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(4) | | | | –(4) | | | | –(4) | | | | –(4) | | | | – | | | |
| Total Distributions and Other | | | (.21) | | | | (.14) | | | | – | | | | (.27) | | | | – | | | |
| Net Asset Value, End of Period | | | $9.67 | | | | $9.14 | | | | $7.51 | | | | $6.52 | | | | $8.66 | | | |
| Total Return** | | | 8.20% | | | | 23.97% | | | | 15.18% | | | | (20.73)% | | | | (13.40)% | | | |
| Net Assets, End of Period (in thousands) | | | $33,520 | | | | $23,199 | | | | $12,406 | | | | $9,784 | | | | $5,331 | | | |
| Average Net Assets for the Period (in thousands) | | | $28,165 | | | | $17,714 | | | | $11,312 | | | | $4,284 | | | | $4,778 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.30% | | | | 1.33% | | | | 1.39% | | | | 1.26% | | | | 1.25% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.30% | | | | 1.32% | | | | 1.39% | | | | 1.26% | | | | 1.25% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 3.23% | | | | 2.02% | | | | 2.51% | | | | 1.98% | | | | 2.48% | | | |
| Portfolio Turnover Rate*** | | | 37% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Long/Short Fund | | |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
| |
| Net Asset Value, Beginning of Period | | | $10.59 | | | | $9.77 | | | | $8.97 | | | | $11.60 | | | | $12.72 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .08 | | | | .13 | | | | .08 | | | | .24 | | | | .09 | | | | .14 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | (.23) | | | | .69 | | | | .72 | | | | (2.68) | | | | (1.13) | | | | 2.65 | | | |
| Total from Investment Operations | | | (.15) | | | | .82 | | | | .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 | | | –(4) | | | | –(4) | | | | –(4) | | | | .01 | | | | .01 | | | | –(4) | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (.19) | | | | (.08) | | | | (.07) | | | |
| Net Asset Value, End of Period | | | $10.44 | | | | $10.59 | | | | $9.77 | | | | $8.97 | | | | $11.60 | | | | $12.72 | | | |
| Total Return** | | | (1.42)% | | | | 8.39% | | | | 8.92% | | | | (20.96)% | | | | (8.19)% | | | | 27.98% | | | |
| Net Assets, End of Period (in thousands) | | | $24,186 | | | | $35,273 | | | | $44,422 | | | | $45,805 | | | | $227,446 | | | | $62,987 | | | |
| Average Net Assets for the Period (in thousands) | | | $30,878 | | | | $38,757 | | | | $44,992 | | | | $107,265 | | | | $212,623 | | | | $16,632 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 4.16%(6) | | | | 3.69%(6) | | | | 5.31%(6) | | | | 3.75%(6) | | | | 3.12%(6) | | | | 3.21%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 4.16%(6) | | | | 3.68%(6) | | | | 5.30%(6) | | | | 3.75%(6) | | | | 3.12%(6) | | | | 3.21%(6) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.20)% | | | | (1.81)% | | | | (4.67)% | | | | (1.84)%(7) | | | | 0.72% | | | | 1.67% | | | |
| Portfolio Turnover Rate*** | | | 118% | | | | 140% | | | | 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 August 1, 2008 through July 31, 2009. |
| (3) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
| (4) | | Redemption fees 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.68% and 1.68%, respectively, in 2011, 1.76% and 1.75%, 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. |
| (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%. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
38 | MARCH 31, 2011
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Long/Short Fund | | |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
| |
| Net Asset Value, Beginning of Period | | | $9.86 | | | | $9.15 | | | | $8.40 | | | | $10.89 | | | | $12.65 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.10) | | | | (.07) | | | | .06 | | | | (.56) | | | | .78 | | | | .10 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | (.08) | | | | .78 | | | | .69 | | | | (1.82) | | | | (2.48) | | | | 2.59 | | | |
| Total from Investment Operations | | | (.18) | | | | .71 | | | | .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 | | | –(3) | | | | –(3) | | | | – | | | | .01 | | | | – | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (.11) | | | | (.06) | | | | (.04) | | | |
| Net Asset Value, End of Period | | | $9.68 | | | | $9.86 | | | | $9.15 | | | | $8.40 | | | | $10.89 | | | | $12.65 | | | |
| Total Return** | | | (1.83)% | | | | 7.76% | | | | 8.93% | | | | (21.76)% | | | | (13.49)% | | | | 26.90% | | | |
| Net Assets, End of Period (in thousands) | | | $283 | | | | $243 | | | | $168 | | | | $175 | | | | $86 | | | | $1,280 | | | |
| Average Net Assets for the Period (in thousands) | | | $266 | | | | $193 | | | | $178 | | | | $148 | | | | $601 | | | | $1,142 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 4.88%(5) | | | | 4.28%(5) | | | | 5.93%(5) | | | | 4.93%(5) | | | | 4.89%(5) | | | | 3.67%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 4.88%(5) | | | | 4.27%(5) | | | | 5.93%(5) | | | | 4.93%(5) | | | | 4.89%(5) | | | | 3.67%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.78)% | | | | (2.33)% | | | | (5.90)% | | | | (3.25)%(6) | | | | (0.47)% | | | | 0.36% | | | |
| Portfolio Turnover Rate*** | | | 118% | | | | 140% | | | | 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 August 1, 2008 through July 31, 2009. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.36% and 2.36%, respectively, in 2011, 2.40% and 2.39%, 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. |
| (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%. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Alternative Funds | 39
Financial Highlights (continued)
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | | | | | | | | | | | |
(unaudited), the fiscal year ended September 30, 2010, the two-month fiscal
| | | | | | | | | | | | |
period ended September 30, 2009 and each fiscal year or period ended
| | Janus Global Real Estate Fund |
| July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $9.08 | | | | $7.50 | | | | $6.51 | | | | $8.63 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .15 | | | | .12 | | | | .02 | | | | .15 | | | | .12 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .56 | | | | 1.60 | | | | .97 | | | | (2.02) | | | | (1.49) | | | |
| Total from Investment Operations | | | .71 | | | | 1.72 | | | | .99 | | | | (1.87) | | | | (1.37) | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.15) | | | | (.14) | | | | – | | | | (.25) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.15) | | | | (.14) | | | | – | | | | (.25) | | | | – | | | |
| Net Asset Value, End of Period | | | $9.64 | | | | $9.08 | | | | $7.50 | | | | $6.51 | | | | $8.63 | | | |
| Total Return** | | | 7.95% | | | | 23.32% | | | | 15.21% | | | | (20.84)% | | | | (13.70)% | | | |
| Net Assets, End of Period (in thousands) | | | $757 | | | | $543 | | | | $409 | | | | $354 | | | | $434 | | | |
| Average Net Assets for the Period (in thousands) | | | $618 | | | | $477 | | | | $389 | | | | $299 | | | | $437 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.62% | | | | 1.82% | | | | 1.86% | | | | 1.29%(5) | | | | 1.75% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.62% | | | | 1.82% | | | | 1.86% | | | | 1.29%(5) | | | | 1.75% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.92% | | | | 1.49% | | | | 2.02% | | | | 2.51% | | | | 2.08% | | | |
| Portfolio Turnover Rate*** | | | 37% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Long/Short Fund | | |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
| |
| Net Asset Value, Beginning of Period | | | $10.62 | | | | $9.82 | | | | $9.04 | | | | $11.52 | | | | $12.69 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | 1.34 | | | | 1.37 | | | | .67 | | | | 1.00 | | | | .16 | | | | .09 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | (1.52) | | | | (.57) | | | | .11 | | | | (3.46) | | | | (1.26) | | | | 2.65 | | | |
| Total from Investment Operations | | | (.18) | | | | .80 | | | | .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 | | | –(6) | | | | –(6) | | | | –(6) | | | | .01 | | | | .01 | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (.02) | | | | (.07) | | | | (.05) | | | |
| Net Asset Value, End of Period | | | $10.44 | | | | $10.62 | | | | $9.82 | | | | $9.04 | | | | $11.52 | | | | $12.69 | | | |
| Total Return** | | | (1.69)% | | | | 8.15% | | | | 8.63% | | | | (21.23)% | | | | (8.65)% | | | | 27.43% | | | |
| Net Assets, End of Period (in thousands) | | | $1,127 | | | | $1,670 | | | | $2,702 | | | | $3,679 | | | | $31,691 | | | | $40,590 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,529 | | | | $1,975 | | | | $3,189 | | | | $12,978 | | | | $59,260 | | | | $6,865 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 4.60%(7) | | | | 4.03%(7) | | | | 5.68%(7) | | | | 4.18%(7) | | | | 3.66%(7) | | | | 3.99%(7) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 4.59%(7) | | | | 4.03%(7) | | | | 5.68%(7) | | | | 4.18%(7) | | | | 3.66%(7) | | | | 3.98%(7) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.61)% | | | | (2.08)% | | | | (1.80)% | | | | (2.22)%(8) | | | | 0.30% | | | | 1.67% | | | |
| Portfolio Turnover Rate*** | | | 118% | | | | 140% | | | | 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 August 1, 2008 through July 31, 2009. |
| (3) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
| (4) | | See Note 6 in Notes to Financial Statements. |
| (5) | | 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 have been 1.76% and 1.76%, respectively, for the fiscal year ended July 31, 2009 without the waiver of these fees and expenses. |
| (6) | | Redemption fees 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 2.12% and 2.12%, respectively, in 2011, 2.12% and 2.11%, 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. |
| (8) | | 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 the total net assets of the class. |
See Notes to Financial Statements.
40 | MARCH 31, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | | | |
the fiscal year ended September 30, 2010, the two-month fiscal period ended
| | Janus Global Real Estate Fund | | |
| September 30, 2009 and the fiscal period ended July 31, 2009 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $9.12 | | | | $7.50 | | | | $6.51 | | | | $5.80 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .15 | | | | .15 | | | | .03 | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .58 | | | | 1.61 | | | | .96 | | | | .71 | | | |
| Total from Investment Operations | | | .73 | | | | 1.76 | | | | .99 | | | | .71 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.21) | | | | (.14) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | – | | | | – | | | |
| Total Distributions and Other | | | (.21) | | | | (.14) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $9.64 | | | | $9.12 | | | | $7.50 | | | | $6.51 | | | |
| Total Return** | | | 8.09% | | | | 23.86% | | | | 15.21% | | | | 12.24% | | | |
| Net Assets, End of Period (in thousands) | | | $7,202 | | | | $2,801 | | | | $1 | | | | $1 | | | |
| Average Net Assets for the Period (in thousands) | | | $4,763 | | | | $528 | | | | $1 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.33% | | | | 1.59% | | | | 1.61% | | | | 1.54% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.33% | | | | 1.58% | | | | 1.61% | | | | 1.54% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 3.11% | | | | 2.39% | | | | 2.25% | | | | 0.79% | | | |
| Portfolio Turnover Rate*** | | | 37% | | | | 14% | | | | 19% | | | | 78% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | | | | | | | | | |
(unaudited), the fiscal year ended September 30, 2010, the two-month fiscal period
| | Janus Long/Short Fund | | |
| ended September 30, 2009 and the fiscal period ended July 31, 2009 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.60 | | | | $9.79 | | | | $8.98 | | | | $8.88 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.30) | | | | (.17) | | | | .04 | | | | .17 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .13 | | | | .98 | | | | .77 | | | | (.07) | | | |
| Total from Investment Operations | | | (.17) | | | | .81 | | | | .81 | | | | .10 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | – | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $10.43 | | | | $10.60 | | | | $9.79 | | | | $8.98 | | | |
| Total Return** | | | (1.60)% | | | | 8.27% | | | | 9.02% | | | | 1.13% | | | |
| Net Assets, End of Period (in thousands) | | | $291 | | | | $1,434 | | | | $1 | | | | $1 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,091 | | | | $742 | | | | $1 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 4.72%(5) | | | | 3.61%(5) | | | | 5.35%(5) | | | | 2.04%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 4.72%(5) | | | | 3.59%(5) | | | | 5.35%(5) | | | | 2.00%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (2.07)% | | | | (1.66)% | | | | (5.61)% | | | | (2.61)%(6) | | | |
| Portfolio Turnover Rate*** | | | 118% | | | | 140% | | | | 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) | | 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.88% and 1.88%, respectively, in 2011, 1.95% and 1.93%, 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 year 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%. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Alternative Funds | 41
Notes to Schedules of Investments (unaudited)
| | |
| FTSE EPRA/NAREIT Developed 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). |
| |
| 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. |
| |
| 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 |
| |
| ETF | | Exchange-Traded Fund |
| |
| ETN | | Exchange-Traded Note |
| |
| HOLDRs | | Holding Company Depositary Receipt |
| |
| 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. |
| |
| VIX | | Volatility Index |
| |
| 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, options contracts, short sales, swap agreements and/or securities with extended settlement dates. |
| |
| 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. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2011 is indicated in the table below: |
| | | | | | | | | | | |
| | | | | | Value as a %
| | | |
| Fund | | Value | | | of Net Assets | | | |
| |
| Janus Global Real Estate Fund | | $ | 1,296,656 | | | | 1.8 | % | | |
| Janus Long/Short Fund | | | 3,472,673 | | | | 4.3 | % | | |
| |
| |
42 | MARCH 31, 2011
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, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2011)
| | | | | | | | | | | | |
| | | | | 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 | | $ | 4,855,769 | | $ | 446,089 | | $ | – | | |
| All Other | | | 60,092,169 | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Corporate Bond | | | – | | | 49,875 | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Preferred Stock | | | – | | | 873,162 | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Warrants | | | 133 | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Money Market | | | – | | | 6,602,093 | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Investments in Securities | | $ | 64,948,071 | | $ | 7,971,219 | | $ | – | | |
| |
| |
Investments in Securities: | | | | | | | | | | | |
| Janus Long/Short Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
| Cellular Telecommunications | | $ | – | | $ | 1,302,519 | | $ | – | | |
| Medical – Drugs | | | 3,560,285 | | | 3,255,514 | | | – | | |
| Oil – Field Services | | | 982,097 | | | 1,284,860 | | | – | | |
| All Other | | | 65,796,439 | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Corporate Bond | | | – | | | 1,100,902 | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Exchange-Traded Funds | | | 2,841,795 | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Investments in Securities | | $ | 73,180,616 | | $ | 6,943,795 | | $ | – | | |
| |
| |
Investments in Securities Sold Short: | | | | | | | | | | | |
| Janus Long/Short Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
| Commercial Banks | | $ | – | | $ | (1,759,746) | | $ | – | | |
| Diversified Minerals | | | – | | | (254,294) | | | – | | |
| Wireless Equipment | | | – | | | (545,704) | | | – | | |
| All Other | | | (6,248,552) | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Exchange-Traded Funds | | | – | | | – | | | | | |
| Growth – Large Cap | | | (4,147,595) | | | (7,646,489) | | | | | |
| All Other | | | (38,099,751) | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Exchange-Traded Note | | | (698,034) | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Investments in Securities Sold Short | | $ | (49,193,932) | | $ | (10,206,233) | | $ | – | | |
| |
| |
Investments in Purchased Options: | | | | | | | | | | | |
| Janus Long/Short Fund | | $ | – | | $ | 1,230,782 | | $ | – | | |
| |
| |
Other Financial Instruments(b): | | | | | | | | | | | |
| Janus Global Real Estate Fund | | $ | – | | $ | (108,009) | | $ | – | | |
| Janus Long/Short Fund | | | – | | | (1,093,624) | | | – | | |
| |
| |
| | | |
| (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. |
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, 2011 is noted below.
| | | | | | |
| Fund | | Aggregate Value | | |
| |
| |
| Janus Global Real Estate Fund | | $ | 8,162,220 | | |
| Janus Long/Short Fund | | | 61,978,492 | | |
| |
| |
Janus Alternative Funds | 43
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 financial statements include information for the six-month period ended March 31, 2011. The Trust offers thirty-nine 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. The Shares are available only to investors who hold accounts directly with the Janus funds 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, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the 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 (“OTC”) 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
44 | MARCH 31, 2011
limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a 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 equity 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 REITs’ 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 | 45
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 period ended March 31, 2011, 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, 2011, Janus Long/Short Fund had restricted cash in the amount of $550,000. The restricted cash represents collateral received in relation to options contracts invested in by the Fund at March 31, 2011. 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” 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.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC 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 and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that are categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), warrants, swaps, investments in mutual funds, OTC options, and forward contracts. 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. These are generally categorized as Level 2 in the hierarchy.
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.
For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under the FASB Guidance. These are categorized as Level 3 in the hierarchy.
46 | MARCH 31, 2011
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
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, 2011 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.
The Funds adopted FASB Accounting Standards Update “Fair Value Measurements and Disclosures” (the “Update”). This Update applies to a Fund’s disclosures about transfers in and out of Level 1 and Level 2 of the fair value hierarchy and the reasons for the transfers. Disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy are summarized under the Level 2 and Level 3 categories listed above. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the period.
The following table shows transfers between Level 1 and Level 2 of the fair value hierarchy during the period ended March 31, 2011.
| | | | | | | | | | | |
| | | Transfers In
| | | Transfers Out
| | | |
| | | Level 1 to
| | | Level 2
| | | |
| Fund | | Level 2 | | | to Level 1 | | | |
| |
| |
| Janus Global Real Estate Fund | | $ | – | | | $ | 11,276,086 | | | |
| Janus Long Short Fund | | | – | | | | 23,169,815 | | | |
| |
| |
Financial assets were transferred from Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the beginning of the fiscal year and no factor was applied at the end of the period.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
| |
| 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. Each derivative instrument that was held by one or more Funds during the period ended March 31, 2011 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
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 equity 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, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk.
Derivatives may generally be traded 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 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
Janus Alternative Funds | 47
Notes to Financial Statements (unaudited) (continued)
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.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| | |
| | • | Counterparty Risk – Counterparty risk is the risk that the counterparty or a third party will not fulfill its obligation to a Fund. |
| |
| | • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. |
| |
| | • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. |
| |
| | • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. |
| |
| | • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. |
| |
| | • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. |
| |
| | • | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested. |
| |
| | • | Liquidity Risk – Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth. |
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, equity 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
48 | MARCH 31, 2011
securities for hedging purposes or as a substitute for an investment. The Funds are subject to interest rate risk, liquidity risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use options 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. Janus Global Real Estate Fund generally invests 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 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 OTC 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 OTC 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 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 period ended March 31, 2011 is indicated in the tables below:
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Global Real Estate Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 6 | | $ | 762 | | |
| Options written | | | – | | | – | | |
| Options closed | | | – | | | – | | |
| Options expired | | | (6) | | | (762) | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | – | | $ | – | | |
| |
| |
Janus Alternative Funds | 49
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Global Real Estate Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 372 | | $ | 35,538 | | |
| Options written | | | 2,120 | | | 220,805 | | |
| Options closed | | | – | | | – | | |
| Options expired | | | (847) | | | (63,143) | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 1,645 | | $ | 193,200 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Long/Short Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 4,984 | | $ | 348,509 | | |
| Options written | | | 14,185 | | | 1,447,651 | | |
| Options closed | | | (8,380) | | | (974,017) | | |
| Options expired | | | (3,012) | | | (266,820) | | |
| Options exercised | | | (4,673) | | | (250,058) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 3,104 | | $ | 305,265 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Long/Short Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 9,504 | | $ | 1,241,914 | | |
| Options written | | | 25,857 | | | 2,505,480 | | |
| Options closed | | | (17,006) | | | (1,868,410) | | |
| Options expired | | | (4,881) | | | (338,351) | | |
| Options exercised | | | (2,643) | | | (178,531) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 10,831 | | $ | 1,362,102 | | |
| |
| |
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 equity 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).
Dividend swap agreements involve an exchange by the parties of their respective commitments to pay or right to receive the changes in a dividend index point. The Funds gain exposure by either paying or receiving an amount in respect of an increase or decrease in the change of the relevant dividend index point based on a notional amount. For example, if a Fund took a long position on a dividend index swap, the Fund would receive payments if the relevant index point increased in value and would be obligated to pay if that index point decreased in value.
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 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.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2011.
Fair Value of Derivative Instruments as of March 31, 2011
| | | | | | | | | | | | | |
| | | 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 Real Estate Fund | | | | | | | | | | | | |
| Equity Contracts | | | | | | | | Options written, at value | | $ | 108,009 | |
| |
| |
| Total | | | | | | | | | | $ | 108,009 | |
| |
| |
50 | MARCH 31, 2011
| | | | | | | | | | | | | |
| | | 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 Long/Short Fund | | | | | | | | | | | | |
| Equity Contracts | | Unaffiliated investments at value | | $ | 1,230,782 | | | Options written, at value | | $ | 1,424,967 | |
| Equity Contracts | | Swap contracts | | | 410,152 | | | Swap contracts | | | 78,809 | |
| |
| |
| Total | | | | $ | 1,640,934 | | | | | $ | 1,503,776 | |
| |
| |
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2011.
The effect of Derivative Instruments on the Statements of Operations for the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | 63,905 | | | $ | – | | | $ | 63,905 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 63,905 | | | $ | – | | | $ | 63,905 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | 75,469 | | | $ | – | | | $ | 75,469 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 75,469 | | | $ | – | | | $ | 75,469 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | (896,093 | ) | | $ | (195,523 | ) | | $ | 1,721,491 | | | $ | – | | | $ | 629,875 | |
| |
| |
| Total | | $ | (896,093 | ) | | $ | (195,523 | ) | | $ | 1,721,491 | | | $ | – | | | $ | 629,875 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | 72,250 | | | $ | 679,187 | | | $ | (1,353,047 | ) | | $ | – | | | $ | (601,610 | ) |
| |
| |
| Total | | $ | 72,250 | | | $ | 679,187 | | | $ | (1,353,047 | ) | | $ | – | | | $ | (601,610 | ) |
| |
| |
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 both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. 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 NAV, 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.
Further, the instability experienced in the financial markets has resulted in the U.S. Government and various other governmental and regulatory entities taking actions to address the financial crisis. These actions include, but are not limited to, the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-
Janus Alternative Funds | 51
Notes to Financial Statements (unaudited) (continued)
Frank Act”) in July 2010 which is expected to dramatically change the way in which the U.S. financial system is supervised and regulated. More specifically, the Dodd-Frank Act provides for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, over-the-counter derivatives, investment advisers, credit rating agencies, and mortgage lending, which expands federal oversight in the financial sector and may affect the investment management industry as a whole. Given the broad scope, sweeping nature, and the fact that many provisions of the Dodd-Frank Act must be implemented through future rulemaking, the ultimate impact of the Dodd-Frank Act, and any resulting regulation, is not yet certain. As a result, there can be no assurance that these measures will not have an adverse effect on the value or marketability of securities held by a Fund, including potentially limiting or completely restricting the ability of the Fund to use a particular investment instrument as part of its investment strategy, increasing the costs of using these instruments, or possibly making them less effective in general. Furthermore, no assurance can be made that the U.S. Government or any U.S. regulatory entity (or other authority or regulatory entity) will not continue to take further legislative or regulatory action in response to the economic crisis or otherwise, and the effect of such actions, if taken, cannot be known.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornados, mudslides or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds’ investment portfolio and, in the longer term, could impair the ability of issuers in which the Funds invest to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
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 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. The Fund was not leveraged at March 31, 2011.
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
52 | MARCH 31, 2011
to, lending its securities to third parties, cash sweep arrangements whereby a Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. 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.
Emerging Market Investing
Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices, stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. In addition, the Funds’ investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Funds’ investments. To the extent that a Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on a Fund’s performance.
Exchange-Traded Funds
The Funds, particularly Janus Long/Short Fund, may invest in or short exchange-traded funds (“ETFs”), 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.
ETFs in which Janus Long/Short Fund invests are subject to specific risks, depending on the investment strategy of the ETF. In turn, Janus Long/Short Fund will be subject to substantially the same risks as those associated with direct exposure to the securities held by the ETF. Because Janus Long/Short Fund may invest in a broad range of ETFs, such risks may include, but are not limited to, leverage risk, foreign exposure risk, and commodities risk. For example, Janus Long/Short Fund may invest in emerging markets ETFs, and in turn, Janus Long/Short Fund will be subject to foreign exposure risks similar to Janus Long/Short Fund’s direct investment in emerging markets securities. Additionally, if the Fund invests in ETFs that are financially leveraged, such investments may be expected to exhibit more volatility in market price and NAV than an investment in shares of ETFs without a leveraged capital structure, which may ultimately negatively affect Janus Long/Short Fund’s returns. Further, investing in ETFs that invest in the commodities market may subject Janus Long/Short Fund to greater volatility than investments in traditional securities such as stocks or bonds. Commodities ETFs may be affected by changes in overall market movements, volatility of the underlying benchmark, changes in interest rates, or factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
Similarly, short sales of ETF shares are speculative transactions and are subject to short sale risk. In addition, if Janus Long/Short Fund sells short shares in ETFs that are financially leveraged, such short sales may be expected to exhibit enhanced volatility in market price as compared to short sales of shares of similar ETFs without a leveraged capital structure, which may negatively affect Janus Long/Short Fund’s returns.
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 a Fund’s total return. 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
Janus Alternative Funds | 53
Notes to Financial Statements (unaudited) (continued)
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 asset base. The Funds may not experience similar performance as their 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 through lending their securities to certain qualified broker-dealers and institutions on a short-term or long-term basis. The Funds may lend portfolio securities on a short-term or long-term basis, in an amount equal to up to 1/3 of their total assets as determined at the time of the loan origination. When the Funds lend their securities, they receive collateral (including cash collateral), at least equal to the value of
54 | MARCH 31, 2011
securities loaned. The Funds may earn income by investing this collateral in one or more affiliated or non-affiliated cash management vehicles. It is also possible that, due to a decline in the value of a cash management vehicle, the Funds may lose money. There is also the risk that when portfolio securities are lent, the securities may not be returned on a timely basis, and the Funds may experience delays and costs in recovering the security or gaining access to the collateral provided to the Funds to collateralize the loan. If the Funds are unable to recover a security on loan, the Funds may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Funds. Janus Capital intends to manage the cash collateral in an affiliated cash management vehicle and will receive an investment advisory fee for managing such assets.
The borrower pays fees at the Funds’ direction to Deutsche Bank AG (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 Funds did not have any securities on loan during the period.
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 Janus Global Real Estate Fund’s net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, 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 restricted cash or 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 options 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,
Janus Alternative Funds | 55
Notes to Financial Statements (unaudited) (continued)
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 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
Global Index* | | |
| |
| |
| | | |
| * | | The benchmark index was the FTSE EPRA/NAREIT Developed Index prior to July 1, 2010. |
Only the base fee rate applied until December 2008 for Janus Global Real Estate Fund. 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 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 will be 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. For Janus Global Real Estate Fund, the Performance Adjustment is made in even increments for every 0.50% difference in the investment performance of the Fund compared to the cumulative investment record of the FTSE EPRA/NAREIT Developed Index (for periods prior to July 1, 2010) and the FTSE EPRA/NAREIT Global Index (for periods commencing July 1, 2010). The aggregate of the Fund’s performance versus these two benchmark indices, respectively, is used for purposes of calculating the Performance Adjustment. 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 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
56 | MARCH 31, 2011
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 statement 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 period ended March 31, 2011, the Fund recorded a Performance Adjustment as indicated in the table below:
| | | | | | |
| Fund | | Performance Adjustment | | |
| |
| |
| Janus Global Real Estate Fund | | $ | 12,115 | | |
| |
| |
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Class D Shares pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by the Shares of a Fund for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class R Shares, Class S Shares and Class T Shares of the Funds for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares and Class T Shares of each Fund.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A, Class C, 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. Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus.
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 are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in the “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse the Funds until at least February 1, 2012 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
Janus Alternative Funds | 57
Notes to Financial Statements (unaudited) (continued)
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 services 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, 2011 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 period ended March 31, 2011 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 period ended March 31, 2011.
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 $285,682 was paid by the Trust during the period ended March 31, 2011. 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 of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2011, Janus Distributors retained the following upfront sales charges:
| | | | | | |
| | | Upfront
| | |
| Fund (Class A Shares) | | Sales Charge | | |
| |
| |
| Janus Global Real Estate Fund | | $ | 4,977 | | |
| Janus Long/Short Fund | | | 2,133 | | |
| |
| |
A contingent deferred sales charge of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no contingent deferred sales charges paid by redeeming shareholders of Class A Shares during the period ended March 31, 2011.
Class C Shares include a 1.00% contingent deferred sales charge paid by redeeming shareholders 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. There were no contingent deferred sales charges paid by redeeming shareholders of Class C Shares during the period ended March 31, 2011.
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 period ended March 31, 2011 are indicated in the table below:
| | | | | | |
| Fund | | Redemption Fee | | |
| |
| |
| Janus Global Real Estate Fund | | $ | 10,838 | | |
| Janus Long/Short Fund | | | 15,382 | | |
| |
| |
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
58 | MARCH 31, 2011
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 currently 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 period ended March 31, 2011, 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 3/31/11 | | |
| |
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
| Janus Global Real Estate Fund | | $ | 22,511,867 | | $ | (21,958,000) | | $ | 6,747 | | $ | 6,602,093 | | |
| |
| |
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended March 31, 2011, as indicated in the following table.
| | | | | | | | | | | | | | | | | | | | | |
| | | Seed Capital
| | | | Date of
| | | | Date of
| | Seed Capital
| | |
| Fund | | at 9/30/10 | | Purchases | | Purchases | | Redemptions | | Redemption | | at 3/31/11 | | |
| |
| |
| Janus Global Real Estate Fund - Class C Shares | | $ | 500,000 | | $ | – | | | – | | $ | – | | | – | | $ | 500,000 | | |
| Janus Global Real Estate Fund - Class D Shares | | | 10,000 | | | – | | | – | | | – | | | – | | | 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 | | | 11,000 | | | – | | | – | | | – | | | – | | | 11,000 | | |
| |
| |
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, 2011 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.
| | | | | | | | | | | | | | | |
| | | Federal Tax
| | Unrealized
| | Unrealized
| | Net Tax
| | |
| Fund | | Cost | | Appreciation | | (Depreciation) | | Appreciation | | |
| |
| |
| Janus Global Real Estate Fund | | $ | 65,387,459 | | $ | 9,303,231 | | $ | (1,771,400) | | $ | 7,531,831 | | |
| Janus Long/Short Fund | | | 72,742,403 | | | 11,004,611 | | | (2,391,821) | | | 8,612,790 | | |
| |
| |
Janus Alternative Funds | 59
Notes to Financial Statements (unaudited) (continued)
Information on the tax components of securities sold short as of March 31, 2011 is as follows:
| | | | | | | | | | | | | | | |
| | | Federal Tax
| | Unrealized
| | Unrealized
| | Net Tax
| | |
| Fund | | Cost | | (Appreciation) | | Depreciation | | (Appreciation) | | |
| |
| |
| Janus Long/Short Fund | | $ | (54,313,809) | | $ | (6,341,544) | | $ | 1,255,188 | | $ | (5,086,356) | | |
| |
| |
Net capital loss carryovers as of September 30, 2010 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 fiscal year ended September 30, 2010
| | | | | | | | | | | | | | | |
| | | | | | | | | Accumulated
| | |
| Fund | | | | September 30, 2016 | | September 30, 2017 | | Capital Losses | | |
| |
| |
| Janus Global Real Estate Fund | | | | | $ | – | | $ | (959,700) | | $ | (959,700) | | |
| Janus Long/Short Fund | | | | | | (45,233,491) | | | (196,768,592) | | | (242,002,083) | | |
| |
| |
Capital losses may be used to offset future taxable capital gains until expiration. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
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, 2011 (unaudited),
the fiscal year ended September 30, 2010, the two-month
fiscal period ended September 30, 2009 and each fiscal year
ended July 31
| | | | | | | | | |
| | | Janus
| | |
| | | Global Real
| | Janus
|
| | | Estate Fund | | Long/Short Fund |
| |
| |
| Class A Shares |
| 2011 | | | 1.50% | | | | 5.09% | |
| 2010 | | | 2.04% | | | | 4.47% | |
2009(1) | | | 3.14% | | | | 5.61% | |
2009(2) | | | 6.21% | | | | 4.00% | |
| 2008 | | | 6.64%(3) | | | | 3.38%(4) | |
| 2007 | | | N/A | | | | 3.46% | |
| |
| |
| Class C Shares |
| 2011 | | | 2.18% | | | | 5.26% | |
| 2010 | | | 2.78% | | | | 4.37% | |
2009(1) | | | 3.48% | | | | 6.36% | |
2009(2) | | | 6.85% | | | | 4.85% | |
| 2008 | | | 7.37%(3) | | | | 4.18%(4) | |
| 2007 | | | N/A | | | | 4.60% | |
| |
| |
| Class D Shares |
| 2011 | | | 1.47% | | | | N/A | |
| 2010 | | | 1.83%(5) | | | | N/A | |
| |
| |
| Class I Shares |
| 2011 | | | 1.43% | | | | 4.16% | |
| 2010 | | | 1.74% | | | | 3.70% | |
2009(1) | | | 2.56% | | | | 5.31% | |
2009(2) | | | 5.68% | | | | 3.75% | |
| 2008 | | | 6.21%(3) | | | | 3.12%(4) | |
| 2007 | | | N/A | | | | 3.26% | |
60 | MARCH 31, 2011
| | | | | | | | | |
| | | Janus
| | |
| | | Global Real
| | Janus
|
| | | Estate Fund | | Long/Short Fund |
| |
| |
| Class R Shares |
| 2011 | | | N/A | | | | 4.88% | |
| 2010 | | | N/A | | | | 4.28% | |
2009(1) | | | N/A | | | | 5.93% | |
2009(2) | | | N/A | | | | 4.72%(4) | |
| 2008 | | | N/A | | | | 4.89%(4) | |
| 2007 | | | N/A | | | | 7.95% | |
| |
| |
| Class S Shares |
| 2011 | | | 1.62% | | | | 4.60% | |
| 2010 | | | 2.19% | | | | 4.03% | |
2009(1) | | | 2.96% | | | | 5.68% | |
2009(2) | | | 6.34% | | | | 4.18% | |
| 2008 | | | 6.81%(3) | | | | 3.66%(4) | |
| 2007 | | | N/A | | | | 4.42% | |
| |
| |
| Class T Shares |
| 2011 | | | 1.33% | | | | 4.72% | |
| 2010 | | | 2.22% | | | | 3.61% | |
2009(1) | | | 2.54% | | | | 5.35% | |
2009(6) | | | 6.78% | | | | 2.71% | |
| |
| |
| | | |
(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) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
| (4) | | 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. |
| (5) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
| (6) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
Janus Alternative Funds | 61
Notes to Financial Statements (unaudited) (continued)
| |
| 7. | Capital Share Transactions |
| | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited)
| | Janus Global Real
| | | | | | |
and the fiscal year ended September 30, 2010
| | Estate Fund | | Janus Long/Short Fund | | |
| (all numbers in thousands) | | 2011 | | 2010 | | 2011 | | 2010 | | |
| |
| Transactions in Fund Shares – Class A Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 663 | | | | 592 | | | | 334 | | | | 320 | | | |
| Reinvested dividends and distributions | | | 17 | | | | 5 | | | | – | | | | – | | | |
| Shares repurchased | | | (435) | | | | (144) | | | | (811) | | | | (4,096) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 245 | | | | 453 | | | | (477) | | | | (3,776) | | | |
| Shares Outstanding, Beginning of Period | | | 682 | | | | 229 | | | | 2,208 | | | | 5,984 | | | |
| Shares Outstanding, End of Period | | | 927 | | | | 682 | | | | 1,731 | | | | 2,208 | | | |
| Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 249 | | | | 87 | | | | 184 | | | | 254 | | | |
| Reinvested dividends and distributions | | | 3 | | | | 1 | | | | – | | | | – | | | |
| Shares repurchased | | | (7) | | | | (12) | | | | (1,051) | | | | (3,963) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 245 | | | | 76 | | | | (867) | | | | (3,709) | | | |
| Shares Outstanding, Beginning of Period | | | 138 | | | | 62 | | | | 3,800 | | | | 7,509 | | | |
| Shares Outstanding, End of Period | | | 383 | | | | 138 | | | | 2,933 | | | | 3,800 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,115 | | | | 1,338(1) | | | | N/A | | | | N/A | | | |
| Reinvested dividends and distributions | | | 35 | | | | –(1) | | | | N/A | | | | N/A | | | |
| Shares repurchased | | | (531) | | | | (93)(1) | | | | N/A | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | 619 | | | | 1,245(1) | | | | N/A | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | 1,245 | | | | – | | | | N/A | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 1,864 | | | | 1,245 | | | | N/A | | | | N/A | | | |
| Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,014 | | | | 1,074 | | | | 569 | | | | 2,501 | | | |
| Reinvested dividends and distributions | | | 60 | | | | 34 | | | | – | | | | – | | | |
| Shares repurchased | | | (145) | | | | (221) | | | | (1,581) | | | | (3,716) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 929 | | | | 887 | | | | (1,012) | | | | (1,215) | | | |
| Shares Outstanding, Beginning of Period | | | 2,538 | | | | 1,651 | | | | 3,330 | | | | 4,545 | | | |
| Shares Outstanding, End of Period | | | 3,467 | | | | 2,538 | | | | 2,318 | | | | 3,330 | | | |
| Transactions in Fund Shares – Class R Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | N/A | | | | N/A | | | | 6 | | | | 13 | | | |
| Reinvested dividends and distributions | | | N/A | | | | N/A | | | | – | | | | – | | | |
| Shares repurchased | | | N/A | | | | N/A | | | | (2) | | | | (6) | | | |
| Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | 4 | | | | 7 | | | |
| Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | 25 | | | | 18 | | | |
| Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | 29 | | | | 25 | | | |
| Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 19 | | | | 6 | | | | 17 | | | | 25 | | | |
| Reinvested dividends and distributions | | | 1 | | | | 1 | | | | – | | | | – | | | |
| Shares repurchased | | | (1) | | | | (1) | | | | (66) | | | | (143) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 19 | | | | 6 | | | | (49) | | | | (118) | | | |
| Shares Outstanding, Beginning of Period | | | 60 | | | | 54 | | | | 157 | | | | 275 | | | |
| Shares Outstanding, End of Period | | | 79 | | | | 60 | | | | 108 | | | | 157 | | | |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 477 | | | | 333 | | | | 72 | | | | 138 | | | |
| Reinvested dividends and distributions | | | 11 | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (48) | | | | (26) | | | | (179) | | | | (3) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 440 | | | | 307 | | | | (107) | | | | 135 | | | |
| Shares Outstanding, Beginning of Period | | | 307 | | | | – | | | | 135 | | | | – | | | |
| Shares Outstanding, End of Period | | | 747 | | | | 307 | | | | 28 | | | | 135 | | | |
| | | |
| (1) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
62 | MARCH 31, 2011
| |
| 8. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2011, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and short-term 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 | | $ | 33,386,221 | | $ | 9,751,724 | | $ | – | | $ | – | | |
| Janus Long/Short Fund | | | 52,365,090 | | | 75,313,808 | | | – | | | – | | |
| |
| |
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 in several state and federal jurisdictions 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. 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 trial court for further proceedings. In June 2010, the United States Supreme Court agreed to review the Fourth Circuit’s decision. As a result of these developments at the Supreme Court, the trial court has stayed all further proceedings until the Supreme Court rules on the matter. In the Steinberg case (action (ii) above), the trial 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, in February 2010, Plaintiffs appealed the trial court’s decision with the Fourth Circuit.
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, “Improving Disclosures About Fair Value Measurements.” The Accounting Standards Update requires disclosures about purchases, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. This disclosure is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Funds have early adopted the disclosure and are disclosing purchases and sales on a gross basis in the Level 3 roll forward accordingly. The adoption of this Accounting Standards Update did not have any impact on each Fund’s financial position or the results of its operations.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22, 2010. The Act makes changes to a number of tax rules impacting the Funds. Under the Act, future capital losses
Janus Alternative Funds | 63
Notes to Financial Statements (unaudited) (continued)
generated by a fund may be carried over indefinitely, but these losses must be used prior to the utilization of any pre-enactment capital losses. Since pre-enactment capital losses may only be carried forward for eight years, there may be a greater likelihood that all or a portion of a fund’s pre-enactment capital losses will expire unused. In general, the provisions of the Act will be effective for the Funds’ fiscal year ending September 30, 2012.
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2011 and through 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.
64 | MARCH 31, 2011
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
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee, (“the 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 nine 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 Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and at the request of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 3, 2010, 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, 2011 through February 1, 2012, 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
Janus Alternative Funds | 65
Additional Information (unaudited) (continued)
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 several 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
66 | MARCH 31, 2011
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 many Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the actual 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, including research and analysis conduct by the Trustees’ independent fee consultant, 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 3, 2010 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.
Janus Alternative Funds | 67
Explanations of Charts, Tables and
Financial Statements (unaudited)
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 prior 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 based on average net assets as of the fiscal period ended September 30, 2010. 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. 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.
2b. 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 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
68 | MARCH 31, 2011
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.
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 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
Janus Alternative Funds | 69
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
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, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments and the investment style and/or outlook of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
70 | MARCH 31, 2011
Notes
Janus Alternative Funds | 71
Notes
72 | MARCH 31, 2011
Notes
Janus Alternative Funds | 73
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 fixed income 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).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Funds distributed by Janus Distributors LLC (05/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
| C-0411-017 | 125-24-01400 05-11 |
2011 SEMIANNUAL REPORT
Janus Global & International Funds
Janus Emerging Markets FundJanus Global Life Sciences Fund
Janus Global Research Fund
Janus Global Select Fund
Janus Global Technology Fund
Janus International Equity Fund
Janus Overseas Fund
Janus Worldwide Fund
HIGHLIGHTS
| |
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Global & International Funds
| | | |
| | 1 |
| | 4 |
| | |
| | 6 |
| | 16 |
| | 26 |
| | 38 |
| | 51 |
| | 60 |
| | 70 |
| | 81 |
| | 92 |
| | 96 |
| | 98 |
| | 106 |
| | 126 |
| | 132 |
| | 160 |
| | 164 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Co-Chief Investment Officers’ Market Perspective (unaudited)
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
We would like to take this opportunity to thank you for investing with Janus. We are proud to share that we have been recognized by Lipper for top risk-adjusted performance across many of our funds. For the third year in a row, Janus earned Top Asset Class honors from Lipper with the Mixed-Asset Large Company award for the three-year period, which includes Janus Balanced Fund, Janus Growth Allocation Fund, Janus Moderate Allocation Fund and Janus Conservative Allocation Fund. Additionally, Top Individual Fund honors went to Janus Overseas Fund Class D Shares, Janus Global Real Estate Fund Class I Shares, Janus Conservative Allocation Fund Class D Shares, Janus Moderate Allocation Fund Class D Shares and Janus Growth Allocation Fund Class D Shares. We continue to be committed to our disciplined investment process and believe these awards demonstrate the strong results that Janus’ disciplined investment approach can generate for investors over time.
In the broader economic environment, the global recovery remains on track despite some challenging macro events. We are seeing healthy vital signs in many of the companies that we follow and U.S. equities continue to offer extremely compelling valuations, in our view. Although the overall bond market has become more susceptible to interest rate volatility, we continue to see attractive risk-reward opportunities in corporate credit.
NEW RISKS AND NEW OPPORTUNITIES
Geopolitical concerns and the natural disaster in Japan took center stage during the period, weighing on investor sentiment after a strong start to the year. Some other issues that arose – such as higher oil prices, sovereign debt risk in Europe and rising inflationary pressures – certainly raised risks. However, equity markets rebounded to finish the period higher, rising on improved economic data and confidence. We find this resilience in the face of bad news to be impressive and suggestive of pent-up demand for equities from investors who have fled the asset class in recent years.
While the disaster in Japan took a tragic human toll, the global impact is likely to be limited. Near-term, Japan’s economy will almost certainly weaken, and damage to some factories and infrastructure may lead to supply-chain disruptions. However, we expect these disruptions to be manageable and don’t think Japan’s slowdown will drag significantly on global growth. Rebuilding efforts are likely to stimulate Japan’s economy longer-term, creating opportunities for infrastructure-related companies.
Rising oil prices pose a potentially longer-term challenge. Even before the crisis in the Middle East, demand in 2010 grew at the fastest pace in history, leaving little spare capacity. Japan’s reconstruction will be very energy-intensive and may lead to additional demand for oil and natural gas. The flipside of these pressures is lower demand, which is likely to be substantial if crude prices continue to rise.
U.S. AND GLOBAL OUTLOOK
In the U.S., the economic climate continues to improve. The manufacturing sector continues to strengthen, unemployment is easing and we are seeing early indications of improving confidence at the corporate level, with management teams indicating interest in hiring. We are even seeing some hopeful signs of fiscal discipline in Washington. A bipartisan approach to tackling the debt seems to be emerging, and while there will certainly be politicians from both parties who seek political gain from this issue, we are encouraged that serious members of Congress recognize the need for change.
Non-U.S. markets continue to offer attractive opportunities, albeit with some caveats. Near-term, Europe faces a number of challenges, including the impact of austerity measures, inflationary pressures and monetary tightening. Long-term, we think austerity programs will strengthen euro-zone economies. We are monitoring how core Europe deals with these issues and their banking institutions’ debt exposure to peripheral regions such as Greece and Portugal.
In emerging markets, inflation pressures are a growing concern. Rising energy and food price inflation is a serious issue, especially in India. In addition, rising costs for labor, raw materials and capital are depressing corporate margins and could potentially slow economic growth. Countries such as China and Brazil have been raising
Janus Global & International Funds | 1
Continued
interest rates and tightening capital requirements to contain inflation. Nonetheless, these are real pressures and are among the reasons that emerging markets underperformed last year. We think central banks in these countries are behaving responsibly to contain inflation and promote long-term growth, but we could see a slowdown in the near-term.
EQUITIES: VALUATIONS REMAIN ATTRACTIVE
Equity valuations remain compelling, in our view, particularly for U.S.-based large cap companies. The valuation gap between large- and small-caps is at a 10-year high creating opportunities to invest in global growth businesses at historically discounted prices. Small cap multiples look high, in contrast, but we think many of these companies deserve premium valuations at this stage in the economic cycle. Margins for small-cap stocks are well below their peak of the late 1990s. For small companies with good growth profiles, there is plenty of room for margin expansion. More than anything, we think this reinforces the value of active management and deep fundamental research. Stock selection matters.
Naturally, we do see some trouble spots. Cost pressures are building and we worry that companies can’t or won’t pass through price increases. The U.S. housing market remains worrisome too; prices slipped in January for the sixth month in a row, and foreclosures continue to weigh on inventory. Despite these macro challenges, we remain confident in our security selection. Many of our top holdings trade at a discount to the market with the potential to generate faster growth; other holdings trade at a premium but justify their multiples with strong growth trajectories and opportunities for margin expansion. These characteristics create very compelling risk-reward profiles that we think will result in higher returns long-term.
FIXED INCOME: NAVIGATING CRITICAL CHALLENGES
Volatility was a central theme in the first quarter as investors grew increasingly concerned about building inflationary pressures in the global economy and the potential for changes in the monetary policy positions of central banks around the globe.
Looking beyond the headlines, two key inflation components – wages and housing – remain weak. With unemployment near 9%, we have not seen much evidence of wage inflation, a key component of sustainable inflation. The housing market, meanwhile, continues to struggle. These imbalances help to explain why the Federal Reserve has called recent inflationary pressures “transitory” and hasn’t signaled a change in rate policy (although we do expect the Fed’s quantitative easing program to wind down in June, potentially adding to rising rate pressures).
In light of these challenges, we think an active approach to fixed income – with a slightly more defensive posture – makes sense. Due to the fundamental changes in the fixed income market brought about by the financial crisis the overall bond market is much more susceptible to interest rate volatility. Thus, a passive allocation in fixed income comes with an outright bullish view on interest rates (i.e. that rates will decline), a position with which we fundamentally disagree. Corporate debt or credit remains the primary non-government alternative in the fixed-income markets, and we believe our focus on security selection in this segment represents the most effective way to generate excess returns, as well as to protect against rising rates.
Overall, we believe additional upside remains in fixed income and we are finding attractive opportunities across various sectors in the credit markets. We remain disciplined in our individual security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure.
LOOKING AHEAD
Staying active and maintaining a balanced portfolio is crucial. Uncertainty remains a prevalent theme in today’s market, highlighting the importance of in-depth research both to mitigate risk and to uncover opportunities offering the most attractive risk-adjusted returns. We can’t say that geopolitical risks won’t rise again or that the correlations won’t spike. However, tuning out the short-term noise and staying focused on company fundamentals, we believe,
2 | MARCH 31, 2011
Co-Chief Investment Officers’ Market Perspective (unaudited)
remains the best way to achieve attractive long-term results for our shareholders.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of March 2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Only eligible investors may purchase Class D Shares and Class I Shares. See the prospectus for eligibility requirements.
For Asset Class Group Awards, fund groups with at least five equity, five bond, or three mixed-asset portfolios in the respective asset classes are eligible for a group award. The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period ending 12-31-2010. In cases of identical results the lower average percentile rank will determine the winner.
For Best Individual Funds the calculation periods extend over 36, 60 and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over three, five or ten year periods ending 12-31-2010 only and not for other time periods.
The Mixed-Asset Large Company asset class award was judged against 46 firms. Individual fund award winners were judged against the following number of funds: Janus Overseas Fund – 119 funds for the 3-year period, 81 funds for the 5-year period and 41 funds for the 10-year period; Janus Conservative Allocation Fund, Janus Moderate Allocation Fund and Janus Growth Allocation Fund – 301, 390 and 409 funds respectively for the 5-year period; Janus Global Real Estate Fund – 70 funds for the 3-year period.
Price/Earnings Ratio is a valuation ratio of a company’s current share price compared to its per-share earnings. This ratio represents equity securities within the portfolio, and is not intended to demonstrate the growth of the portfolio, income earned by the portfolio, or distributions made by the portfolio.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 the 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.
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 is 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, 2011. 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 services 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 a 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, 2010 to March 31, 2011.
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 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 services 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 1, 2012 (until at least January 31, 2012 for Janus Global Select Fund). Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information
4 | MARCH 31, 2011
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 Emerging Markets Fund (unaudited)
| | | | | | | |
Fund Snapshot
We believe company fundamentals and managements’ ability to create value drive share prices over the long-term in emerging markets. We seek to take advantage of opportunities created when investors primarily focus on near-term sentiment and macroeconomic risk factors while ignoring fundamental company research. We buy companies trading well below our conservative estimate of their long-term value and favor quality companies with what we believe are sustainable competitive advantages and high or improving returns on capital.
| | | | 
Wahid Chammas
co-portfolio manager | | 
Matt Hochstetler
co-portfolio manager |
Performance Overview
Janus Emerging Markets Fund’s Class I Shares returned 1.00% from its inception date on December 28, 2010, through the period ended March 31, 2011. The Fund’s benchmark, the MSCI Emerging Markets Index, returned 4.36%.
Market Overview
The MSCI Emerging Markets Index managed a moderate gain during the period despite unrest in the Middle East and North Africa as well as the tragic earthquake and tsunami in Japan that raised investors’ risk aversion.
As a result of significant geopolitical risks and the likelihood that uncertainty persists, we are less positive on North Africa. Countries that have high levels of debt (greater than 50% of GDP) are likely to struggle. The longer the economic drag, the more the burdens accumulate in countries like Egypt; whereas, countries with stronger liquidity, such as Saudi Arabia and Bahrain, will likely strengthen their already sturdy balance sheets. Our focus has been on finding the highest-quality companies with value creation opportunities in Saudi Arabia, the United Arab Emirates, Qatar and Bahrain; and, buying them cheaply due to the uncertainty. We reduced the number of names within the region to emphasize our highest conviction ideas.
Our overweight in the Middle East was a detractor during the period. Individual names impacted included Sorouh Real Estate (swap), a developer in Abu Dhabi and, tangentially, Turkcell Iletisim Hizmet, a mobile service provider in Turkey. We purchased Sorouh due to its strong liquidity profile and low valuation, which fell even lower during the height of the region’s crisis. We added to our position near its lows and the stock subsequently rebounded somewhat, although it was still a detractor during the period. Turkcell was partially impacted by declines in the Turkish stock market, which moved in sympathy with the region. The country also has high levels of crude oil imports at a time of spiking prices.
Russia was one of the few countries that benefited from the region’s unrest due to its high energy exports. We meaningfully trimmed our Russian oil exposure as prices in our holdings met our price targets, and we re-invested in other areas. In Asia, markets were significantly impacted by the earthquake and tsunami in Japan. We are continuing to assess the economic fallout with a focus on determining the negative impacts in consumption versus the positive benefits from rebuilding.
Meanwhile, India was negatively impacted by high oil prices, Middle East turmoil and food inflation. Our overweight in India also weighed on relative performance. As bottom-up investors, we continue to have high conviction in the long-term outlooks in the companies in which we invest. Macroeconomic events serve as unfortunate or fortunate residuals of our investment process. Obviously, having overweights in troubled regions hurt us this period.
Performance Overview
On a country basis, our holdings and underweight in South Korea were the largest relative detractors followed by our holdings in China and non-index exposure in Saudi Arabia. Contributors included our holdings and overweight in Russia and our underweight in Taiwan. Among sectors, our holdings in consumer discretionary were the largest relative detractors followed by our holdings in financials and telecommunications. Contributors included our energy and utility holdings.
Individually, CNinsure weighed the most on relative performance. We believe the largest insurance company in China should continue to grow in the highly fragmented Chinese market. We also like that it has generated high earnings on high margins and that its fundamentals remain strong.
6 | MARCH 31, 2011
(unaudited)
Another Chinese holding, Chaoda Modern Agriculture Holdings, also detracted from performance. We like China’s largest vegetable farm for its continued growth opportunities addressing rising produce consumption in China.
Top individual contributors included two Russian energy companies, AK Transneft (swap) and Gazprom. Transneft is the owner of the largest oil pipelines in Russia and continues to remain attractively valued in our view despite a strong rally in its prices during the period. Gazprom has the world’s largest gas reserves and benefits as the lowest cost provider to China, which we think will need significant imports to offset lack of domestic reserves. We also feel Europe will continue to need Russian natural gas.
Derivatives
During the period, we used currency derivatives to hedge existing currency exposures and swaps to access markets in which we were not trading locally either due to our risk policies or an inability to trade locally. We also executed sales and purchases of puts and calls to hedge existing equity exposures and sold puts on non-existing positions to hedge other similar securities. In aggregate, these positions contributed to relative performance. Please see the Derivative instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
In times of turmoil like we saw during the period, risk factors rise but so do opportunities in buying high-quality companies at attractive prices. We continue to favor companies that have enough value drivers that they are not dependent on economic cycles to prosper. We also think emerging market valuations remain attractive, particularly considering these countries generally have stronger balance sheets, less fiscal problems and more promising growth prospects than developed markets.
Thank you for your investment in Janus Emerging Markets Fund.
Janus Global & International Funds | 7
Janus Emerging Markets Fund (unaudited)
Janus Emerging Markets Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Gazprom OAO (ADR) | | | 0.60% | |
| MPX Energia S.A. | | | 0.51% | |
| Atlas Iron, Ltd. | | | 0.32% | |
| Rosneft Oil Co. (GDR) | | | 0.31% | |
| KHD Humboldt Wedag International A.G. | | | 0.28% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| CNinsure, Inc. (ADR) | | | –0.33% | |
| Chaoda Modern Agriculture Holdings, Ltd. | | | –0.22% | |
| MRV Engenharia e Participacoes S.A. | | | –0.20% | |
| Eastern Platinum, Ltd. | | | –0.17% | |
| Turkcell Iletisim Hizmet A/S (ADR) | | | –0.17% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | | | MSCI
|
| | | | | Fund Weighting
| | Emerging Markets
|
| | | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
| |
| Energy | | | 2.59% | | | | 15.43% | | | | 15.03% | |
| Materials | | | 0.90% | | | | 14.78% | | | | 15.04% | |
| Financials | | | 0.70% | | | | 26.64% | | | | 24.60% | |
| Utilities | | | 0.63% | | | | 3.61% | | | | 3.42% | |
| Information Technology | | | 0.08% | | | | 6.12% | | | | 13.10% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | | | MSCI
|
| | | | | Fund Weighting
| | Emerging Markets
|
| | | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
| |
| Consumer Staples | | | –0.31% | | | | 4.97% | | | | 6.44% | |
| Telecommunication Services | | | –0.17% | | | | 5.74% | | | | 7.42% | |
| Health Care | | | 0.02% | | | | 1.36% | | | | 0.91% | |
| Other** | | | 0.05% | | | | 5.65% | | | | 0.00% | |
| Industrials | | | 0.07% | | | | 5.82% | | | | 7.20% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| ** | | Not a GICS classified sector. |
8 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
BOCI-Prudential – W.I.S.E. – CSI China Tracker Fund (ETF)
Emerging Market – Equity | | | 4.4% | |
Taiwan Semiconductor Manufacturing Co., Ltd.
Semiconductor Components/Integrated Circuits | | | 2.8% | |
Petroleo Brasileiro S.A. (ADR)
Oil Companies – Integrated | | | 2.1% | |
Samsung Electronics Co., Ltd.
Electronic Components – Semiconductors | | | 2.0% | |
Banco Do Brasil S.A. (ADR)
Commercial Banks | | | 2.0% | |
| | | | | |
| | | | 13.3% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 42.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Global & International Funds | 9
Janus Emerging Markets Fund (unaudited)
| | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the December 28, 2010 prospectuses |
| | | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | |
| Janus Emerging Markets Fund – Class A Shares | | | | | | | |
| NAV | | 1.00% | | | 1.92% | | 1.50% |
| MOP | | –4.81% | | | | | |
| | | | | | | | |
| Janus Emerging Markets Fund – Class C Shares | | | | | | | |
| NAV | | 1.00% | | | 2.69% | | 2.25% |
| CDSC | | –0.01% | | | | | |
| | | | | | | | |
| Janus Emerging Markets Fund – Class D Shares(1) | | 1.00% | | | 1.71% | | 1.40% |
| | | | | | | | |
| Janus Emerging Markets Fund – Class I Shares | | 1.00% | | | 1.58% | | 1.25% |
| | | | | | | | |
| Janus Emerging Markets Fund – Class S Shares | | 1.00% | | | 2.06% | | 1.75% |
| | | | | | | | |
| Janus Emerging Markets Fund – Class T Shares | | 1.00% | | | 1.81% | | 1.50% |
| | | | | | | | |
| Morgan Stanley Capital International Emerging Markets IndexSM | | 4.36% | | | | | |
| | | | | | | | |
| Lipper Quartile – Class I Shares | | – | | | | | |
| | | | | | | | |
| Lipper Ranking – based on total returns for Emerging Markets Funds | | – | | | | | |
| | | | | | | | |
| 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.
See important disclosures on the next page.
10 | MARCH 31, 2011
(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.
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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown reflects estimated annualized expenses that the Fund share class expects to incur during its initial 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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.
Janus Emerging Markets Fund held approximately 15.9% of its total investments in Brazilian securities as of March 31, 2011 and the Fund may have experienced significant gains or losses due, in part, to its investments in Brazil. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in Brazil.
The Fund invests 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 from 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.
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.
A fund’s performance for very short time periods may not be indicative of future performance.
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 – December 28, 2010 |
| (1) | | Closed to new investors. |
Janus Global & International Funds | 11
Janus Emerging Markets Fund (unaudited)
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 | | (12/28/10) | | (3/31/11) | | (12/28/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,010.00 | | | $ | 3.49 | | | |
| |
| |
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 C Shares | | (12/28/10) | | (3/31/11) | | (12/28/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,010.00 | | | $ | 3.52 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.15 | | | $ | 6.84 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (12/28/10) | | (3/31/11) | | (12/28/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,011.00 | | | $ | 3.44 | | | |
| |
| |
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 I Shares | | (12/28/10) | | (3/31/11) | | (12/28/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,010.00 | | | $ | 3.44 | | | |
| |
| |
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 | | (12/28/10) | | (3/31/11) | | (12/28/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,010.00 | | | $ | 3.47 | | | |
| |
| |
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 | | (12/28/10) | | (3/31/11) | | (12/28/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,010.00 | | | $ | 3.49 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.20 | | | $ | 6.79 | | | |
| |
| |
| | | |
| † | | Actual expenses paid reflect only the inception period (December 28, 2010 to March 31, 2011). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized expense ratio of 1.35% for Class A Shares, 1.36% for Class C Shares, 1.33% for Class D Shares, 1.33% for Class I Shares, 1.34% for Class S Shares and 1.35% for Class T Shares multiplied by the average account value over the period, multiplied by 94/365 (to reflect the period); however, hypothetical expenses are multiplied by 182/365 (to reflect a one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
12 | MARCH 31, 2011
Janus Emerging Markets Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 69.3% | | | | | | |
| Agricultural Operations – 1.0% | | | | | | |
| | 230,000 | | | Chaoda Modern Agriculture Holdings, Ltd. | | $ | 142,820 | | | |
| Automotive – Cars and Light Trucks – 0.9% | | | | | | |
| | 720 | | | Hyundai Motor Co. | | | 133,273 | | | |
| Brewery – 0.4% | | | | | | |
| | 26,200 | | | East African Breweries, Ltd. | | | 57,342 | | | |
| Building – Residential and Commercial – 1.6% | | | | | | |
| | 30,600 | | | MRV Engenharia e Participacoes S.A. | | | 244,890 | | | |
| Casino Hotels – 0.6% | | | | | | |
| | 3,670 | | | Kangwon Land, Inc. | | | 85,166 | | | |
| Cellular Telecommunications – 3.5% | | | | | | |
| | 3,930 | | | America Movil S.A.B. de C.V. – Series L (ADR)** | | | 228,333 | | | |
| | 8,707 | | | MTN Group, Ltd. | | | 176,035 | | | |
| | 8,215 | | | Turkcell Iletisim Hizmet A/S (ADR) | | | 123,471 | | | |
| | | | | | | | 527,839 | | | |
| Coal – 1.4% | | | | | | |
| | 46,000 | | | China Shenhua Energy Co., Ltd. | | | 216,744 | | | |
| Commercial Banks – 7.9% | | | | | | |
| | 18,287 | | | Banco Bilbao Vizcaya Argentaria S.A. (ADR) | | | 219,444 | | | |
| | 16,558 | | | Banco Do Brasil S.A. (ADR) | | | 304,005 | | | |
| | 11,000 | | | Banco Santander Brasil (ADR) | | | 134,860 | | | |
| | 344 | | | Credicorp, Ltd.** | | | 36,096 | | | |
| | 4,616 | | | Erste Group Bank A.G. | | | 232,887 | | | |
| | 25,727 | | | First Gulf Bank PJSC | | | 112,085 | | | |
| | 353 | | | Sberbank of Russia | | | 147,558 | | | |
| | | | | | | | 1,186,935 | | | |
| Diversified Financial Services – 0.9% | | | | | | |
| | 3,030 | | | Shinhan Financial Group Co., Ltd. | | | 137,727 | | | |
| Diversified Minerals – 1.6% | | | | | | |
| | 1,705 | | | Anglo American PLC | | | 88,784 | | | |
| | 4,332 | | | Cia Vale do Rio Doce (ADR)** | | | 144,472 | | | |
| | | | | | | | 233,256 | | | |
| Diversified Operations – 1.4% | | | | | | |
| | 12,774 | | | KHD Humboldt Wedag International A.G.* | | | 132,135 | | | |
| | 1,837 | | | Orascom Development Holding A.G.* | | | 85,628 | | | |
| | | | | | | | 217,763 | | | |
| Electric – Distribution – 0.7% | | | | | | |
| | 14,200 | | | Equatorial Energia S.A. | | | 110,596 | | | |
| Electric – Generation – 1.2% | | | | | | |
| | 7,500 | | | MPX Energia S.A.* | | | 183,605 | | | |
| Electric – Integrated – 1.6% | | | | | | |
| | 9,663 | | | Centrais Eletricas Brasileiras S.A. (ADR) | | | 149,873 | | | |
| | 5,900 | | | Pampa Energia S.A. (ADR) | | | 83,603 | | | |
| | | | | | | | 233,476 | | | |
| Electronic Components – Semiconductors – 2.0% | | | | | | |
| | 362 | | | Samsung Electronics Co., Ltd. | | | 307,636 | | | |
| Food – Meat Products – 0.6% | | | | | | |
| | 25,000 | | | JBS S.A. | | | 89,773 | | | |
| Food – Miscellaneous/Diversified – 1.5% | | | | | | |
| | 28,000 | | | China Yurun Food Group, Ltd. | | | 93,954 | | | |
| | 454,000 | | | Pacific Andes Resources Development, Ltd. | | | 126,091 | | | |
| | | | | | | | 220,045 | | | |
| Food – Wholesale/Distribution – 0.9% | | | | | | |
| | 58,000 | | | Olam International, Ltd. | | | 128,868 | | | |
| Industrial Automation and Robotics – 1.0% | | | | | | |
| | 1,000 | | | Fanuc, Ltd. | | | 151,395 | | | |
| Insurance Brokers – 0.9% | | | | | | |
| | 10,136 | | | CNinsure, Inc. (ADR) | | | 131,363 | | | |
| Life and Health Insurance – 2.9% | | | | | | |
| | 89,200 | | | AIA Group, Ltd.* | | | 274,654 | | | |
| | 28,609 | | | Discovery Holdings, Ltd. | | | 161,405 | | | |
| | | | | | | | 436,059 | | | |
| Metal – Aluminum – 0.7% | | | | | | |
| | 9,491 | | | Aluminium Bahrain BSC (ADR) | | | 104,401 | | | |
| Metal – Copper – 1.4% | | | | | | |
| | 11,774 | | | Equinox Minerals, Ltd.* | | | 69,731 | | | |
| | 1,053 | | | First Quantum Minerals, Ltd. | | | 136,264 | | | |
| | | | | | | | 205,995 | | | |
| Metal – Diversified – 2.1% | | | | | | |
| | 6,166 | | | Ivanhoe Mines, Ltd. (U.S. Shares)*,** | | | 169,318 | | | |
| | 1,992 | | | Rio Tinto PLC** | | | 139,917 | | | |
| | | | | | | | 309,235 | | | |
| Metal – Iron – 1.2% | | | | | | |
| | 26,734 | | | Atlas Iron, Ltd.* | | | 103,118 | | | |
| | 1,129 | | | Kumba Iron Ore, Ltd. | | | 79,891 | | | |
| | | | | | | | 183,009 | | | |
| Oil and Gas Drilling – 1.4% | | | | | | |
| | 28,276 | | | Karoon Gas Australia, Ltd.* | | | 209,361 | | | |
| Oil Companies – Exploration and Production – 6.2% | | | | | | |
| | 13,222 | | | Cairn Energy PLC* | | | 98,003 | | | |
| | 951 | | | CNOOC, Ltd. (ADR) | | | 240,641 | | | |
| | 8,295 | | | Gazprom OAO (ADR) | | | 268,260 | | | |
| | 66 | | | HRT Participacoes em Petroleo S.A.* | | | 68,795 | | | |
| | 1,524 | | | Niko Resources, Ltd. | | | 146,236 | | | |
| | 9,200 | | | OGX Petroleo e Gas Participacoes S.A. (ADR)* | | | 113,160 | | | |
| | | | | | | | 935,095 | | | |
| Oil Companies – Integrated – 2.6% | | | | | | |
| | 987 | | | Lukoil (ADR) | | | 70,719 | | | |
| | 7,964 | | | Petroleo Brasileiro S.A. (ADR)** | | | 321,984 | | | |
| | | | | | | | 392,703 | | | |
| Oil Refining and Marketing – 1.7% | | | | | | |
| | 3,103 | | | Grupa Lotos S.A.* | | | 48,272 | | | |
| | 4,426 | | | Reliance Industries, Ltd. (GDR) | | | 209,881 | | | |
| | | | | | | | 258,153 | | | |
| Platinum – 1.6% | | | | | | |
| | 954 | | | Anglo Platinum, Ltd. | | | 98,437 | | | |
| | 51,300 | | | Eastern Platinum, Ltd.* | | | 68,809 | | | |
| | 2,456 | | | Impala Platinum Holdings, Ltd. (ADR) | | | 70,610 | | | |
| | | | | | | | 237,856 | | | |
| Real Estate Operating/Development – 5.3% | | | | | | |
| | 4,100 | | | Cyrela Brazil Realty S.A. | | | 38,892 | | | |
| | 185,336 | | | Emaar Properties PJSC | | | 163,005 | | | |
| | 34,000 | | | Hang Lung Properties, Ltd. | | | 148,837 | | | |
| | 597,000 | | | Powerlong Real Estate Holdings, Ltd. | | | 193,415 | | | |
| | 228,000 | | | Shun Tak Holdings, Ltd. | | | 125,457 | | | |
| | 353,735 | | | Sorouh Real Estate, Co.* | | | 127,142 | | | |
| | | | | | | | 796,748 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 13
Janus Emerging Markets Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Retail – Apparel and Shoe – 1.6% | | | | | | |
| | 95,000 | | | Anta Sports Products, Ltd. | | $ | 147,538 | | | |
| | 40,500 | | | Ports Design, Ltd. | | | 93,410 | | | |
| | | | | | | | 240,948 | | | |
| Retail – Major Department Stores – 0.5% | | | | | | |
| | 38,900 | | | Parkson Holdings BHD | | | 73,251 | | | |
| Rubber/Plastic Products – 0.8% | | | | | | |
| | 57,660 | | | Jain Irrigation Systems, Ltd. | | | 115,551 | | | |
| Semiconductor Components/Integrated Circuits – 2.8% | | | | | | |
| | 34,617 | | | Taiwan Semiconductor Manufacturing Co., Ltd.** | | | 421,635 | | | |
| Steel – Producers – 3.6% | | | | | | |
| | 2,840 | | | ArcelorMittal | | | 102,719 | | | |
| | 17,063 | | | Mechel (ADR) | | | 186,158 | | | |
| | 532 | | | POSCO** | | | 244,971 | | | |
| | | | | | | | 533,848 | | | |
| Telecommunication Services – 1.3% | | | | | | |
| | 13,362 | | | VimpelCom, Ltd. (ADR) | | | 188,671 | | | |
| |
| |
| Total Common Stock (cost $10,217,155) | | | 10,383,031 | | | |
| |
| |
| Exchange – Traded Funds – 6.0% | | | | | | |
| Emerging Market – Equity – 6.0% | | | | | | |
| | 135,600 | | | BOCI-Prudential – W.I.S.E. – CSI China Tracker Fund (ETF)* | | | 658,972 | | | |
| | 4,996 | | | Vanguard Emerging Markets (ETF) | | | 244,404 | | | |
| |
| |
| Total Exchange – Traded Funds (cost $880,844) | | | 903,376 | | | |
| |
| |
| Preferred Stock – 1.3% | | | | | | |
| Electric Products – Miscellaneous – 1.3% | | | | | | |
| | 5,280 | | | LG Electronics, Inc., 0.7000% (cost $204,585) | | | 186,800 | | | |
| |
| |
| Money Market – 3.4% | | | | | | |
| | 514,463 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $514,463) | | | 514,463 | | | |
| |
| |
| Total Investments (total cost $11,817,047) – 80.0% | | | 11,987,670 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities**– 20.0% | | | 3,001,748 | | | |
| |
| |
| Net Assets – 100% | | $ | 14,989,418 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Argentina | | $ | 83,603 | | | | 0.7% | |
| Australia | | | 312,479 | | | | 2.6% | |
| Austria | | | 232,887 | | | | 2.0% | |
| Bahrain | | | 104,401 | | | | 0.9% | |
| Bermuda | | | 538,222 | | | | 4.5% | |
| Brazil | | | 1,904,905 | | | | 15.9% | |
| Canada | | | 590,358 | | | | 4.9% | |
| Cayman Islands | | | 615,136 | | | | 5.1% | |
| China | | | 216,744 | | | | 1.8% | |
| Germany | | | 132,135 | | | | 1.1% | |
| Hong Kong | | | 1,448,561 | | | | 12.1% | |
| India | | | 325,432 | | | | 2.7% | |
| Japan | | | 151,395 | | | | 1.3% | |
| Kenya | | | 57,342 | | | | 0.5% | |
| Luxembourg | | | 102,719 | | | | 0.9% | |
| Malaysia | | | 73,251 | | | | 0.6% | |
| Mexico | | | 228,333 | | | | 1.9% | |
| Poland | | | 48,272 | | | | 0.4% | |
| Russia | | | 672,695 | | | | 5.6% | |
| Singapore | | | 128,868 | | | | 1.1% | |
| South Africa | | | 586,378 | | | | 4.9% | |
| South Korea | | | 1,095,573 | | | | 9.1% | |
| Spain | | | 219,444 | | | | 1.8% | |
| Switzerland | | | 85,628 | | | | 0.7% | |
| Taiwan | | | 421,635 | | | | 3.5% | |
| Turkey | | | 123,471 | | | | 1.0% | |
| United Arab Emirates | | | 402,232 | | | | 3.4% | |
| United Kingdom | | | 326,704 | | | | 2.7% | |
United States†† | | | 758,867 | | | | 6.3% | |
| |
| |
| Total | | $ | 11,987,670 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (2.0% excluding Cash Equivalents). |
| | | | | |
| Schedule of Written Options – Calls | | Value | |
| | |
America Movil S.A.B. de C.V.
expires August 2011
20 contracts
exercise price $60.00 | | $ | (4,445) | |
Cia Vale do Rio Doce (ADR)
expires May 2011
21 contracts
exercise price $35.00 | | | (1,260) | |
Credicorp, Ltd.
expires May 2011
2 contracts
exercise price $115.00 | | | (146) | |
Ivanhoe Mines, Ltd.
expires May 2011
30 contracts
exercise price $30.00 | | | (2,365) | |
Petroleo Brasileiro S.A.
expires May 2011
33 contracts
exercise price $43.00 | | | (1,738) | |
See Notes to Schedules of Investments and Financial Statements.
14 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| | | Value | |
| | |
| Schedule of Written Options – Calls – (continued) | |
POSCO (ADR)
expires May 2011
3 contracts
exercise price $110.00 | | $ | (2,248) | |
Rio Tinto PLC (ADR)
expires May 2011
5 contracts
exercise price $75.00 | | | (823) | |
| |
| |
Total Written Options – Calls
(premiums received $11,857 ) | | $ | (13,025) | |
| |
| |
| Schedule of Written Options – Puts | | | |
Ctrip Com International, Ltd.
expires May 2011
30 contracts
exercise price $35.00 | | $ | (1,514) | |
Li & Fung, Ltd.
expires June 2011
8 contracts
exercise price 38.00 HKD | | | (2,550) | |
| |
| |
Total Written Options – Puts
(premiums received $9,543 ) | | $ | (4,064) | |
| |
| |
Total Return Swaps outstanding as of March 31, 2011
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Unrealized
|
| | | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
| |
| |
| Morgan Stanley | | $ | 57,175 | | | | AK Transneft OAO | | | FED Funds Effective
plus 100 basis points | | 1/3/13 | | $ | 6,661 |
| Morgan Stanley | | | 34,280 | | | | Samba Financial Group | | | FED Funds Effective
plus 100 basis points | | 12/31/12 | | | 9,332 |
| Morgan Stanley | | | 34,721 | | | | Saudi Basic Industries Corp. | | | FED Funds Effective
plus 100 basis points | | 12/31/12 | | | 8,834 |
| Morgan Stanley | | | 27,036 | | | | Saudi Telecom Co. | | | FED Funds Effective
plus 100 basis points | | 12/31/12 | | | 2,134 |
| Morgan Stanley | | | 29,824 | | | | Yamamah Saudi Cement Co., Ltd. | | | FED Funds Effective
plus 100 basis points | | 12/31/12 | | | 9,915 |
| UBS A.G. | | | 51,465 | | | | Adani Enterprises, Ltd. | | | LIBOR plus 100 basis points | | 1/25/12 | | | 18,603 |
| UBS A.G. | | | 16,694 | | | | Baoshan Iron & Steel Co., Ltd. | | | 1-Month LIBOR plus 50 basis points | | 1/18/12 | | | 2,279 |
| UBS A.G. | | | 38,051 | | | | China Merchants Bank Co., Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/18/12 | | | 7,029 |
| UBS A.G. | | | 82,718 | | | | China Vanke Co., Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/18/12 | | | 11,805 |
| UBS A.G. | | | 50,699 | | | | Educomp Solutions, Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/25/12 | | | (12,653) |
| UBS A.G. | | | 20,962 | | | | Glenmark Pharmaceuticals, Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/25/12 | | | (1,368) |
| UBS A.G. | | | 25,513 | | | | Indiabulls Real Estate, Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/25/12 | | | 19,774 |
| UBS A.G. | | | 28,358 | | | | Pipavav Shipyard, Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/25/12 | | | (2,044) |
| UBS A.G. | | | 25,544 | | | | Redington India, Ltd. | | | 1-Month LIBOR plus 100 basis points | | 1/25/12 | | | 2,685 |
| UBS A.G. | | | 27,397 | | | | Spice Mobility, Ltd. | | | 1-Month LIBOR plus 70 basis points | | 2/8/12 | | | 3,764 |
| |
| |
| Total | | | | | | | | | | | | | | $ | 86,750 |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 15
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
Janus Global Life Sciences Fund’s Class T Shares returned 12.54% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the S&P 500 Index, returned 17.31%, and its secondary benchmark, the Morgan Stanley Capital International World Health Care Index, returned 8.17% during the period.
Sector Overview
Health-care stocks continued to lag the broader market during the period, as the initial stages of health-care reform in the U.S. and austerity measures in Europe remained headwinds for the sector. The European austerity measures resulted in higher than normal drug price cuts in several major European countries, while the U.S. saw increased rebates and new industry taxes applied for the first time. We think the group is approaching the bottom, based on low valuation multiples, high dividend yields, and significant free cash flows. The addition of an estimated 30 million uninsured Americans to insurance membership rolls in 2014 (as a result of the health-care reform legislation) could be a long-term catalyst for the group.
Investment Strategy
The Fund seeks to uncover opportunities that span the life sciences spectrum, including stocks in the biotechnology, pharmaceutical, health care service 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. Our focus remains on companies that are addressing high unmet medical needs and those that we believe will benefit from making the health-care system more efficient. We also believe that management teams that make better capital allocation decisions will be rewarded.
During the period, we added to our positions in generic drug makers and pharmaceutical benefit management companies, all of which we believe are well positioned to benefit from the upcoming patent expiration wave. We also added Humana, a leading health insurance provider for the elderly, as we believed the long term growth expectations for the industry had become too pessimistic following health care reform enactment.
Fund 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 generate strong, consistent free cash flow). 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.
Detractors from Performance
Among our key detractors, Savient Pharmaceuticals declined after it put itself up for sale but didn’t receive the price it wanted. We were disappointed that the management team was not successful in its attempt to sell the company and sold our position. We still believe in the potential for Krystexxa for the treatment of refractory gout, but believe the sales potential will not be as great for Savient as a standalone company.
Amylin Pharmaceuticals suffered from what we believe is a tougher regulatory environment. The U.S. Food and Drug Administration required more cardiac safety data for Amylin’s diabetes drug Bydureon, causing a significant delay. Amylin was also impacted by an unfavorable efficacy result from a head-to-head study of Bydureon versus a competitive agent. Despite these setbacks, we still believe Bydureon has significant commercial potential due to the large market size and its more convenient formulation (once per week vs. daily injections).
16 | MARCH 31, 2011
(unaudited)
Acorda Therapeutics, meanwhile, fell victim to another trend we’ve seen: managed care companies getting more aggressive by limiting reimbursement for new drugs with lower perceived value. Our checks with physicians found that due to the drug’s higher cost, insurance companies were stiffening requirements for the use of Acorda’s Ampyra, the first treatment to improve walking ability in patients with multiple sclerosis. Based on this tougher operating environment, we decided to exit the position.
Contributors to Performance
Valeant Pharmaceuticals was our largest individual contributor. CEO Mike Pearson has done an impressive job of acquiring pharmaceutical and branded generics businesses and rapidly integrating and restructuring them to improve profitability. We like the company’s diversified business lines, advantageous tax rate and exposure to rapidly growing emerging markets in Latin America and Eastern Europe. We believe management should continue to find value accretive acquisition targets.
Long-term holding Alexion Pharmaceuticals also aided returns, driven by the strong performance of its lead drug Soliris. In addition to the current indication for PNH (a rare blood disorder in which the immune system attacks the red blood cells), Soliris recently demonstrated outstanding efficacy for a rare but severe kidney disorder called aHUS. We think this indication (which often leads to death or kidney failure if left untreated) could significantly expand the market for Soliris.
Finally, shares of Achillion Pharmaceuticals received a boost after demonstrating strong clinical data for its lead clinical compound, a protease inhibitor for the treatment of hepatitis C infection. We believe the hepatitis C market is poised for rapid growth due to advances in cure rates, and Achillion has one of the more interesting unpartnered compounds.
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 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. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Looking Ahead
We continue to view valuations as attractive throughout the health-care sector. After underperforming for seven of the last eight years, health-care stocks are trading at historically wide discounts to the rest of the market. In a world with low interest rates, pharmaceutical dividend yields are near 15-year highs.
While we recognize the near-term challenges for the sector, we continue to find a range of attractive opportunities. We believe the long-term drivers of health-care spending remain intact, including aging populations, rising life expectancies, and higher standards of living globally. We continue to favor companies addressing high unmet medical needs, helping to control rising health-care costs, or allocating capital more efficiently.
Thank you for your continued investment in Janus Global Life Sciences Fund.
Janus Global & International Funds | 17
Janus Global Life Sciences Fund (unaudited)
Janus Global Life Sciences Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Valeant Pharmaceuticals International, Inc. | | | 1.65% | |
| Alexion Pharmaceuticals, Inc. | | | 1.44% | |
| Achillion Pharmaceuticals, Inc. | | | 0.76% | |
| Vertex Pharmaceuticals, Inc. | | | 0.74% | |
| St. Jude Medical, Inc. | | | 0.67% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Savient Pharmaceuticals, Inc. | | | –0.71% | |
| Amylin Pharmaceuticals, Inc. | | | –0.68% | |
| Acorda Therapeutics, Inc. | | | –0.29% | |
| Dendreon Corp. | | | –0.21% | |
| Merck & Co., Inc. | | | –0.19% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Health Care | | | 13.28% | | | | 96.05% | | | | 11.06% | |
| Consumer Staples | | | 0.35% | | | | 3.78% | | | | 10.62% | |
| Consumer Discretionary | | | 0.00% | | | | 0.00% | | | | 10.57% | |
| Energy | | | 0.00% | | | | 0.00% | | | | 12.07% | |
| Financials | | | 0.00% | | | | 0.00% | | | | 15.86% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Materials | | | –0.01% | | | | 0.17% | | | | 3.64% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 3.34% | |
| Telecommunication Services | | | 0.00% | | | | 0.00% | | | | 3.03% | |
| Information Technology | | | 0.00% | | | | 0.00% | | | | 18.85% | |
| Industrials | | | 0.00% | | | | 0.00% | | | | 10.96% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
18 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Celgene Corp.
Medical – Biomedical and Genetic | | | 3.8% | |
GlaxoSmithKline PLC (ADR)
Medical – Drugs | | | 3.2% | |
Gilead Sciences, Inc.
Medical – Biomedical and Genetic | | | 3.2% | |
Alexion Pharmaceuticals, Inc.
Medical – Biomedical and Genetic | | | 3.1% | |
Roche Holding A.G.
Medical – Drugs | | | 2.6% | |
| | | | | |
| | | | 15.9% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 0.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Global & International Funds | 19
Janus Global Life Sciences Fund (unaudited)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 12.49% | | 11.14% | | 3.38% | | 4.57% | | 7.66% | | | 1.11% |
| MOP | | 6.03% | | 4.74% | | 2.16% | | 3.96% | | 7.14% | | | |
| | | | | | | | | | | | | | |
| Janus Global Life Sciences Fund – Class C Shares | | | | | | | | | | | | | |
| NAV | | 12.07% | | 10.27% | | 2.61% | | 3.83% | | 6.87% | | | 1.88% |
| CDSC | | 10.96% | | 9.17% | | 2.61% | | 3.83% | | 6.87% | | | |
| | | | | | | | | | | | | | |
| Janus Global Life Sciences Fund – Class D Shares(1) | | 12.55% | | 11.25% | | 3.50% | | 4.72% | | 7.81% | | | 1.00% |
| | | | | | | | | | | | | | |
| Janus Global Life Sciences Fund – Class I Shares | | 12.62% | | 11.31% | | 3.47% | | 4.71% | | 7.80% | | | 0.92% |
| | | | | | | | | | | | | | |
| Janus Global Life Sciences Fund – Class S Shares | | 12.35% | | 10.89% | | 3.19% | | 4.41% | | 7.50% | | | 1.33% |
| | | | | | | | | | | | | | |
| Janus Global Life Sciences Fund – Class T Shares | | 12.54% | | 11.13% | | 3.47% | | 4.71% | | 7.80% | | | 1.08% |
| | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 2.42% | | | |
| | | | | | | | | | | | | | |
| Morgan Stanley Capital International World Health Care Index | | 8.17% | | 5.53% | | 2.18% | | 2.72% | | 2.05% | | | |
| | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 1st | | 2nd | | 2nd | | 2nd | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Health/Biotechnology Funds | | – | | 5/37 | | 10/26 | | 10/21 | | 3/8 | | | |
| | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
20 | MARCH 31, 2011
(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.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), derivatives, and short sales. 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 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 from 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, 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable fee and expense limitations or waivers.
Janus Global & International Funds | 21
Janus Global Life Sciences 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.
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. |
22 | MARCH 31, 2011
(unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,124.90 | | | $ | 5.99 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,120.70 | | | $ | 9.83 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.66 | | | $ | 9.35 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,125.50 | | | $ | 4.98 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,126.20 | | | $ | 4.88 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,123.50 | | | $ | 6.88 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,125.40 | | | $ | 5.56 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.70 | | | $ | 5.29 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.13% for Class A Shares, 1.86% for Class C Shares, 0.94% for Class D Shares, 0.92% for Class I Shares, 1.30% for Class S Shares and 1.05% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
Janus Global & International Funds | 23
Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 98.7% | | | | | | |
| Chemicals – Diversified – 1.7% | | | | | | |
| | 77,828 | | | Bayer A.G.** | | $ | 6,025,792 | | | |
| | 76,759 | | | K+S A.G.** | | | 5,794,015 | | | |
| | | | | | | | 11,819,807 | | | |
| Diagnostic Equipment – 1.5% | | | | | | |
| | 155,820 | | | Gen-Probe, Inc.* | | | 10,338,657 | | | |
| Diagnostic Kits – 0.4% | | | | | | |
| | 260,584 | | | Quidel Corp.* | | | 3,116,585 | | | |
| Dialysis Centers – 1.8% | | | | | | |
| | 151,210 | | | DaVita, Inc.* | | | 12,929,967 | | | |
| Heart Monitors – 1.3% | | | | | | |
| | 109,535 | | | HeartWare International, Inc.* | | | 9,368,529 | | | |
| Instruments – Scientific – 1.6% | | | | | | |
| | 203,592 | | | Thermo Fisher Scientific, Inc.* | | | 11,309,536 | | | |
| Medical – Biomedical and Genetic – 23.5% | | | | | | |
| | 251,101 | | | Affymax, Inc.* | | | 1,473,963 | | | |
| | 222,552 | | | Alexion Pharmaceuticals, Inc.* | | | 21,961,431 | | | |
| | 156,860 | | | AMAG Pharmaceuticals, Inc.* | | | 2,619,562 | | | |
| | 616,905 | | | Amylin Pharmaceuticals, Inc.* | | | 7,014,210 | | | |
| | 464,483 | | | Celgene Corp.* | | | 26,721,707 | | | |
| | 127,492 | | | Dendreon Corp.* | | | 4,772,026 | | | |
| | 369,750 | | | Exelixis, Inc.* | | | 4,178,175 | | | |
| | 1,271,821 | | | Fibrogen, Inc. – Private Placement*,°° ,§ | | | 5,786,786 | | | |
| | 521,512 | | | Gilead Sciences, Inc.*,** | | | 22,132,969 | | | |
| | 346,625 | | | Human Genome Sciences, Inc.* | | | 9,514,856 | | | |
| | 886,372 | | | Incyte Corp., Ltd.* | | | 14,048,996 | | | |
| | 218,015 | | | Life Technologies Corp.* | | | 11,428,346 | | | |
| | 273,483 | | | Myriad Genetics, Inc.* | | | 5,510,682 | | | |
| | 168,075 | | | Seattle Genetics, Inc.* | | | 2,616,928 | | | |
| | 183,691 | | | United Therapeutics Corp.* | | | 12,310,971 | | | |
| | 260,765 | | | Vertex Pharmaceuticals, Inc.* | | | 12,498,467 | | | |
| | | | | | | | 164,590,075 | | | |
| Medical – Drugs – 32.1% | | | | | | |
| | 283,427 | | | Abbott Laboratories | | | 13,902,094 | | | |
| | 1,025,980 | | | Achillion Pharmaceuticals, Inc.* | | | 7,335,757 | | | |
| | 147,270 | | | Allergan, Inc. | | | 10,459,115 | | | |
| | 310,753 | | | Auxilium Pharmaceuticals, Inc.* | | | 6,671,867 | | | |
| | 518,543 | | | Bristol-Myers Squibb Co. | | | 13,705,091 | | | |
| | 250,625 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 9,563,850 | | | |
| | 473,709 | | | Forest Laboratories, Inc.* | | | 15,300,801 | | | |
| | 578,052 | | | GlaxoSmithKline PLC (ADR) | | | 22,202,977 | | | |
| | 652,318 | | | Ironwood Pharmaceuticals, Inc.* | | | 9,132,452 | | | |
| | 463,200 | | | Mitsubishi Tanabe Pharma Corp.** | | | 7,519,480 | | | |
| | 271,902 | | | Novartis A.G.** | | | 14,752,949 | | | |
| | 843,839 | | | Pfizer, Inc. | | | 17,138,370 | | | |
| | 84,925 | | | Pharmasset, Inc.* | | | 6,684,447 | | | |
| | 127,487 | | | Roche Holding A.G.** | | | 18,216,396 | | | |
| | 318,960 | | | Salix Pharmaceuticals, Ltd.* | | | 11,173,169 | | | |
| | 128,986 | | | Sanofi-Aventis S.A.** | | | 9,042,655 | | | |
| | 402,700 | | | Shionogi & Co., Ltd.** | | | 6,871,468 | | | |
| | 117,166 | | | Shire PLC (ADR) | | | 10,205,159 | | | |
| | 306,049 | | | Valeant Pharmaceuticals International, Inc. | | | 15,244,301 | | | |
| | | | | | | | 225,122,398 | | | |
| Medical – Generic Drugs – 4.7% | | | | | | |
| | 8,364,183 | | | Mediquest Therapeutics – Private Placement*,°° ,§,£ | | | 2,509,255 | | | |
| | 719,765 | | | Mylan, Inc.* | | | 16,317,072 | | | |
| | 120,983 | | | Pharmstandard (GDR) (144A)*,** | | | 3,381,475 | | | |
| | 218,036 | | | Teva Pharmaceutical S.P. (ADR) | | | 10,938,866 | | | |
| | | | | | | | 33,146,668 | | | |
| Medical – HMO – 4.7% | | | | | | |
| | 251,495 | | | Humana, Inc.* | | | 17,589,561 | | | |
| | 347,546 | | | UnitedHealth Group, Inc. | | | 15,709,079 | | | |
| | | | | | | | 33,298,640 | | | |
| Medical – Wholesale Drug Distributors – 1.2% | | | | | | |
| | 205,610 | | | AmerisourceBergen Corp. | | | 8,133,932 | | | |
| Medical Information Systems – 1.2% | | | | | | |
| | 191,911 | | | athenahealth, Inc.* | | | 8,660,943 | | | |
| Medical Instruments – 3.0% | | | | | | |
| | 336,965 | | | Conceptus, Inc.* | | | 4,869,144 | | | |
| | 659,604 | | | Lifesync Holdings, Inc.°° ,£ | | | 758,545 | | | |
| | 297,255 | | | St. Jude Medical, Inc. | | | 15,237,291 | | | |
| | | | | | | | 20,864,980 | | | |
| Medical Products – 8.1% | | | | | | |
| | 121,073 | | | Baxter International, Inc. | | | 6,510,095 | | | |
| | 245,995 | | | Carefusion Corp.* | | | 6,937,059 | | | |
| | 276,302 | | | Covidien PLC (U.S. Shares)** | | | 14,351,126 | | | |
| | 113,300 | | | Henry Schein, Inc.* | | | 7,950,261 | | | |
| | 173,837 | | | Stryker Corp. | | | 10,569,289 | | | |
| | 150,520 | | | Varian Medical Systems, Inc.* | | | 10,181,173 | | | |
| | | | | | | | 56,499,003 | | | |
| Pharmacy Services – 6.4% | | | | | | |
| | 62,590 | | | Catalyst Health Solutions, Inc.* | | | 3,500,659 | | | |
| | 275,260 | | | Express Scripts, Inc. – Class A* | | | 15,307,208 | | | |
| | 294,184 | | | Medco Health Solutions, Inc.* | | | 16,521,373 | | | |
| | 316,225 | | | Omnicare, Inc. | | | 9,483,588 | | | |
| | | | | | | | 44,812,828 | | | |
| Physical Practice Management – 0.8% | | | | | | |
| | 87,753 | | | Mednax, Inc.* | | | 5,845,227 | | | |
| Research & Development – 1.0% | | | | | | |
| | 499,854 | | | Aveo Pharmaceuticals, Inc.* | | | 6,693,045 | | | |
| Retail – Drug Store – 1.0% | | | | | | |
| | 167,030 | | | Walgreen Co. | | | 6,704,584 | | | |
| Soap and Cleaning Preparations – 0.9% | | | | | | |
| | 118,541 | | | Reckitt Benckiser Group PLC | | | 6,088,289 | | | |
| Therapeutics – 1.8% | | | | | | |
| | 343,590 | | | BioMarin Pharmaceutical, Inc.* | | | 8,634,417 | | | |
| | 111,668 | | | Onyx Pharmaceuticals, Inc.* | | | 3,928,480 | | | |
| | | | | | | | 12,562,897 | | | |
| |
| |
| Total Common Stock (cost $543,552,429) | | | 691,906,590 | | | |
| |
| |
| Preferred Stock – 0.9% | | | | | | |
| Medical – Biomedical and Genetic – 0.2% | | | | | | |
| | 5,192,551 | | | Mediquest Therapeutics – Private Placement (Series A-1), 0% °° ,§ | | | 1,557,765 | | | |
| Medical Instruments – 0% | | | | | | |
| | 116,843 | | | GMP Co., 0% °° ,£ | | | 134,369 | | | |
| Therapeutics – 0.7% | | | | | | |
| | 2,919,304 | | | Portola Pharmaceuticals, Inc. – Private Placement, 0% °° ,§ | | | 4,846,045 | | | |
| |
| |
| Total Preferred Stock (cost $8,149,125) | | | 6,538,179 | | | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
24 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Warrants – 0% | | | | | | |
| Medical – Generic Drugs – 0% | | | | | | |
| | 3,345,673 | | | Mediquest Therapeutics – expires 6/15/11*,°° ,§ | | $ | 3 | | | |
| | 803,980 | | | Mediquest Therapeutics – expires 6/15/12*,°° ,§ | | | 1 | | | |
| | | | | | | | 4 | | | |
| |
| |
| Total Warrants (cost $94,066) | | | 4 | | | |
| |
| |
| Money Market – 0.5% | | | | | | |
| | 3,591,000 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $3,591,000) | | | 3,591,000 | | | |
| |
| |
| Total Investments (total cost $555,386,620) – 100.1% | | | 702,035,773 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.1)% | | | (888,851) | | | |
| |
| |
| Net Assets – 100% | | $ | 701,146,922 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Canada | | $ | 15,244,301 | | | | 2.2% | |
| France | | | 9,042,655 | | | | 1.3% | |
| Germany | | | 11,819,807 | | | | 1.7% | |
| Ireland | | | 14,351,126 | | | | 2.0% | |
| Israel | | | 10,938,866 | | | | 1.6% | |
| Japan | | | 14,390,948 | | | | 2.0% | |
| Jersey | | | 10,205,159 | | | | 1.5% | |
| Russia | | | 3,381,475 | | | | 0.5% | |
| Switzerland | | | 32,969,345 | | | | 4.7% | |
| United Kingdom | | | 28,291,266 | | | | 4.0% | |
United States†† | | | 551,400,825 | | | | 78.5% | |
| |
| |
| Total | | $ | 702,035,773 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (78.0% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| Euro 5/6/11 | | | 2,210,000 | | | $ | 3,129,505 | | | $ | (73,870) | |
| Japanese Yen 5/6/11 | | | 356,000,000 | | | | 4,281,774 | | | | 68,549 | |
| Swiss Franc 5/6/11 | | | 10,150,000 | | | | 11,056,923 | | | | (115,061) | |
| |
| |
| | | | | | | | 18,468,202 | | | | (120,382) | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| Euro 5/12/11 | | | 2,068,000 | | | | 2,928,038 | | | | (1,993) | |
| Japanese Yen 5/12/11 | | | 392,700,000 | | | | 4,723,387 | | | | 115,306 | |
| Russian Rouble 5/12/11 | | | 49,600,000 | | | | 1,739,598 | | | | 5,652 | |
| Swiss Franc 5/12/11 | | | 5,100,000 | | | | 5,555,996 | | | | 80,297 | |
| |
| |
| | | | | | | | 14,947,019 | | | | 199,262 | |
| |
| |
| JPMorgan Chase & Co.: | | | | | | | | | | | | |
| Euro 4/28/11 | | | 1,550,000 | | | | 2,195,272 | | | | (86,466) | |
| Japanese Yen 4/28/11 | | | 352,000,000 | | | | 4,233,437 | | | | (4,646) | |
| |
| |
| | | | | | | | 6,428,709 | | | | (91,112) | |
| |
| |
RBC Capital Markets Corp.:
Euro 4/7/11 | | | 950,000 | | | | 1,346,061 | | | | (55,092) | |
| |
| |
| Total | | | | | | $ | 41,189,991 | | | $ | (67,324) | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 25
Janus Global Research Fund (unaudited)
| | | | | | | |
Fund Snapshot
We strive to deliver the best investment results in the business, built on the foundation of superior research. The Fund leverages our strong research team and differentiated investment process. It is a best ideas Fund, driven by the analysts, capturing the value of Janus’ research while managing risk.
| | | | | | Team-Based Approach
Led by Jim Goff,
Director of Research |
Performance Overview
Janus Global Research Fund’s Class T Shares returned 12.70% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the MSCI World Growth Index, returned 14.17%, and its secondary benchmark, the MSCI All Country World Index, returned 13.54% during the period.
Economic Overview
While we retain our faith in the value of long term thinking, the latter half of the period underscored the folly of short-term predictions. Anybody who claims to have considered oil spiking on Middle East unrest, a nuclear power scare in Japan and additional sovereign issues in Europe is lying, deluded or (worse) applying for a job as an investment strategist.
We don’t see these crises as derailing the global economic recovery or our ability to find attractive stocks. Of the three issues, the Middle East is the biggest in terms of economic and investment implications. If it leads to a sustained oil supply shock, it will pressure the recovery. We don’t see that scenario, however. Whoever rules will want to sell oil. Our energy team remains bullish on oil and on natural gas longer term. Higher oil and related commodities, including food prices, mean cost pressure. A company’s ability to preserve margins and maintain pricing power are key criteria for our consumer and industrial teams, for example.
The disaster in Japan, a horrific human tragedy, does not meaningfully change our global view. The stricken area is lightly industrialized. Power rationing and supply chain disruptions are problematic short term, but not enough to deflate stocks long term in our opinion. Portugal reminded us that the sovereign risk in Southern Europe never went away. The country declared it does not need a bailout – just as Ireland claimed right before its bailout last year. Portugal, Greece and Ireland are small economies but their problems hurt sentiment. Nevertheless, we don’t see significant long term impacts on most stocks.
It is sentiment that can temporarily undermine the success of fundamental investing. So far, we think markets are doing a nice job of looking through these crises. The U.S. has held up relatively well, compared to the volatility of prior years. Emerging markets, most susceptible to the corrosive power of inflation, have traded off and valuations seem more reasonable.
Together, our teams are finding investment opportunities. Health care and industrials face the toughest short-term challenges, perhaps, while conditions are improving for financials and in technology large caps generally look mispriced. Our consumer team also remains bullish. For more details on our sector views and our long term perspective, please read on.
Sector Views
In health care, companies face challenges but may be putting their problems behind them. In the near term, health care reform in the U.S. and austerity measures in Europe have weighed on the sector. The economic slowdown and a shift of some costs to patients are lowering utilization of the health care system. Consequentially, 2011 might show even slower earnings growth than expected. In 2012, the well-documented patent cliff will peak, as some of the largest-volume branded drugs go generic.
Turmoil in the Middle East dominates the energy sector. We had been bullish on oil before the uprisings because we saw a long-term supply crunch. The threat to supply out of Libya and perhaps elsewhere increases that imbalance. While Saudi Arabia can cover the shortfall out of Asia, it is not a simple switch as the quality of crude differs. The natural disaster in Japan may intensify the price pressure: with its nuclear options disabled and liquefied natural gas supplies tight in Asia, Japan may need to import oil to generate power. Still, the risk of a demand shock remains, should the price soar too high. The last time oil hit $150, the unemployment rate was lower and demand suffered.
While the financial sector remains under pressure, some of the uncertainty is lifting. The new regulatory framework
26 | MARCH 31, 2011
(unaudited)
may turn out better than expected as more details emerge on how the Dodd-Frank law will be implemented. For example, definitions of proprietary trading, rules on derivatives and debit card interchange fees may be more favorable than the market anticipates. Relief from another burden – low interest rates – is tougher to time, although a steeper yield curve (the difference in yields between 2-year and 10-year Treasuries) helps improve net interest margins and the yield on the investment portfolio for insurance companies. Should the market begin to price in higher rates, the stocks should respond before rates actually rise. The downside of higher rates is lower mortgage refinance business.
We are watching key macro factors that relate to the consumer sector. Personal income grew 3%-4% in the second half of 2010, providing a more solid footing for spending. The high-end consumer worldwide has continued to drive sales, and strong equity market returns bode well for confidence among higher-income consumers. For the mass market, however, the stock market’s wealth effect may not offset factors such as stubbornly high unemployment rates, flat to declining house prices and inflation in energy, health care and food prices.
With low multiples in technology stocks, we believe there is more upside than downside from here, assuming reasonable levels of global economic growth. This opportunity looks especially attractive in large cap tech stocks. In the last four years, the average price-to-earnings multiple has dropped from 18.8 to 12.5. Yet many large tech companies showed good earnings growth and stable returns during this period, according to our research. Technology also traded at a significant premium to the S&P 500 Index (a market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance) in 2007 and trades at a discount today.
Revenues for industrial companies have come in ahead of expectations and data points continue to indicate an ongoing global recovery. Order books are expanding, transport volumes are accelerating and lead times are extending. Industrial companies face a number of challenges, however. Higher oil prices and volatility in the Middle East may slow end-market demand. Margin pressures continue to build, as we warned last quarter. Commodity cost inflation and the need to ramp up production are eroding incremental margins. We expect margins to decline from here. Earnings growth will be lower as well, and multiples will fall as we progress through the economic cycle.
In communications, the advertising rebound continued its momentum into 2011 and all signs suggest this should be another good year of growth, particularly in the U.S. and developing markets. Budgets are planned to increase for 2011 and inventory is now tight in the most desired categories. We are not yet back to peak spending levels, but it appears that media inflation has returned. Ad buyers are showing a willingness to follow eyeballs from traditional TV to other screens, as long as they can measure returns and get scale. Areas showing the greatest price inflation include online search and premium content video.
Holdings Overview
Our relative underperformance during the period was driven largely by our industrial holdings. These were somewhat offset by our relative outperformance in our technology and communication holdings. On a country basis, our non-index exposures in India and Brazil were the largest detractors, while our holdings in the Netherlands and the U.S. were the largest contributors. Our U.S. weighting was generally in line with the index during the period.
Within industrials, Jain Irrigation System was the largest detractor for the sector and the Fund overall. We like the company’s market-leading position in India’s micro-irrigation systems, which are subsidized by the government. We feel these irrigation systems are the fastest way to improve yields and represent a large market opportunity, given the unpredictability of India’s monsoon season and the fact that many farms don’t have simple water catchment systems.
Cisco Systems also weighed on performance. The networking giant has gone through a period of sluggish financial performance relative to expectations, but we continue to like the company’s multiyear outlook based on its broad market line and high market share.
In addition, Newmont Mining weighed on relative performance. We like the company’s exposure to gold, which lagged most commodities’ price gains. We feel gold hedges a variety of risks, such as oil-price shocks, a weakening dollar and geopolitical instability.
Individual contributors included semiconductor manufacturer Atmel, whose shares rose over 71%. We remain attracted to the chip maker given its potential to generate high returns on capital and accelerating free cash flows. We think the company’s microcontroller products can continue to take market share.
Janus Global & International Funds | 27
Janus Global Research Fund (unaudited)
Owens Corning also moved sharply higher during the period. We feel the producer of glass fiber reinforcements and other materials for composites used in residential and commercial building materials will benefit from improved profitability in its composite and insulation businesses.
Finally, refiner Valero Energy also returned over 71% for the six-month period. We believe the U.S. refiner continues to offer an attractive valuation and the current economic recovery will increase refinery utilizations and allow for better margins.
Conclusion
We are committed to the success of the Janus Global Research Fund – as managers and as investors. Janus analysts and I have substantial funds 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 strong 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, we hope to reward long-term investors with continued strong risk-adjusted returns.
Thank you for your investment in Janus Global Research Fund.
28 | MARCH 31, 2011
(unaudited)
Janus Global Research Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Atmel Corp. | | | 0.61% | |
| Owens Corning | | | 0.46% | |
| Valero Energy Corp. | | | 0.46% | |
| ARM Holdings PLC | | | 0.45% | |
| ASML Holding N.V. | | | 0.42% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Jain Irrigation Systems, Ltd. | | | –0.38% | |
| Cisco Systems, Inc. | | | –0.28% | |
| Newmont Mining Corp. | | | –0.21% | |
| MRV Engenharia e Participacoes S.A. | | | –0.20% | |
| Educomp Solutions, Ltd. | | | –0.20% | |
4 Top Performers – Sectors†
| | | | | | | | | | | | | |
| | | | | | | Morgan Stanley Capital
|
| | | | | Fund Weighting
| | International World
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Technology | | | 3.61% | | | | 17.34% | | | | 17.13% | |
| Industrials | | | 2.74% | | | | 28.20% | | | | 28.46% | |
| Energy | | | 2.47% | | | | 8.70% | | | | 8.77% | |
| Consumer | | | 1.44% | | | | 20.46% | | | | 20.34% | |
3 Bottom Performers – Sectors†
| | | | | | | | | | | | | |
| | | | | | | Morgan Stanley Capital
|
| | | | | Fund Weighting
| | International World
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Communications | | | 0.99% | | | | 6.22% | | | | 6.17% | |
| Financials | | | 1.15% | | | | 9.79% | | | | 9.73% | |
| Health Care | | | 1.19% | | | | 9.29% | | | | 9.40% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| † | | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Global & International Funds | 29
Janus Global Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Owens Corning
Building and Construction Products – Miscellaneous | | | 1.9% | |
NVR, Inc.
Building – Residential and Commercial | | | 1.8% | |
Ivanhoe Mines, Ltd.
Metal – Diversified | | | 1.8% | |
Fanuc, Ltd.
Industrial Automation and Robotics | | | 1.6% | |
Prysmian SpA
Wire and Cable Products | | | 1.5% | |
| | | | | |
| | | | 8.6% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 7.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
30 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 12.69% | | 18.86% | | 6.24% | | 9.63% | | | 1.28% | | 1.28% |
| MOP | | 6.23% | | 12.02% | | 4.99% | | 8.57% | | | | | |
| | | | | | | | | | | | | | |
| Janus Global Research Fund – Class C Shares | | | | | | | | | | | | | |
| NAV | | 12.28% | | 18.04% | | 5.42% | | 8.79% | | | 1.95% | | 1.95% |
| CDSC | | 11.17% | | 16.86% | | 5.42% | | 8.79% | | | | | |
| | | | | | | | | | | | | | |
| Janus Global Research Fund – Class D Shares(1) | | 12.76% | | 19.11% | | 6.30% | | 9.68% | | | 1.09% | | 1.09% |
| | | | | | | | | | | | | | |
| Janus Global Research Fund – Class I Shares | | 12.82% | | 19.18% | | 6.28% | | 9.66% | | | 0.96% | | 0.96% |
| | | | | | | | | | | | | | |
| Janus Global Research Fund – Class S Shares | | 12.59% | | 18.68% | | 5.98% | | 9.36% | | | 1.45% | | 1.45% |
| | | | | | | | | | | | | | |
| Janus Global Research Fund – Class T Shares | | 12.70% | | 18.95% | | 6.28% | | 9.66% | | | 1.23% | | 1.23% |
| | | | | | | | | | | | | | |
| Morgan Stanley Capital International World Growth Index | | 14.17% | | 15.14% | | 3.02% | | 5.03% | | | | | |
| | | | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World IndexSM | | 13.54% | | 14.08% | | 2.94% | | 5.10% | | | | | |
| | | | | | | | | | | | | | |
| Russell 1000® Index | | 18.13% | | 16.69% | | 2.93% | | 4.12% | | | | | |
| | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Funds | | – | | 70/647 | | 23/354 | | 12/296 | | | | | |
| | | | | | | | | | | | | | |
| 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.
Janus Global & International Funds | 31
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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”) 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 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 general and 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 invests 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 from 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.
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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares, reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations of waivers.
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.
32 | MARCH 31, 2011
(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 applicable 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.
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.
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 | 33
Janus Global Research Fund (unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,126.90 | | | $ | 6.52 | | | |
| |
| |
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 C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,122.80 | | | $ | 10.32 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.21 | | | $ | 9.80 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,127.60 | | | $ | 5.36 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.90 | | | $ | 5.09 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,128.20 | | | $ | 5.57 | | | |
| |
| |
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 S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,125.90 | | | $ | 7.47 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,127.00 | | | $ | 5.94 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.35 | | | $ | 5.64 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.23% for Class A Shares, 1.95% for Class C Shares, 1.01% for Class D Shares, 1.05% for Class I Shares, 1.41% for Class S Shares and 1.12% 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. |
34 | MARCH 31, 2011
Janus Global Research Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 99.0% | | | | | | |
| Airlines – 0.6% | | | | | | |
| | 59,592 | | | Ryanair Holdings PLC (ADR)* | | $ | 1,656,658 | | | |
| Apparel Manufacturers – 1.3% | | | | | | |
| | 44,451 | | | Coach, Inc. | | | 2,313,230 | | | |
| | 12,129 | | | Polo Ralph Lauren Corp. | | | 1,499,751 | | | |
| | | | | | | | 3,812,981 | | | |
| Applications Software – 0.8% | | | | | | |
| | 84,673 | | | Microsoft Corp. | | | 2,147,307 | | | |
| Athletic Footwear – 0.8% | | | | | | |
| | 29,858 | | | NIKE, Inc. – Class B | | | 2,260,251 | | | |
| Auction House – Art Dealer – 1.2% | | | | | | |
| | 116,685 | | | Ritchie Bros Auctioneers, Inc. | | | 3,292,751 | | | |
| Automotive – Cars and Light Trucks – 2.2% | | | | | | |
| | 225,749 | | | Ford Motor Co.* | | | 3,365,918 | | | |
| | 745,000 | | | Isuzu Motors, Ltd. | | | 2,947,390 | | | |
| | | | | | | | 6,313,308 | | | |
| Beverages – Non-Alcoholic – 0.6% | | | | | | |
| | 26,291 | | | Hansen Natural Corp.* | | | 1,583,507 | | | |
| Beverages – Wine and Spirits – 0.9% | | | | | | |
| | 135,505 | | | Diageo PLC | | | 2,575,604 | | | |
| Brewery – 0.6% | | | | | | |
| | 32,126 | | | Anheuser-Busch InBev N.V. | | | 1,829,769 | | | |
| Building – Residential and Commercial – 3.0% | | | | | | |
| | 421,000 | | | MRV Engenharia e Participacoes S.A. | | | 3,369,238 | | | |
| | 6,679 | | | NVR, Inc.* | | | 5,049,324 | | | |
| | | | | | | | 8,418,562 | | | |
| Building and Construction Products – Miscellaneous – 2.8% | | | | | | |
| | 43,853 | | | Cie de Saint-Gobain | | | 2,684,732 | | | |
| | 149,518 | | | Owens Corning* | | | 5,381,153 | | | |
| | | | | | | | 8,065,885 | | | |
| Cable Television – 0.5% | | | | | | |
| | 26,656 | | | Kabel Deutschland Holding A.G.* | | | 1,412,649 | | | |
| Casino Hotels – 0.7% | | | | | | |
| | 239,236 | | | Crown, Ltd. | | | 2,016,270 | | | |
| Casino Services – 0.8% | | | | | | |
| | 132,061 | | | International Game Technology | | | 2,143,350 | | | |
| Cellular Telecommunications – 1.0% | | | | | | |
| | 19,947 | | | America Movil S.A.B. de C.V. – Series L (ADR) | | | 1,158,921 | | | |
| | 593,510 | | | Vodafone Group PLC | | | 1,680,266 | | | |
| | | | | | | | 2,839,187 | | | |
| Chemicals – Diversified – 0.9% | | | | | | |
| | 33,972 | | | K+S A.G. | | | 2,564,315 | | | |
| Commercial Banks – 1.1% | | | | | | |
| | 10,048 | | | Credicorp, Ltd. | | | 1,054,337 | | | |
| | 74,654 | | | Standard Chartered PLC | | | 1,936,281 | | | |
| | | | | | | | 2,990,618 | | | |
| Commercial Services – 1.0% | | | | | | |
| | 116,173 | | | Aggreko PLC | | | 2,936,748 | | | |
| Commercial Services – Finance – 0.2% | | | | | | |
| | 19,681 | | | Verisk Analytics, Inc.* | | | 644,750 | | | |
| Computer Services – 0.7% | | | | | | |
| | 11,457 | | | International Business Machines Corp. | | | 1,868,293 | | | |
| Computers – 1.6% | | | | | | |
| | 8,600 | | | Apple, Inc.* | | | 2,996,670 | | | |
| | 24,802 | | | Research In Motion, Ltd. (U.S. Shares)* | | | 1,403,049 | | | |
| | | | | | | | 4,399,719 | | | |
| Consulting Services – 0.8% | | | | | | |
| | 56,297 | | | Gartner, Inc.* | | | 2,345,896 | | | |
| Consumer Products – Miscellaneous – 0.8% | | | | | | |
| | 63,324 | | | Jarden Corp. | | | 2,252,435 | | | |
| Containers – Metal and Glass – 1.0% | | | | | | |
| | 76,479 | | | Crown Holdings, Inc.* | | | 2,950,560 | | | |
| Cosmetics and Toiletries – 0.9% | | | | | | |
| | 32,907 | | | Colgate-Palmolive Co. | | | 2,657,569 | | | |
| Dialysis Centers – 0.6% | | | | | | |
| | 21,400 | | | DaVita, Inc.* | | | 1,829,914 | | | |
| Distribution/Wholesale – 2.0% | | | | | | |
| | 187,561 | | | Adani Enterprises, Ltd. | | | 2,803,740 | | | |
| | 548,000 | | | Li & Fung, Ltd. | | | 2,807,529 | | | |
| | | | | | | | 5,611,269 | | | |
| Diversified Banking Institutions – 1.9% | | | | | | |
| | 118,881 | | | Bank of America Corp. | | | 1,584,684 | | | |
| | 14,204 | | | Deutsche Bank A.G. | | | 834,967 | | | |
| | 35,954 | | | JPMorgan Chase & Co. | | | 1,657,479 | | | |
| | 50,822 | | | Morgan Stanley | | | 1,388,457 | | | |
| | | | | | | | 5,465,587 | | | |
| Diversified Operations – 2.2% | | | | | | |
| | 69,375 | | | Danaher Corp. | | | 3,600,562 | | | |
| | 50,494 | | | Illinois Tool Works, Inc. | | | 2,712,538 | | | |
| | | | | | | | 6,313,100 | | | |
| E-Commerce/Services – 1.0% | | | | | | |
| | 61,117 | | | eBay, Inc.* | | | 1,897,072 | | | |
| | 3,829 | | | Netflix, Inc.* | | | 908,736 | | | |
| | | | | | | | 2,805,808 | | | |
| Educational Software – 0.4% | | | | | | |
| | 119,770 | | | Educomp Solutions, Ltd. | | | 1,126,520 | | | |
| Electric Products – Miscellaneous – 0.6% | | | | | | |
| | 18,682 | | | LG Electronics, Inc. | | | 1,788,648 | | | |
| Electronic Components – Miscellaneous – 0.7% | | | | | | |
| | 59,816 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 2,082,793 | | | |
| Electronic Components – Semiconductors – 2.2% | | | | | | |
| | 278,144 | | | ARM Holdings PLC | | | 2,565,328 | | | |
| | 26,888 | | | International Rectifier Corp.* | | | 888,917 | | | |
| | 286,934 | | | ON Semiconductor Corp.* | | | 2,832,039 | | | |
| | | | | | | | 6,286,284 | | | |
| Electronic Connectors – 0.7% | | | | | | |
| | 35,552 | | | Amphenol Corp. – Class A | | | 1,933,673 | | | |
| Electronic Measuring Instruments – 0.6% | | | | | | |
| | 6,200 | | | Keyence Corp. | | | 1,587,278 | | | |
| Enterprise Software/Services – 3.2% | | | | | | |
| | 100,079 | | | Autonomy Corp. PLC* | | | 2,550,775 | | | |
| | 82,705 | | | Oracle Corp. | | | 2,759,866 | | | |
| | 77,803 | | | QLIK Technologies, Inc.* | | | 2,022,878 | | | |
| | 94,400 | | | Totvs S.A. | | | 1,813,494 | | | |
| | | | | | | | 9,147,013 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 35
Janus Global Research Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Finance – Investment Bankers/Brokers – 0.5% | | | | | | |
| | 84,250 | | | Charles Schwab Corp. | | $ | 1,519,027 | | | |
| Finance – Other Services – 0.8% | | | | | | |
| | 4,433 | | | CME Group, Inc. | | | 1,336,771 | | | |
| | 46,300 | | | Hong Kong Exchanges & Clearing, Ltd. | | | 1,005,965 | | | |
| | | | | | | | 2,342,736 | | | |
| Food – Catering – 0% | | | | | | |
| | 1,713,000 | | | FU JI Food & Catering Services Holdings, Ltd.*,°° ,§ | | | 0 | | | |
| Food – Miscellaneous/Diversified – 1.0% | | | | | | |
| | 44,562 | | | Groupe Danone | | | 2,910,624 | | | |
| Food – Wholesale/Distribution – 0.8% | | | | | | |
| | 1,033,000 | | | Olam International, Ltd. | | | 2,295,191 | | | |
| Gold Mining – 1.4% | | | | | | |
| | 29,707 | | | Agnico-Eagle Mines, Ltd. (U.S. Shares) | | | 1,971,059 | | | |
| | 38,627 | | | Newmont Mining Corp. | | | 2,108,262 | | | |
| | | | | | | | 4,079,321 | | | |
| Hotels and Motels – 1.3% | | | | | | |
| | 77,203 | | | Intercontinental Hotels Group PLC | | | 1,582,597 | | | |
| | 56,381 | | | Marriott International, Inc. – Class A | | | 2,006,036 | | | |
| | | | | | | | 3,588,633 | | | |
| Independent Power Producer – 0.5% | | | | | | |
| | 60,688 | | | NRG Energy, Inc.* | | | 1,307,220 | | | |
| Industrial Automation and Robotics – 1.6% | | | | | | |
| | 29,000 | | | Fanuc, Ltd. | | | 4,390,452 | | | |
| Instruments – Scientific – 0.5% | | | | | | |
| | 24,709 | | | Thermo Fisher Scientific, Inc.* | | | 1,372,585 | | | |
| Investment Management and Advisory Services – 0.6% | | | | | | |
| | 25,276 | | | T. Rowe Price Group, Inc. | | | 1,678,832 | | | |
| Life and Health Insurance – 2.5% | | | | | | |
| | 29,214 | | | AFLAC, Inc. | | | 1,541,915 | | | |
| | 688,400 | | | AIA Group, Ltd.* | | | 2,119,638 | | | |
| | 19,129 | | | Prudential Financial, Inc. | | | 1,177,964 | | | |
| | 197,018 | | | Prudential PLC | | | 2,232,664 | | | |
| | | | | | | | 7,072,181 | | | |
| Medical – Biomedical and Genetic – 2.0% | | | | | | |
| | 13,157 | | | Alexion Pharmaceuticals, Inc.* | | | 1,298,333 | | | |
| | 41,978 | | | Celgene Corp.* | | | 2,414,994 | | | |
| | 41,258 | | | Vertex Pharmaceuticals, Inc.* | | | 1,977,496 | | | |
| | | | | | | | 5,690,823 | | | |
| Medical – Drugs – 2.5% | | | | | | |
| | 48,345 | | | Bristol-Myers Squibb Co. | | | 1,277,758 | | | |
| | 45,116 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 1,721,627 | | | |
| | 61,126 | | | GlaxoSmithKline PLC | | | 1,166,261 | | | |
| | 128,300 | | | Mitsubishi Tanabe Pharma Corp. | | | 2,082,792 | | | |
| | 14,722 | | | Novartis A.G. | | | 800,141 | | | |
| | | | | | | | 7,048,579 | | | |
| Medical – Generic Drugs – 0.8% | | | | | | |
| | 97,158 | | | Mylan, Inc.* | | | 2,202,572 | | | |
| Medical – HMO – 0.7% | | | | | | |
| | 27,357 | | | Humana, Inc.* | | | 1,913,349 | | | |
| Medical Products – 0.5% | | | | | | |
| | 28,274 | | | Covidien PLC (U.S. Shares) | | | 1,468,552 | | | |
| Metal – Copper – 0.7% | | | | | | |
| | 14,269 | | | First Quantum Minerals, Ltd. | | | 1,846,490 | | | |
| Metal – Diversified – 1.8% | | | | | | |
| | 183,582 | | | Ivanhoe Mines, Ltd.* | | | 5,036,572 | | | |
| Multi-Line Insurance – 0.6% | | | | | | |
| | 124,451 | | | ING Groep N.V.* | | | 1,574,947 | | | |
| Multimedia – 1.2% | | | | | | |
| | 130,918 | | | News Corp. – Class A | | | 2,298,920 | | | |
| | 25,980 | | | Walt Disney Co. | | | 1,119,478 | | | |
| | | | | | | | 3,418,398 | | | |
| Networking Products – 0.9% | | | | | | |
| | 142,215 | | | Cisco Systems, Inc. | | | 2,438,987 | | | |
| Oil – Field Services – 2.6% | | | | | | |
| | 182,568 | | | AMEC PLC | | | 3,493,578 | | | |
| | 33,705 | | | Baker Hughes, Inc. | | | 2,474,958 | | | |
| | 53,985 | | | Petrofac, Ltd. | | | 1,289,357 | | | |
| | | | | | | | 7,257,893 | | | |
| Oil and Gas Drilling – 1.0% | | | | | | |
| | 20,276 | | | Helmerich & Payne, Inc. | | | 1,392,758 | | | |
| | 206,170 | | | Karoon Gas Australia, Ltd.* | | | 1,526,522 | | | |
| | | | | | | | 2,919,280 | | | |
| Oil Companies – Exploration and Production – 3.8% | | | | | | |
| | 257,452 | | | Cairn Energy PLC* | | | 1,908,260 | | | |
| | 52,511 | | | Canadian Natural Resources, Ltd. | | | 2,597,377 | | | |
| | 8,459 | | | EOG Resources, Inc. | | | 1,002,476 | | | |
| | 10,265 | | | Occidental Petroleum Corp. | | | 1,072,590 | | | |
| | 69,874 | | | PetroHawk Energy Corp.* | | | 1,714,708 | | | |
| | 110,343 | | | Tullow Oil PLC | | | 2,562,823 | | | |
| | | | | | | | 10,858,234 | | | |
| Oil Companies – Integrated – 0.6% | | | | | | |
| | 39,696 | | | Petroleo Brasileiro S.A. (ADR) | | | 1,604,909 | | | |
| Oil Refining and Marketing – 1.6% | | | | | | |
| | 80,664 | | | Reliance Industries, Ltd. | | | 1,897,838 | | | |
| | 89,892 | | | Valero Energy Corp. | | | 2,680,580 | | | |
| | | | | | | | 4,578,418 | | | |
| Pharmacy Services – 1.0% | | | | | | |
| | 26,784 | | | Express Scripts, Inc. – Class A* | | | 1,489,458 | | | |
| | 25,816 | | | Medco Health Solutions, Inc.* | | | 1,449,827 | | | |
| | | | | | | | 2,939,285 | | | |
| Pipelines – 0.4% | | | | | | |
| | 17,522 | | | Kinder Morgan Management LLC* | | | 1,149,268 | | | |
| Printing – Commercial – 0.5% | | | | | | |
| | 28,753 | | | VistaPrint N.V. (U.S. Shares)* | | | 1,492,281 | | | |
| Real Estate Management/Services – 0.7% | | | | | | |
| | 13,501 | | | Jones Lang LaSalle, Inc. | | | 1,346,590 | | | |
| | 40,000 | | | Mitsubishi Estate Co., Ltd. | | | 676,767 | | | |
| | | | | | | | 2,023,357 | | | |
| Real Estate Operating/Development – 0.9% | | | | | | |
| | 19,479 | | | Brookefield Asset Management, Inc. – Class A (U.S. Shares) | | | 632,288 | | | |
| | 409,995 | | | Hang Lung Properties, Ltd. | | | 1,794,779 | | | |
| | | | | | | | 2,427,067 | | | |
See Notes to Schedules of Investments and Financial Statements.
36 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Retail – Apparel and Shoe – 1.6% | | | | | | |
| | 14,300 | | | Fast Retailing Co., Ltd. | | $ | 1,790,079 | | | |
| | 85,645 | | | Limited Brands, Inc. | | | 2,816,008 | | | |
| | | | | | | | 4,606,087 | | | |
| Retail – Bedding – 0.6% | | | | | | |
| | 35,484 | | | Bed Bath & Beyond, Inc.* | | | 1,712,813 | | | |
| Retail – Jewelry – 0.7% | | | | | | |
| | 35,847 | | | Compagnie Financiere Richemont S.A. | | | 2,071,099 | | | |
| Retail – Major Department Stores – 0.9% | | | | | | |
| | 56,266 | | | Nordstrom, Inc. | | | 2,525,218 | | | |
| Rubber/Plastic Products – 1.1% | | | | | | |
| | 781,795 | | | Jain Irrigation Systems, Ltd. | | | 3,136,648 | | | |
| Semiconductor Components/Integrated Circuits – 1.6% | | | | | | |
| | 170,540 | | | Atmel Corp.* | | | 2,324,460 | | | |
| | 875,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 2,101,548 | | | |
| | | | | | | | 4,426,008 | | | |
| Semiconductor Equipment – 0.9% | | | | | | |
| | 57,446 | | | ASML Holdings N.V. (U.S. Shares) | | | 2,556,347 | | | |
| Soap and Cleaning Preparations – 0.7% | | | | | | |
| | 41,213 | | | Reckitt Benckiser Group PLC | | | 2,116,708 | | | |
| Steel – Producers – 1.0% | | | | | | |
| | 74,555 | | | ArcelorMittal | | | 2,696,560 | | | |
| Telecommunication Equipment – 0.3% | | | | | | |
| | 184,263 | | | Tellabs, Inc. | | | 965,538 | | | |
| Telecommunication Services – 1.0% | | | | | | |
| | 98,911 | | | Amdocs, Ltd. (U.S. Shares)* | | | 2,853,582 | | | |
| Television – 0.5% | | | | | | |
| | 56,203 | | | CBS Corp. – Class B | | | 1,407,323 | | | |
| Tobacco – 2.3% | | | | | | |
| | 56,665 | | | British American Tobacco PLC | | | 2,274,089 | | | |
| | 607 | | | Japan Tobacco, Inc. | | | 2,193,404 | | | |
| | 31,939 | | | Philip Morris International, Inc. | | | 2,096,157 | | | |
| | | | | | | | 6,563,650 | | | |
| Toys – 1.2% | | | | | | |
| | 90,784 | | | Mattel, Inc. | | | 2,263,245 | | | |
| | 3,800 | | | Nintendo Co., Ltd. | | | 1,026,768 | | | |
| | | | | | | | 3,290,013 | | | |
| Transportation – Services – 2.4% | | | | | | |
| | 48,848 | | | C.H. Robinson Worldwide, Inc. | | | 3,621,102 | | | |
| | 41,303 | | | United Parcel Service, Inc. – Class B | | | 3,069,639 | | | |
| | | | | | | | 6,690,741 | | | |
| Web Portals/Internet Service Providers – 0.8% | | | | | | |
| | 3,804 | | | Google, Inc. – Class A* | | | 2,229,943 | | | |
| Wire and Cable Products – 1.5% | | | | | | |
| | 192,351 | | | Prysmian SpA | | | 4,126,557 | | | |
| Wireless Equipment – 0.7% | | | | | | |
| | 48,611 | | | Crown Castle International Corp.* | | | 2,068,398 | | | |
| |
| |
| Total Common Stock (cost $230,721,305) | | | 280,446,125 | | | |
| |
| |
| Money Market – 1.3% | | | | | | |
| | 3,607,915 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $3,607,915) | | | 3,607,915 | | | |
| |
| |
| Total Investments (total cost $234,329,220) – 100.3% | | | 284,054,040 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | | | (782,312) | | | |
| |
| |
| Net Assets – 100% | | $ | 283,271,728 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 3,542,792 | | | | 1.2% | |
| Belgium | | | 1,829,769 | | | | 0.6% | |
| Bermuda | | | 3,861,866 | | | | 1.4% | |
| Brazil | | | 6,787,641 | | | | 2.4% | |
| Canada | | | 16,779,586 | | | | 5.9% | |
| Cayman Islands | | | 0 | | | | 0.0% | |
| France | | | 5,595,356 | | | | 2.0% | |
| Germany | | | 4,811,931 | | | | 1.7% | |
| Guernsey | | | 2,853,582 | | | | 1.0% | |
| Hong Kong | | | 4,920,382 | | | | 1.7% | |
| India | | | 8,964,746 | | | | 3.2% | |
| Ireland | | | 3,125,210 | | | | 1.1% | |
| Italy | | | 4,126,557 | | | | 1.5% | |
| Japan | | | 16,694,930 | | | | 5.9% | |
| Jersey | | | 1,289,357 | | | | 0.5% | |
| Luxembourg | | | 2,696,560 | | | | 1.0% | |
| Mexico | | | 1,158,921 | | | | 0.4% | |
| Netherlands | | | 5,623,575 | | | | 2.0% | |
| Singapore | | | 2,295,191 | | | | 0.8% | |
| South Korea | | | 1,788,648 | | | | 0.6% | |
| Switzerland | | | 4,954,033 | | | | 1.7% | |
| Taiwan | | | 2,101,548 | | | | 0.7% | |
| United Kingdom | | | 31,581,982 | | | | 11.1% | |
United States†† | | | 146,669,877 | | | | 51.6% | |
| |
| |
| Total | | $ | 284,054,040 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (50.4% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 37
Janus Global Select Fund (unaudited)
| | | | | | | |
Fund Snapshot
We believe that investing in companies that are creating value by executing on a strategy to sustain or improve their economic profit margin but trading below 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 or geography.
| | | | | | 
John Eisinger
portfolio manager |
Performance Overview
For the six-month period ended March 31, 2011, Janus Global Select Fund’s Class T Shares returned 12.84% versus a return of 13.54% for the Fund’s primary benchmark, the MSCI All Country World Index. The Fund’s secondary benchmark, the Russell 3000 Growth Index, returned 19.33% for the period.
After a strong start to the year, global stocks pulled back later in the period as unrest in the Middle East and the natural disaster in Japan raised fears of a global economic slowdown. Company fundamentals took a back seat to macro concerns in this environment and the Fund underperformed its primary benchmark for the period.
We have been slowly shifting exposure out of developed markets (after strong outperformance) and adding positions to emerging markets that have underperformed recently. For the past couple of years it has been difficult for us to find attractively-valued equities in emerging markets, which have been a consensus favorite among investors. As a result, we had been finding more value in developed market stocks, which the portfolio’s performance has reflected. High relative valuations in emerging markets, combined with rising inflation and the onset of a monetary tightening cycle, led markets like China to underperform the S&P by nearly 30% over the past 15 months. In a similar fashion, India has underperformed by nearly 15% recently. However, this underperformance has created opportunities to shift money out of developed markets and into emerging markets. We want to be clear that we are making the transition slowly, as inflation and growth in many of these economies remains too high for the comfort levels of most central banks. We expect continued tightening measures aimed at slowing these economies for the remainder of 2011. Consequently, we plan to use the next nine months to take advantage of pullbacks in emerging markets to increase exposure to these stocks.
Within the emerging market universe, we are finding attractive opportunities in small- and mid-cap stocks in countries like China and India. We are buying positions in companies that are generating double-digit revenue growth with high returns on capital, yet have stock prices trading at mid-single-digit multiples.
While the best returns in the last two years were from the most beaten-down stocks, we believe things are changing and we now see opportunities to shift into growth stocks with a multi-year horizon. This is partly due to the opportunities in emerging markets discussed above. The flexibility to invest across market capitalizations and styles is a key attribute to this Fund. We are leveraging that flexibility to shift the portfolio into a different style of stock than we have been invested in for the past few years, although as always, we apply the same consistent process to identify intrinsic value and misunderstood valuations.
Any discussion on stocks would not be complete without talking about the potential headwinds or risks to our cautiously optimistic outlook.
U.K.: a double dip recession is increasingly likely as spending cuts, tax increases and negative real wage growth take their toll. We are beginning to see this in retail sales and hotel room rates. This confluence of negativity will likely keep the Bank of England on hold for the near term. We are finding attractively-valued stocks in the U.K., but have not yet started to buy as we are waiting for more clarity on the potential depth and duration of any double dip before investing more heavily.
Euro zone: contrary to popular belief, inflation is not the problem in our opinion. Over the last two years, the euro zone has experienced almost no money supply growth with below inflation wage increases and low core consumer prices, while overseeing unsustainable current account and budget deficits, an appreciating currency and a likely increase in taxes. We acknowledge the current strength in Germany, but we worry about a potential sustained increase in rates from the European Central Bank (ECB). If the ECB continues to raises rates we think the central bank risks repeating the mistakes it made in 2008 and risks sending the region into a recession. Unlike in the U.K., the euro zone is unlikely to devalue its currency, which will further compound its struggles. Stock
38 | MARCH 31, 2011
(unaudited)
selection is the key to successful investing in the region and the Fund is focused on special situations and companies exposed to global growth.
Japan: the country continues to suffer from a severe deflationary environment, and the recent tragic earthquake and tsunami will likely end up sending the country into a recession in the short-term (although the duration could be reduced through the stimulus of quantitative easing and rebuilding). We would expect a strong second half of 2011 for Japan. We find the valuation of the market attractive with many companies trading at or near book value, but it remains difficult to find companies that are skilled capital allocators. While a single digit return on capital may look good relative to comparatively low cost of debt in Japan, those metrics do not compare well globally.
Emerging markets: economies need to slow. Most emerging markets have a monetary problem where central banks have held an easy policy for too long. Money supply is still growing in the mid teens, year-over-year, with interest rates that have only recently begun to rise. This is driving accelerating inflation, which likely will pressure corporate margins, as both wages and input prices rise faster than sale prices. At some point, the only viable option for these economies will be to let their currencies appreciate. Performance and volatility of emerging market stocks in the short term will be driven by what the U.S. decides about a potential third round of quantitative easing (QE3). In the long-term, however, we are very optimistic about growth in these economies and have positioned the portfolio into companies that have been generating very high returns with open-ended growth, trading at low valuations.
U.S.: For the past few years we have been bullish on U.S. equities as an increase in profits and rising CEO confidence drove an increase in capital expenditures and employment against a backdrop of attractively-valued stocks. While we are cognizant of ongoing macro uncertainty, the recovery in capital spending, employment and earnings continues. At current consensus estimates of $95 to $100 in 2011 earnings, the S&P trades at a price-to-earnings ratio of around 13 times, which remains well below its long-term average.
Currently, we see little evidence of sustainable inflation in the U.S., which should result in a continued and favorable, low-interest-rate environment. The inflation we are seeing is more representative of a price shock that we believe will be temporary as rising prices ultimately result in demand destruction and then trade down, thus self-correcting. In addition, there are no signs of wage inflation, which we believe is a more important indicator of broad-based inflation. However, we are cognizant of the risk that a price shock can have to company earnings as margins get squeezed from higher input costs and potentially disappointing top line sales (due to demand destruction and trade down).
The second issue we are monitoring closely is what happens when QE2 ends in June. Private debt in the U.S. was increasing at $5 trillion per year leading up to the crisis and is now declining at $2 trillion per year. That is a $7 trillion delta or about 50% of GDP! The Federal Reserve’s (Fed) $2 trillion in QE purchases helped offset this decline, stave off a depression and drive fixed income spreads tighter, but it is not doing much else in terms of increasing the amount of money flowing through the economy (if you look at proxies like bank loans). Besides a small multiple lift, we do not believe QE was responsible for driving up stock prices; rather, it was the 47% increase in S&P earnings last year that did the trick.
The one asset class that has been positively correlated to QE is commodities. Will the end of QE2 mean a peaking of commodity prices? It is possible. Will QE3 be initiated? It depends on what happens to employment over the coming months. If employment worsens, the probability rises that the Fed will embark on QE3, which will further drive up commodity prices and result in U.S. equities outperforming the rest of the world – especially emerging markets, which would likely react negatively to another bout of commodity inflation. If QE3 is not started, it is because employment continues to improve, which also should be good for stocks.
Strategy Overview
Stock selection drove the Fund’s underperformance relative to its primary benchmark during the period, particularly in the energy, materials and industrials sectors. Our top individual detractor was Egyptian steel company EZZ Steel. We were attracted to the firm’s strong growth and margin improvement; however, political unrest in Egypt caused the stock to decline sharply. Our ownership is under review. Shares of Tellabs also declined. We believe the company is significantly mispriced, looking at its ability to sustain high levels of free cash flow relative to its current enterprise value. Further, we believe the company is finding other ways to create value, such as ongoing cost cuts and improved capital allocation. We are very excited about the potential of this investment and added to the position during its recent pullback. Another detractor was the Indian firm Jain Irrigation Systems, which declined amid a broad sell-off in the Indian market. We like the company’s market-leading position in India’s micro-irrigation systems. We feel these irrigation systems
Janus Global & International Funds | 39
Janus Global Select Fund (unaudited)
are the fastest way to improve agricultural yields and represent a large market opportunity.
One of our largest holdings, Atmel, was also our largest individual contributor during the period. The company has restructured some of its manufacturing facilities, which has resulted in higher profit margins, and it has gained market share with its micro-controller devices. In addition, Atmel’s products enable touch functionality in products such as Android mobile devices and tablet PCs, which are experiencing rapid growth. Another significant contributor was Valeant Pharmaceuticals. We believe management has transformed the specialty pharmaceutical company by improving margins, incentives and the company’s growth profile. It has demonstrated a keen ability to make value-enhancing acquisitions. The company was particularly strengthened via a merger with Canadian specialty drug maker Biovail in 2010. Our holdings in eBay also contributed to relative results. We remain attracted to the company for its PayPal online payments business, which we feel is an undervalued asset with attractive growth prospects.
Derivatives
During the period, the Fund was long and short options on individual stocks and indices. The objectives of the derivative strategies are to generate income for the Fund and to reduce the impact of a downside move in the market. Derivatives detracted from the Fund’s performance during the period. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
Our operating assumption is that the U.S. will not embark on QE3 and that emerging markets will continue to slow their economies. This combination should naturally start to cool down inflation. Longer term we remain optimistic about global growth. We are focused on finding and owning companies that can sustain growth and high returns on capital, yet trade below intrinsic value due to shorter-term, macro-related concerns. We have positioned the Fund into what we believe are very attractive risk-reward opportunities in what is likely to be a volatile, stock picker’s market. As always, we thank you for the confidence you have placed in us to manage your hard-earned money.
40 | MARCH 31, 2011
(unaudited)
Janus Global Select Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Atmel Corp. | | | 3.16% | |
| Valeant Pharmaceuticals International, Inc. | | | 1.67% | |
| Wesco International, Inc. | | | 1.19% | |
| eBay, Inc. | | | 1.18% | |
| ON Semiconductor Corp. | | | 0.99% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Ezz Steel Co. S.A.E. | | | –0.92% | |
| Tellabs, Inc. | | | –0.72% | |
| Jain Irrigation Systems, Ltd. | | | –0.50% | |
| Bwin.Party Digital Entertainment PLC | | | –0.48% | |
| Microsoft Corp. | | | –0.42% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | All Country World IndexSM |
| |
| Information Technology | | | 6.46% | | | | 26.26% | | | | 11.90% | |
| Financials | | | 2.76% | | | | 24.82% | | | | 21.00% | |
| Health Care | | | 2.26% | | | | 5.48% | | | | 8.17% | |
| Energy | | | 1.49% | | | | 10.28% | | | | 11.48% | |
| Industrials | | | 0.30% | | | | 7.31% | | | | 10.74% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | All Country World IndexSM |
| |
| Consumer Staples | | | –0.15% | | | | 0.85% | | | | 9.30% | |
| Telecommunication Services | | | –0.05% | | | | 6.32% | | | | 4.69% | |
| Utilities | | | 0.00% | | | | –0.12% | | | | 3.93% | |
| Materials | | | 0.18% | | | | 11.47% | | | | 8.94% | |
| Consumer Discretionary | | | 0.28% | | | | 7.33% | | | | 9.86% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 41
Janus Global Select Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Ivanhoe Mines, Ltd.
Metal – Diversified | | | 4.8% | |
Morgan Stanley
Diversified Banking Institutions | | | 4.0% | |
Prudential PLC
Life and Health Insurance | | | 3.6% | |
OGX Petroleo e Gas Participacoes S.A.
Oil Companies – Exploration and Production | | | 3.5% | |
ON Semiconductor Corp.
Electronic Components – Semiconductors | | | 3.2% | |
| | | | | |
| | | | 19.1% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 22.1% for long positions of total net assets.
*Includes Security Sold Short of (0.2)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
42 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 prospectuses |
| | | Fiscal
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | | Year-to-Date | | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class A Shares | | | | | | | | | | | | | | | |
| NAV | | 12.80% | | 16.19% | | 6.38% | | 8.86% | | 2.27% | | | 1.11% | | 1.11% |
| MOP | | 6.32% | | 9.52% | | 5.12% | | 8.22% | | 1.71% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 12.35% | | 15.32% | | 5.52% | | 8.04% | | 1.50% | | | 1.88% | | 1.88% |
| CDSC | | 11.23% | | 14.17% | | 5.52% | | 8.04% | | 1.50% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class D Shares(1) | | 12.94% | | 16.43% | | 6.47% | | 8.91% | | 2.31% | | | 0.90% | | 0.90% |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class I Shares | | 12.90% | | 16.49% | | 6.45% | | 8.90% | | 2.31% | | | 0.79% | | 0.79% |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class R Shares | | 12.64% | | 15.81% | | 5.90% | | 8.39% | | 1.82% | | | 1.50% | | 1.50% |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class S Shares | | 12.70% | | 16.08% | | 6.17% | | 8.65% | | 2.07% | | | 1.24% | | 1.24% |
| | | | | | | | | | | | | | | | |
| Janus Global Select Fund – Class T Shares | | 12.84% | | 16.33% | | 6.45% | | 8.90% | | 2.31% | | | 1.01% | | 1.01% |
| | | | | | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World IndexSM | | 13.54% | | 14.08% | | 2.94% | | 5.04% | | 2.19% | | | | | |
| | | | | | | | | | | | | | | | |
| Russell 3000® Growth Index | | 19.33% | | 19.24% | | 4.32% | | 3.26% | | –1.86% | | | | | |
| | | | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 1.00% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 1st | | 1st | | 1st | | 2nd | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Funds | | – | | 148/647 | | 19/354 | | 7/180 | | 67/156 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
Janus Global & International Funds | 43
Janus Global Select 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 effective for shares purchased on or after January 28, 2011. 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 services 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 January 31, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), derivatives, and short sales. 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 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.
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 from 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.
Class A Shares, Class C Shares, Class R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers. 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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
44 | MARCH 31, 2011
(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 applicable 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.
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 Global & International Funds | 45
Janus Global Select Fund (unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,128.00 | | | $ | 5.73 | | | |
| |
| |
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 C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,123.50 | | | $ | 9.58 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.91 | | | $ | 9.10 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,129.40 | | | $ | 4.51 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.69 | | | $ | 4.28 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,129.00 | | | $ | 4.41 | | | |
| |
| |
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 R Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,126.40 | | | $ | 7.79 | | | |
| |
| |
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 S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,127.00 | | | $ | 6.47 | | | |
| |
| |
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 T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,128.40 | | | $ | 5.15 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.09 | | | $ | 4.89 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.08% for Class A Shares, 1.81% for Class C Shares, 0.85% for Class D Shares, 0.83% for Class I Shares,1.47% for Class R Shares, 1.22% for Class S Shares and 0.97% 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. |
46 | MARCH 31, 2011
Janus Global Select Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amounts | | Value | | | |
| |
| Common Stock – 94.8% | | | | | | |
| Automotive – Cars and Light Trucks – 2.2% | | | | | | |
| | 49,322,000 | | | Dongfeng Motor Group Co., Ltd. | | $ | 83,954,499 | | | |
| Cable Television – 2.7% | | | | | | |
| | 1,913,785 | | | Kabel Deutschland Holding A.G.*,** | | | 101,422,036 | | | |
| Chemicals – Diversified – 2.3% | | | | | | |
| | 2,213,705 | | | LyondellBasell Industries N.V.*,** | | | 87,552,033 | | | |
| Coal – 1.0% | | | | | | |
| | 19,814,000 | | | Straits Asia Resources, Ltd. | | | 39,464,482 | | | |
| Coatings and Paint Products – 1.4% | | | | | | |
| | 911,690 | | | Asian Paints, Ltd. | | | 51,642,669 | | | |
| Commercial Banks – 9.1% | | | | | | |
| | 9,214,348 | | | Banco Bilbao Vizcaya Argentaria S.A.** | | | 111,778,089 | | | |
| | 5,761,400 | | | Banco do Brasil S.A.** | | | 104,325,860 | | | |
| | 39,772,198 | | | Bank of Ayudhya PCL | | | 32,628,201 | | | |
| | 58,253,000 | | | China Citic Bank Corp., Ltd. | | | 42,388,694 | | | |
| | 13,527,202 | | | Commercial Bank of Ayudhya PCL | | | 11,097,407 | | | |
| | 408,940 | | | Credicorp, Ltd.** | | | 42,910,074 | | | |
| | | | | | | | 345,128,325 | | | |
| Cosmetics and Toiletries – 1.1% | | | | | | |
| | 16,977,750 | | | L’Occitane International S.A.* | | | 41,864,321 | | | |
| Distribution/Wholesale – 1.6% | | | | | | |
| | 1,004,115 | | | Wesco International, Inc.*,**,£ | | | 62,757,187 | | | |
| Diversified Banking Institutions – 7.5% | | | | | | |
| | 7,048,015 | | | Bank of America Corp.** | | | 93,950,040 | | | |
| | 8,495,545 | | | Citigroup, Inc. | | | 37,550,309 | | | |
| | 5,586,010 | | | Morgan Stanley** | | | 152,609,793 | | | |
| | | | | | | | 284,110,142 | | | |
| Diversified Operations – 1.1% | | | | | | |
| | 9,958,000 | | | China Resources Enterprise, Ltd. | | | 40,455,215 | | | |
| E-Commerce/Services – 2.8% | | | | | | |
| | 3,447,265 | | | eBay, Inc.*,** | | | 107,003,106 | | | |
| Electronic Components – Miscellaneous – 2.0% | | | | | | |
| | 2,134,808 | | | TE Connectivity, Ltd. (U.S. Shares)** | | | 74,334,014 | | | |
| Electronic Components – Semiconductors – 4.3% | | | | | | |
| | 3,542,000 | | | MediaTek, Inc. | | | 40,727,879 | | | |
| | 12,392,126 | | | ON Semiconductor Corp.*,** | | | 122,310,283 | | | |
| | | | | | | | 163,038,162 | | | |
| Electronic Measuring Instruments – 1.9% | | | | | | |
| | 22,771,000 | | | Chroma ATE, Inc.£ | | | 73,592,278 | | | |
| Enterprise Software/Services – 1.6% | | | | | | |
| | 2,434,352 | | | Autonomy Corp. PLC*,** | | | 62,045,832 | | | |
| Insurance Brokers – 1.1% | | | | | | |
| | 38,167 | | | Brasil Insurance Participacoes e Administracao S.A.*,** | | | 42,098,535 | | | |
| Internet Gambling – 2.5% | | | | | | |
| | 29,219,802 | | | Bwin.Party Digital Entertainment PLC*,**,£ | | | 93,737,335 | | | |
| Life and Health Insurance – 3.6% | | | | | | |
| | 11,905,459 | | | Prudential PLC** | | | 134,916,059 | | | |
| Machine Tools and Related Products – 1.0% | | | | | | |
| | 1,459,700 | | | THK Co., Ltd. | | | 36,720,688 | | | |
| Medical – Biomedical and Genetic – 1.2% | | | | | | |
| | 968,505 | | | Vertex Pharmaceuticals, Inc.*,** | | | 46,420,445 | | | |
| Medical – Drugs – 3.6% | | | | | | |
| | 3,155,120 | | | Pfizer, Inc.** | | | 64,080,487 | | | |
| | 1,441,655 | | | Valeant Pharmaceuticals International, Inc.** | | | 71,808,836 | | | |
| | | | | | | | 135,889,323 | | | |
| Metal – Diversified – 4.8% | | | | | | |
| | 6,612,628 | | | Ivanhoe Mines, Ltd.*,** | | | 181,417,435 | | | |
| Metal Processors and Fabricators – 0.9% | | | | | | |
| | 49,030,000 | | | EVA Precision Industrial Holdings, Ltd.£ | | | 35,866,539 | | | |
| Multi-Line Insurance – 4.9% | | | | | | |
| | 39,450,964 | | | Fortis** | | | 112,082,955 | | | |
| | 5,933,316 | | | ING Groep N.V.*,** | | | 75,087,067 | | | |
| | | | | | | | 187,170,022 | | | |
| Oil and Gas Drilling – 0.8% | | | | | | |
| | 4,319,857 | | | Karoon Gas Australia, Ltd.*,** | | | 31,985,043 | | | |
| Oil Companies – Exploration and Production – 7.2% | | | | | | |
| | 2,301,660 | | | Cobalt International Energy, Inc.* | | | 38,690,905 | | | |
| | 2,445,755 | | | Gazprom OAO** | | | 79,169,089 | | | |
| | 11,088,500 | | | OGX Petroleo e Gas Participacoes S.A.*,** | | | 133,518,613 | | | |
| | 418,180 | | | Ultra Petroleum Corp. (U.S. Shares)*,** | | | 20,595,365 | | | |
| | | | | | | | 271,973,972 | | | |
| Retail – Apparel and Shoe – 1.8% | | | | | | |
| | 43,041,000 | | | Anta Sports Products, Ltd. | | | 66,844,334 | | | |
| Rubber/Plastic Products – 1.8% | | | | | | |
| | 17,324,861 | | | Jain Irrigation Systems, Ltd. | | | 69,509,254 | | | |
| Semiconductor Components/Integrated Circuits – 2.8% | | | | | | |
| | 7,857,649 | | | Atmel Corp.*,** | | | 107,099,756 | | | |
| Shipbuilding – 1.1% | | | | | | |
| | 129,500 | | | OSX Brasil S.A.*,** | | | 40,471,230 | | | |
| Steel – Producers – 2.9% | | | | | | |
| | 18,507,681 | | | Al Ezz Steel Rebars S.A.E.* | | | 32,404,753 | | | |
| | 2,138,819 | | | ArcelorMittal** | | | 77,358,378 | | | |
| | | | | | | | 109,763,131 | | | |
| Telecommunication Equipment – 3.2% | | | | | | |
| | 22,835,626 | | | Tellabs, Inc.**,£ | | | 119,658,680 | | | |
| Telephone – Integrated – 2.2% | | | | | | |
| | 53,836,231 | | | Telecom Italia SpA** | | | 82,769,810 | | | |
| Transportation – Services – 1.7% | | | | | | |
| | 1,212,646 | | | Gategroup Holding A.G.* | | | 63,854,753 | | | |
| Wireless Equipment – 3.1% | | | | | | |
| | 2,724,126 | | | Crown Castle International Corp.*,** | | | 115,911,561 | | | |
| |
| |
| Total Common Stock (cost $2,971,365,751) | | | 3,592,442,206 | | | |
| |
| |
| Purchased Options – Calls – 0.2% | | | | | | |
| | 2,200 | | | Goldman Sachs Group, Inc.
expires April 2011
exercise price $170.00 | | | 22,854 | | | |
| | 5,000 | | | K+S A.G.
expires June 2011
exercise price 60.44 EUR | | | 259,216 | | | |
| | 2,500 | | | K+S A.G.
expires June 2011
exercise price 63.32 EUR | | | 62,288 | | | |
| | 26,000 | | | Microsoft Corp.
expires January 2012
exercise price $27.50 | | | 2,995,439 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 47
Janus Global Select Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amounts | | Value | | | |
| |
| Purchased Options – Calls – (continued) | | | | | | |
| | | | | | | | | | | |
| | 29,000 | | | Microsoft Corp.
expires January 2012
exercise price $27.50 | | $ | 3,341,067 | | | |
| | 320 | | | Nikkei 225 Index
expires January 2012
exercise price 10,117.25 JPY | | | 2,215,498 | | | |
| |
| |
| Total Purchased Options – Calls (premiums paid $15,404,662) | | | 8,896,362 | | | |
| |
| |
| Purchased Option – Put – 0.1% | | | | | | |
| | 750 | | | S&P 500® Index
expires May 2011
exercise price $1,330.00
(premiums paid $3,301,500) | | | 2,520,742 | | | |
| |
| |
| Money Market – 4.3% | | | | | | |
| | 161,496,533 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $161,496,533) | | | 161,496,533 | | | |
| |
| |
| Total Investments (total cost $3,151,568,446) – 99.4% | | | 3,765,355,843 | | | |
| |
| |
| Security Sold Short – (0.2)% | | | | | | |
| Common Stock Sold Short – (0.2)% | | | | | | |
| Telecommunication Equipment – Fiber Optics – (0.2)% | | | | | | |
| | 300,000 | | | JDS Uniphase Corp.
(proceeds $7,799,850) | | | (6,784,500) | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities**– 0.8% | | | 31,376,756 | | | |
| |
| |
| Net Assets – 100% | | $ | 3,789,948,099 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 31,985,043 | | | | 0.8% | |
| Belgium | | | 112,082,955 | | | | 3.0% | |
| Bermuda | | | 42,910,074 | | | | 1.1% | |
| Brazil | | | 320,414,238 | | | | 8.5% | |
| Canada | | | 273,821,636 | | | | 7.3% | |
| Cayman Islands | | | 102,710,873 | | | | 2.7% | |
| China | | | 126,343,193 | | | | 3.4% | |
| Egypt | | | 32,404,753 | | | | 0.9% | |
| Germany | | | 101,422,036 | | | | 2.7% | |
| Gibraltar | | | 93,737,335 | | | | 2.5% | |
| Hong Kong | | | 82,319,536 | | | | 2.2% | |
| India | | | 121,151,923 | | | | 3.2% | |
| Italy | | | 82,769,810 | | | | 2.2% | |
| Japan | | | 36,720,688 | | | | 1.0% | |
| Luxembourg | | | 77,358,378 | | | | 2.0% | |
| Netherlands | | | 162,639,100 | | | | 4.3% | |
| Russia | | | 79,169,089 | | | | 2.1% | |
| Singapore | | | 39,464,482 | | | | 1.0% | |
| Spain | | | 111,778,089 | | | | 3.0% | |
| Switzerland | | | 138,188,767 | | | | 3.7% | |
| Taiwan | | | 114,320,157 | | | | 3.0% | |
| Thailand | | | 43,725,608 | | | | 1.2% | |
| United Kingdom | | | 196,961,891 | | | | 5.2% | |
United States†† | | | 1,240,956,189 | | | | 33.0% | |
| |
| |
| Total | | $ | 3,765,355,843 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (28.7% excluding Cash Equivalents). |
Summary of Investments by Country – (Short Positions)
| | | | | | | | | |
| | | | | | % of Securities
| |
| | | Value | | | Sold Short | |
| |
| |
| United States | | $ | (6,784,500) | | | | 100.0% | |
| |
| |
| Total | | $ | (6,784,500) | | | | 100.0% | |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| Australian Dollar 5/6/11 | | | 3,000,000 | | | $ | 3,089,071 | | | $ | (61,771) | |
| Brazilian Real 5/6/11 | | | 78,875,000 | | | | 48,027,042 | | | | (1,341,632) | |
| British Pound 5/6/11 | | | 50,000,000 | | | | 80,167,680 | | | | 959,321 | |
| Euro 5/6/11 | | | 60,500,000 | | | | 85,671,961 | | | | (2,022,241) | |
| |
| |
| | | | | | | | 216,955,754 | | | | (2,466,323) | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| Australian Dollar 5/12/11 | | | 6,200,000 | | | | 6,378,697 | | | | (179,751) | |
| Brazilian Real 5/12/11 | | | 98,488,000 | | | | 59,881,473 | | | | (1,334,332) | |
| British Pound 5/12/11 | | | 30,000,000 | | | | 48,095,663 | | | | 626,737 | |
| Euro 5/12/11 | | | 69,000,000 | | | | 97,695,642 | | | | (66,506) | |
| |
| |
| | | | | | | | 212,051,475 | | | | (953,852) | |
| |
| |
| JPMorgan Chase & Co.: | | | | | | | | | | | | |
| Australian Dollar 4/28/11 | | | 5,000,000 | | | | 5,154,086 | | | | (133,736) | |
| Brazilian Real 4/28/11 | | | 79,000,000 | | | | 48,187,273 | | | | (1,519,031) | |
| British Pound 4/28/11 | | | 53,900,000 | | | | 86,430,841 | | | | 1,161,869 | |
| Euro 4/28/11 | | | 70,500,000 | | | | 99,849,471 | | | | (3,932,811) | |
| |
| |
| | | | | | | | 239,621,671 | | | | (4,423,709) | |
| |
| |
RBC Capital Markets Corp.:
British Pound 4/7/11 | | | 32,000,000 | | | | 51,326,263 | | | | 475,305 | |
| |
| |
| Total | | | | | | $ | 719,955,163 | | | $ | (7,368,579) | |
| | | | | | | |
| |
| |
| Financial Futures – Long |
| 524 Contracts | | Nikkei 225 (OSE) Futures
expires June 2011, principal amount $52,388,048, value $61,498,798, cumulative appreciation | | $ | 9,110,750 | |
| |
| |
| Financial Futures – Short |
| 24,596 Contracts | | ISE 30 Futures
expires April 2011, principal amount $117,949,251, value $123,736,677, cumulative depreciation | | | (5,787,426) | |
| 910 Contracts | | Russell 2000 Index Mini Futures
expires June 2011, principal amount $75,356,284, value $76,640,200, cumulative depreciation | | | (1,283,916) | |
| |
| |
| | | | | | (7,071,342) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
48 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| Schedule of Written Options – Calls | | Value | |
| | |
Gazprom OAO (ADR)
expires April 2011
6,400 contracts
exercise price $30.00 | | $ | (1,630,796) | |
S&P 500® Index
expires April 2011
2,500 contracts
exercise price $1,350.00 | | | (929,879) | |
S&P 500® Index
expires May 2011
2,590 contracts
exercise price $1,350.00 | | | (4,270,016) | |
S&P 500® Index
expires June 2011
730 contracts
exercise price $1,375.00 | | | (1,100,840) | |
| |
| |
Total Written Options – Calls
(premiums received $10,508,500 ) | | $ | (7,931,531) | |
| |
| |
| Schedule of Written Options – Puts | | | |
Atmel Corp.
expires May 2011
18,550 contracts
exercise price $10.00 | | $ | (249,353) | |
Celgene Corp.
expires April 2011
4,400 contracts
exercise price $45.00 | | | (1,037) | |
Cisco Systems, Inc.
expires June 2011
5,250 contracts
exercise price $16.00 | | | (199,237) | |
Cisco Systems, Inc.
expires June 2011
32,500 contracts
exercise price $16.00 | | | (1,300,000) | |
Cisco Systems, Inc.
expires June 2011
5,250 contracts
exercise price $17.00 | | | (358,050) | |
Cisco Systems, Inc.
expires June 2011
32,500 contracts
exercise price $17.00 | | | (2,405,000) | |
Crown Castle International Corp.
expires May 2011
3,690 contracts
exercise price $35.00 | | | (72,384) | |
Crown Castle International Corp.
expires July 2011
3,690 contracts
exercise price $35.00 | | | (193,151) | |
Finisar Corp.
expires June 2011
6,150 contracts
exercise price $22.00 | | | (927,317) | |
Goldman Sachs Group, Inc.
expires April 2011
2,200 contracts
exercise price $165.00 | | | (1,507,305) | |
K+S A.G.
expires June 2011
1,250 contracts
exercise price 48.93 EUR | | | (192,996) | |
K+S A.G.
expires June 2011
2,500 contracts
exercise price 51.81 EUR | | | (764,434) | |
K+S A.G.
expires June 2011
3,750 contracts
exercise price 54.68 EUR | | | (2,009,450) | |
Microsoft Corp.
expires January 2012
36,600 contracts
exercise price $24.00 | | | (6,515,221) | |
Microsoft Corp.
expires January 2012
16,000 contracts
exercise price $25.00 | | | (3,535,904) | |
Microsoft Corp.
expires January 2012
23,500 contracts
exercise price $25.00 | | | (5,193,359) | |
Microsoft Corp.
expires January 2012
29,000 contracts
exercise price $27.50 | | | (10,524,257) | |
Nikkei 225 Index
expires January 2012
320 contracts
exercise price 7,358.00 JPY | | | (791,990) | |
Tellabs, Inc.
expires April 2011
38,000 contracts
exercise price $5.00 | | | (474,080) | |
Vialog Corp.
expires June 2011
3,350 contracts
exercise price $50.00 | | | (554,977) | |
| |
| |
Total Written Options – Puts
(premiums received $35,195,566 ) | | $ | (37,769,502) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 49
Janus Global Select Fund
Schedule of Investments (unaudited)
As of March 31, 2011
Total Return Swaps outstanding at March 31, 2011
| | | | | | | | | | | | | | | | |
| | | Notional
| | | Return Paid
| | Return Received
| | | | Unrealized
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | Appreciation |
| |
| Credit Suisse Securities (Europe) Limited | | $ | 183,090,657 | | | | Custom Mideast Index
Swap | | | 1-month LIBOR minus
75 basis points | | 4/30/12 | | $ | 436,542 |
| Morgan Stanley | | | 12,931,068 | | | | India Custom Basket
Index | | | 1-month LIBOR minus
30 basis points | | 4/3/12 | | | 8,124,875 |
| UBS A.G. | | | 41,986,102 | | | | STOXX Europe 600
Banks Index | | | 1-month LIBOR minus
60 basis points | | 11/30/11 | | | 757,818 |
| |
| |
| Total | | | | | | | | | | | | | | $ | 9,319,235 |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
50 | MARCH 31, 2011
Janus Global Technology Fund (unaudited)
| | | | | | | |
Fund Snapshot
We seek to identify strong technology-related businesses with sustainable competitive advantages and improving returns on capital. We believe what sets us apart is the depth of our research, our investment conviction, and our commitment to delivering superior long-term results for our clients.
| | | | | | 
Barney Wilson
portfolio manager |
Performance
Janus Global Technology Fund’s Class T Shares returned 17.80% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the S&P 500 Index, returned 17.31%, and its secondary benchmark, the Morgan Stanley Capital International World Information Technology Index, returned 13.30% during the period.
Market Environment
The MSCI World Information Technology Index recorded a strong gain and reached its highest level since January 2008 before retreating modestly late in the period following unrest in the Middle East and North Africa and the tragic earthquake and tsunami in Japan.
Most well-positioned technology companies continued to deliver year-over-year revenue and free-cash-flow growth. We are not market timers but it seems to us that given the low multiples in technology stocks, there’s more upside than downside from here. This opportunity, we think, is especially true in large-cap technology stocks.
There have been some important changes in the last few years, including the rise of mobile computing and the deterioration of competitive barriers for companies once considered industry stalwarts. Another key industry theme is cloud computing, which has been driving the valuations of companies perceived to be part of the trend. In general, we believe the cloud label has propelled valuations to extraordinary levels. While it may be a big opportunity, not all companies will win. In fact, perhaps only a very small number will. We don’t think the market is doing a very good job distinguishing the potential winners from the likely losers.
While we focus on individual stock selection for the Fund, several themes have emerged. One important area for the coming years is called business analytics and data integration. It consists of companies that sell software and hardware that help customers better organize and analyze their data. This segment goes beyond traditional enterprise-wide database solutions. The software organizes and analyzes information in multiple databases and other locations, including outside the enterprise. With data growing almost 60% annually, the typical company will store more than 10 times the data it stores today in five years. The need for tools to sort out this growing pile of information is growing sharply. To invest in this area, we have sold and trimmed some of our semiconductor holdings, which we liked 12 to 18 months ago and were approaching our fair value targets.
The rise of computer tablets from a variety of vendors is also an important theme. Companies with significant exposure to PCs and laptops will likely face headwinds due to this new competitive threat; meanwhile, companies we believe are poised to benefit include suppliers.
Another key trend is increasing bandwidth demand for video. Over the past five years, video has grown rapidly from a small base, driven mostly by consumers accessing video via tethered connections. Thus far, video has not led to outperformance by equipment vendors, but we think this will change for three reasons: dramatic percentage increases in usage should take place from a much higher base; high-definition video is going into the corporate enterprise space; and video is going wireless.
In addition, we like software-as-a-service providers that dominate their niches. An example is Vocus, one of our top contributors for the period and a leading provider of public relations management software that we believe adds considerable value to its customers. In addition, we think the company has a small market share in a reasonably large market and, therefore, could grow significantly.
Finally, we continue to favor electronic connector companies. Although generally unappreciated by the market because they are low-cost products, connectors’ unique designs make them unlikely to be replaced once included in a product. Thus, we believe they are a better business than most investors realize.
We remain focused on our best individual stock opportunities. We think companies that can gain market
Janus Global & International Funds | 51
Janus Global Technology Fund (unaudited)
share can outpace the expected 5% information technology spending growth in coming years. We also have exposure to the storage market, which we believe could grow to be as large as the server industry in the next few years.
Contributors to Performance
Semiconductor holding Atmel was the top contributor for the period. The semiconductor company restructured some of its manufacturing facilities, which has resulted in higher profit margins, and it has gained market share with its micro-controller devices. In addition, Atmel’s products enable touch functionality in products such as Android mobile devices and tablets.
Texas Instruments’ shares also rallied sharply in the period. We exited our position in this quality semiconductor maker based on valuation; we believe the stock is no longer as meaningfully mispriced as when we purchased it.
As previously mentioned, Vocus was a key contributor as well. The on-demand public relations software provider 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.
Detractors from Performance
Networking solutions provider Cisco Systems, which has gone through a period of sluggish financial performance relative to expectations, was the Fund’s largest detractor. Our view on the company is under review.
Tellabs also weighed on performance. The telecommunications equipment maker focuses on the data connections between a wireless carrier’s core network and its wireless towers. While we are still assessing our view, we believe the company is well positioned to benefit from the growing data demands being placed on wireless networks from increased smart-phone usage.
Finally, Internet company AOL was weak during the period. We feel AOL’s relatively new management team is likely to deliver on its strategy to grow online advertising revenues.
(Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Conclusion
We focus on anticipating change, trying to determine which companies are going to win on a multi-year basis in the product marketplace, and on finding companies where we feel the price of the stock is below the value of the cash flows of the company. Our goal is to leverage the strong and thoughtful research done at Janus in order to uncover what we believe are the best investment opportunities for our fundholders.
Thank you for your investment in Janus Global Technology Fund.
52 | MARCH 31, 2011
(unaudited)
Janus Global Technology Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| �� |
| Atmel Corp. | | | 3.60% | |
| Texas Instruments, Inc. | | | 1.10% | |
| Vocus, Inc. | | | 1.00% | |
| TE Connectivity, Ltd. (U.S. Shares) | | | 0.87% | |
| Oracle Corp. | | | 0.82% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Cisco Systems, Inc. | | | –1.11% | |
| Tellabs, Inc. | | | –0.67% | |
| AOL, Inc. | | | –0.44% | |
| Longtop Financial Technologies, Ltd. (ADR) | | | –0.32% | |
| BM&F Bovespa S.A. | | | –0.26% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Information Technology | | | 17.85% | | | | 80.89% | | | | 18.85% | |
| Consumer Discretionary | | | 0.97% | | | | 7.21% | | | | 10.57% | |
| Health Care | | | 0.87% | | | | 5.92% | | | | 11.06% | |
| Industrials | | | 0.18% | | | | 2.54% | | | | 10.96% | |
| Consumer Staples | | | 0.00% | | | | 0.00% | | | | 10.62% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Financials | | | –0.26% | | | | 0.95% | | | | 15.86% | |
| Telecommunication Services | | | –0.08% | | | | 1.60% | | | | 3.02% | |
| Materials | | | –0.05% | | | | 0.89% | | | | 3.64% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 3.34% | |
| Energy | | | 0.00% | | | | 0.00% | | | | 12.08% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 53
Janus Global Technology Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Microsoft Corp.
Applications Software | | | 4.8% | |
ON Semiconductor Corp.
Electronic Components – Semiconductors | | | 4.6% | |
TE Connectivity, Ltd. (U.S. Shares)
Electronic Components – Miscellaneous | | | 4.2% | |
Amdocs, Ltd. (U.S. Shares)
Telecommunication Services | | | 3.9% | |
Atmel Corp.
Semiconductor Components/Integrated Circuits | | | 3.7% | |
| | | | | |
| | | | 21.2% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 3.1% for long positions of total net assets.
*Includes Security Sold Short of (0.7)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
54 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 17.69% | | 21.60% | | 7.08% | | 2.45% | | 5.01% | | | 1.26% |
| MOP | | 10.93% | | 14.61% | | 5.82% | | 1.84% | | 4.50% | | | |
| | | | | | | | | | | | | | |
| Janus Global Technology Fund – Class C Shares | | | | | | | | | | | | | |
| NAV | | 17.26% | | 20.69% | | 6.25% | | 1.72% | | 4.24% | | | 1.98% |
| CDSC | | 16.09% | | 19.49% | | 6.25% | | 1.72% | | 4.24% | | | |
| | | | | | | | | | | | | | |
| Janus Global Technology Fund – Class D Shares(1) | | 17.85% | | 21.84% | | 7.18% | | 2.56% | | 5.15% | | | 1.08% |
| | | | | | | | | | | | | | |
| Janus Global Technology Fund – Class I Shares | | 17.89% | | 21.86% | | 7.16% | | 2.55% | | 5.14% | | | 1.10% |
| | | | | | | | | | | | | | |
| Janus Global Technology Fund – Class S Shares | | 17.67% | | 21.51% | | 6.91% | | 2.30% | | 4.86% | | | 1.43% |
| | | | | | | | | | | | | | |
| Janus Global Technology Fund – Class T Shares | | 17.80% | | 21.79% | | 7.16% | | 2.55% | | 5.14% | | | 1.20% |
| | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 2.42% | | | |
| | | | | | | | | | | | | | |
| Morgan Stanley Capital International World Information Technology Index | | 13.30% | | 9.06% | | 3.02% | | 1.39% | | –0.19% | | | |
| | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 2nd | | 3rd | | 4th | | 3rd | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Science and Technology Funds | | – | | 20/42 | | 13/23 | | 11/13 | | 5/7 | | | |
| | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
Janus Global & International Funds | 55
Janus Global Technology 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.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), derivatives, and short sales. 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 invests 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 from 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, 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable fee and expense limitations or waivers.
56 | MARCH 31, 2011
(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.
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.”
Effective May 12, 2011, J. Bradley Slingerlend is the portfolio manager of the Fund.
| | | |
| * | | The Fund’s inception date – December 31, 1998 |
| (1) | | Closed to new investors. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,177.70 | | | $ | 6.41 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.05 | | | $ | 5.94 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,172.60 | | | $ | 10.18 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.56 | | | $ | 9.45 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,178.50 | | | $ | 5.05 | | | |
| |
| |
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 I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,178.90 | | | $ | 4.94 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.39 | | | $ | 4.58 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,176.70 | | | $ | 6.89 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,178.00 | | | $ | 5.54 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.85 | | | $ | 5.14 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.18% for Class A Shares, 1.88% for Class C Shares, 0.93% for Class D Shares, 0.91% for Class I Shares, 1.27% for Class S Shares and 1.02% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
Janus Global & International Funds | 57
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amount | | Value | | | |
| |
| Common Stock – 98.5% | | | | | | |
| Advanced Materials/Production – 2.1% | | | | | | |
| | 1,042,699 | | | STR Holdings, Inc.* | | $ | 19,998,967 | | | |
| Applications Software – 5.6% | | | | | | |
| | 1,812,173 | | | Microsoft Corp. | | | 45,956,707 | | | |
| | 301,380 | | | Quest Software, Inc.* | | | 7,652,038 | | | |
| | | | | | | | 53,608,745 | | | |
| Cable Television – 0.2% | | | | | | |
| | 2,282 | | | Jupiter Telecommunications Co., Ltd.** | | | 2,241,936 | | | |
| Casino Services – 0.7% | | | | | | |
| | 431,185 | | | International Game Technology | | | 6,998,133 | | | |
| Commercial Services – 0.9% | | | | | | |
| | 97,560 | | | Iron Mountain, Inc. | | | 3,046,799 | | | |
| | 542,354 | | | Live Nation, Inc.* | | | 5,423,540 | | | |
| | | | | | | | 8,470,339 | | | |
| Communications Software – 2.7% | | | | | | |
| | 1,097,980 | | | SolarWinds, Inc.* | | | 25,758,611 | | | |
| Computer Aided Design – 1.0% | | | | | | |
| | 176,205 | | | ANSYS, Inc.* | | | 9,548,549 | | | |
| Computer Services – 1.7% | | | | | | |
| | 99,313 | | | International Business Machines Corp. | | | 16,194,971 | | | |
| Computer Software – 0.6% | | | | | | |
| | 286,860 | | | Cornerstone OnDemand, Inc.* | | | 5,229,458 | | | |
| Computers – 1.7% | | | | | | |
| | 46,584 | | | Apple, Inc.*,** | | | 16,232,195 | | | |
| Computers – Integrated Systems – 2.5% | | | | | | |
| | 476,570 | | | Terdata Corp.* | | | 24,162,099 | | | |
| Computers – Memory Devices – 1.2% | | | | | | |
| | 360,610 | | | EMC Corp.* | | | 9,574,195 | | | |
| | 32,800 | | | NetApp, Inc.* | | | 1,580,304 | | | |
| | | | | | | | 11,154,499 | | | |
| Computers – Peripheral Equipment – 0.6% | | | | | | |
| | 312,386 | | | Logitech International S.A.* | | | 5,627,167 | | | |
| Consulting Services – 1.4% | | | | | | |
| | 318,742 | | | Gartner, Inc.* | | | 13,281,979 | | | |
| E-Commerce/Products – 1.0% | | | | | | |
| | 53,875 | | | Amazon.com, Inc.* | | | 9,704,504 | | | |
| E-Commerce/Services – 4.5% | | | | | | |
| | 288,935 | | | Ctrip.com International, Ltd.* | | | 11,987,913 | | | |
| | 830,083 | | | eBay, Inc.*,** | | | 25,765,777 | | | |
| | 22,840 | | | Netflix, Inc.* | | | 5,420,617 | | | |
| | | | | | | | 43,174,307 | | | |
| Educational Software – 1.2% | | | | | | |
| | 324,485 | | | Blackboard, Inc.* | | | 11,759,336 | | | |
| Electric Products – Miscellaneous – 1.0% | | | | | | |
| | 102,115 | | | LG Electronics, Inc. | | | 9,776,671 | | | |
| Electronic Components – Miscellaneous – 4.2% | | | | | | |
| | 1,133,939 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 39,483,756 | | | |
| Electronic Components – Semiconductors – 4.6% | | | | | | |
| | 4,410,112 | | | ON Semiconductor Corp.* | | | 43,527,805 | | | |
| Electronic Connectors – 3.0% | | | | | | |
| | 526,027 | | | Amphenol Corp. – Class A | | | 28,610,609 | | | |
| Electronic Forms – 1.9% | | | | | | |
| | 552,710 | | | Adobe Systems, Inc.* | | | 18,327,864 | | | |
| Electronics – Military – 1.0% | | | | | | |
| | 340,258 | | | Ultra Electronics Holdings PLC** | | | 9,398,246 | | | |
| Energy��– Alternate Sources – 0.3% | | | | | | |
| | 18,245 | | | First Solar, Inc.* | | | 2,934,526 | | | |
| Enterprise Software/Services – 11.3% | | | | | | |
| | 318,320 | | | Advent Software, Inc.* | | | 9,126,234 | | | |
| | 737,107 | | | Autonomy Corp. PLC*,** | | | 18,787,101 | | | |
| | 144,704 | | | Aveva Group PLC** | | | 3,748,508 | | | |
| | 437,550 | | | Oracle Corp.** | | | 14,601,043 | | | |
| | 1,028,985 | | | QLIK Technologies, Inc.* | | | 26,753,610 | | | |
| | 503,881 | | | Temenos Group A.G.* | | | 19,097,211 | | | |
| | 814,000 | | | Totvs S.A.** | | | 15,637,539 | | | |
| | | | | | | | 107,751,246 | | | |
| Industrial Automation and Robotics – 2.2% | | | | | | |
| | 139,800 | | | Fanuc, Ltd.** | | | 21,165,007 | | | |
| Internet Applications Software – 2.8% | | | | | | |
| | 1,014,090 | | | Vocus, Inc.*,£ | | | 26,224,367 | | | |
| Internet Content – Entertainment – 0.7% | | | | | | |
| | 144,900 | | | Youku.com, Inc.* | | | 6,884,199 | | | |
| Internet Infrastructure Software – 0.8% | | | | | | |
| | 232,445 | | | AsiaInfo Holdings, Inc.* | | | 5,032,434 | | | |
| | 90,575 | | | Tibco Software, Inc.* | | | 2,468,169 | | | |
| | | | | | | | 7,500,603 | | | |
| Medical – Biomedical and Genetic – 4.1% | | | | | | |
| | 365,111 | | | Celgene Corp.* | | | 21,004,836 | | | |
| | 59,439 | | | Gilead Sciences, Inc.* | | | 2,522,591 | | | |
| | 387,243 | | | Myriad Genetics, Inc.* | | | 7,802,946 | | | |
| | 168,020 | | | Vertex Pharmaceuticals, Inc.* | | | 8,053,199 | | | |
| | | | | | | | 39,383,572 | | | |
| Medical Information Systems – 1.9% | | | | | | |
| | 409,975 | | | athenahealth, Inc.* | | | 18,502,172 | | | |
| Networking Products – 3.9% | | | | | | |
| | 1,356,831 | | | Cisco Systems, Inc. | | | 23,269,652 | | | |
| | 326,125 | | | Juniper Networks, Inc.* | | | 13,723,340 | | | |
| | | | | | | | 36,992,992 | | | |
| Semiconductor Components/Integrated Circuits – 4.1% | | | | | | |
| | 2,543,325 | | | Atmel Corp.* | | | 34,665,519 | | | |
| | 1,711,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 4,109,427 | | | |
| | | | | | | | 38,774,946 | | | |
| Semiconductor Equipment – 2.8% | | | | | | |
| | 239,754 | | | ASML Holding N.V. | | | 10,565,592 | | | |
| | 277,010 | | | Lam Research Corp.* | | | 15,695,386 | | | |
| | | | | | | | 26,260,978 | | | |
| Telecommunication Equipment – 1.7% | | | | | | |
| | 586,885 | | | Alcatel Lucent (ADR)* | | | 3,409,802 | | | |
| | 2,381,855 | | | Tellabs, Inc. | | | 12,480,920 | | | |
| | | | | | | | 15,890,722 | | | |
| Telecommunication Equipment – Fiber Optics – 1.2% | | | | | | |
| | 150,855 | | | Ciena Corp.* | | | 3,916,196 | | | |
| | 296,940 | | | Finisar Corp.* | | | 7,304,724 | | | |
| | | | | | | | 11,220,920 | | | |
See Notes to Schedules of Investments and Financial Statements.
58 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amount | | Value | | | |
| |
| Telecommunication Services – 3.9% | | | | | | |
| | 1,300,765 | | | Amdocs, Ltd. (U.S. Shares)*,** | | $ | 37,527,070 | | | |
| Television – 1.7% | | | | | | |
| | 632,157 | | | CBS Corp. – Class B | | | 15,829,211 | | | |
| Toys – 0.8% | | | | | | |
| | 26,560 | | | Nintendo Co., Ltd.** | | | 7,176,566 | | | |
| Transactional Software – 1.3% | | | | | | |
| | 401,930 | | | Longtop Financial Technologies, Ltd. (ADR)* | | | 12,628,641 | | | |
| Web Portals/Internet Service Providers – 3.9% | | | | | | |
| | 651,364 | | | AOL, Inc.* | | | 12,721,139 | | | |
| | 42,125 | | | Google, Inc. – Class A* | | | 24,694,096 | | | |
| | | | | | | | 37,415,235 | | | |
| Wireless Equipment – 3.8% | | | | | | |
| | 328,964 | | | Crown Castle International Corp.* | | | 13,997,418 | | | |
| | 351,582 | | | QUALCOMM, Inc.** | | | 19,277,241 | | | |
| | 192,120 | | | Telefonaktiebolaget L.M. Ericsson (ADR) | | | 2,470,663 | | | |
| | | | | | | | 35,745,322 | | | |
| |
| |
| Total Common Stock (cost $771,823,671) | | | 938,079,041 | | | |
| |
| |
| Purchased Option – Call – 0.3% | | | | | | |
| | 2,290 | | | Vertex Pharmaceuticals, Inc.
expires April 2011
exercise price $38.00
(premiums paid $977,601) | | | 2,295,437 | | | |
| |
| |
| Money Market – 2.2% | | | | | | |
| | 20,997,073 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $20,997,073) | | | 20,997,073 | | | |
| |
| |
| Total Investments (total cost $793,798,345) – 101.0% | | | 961,371,551 | | | |
| |
| |
| Security Sold Short – (0.7)% | | | | | | |
| Common Stock Sold Short – (0.7)% | | | | | | |
| Electronic Components – Semiconductors – (0.7)% | | | | | | |
| | 146,595 | | | Cree, Inc.*
(proceeds $9,978,470) | | | (6,766,825) | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | | | (2,485,617) | | | |
| |
| |
| Net Assets – 100% | | $ | 952,119,109 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Brazil | | $ | 15,637,539 | | | | 1.6% | |
| Cayman Islands | | | 31,500,753 | | | | 3.3% | |
| France | | | 3,409,802 | | | | 0.3% | |
| Guernsey | | | 37,527,070 | | | | 3.9% | |
| Japan | | | 30,583,509 | | | | 3.2% | |
| Netherlands | | | 10,565,592 | | | | 1.1% | |
| South Korea | | | 9,776,671 | | | | 1.0% | |
| Sweden | | | 2,470,663 | | | | 0.3% | |
| Switzerland | | | 64,208,134 | | | | 6.7% | |
| Taiwan | | | 4,109,427 | | | | 0.4% | |
| United Kingdom | | | 31,933,855 | | | | 3.3% | |
United States†† | | | 719,648,536 | | | | 74.9% | |
| |
| |
| Total | | $ | 961,371,551 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (72.7% excluding Cash Equivalents). |
Summary of Investments by Country – (Short Positions)
| | | | | | | | | |
| | | | | | % of Securities
| |
| | | Value | | | Sold Short | |
| |
| |
| United States | | $ | (6,766,825) | | | | 100.0% | |
| |
| |
| Total | | $ | (6,766,825) | | | | 100.0% | |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| Brazilian Real 5/6/11 | | | 10,200,000 | | | $ | 6,210,787 | | | $ | (173,498) | |
| British Pound 5/6/11 | | | 1,595,000 | | | | 2,557,349 | | | | 28,959 | |
| Japanese Yen 5/6/11 | | | 600,000,000 | | | | 7,216,474 | | | | 115,532 | |
| |
| |
| | | | | | | | 15,984,610 | | | | (29,007) | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| British Pound 5/12/11 | | | 847,000 | | | | 1,357,901 | | | | 17,695 | |
| Japanese Yen 5/12/11 | | | 609,000,000 | | | | 7,325,038 | | | | 176,255 | |
| |
| |
| | | | | | | | 8,682,939 | | | | 193,950 | |
| |
| |
| JPMorgan Chase & Co.: | | | | | | | | | | | | |
| British Pound 4/28/11 | | | 2,000,000 | | | | 3,207,081 | | | | 36,839 | |
| Japanese Yen 4/28/11 | | | 685,000,000 | | | | 8,238,365 | | | | (11,569) | |
| |
| |
| | | | | | | | 11,445,446 | | | | 25,270 | |
| |
| |
| Total | | | | | | $ | 36,112,995 | | | $ | 190,213 | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 59
Janus International Equity Fund (unaudited)
| | | | | | | |
Fund Snapshot
We invest in international companies that we believe have a sustainable competitive advantage, high or improving returns on capital and long-term growth. We invest where we believe we have differentiated research, in an effort to deliver superior risk-adjusted results over the long term.
| | 
Julian McManus
co-portfolio manager | | 
Guy Scott
co-portfolio manager | | 
Carmel Wellso
co-portfolio manager |
Performance Overview
Janus International Equity Fund’s Class I Shares returned 8.99% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the MSCI EAFE Index, returned 10.20%, and its secondary benchmark, the MSCI All Country World ex-U.S. Index, returned 10.85% during the period.
Strategy Overview
The MSCI EAFE Index recorded its strongest gains early in the period as investor fears over a double-dip recession eased and global growth was stronger than expected. Within Europe, improving macroeconomic data in the Northern European countries and Germany as well as indications that sovereign debt issues may not negatively impact the overall European economy helped investor sentiment. The Index also managed modest gains during the second half of the period despite unrest in the Middle East and North Africa and a tragic earthquake and tsunami in Japan that damaged nuclear reactors and led to fears of radiation contamination.
While we are continuing to assess the situation in Japan, we feel there are a number of implications. From an industrials standpoint, we think the impact will be limited since most of the country’s manufacturing industry is concentrated further south than the impacted area. However, economically and financially the impact could be severe. Sendai, the logistics hub for the Northeast region, was cut off by water, and we expect the country’s 200% debt to gross domestic product ratio will have to rise meaningfully in the rebuilding effort. Our holdings and underweight in Japan combined were the largest contributors on a country basis to the Fund’s relative performance during the period. This was more than offset by our holdings and overweight in Hong Kong, which were the largest relative detractors during the period.
Earlier, the geopolitical turmoil in the Middle East and North Africa led to a spike in oil prices; this helped the Fund’s performance since we were overweight in energy and none of our energy holdings have meaningful exposure to Middle East production. However, given the uprisings we cannot rule out the possibility of further increases in oil. We estimate that a sustained oil price above $130 per barrel would have a negative impact on global GDP growth, particularly for large importers like Korea, Japan, India, Spain, Italy and Greece. During the period, we added Gazprom, a Russian natural gas producer, and Eurasia Drilling Co., which we consider a leader in increasing the use of horizontal drilling in Russia.
In Europe, we saw several positive developments in terms of liquidity facilities and the European Central Bank’s approach to dealing with the region’s sovereign debt crisis. Chiefly, rates will likely be lowered for Greece; the European Financial Stability Fund has been increased; and governments are now allowed to buy secondary sovereign securities. These measures should enable sovereign nations that are having liquidity problems to service short-term debt and to bridge the crisis until they are on more stable economic grounds.
Slightly stronger bank stress tests also provided investors with more transparency to further alleviate fears that numerous banks in Europe will require additional capital. Finally, the Spanish government released a report stating that its savings banks will require 15 billion Euros in additional capital. While that number appears low to us, it does represent the immediate shortfall in capital for those companies and is leading to increased consolidation, which should reduce the amount of capital needed from the government. Despite the sector’s strong relative performance during the second half of the period, it underperformed for the entire six months. On a sector basis, our holdings and overweight in financials were the largest relative detractors from performance. This was partially offset by our information technology holdings, which substantially outperformed those within the Index.
Emerging markets were negatively impacted by fears over inflation. We expect interest rates will continue to rise in countries like Brazil and India as governments try to bring inflation under control. During the quarter, one of our
60 | MARCH 31, 2011
(unaudited)
China real estate holdings Hang Lung Properties was negatively impacted by these moves but we continue to like its long-term prospects. We took advantage of the weakening market environment to add to current positions and initiate new positions in emerging markets.
Meanwhile, we lowered our industrials weighting based on our expectation that industrial earnings have reached a peak. Within Germany, the IFO business confidence index reached a new high, which historically has correlated to a decline in industrial stocks.1 In the consumer staples sector, our concerns over inflation proved warranted. Gross margins in consumer staples came under pressure, which led to the sector’s underperformance relative to the Index. Our underweight in staples helped our relative performance as did our overweight in tobacco names, which generally are not impacted by inflationary pressures.
Performance Overview
Individual detractors included U.K.-based Lloyds Banking Group, which was negatively impacted by expectations for lagging economic growth in Europe. Based on our belief that economic conditions in the U.K. will remain weak for some time, we exited the name.
Banco Bilbao Vizcaya Argentaria (BBVA) also weighed on performance. We like the Spain-based bank for its conservative management and that the bank has historically generated higher returns on equity than peers. We also appreciate that approximately half of BBVA’s profits come from fast-growing Latin American countries.
Hong Kong-based logistics and outsourcing firm Li & Fung was negatively impacted by an earnings report that missed Wall Street estimates. We continue to believe the company has open-ended opportunities to supply companies like Wal-Mart. We feel the market continues to underestimate the growth prospects from this trend.
Contributors included ASML Holdings, the leading producer of next generation semiconductor manufacturing equipment that is building its market lead in our view. In addition, BHP Billiton, the world’s largest mining company, benefited from higher commodity prices and the end of its bid to buy Potash Corp. of Saskatchewan for which investors feared it would overpay. We like the company for its world-class mines.
BG Group, a U.K. energy company, received a boost from spiking oil and gas prices during the period. We do not feel the market is giving BG Group credit for its large oil resources in Brazil and its 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.
Outlook
Looking ahead, we continue to seek companies in which we think the market has underestimated earnings growth. We believe the global recovery remains on track with many emerging markets continuing to show robust growth. China’s rapid growth rate, however, has slowed somewhat with food inflation moderating rapidly, which may allow the government to ease its tightening measures.
Our stock picking remains focused on our key themes – companies that can capitalize on Asian purchasing power, outsourcing, asset reflation, globalization, industry consolidation and improving standard of living in emerging markets.
Thank you for your investment in Janus International Equity Fund.
1The IFO Business Climate Index is a closely watched indicator of German business conditions, based on a monthly survey of about 7,000 companies.
Janus Global & International Funds | 61
Janus International Equity Fund (unaudited)
Janus International Equity Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| ASML Holding N.V. | | | 0.68% | |
| BHP Billiton, Ltd. | | | 0.64% | |
| BG Group PLC | | | 0.61% | |
| ARM Holdings PLC | | | 0.50% | |
| Fortum Oyj | | | 0.43% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Banco Bilbao Vizcaya Argentaria S.A. | | | –0.28% | |
| Lloyds Banking Group PLC | | | –0.28% | |
| Li & Fung, Ltd. | | | –0.26% | |
| Hang Lung Properties, Ltd. | | | –0.23% | |
| BM&F Bovespa S.A. | | | –0.23% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | EAFE® Index Weighting |
| |
| Energy | | | 2.85% | | | | 10.98% | | | | 7.91% | |
| Information Technology | | | 2.09% | | | | 8.38% | | | | 4.88% | |
| Materials | | | 2.05% | | | | 10.78% | | | | 11.03% | |
| Industrials | | | 1.62% | | | | 12.32% | | | | 12.59% | |
| Consumer Discretionary | | | 0.58% | | | | 13.21% | | | | 10.42% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | EAFE® Index Weighting |
| |
| Financials | | | –0.35% | | | | 26.99% | | | | 24.39% | |
| Health Care | | | 0.04% | | | | 4.12% | | | | 8.17% | |
| Consumer Staples | | | 0.17% | | | | 8.56% | | | | 9.90% | |
| Utilities | | | 0.43% | | | | 1.42% | | | | 5.09% | |
| Telecommunication Services | | | 0.48% | | | | 3.24% | | | | 5.62% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
62 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Fanuc, Ltd.
Industrial Automation and Robotics | | | 2.6% | |
Banco Bilbao Vizcaya Argentaria S.A.
Commercial Banks | | | 2.5% | |
Kuehne + Nagel International A.G.
Transportation – Services | | | 2.3% | |
Japan Tobacco, Inc.
Tobacco | | | 2.3% | |
Li & Fung, Ltd.
Distribution/Wholesale | | | 2.3% | |
| | | | | |
| | | | 12.0% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 9.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Global & International Funds | 63
Janus International Equity Fund (unaudited)
| | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 8.84% | | 12.87% | | 5.01% | | | 1.34% | | 1.34% |
| MOP | | 2.62% | | 6.40% | | 3.59% | | | | | |
| | | | | | | | | | | | |
| Janus International Equity Fund – Class C Shares | | | | | | | | | | | |
| NAV | | 8.33% | | 12.00% | | 4.10% | | | 2.13% | | 2.13% |
| CDSC | | 7.25% | | 10.88% | | 4.10% | | | | | |
| | | | | | | | | | | | |
| Janus International Equity Fund – Class D Shares(1) | | 8.84% | | 13.20% | | 5.23% | | | 1.16% | | 1.16% |
| | | | | | | | | | | | |
| Janus International Equity Fund – Class I Shares | | 8.99% | | 13.25% | | 5.27% | | | 0.99% | | 0.99% |
| | | | | | | | | | | | |
| Janus International Equity Fund – Class R Shares | | 8.63% | | 12.49% | | 4.43% | | | 1.71% | | 1.71% |
| | | | | | | | | | | | |
| Janus International Equity Fund – Class S Shares | | 8.70% | | 12.78% | | 5.11% | | | 1.46% | | 1.46% |
| | | | | | | | | | | | |
| Janus International Equity Fund – Class T Shares | | 8.88% | | 13.15% | | 5.10% | | | 1.26% | | 1.26% |
| | | | | | | | | | | | |
| Morgan Stanley Capital International EAFE® Index | | 10.20% | | 10.42% | | –0.65% | | | | | |
| | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World ex-U.S. IndexSM | | 10.85% | | 13.15% | | 1.94% | | | | | |
| | | | | | | | | | | | |
| Lipper Quartile – Class I Shares | | – | | 2nd | | 1st | | | | | |
| | | | | | | | | | | | |
| Lipper Ranking – based on total return for International Funds | | – | | 499/1,309 | | 17/901 | | | | | |
| | | | | | | | | | | | |
| 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.
64 | MARCH 31, 2011
(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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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 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 general and economic conditions, changes in the value of the underlying property owned by the trust and defaults to 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 invests 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 from 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. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers.
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 calculated using 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. 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
Janus Global & International Funds | 65
Janus International Equity Fund (unaudited)
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. The performance shown for periods following the Fund’s commencement of Class T Shares reflects the fees and expenses of Class T Shares, net of any applicable 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.
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.”
| | | |
| * | | The predecessor Fund’s inception date — November 28, 2006 |
| (1) | | Closed to new investors. |
66 | MARCH 31, 2011
(unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,088.40 | | | $ | 6.40 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,084.30 | | | $ | 10.24 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.11 | | | $ | 9.90 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,089.30 | | | $ | 6.46 | | | |
| |
| |
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 I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,089.90 | | | $ | 4.74 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.39 | | | $ | 4.58 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class R Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,086.30 | | | $ | 8.53 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.75 | | | $ | 8.25 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,087.00 | | | $ | 7.23 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.00 | | | $ | 6.99 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,088.80 | | | $ | 5.94 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.25 | | | $ | 5.74 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.23% for Class A Shares, 1.97% for Class C Shares, 1.24% for Class D Shares, 0.91% for Class I Shares, 1.64% for Class R Shares, 1.39% for Class S Shares and 1.14% 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 Global & International Funds | 67
Janus International Equity Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 96.0% | | | | | | |
| Agricultural Chemicals – 1.0% | | | | | | |
| | 46,827 | | | Potash Corporation of Saskatchewan, Inc. | | $ | 2,763,141 | | | |
| Airlines – 1.8% | | | | | | |
| | 131,461 | | | Deutsche Lufthansa A.G. | | | 2,785,806 | | | |
| | 78,166 | | | Ryanair Holdings PLC (ADR)* | | | 2,173,015 | | | |
| | | | | | | | 4,958,821 | | | |
| Automotive – Cars and Light Trucks – 2.2% | | | | | | |
| | 1,495,000 | | | Isuzu Motors, Ltd. | | | 5,914,562 | | | |
| Building Products – Doors and Windows – 1.2% | | | | | | |
| | 1,140,000 | | | Nippon Sheet Glass Co., Ltd. | | | 3,290,043 | | | |
| Cable Television – 0.6% | | | | | | |
| | 32,820 | | | Kabel Deutschland Holding A.G.* | | | 1,739,313 | | | |
| Cellular Telecommunications – 2.2% | | | | | | |
| | 2,145,037 | | | Vodafone Group PLC | | | 6,072,742 | | | |
| Chemicals – Diversified – 2.8% | | | | | | |
| | 58,987 | | | K+S A.G. | | | 4,452,527 | | | |
| | 80,805 | | | LyondellBasell Industries N.V.* | | | 3,195,838 | | | |
| | | | | | | | 7,648,365 | | | |
| Chemicals – Specialty – 0.8% | | | | | | |
| | 1,417,000 | | | Huabao International Holdings, Ltd. | | | 2,178,795 | | | |
| Commercial Banks – 8.3% | | | | | | |
| | 571,168 | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 6,928,767 | | | |
| | 445,900 | | | Banco Santander Brasil S.A. | | | 5,410,147 | | | |
| | 1,139,500 | | | China Merchants Bank Co., Ltd. | | | 3,157,017 | | | |
| | 410,495 | | | DBS Group Holdings, Ltd. | | | 4,768,804 | | | |
| | 97,817 | | | Standard Chartered PLC | | | 2,537,054 | | | |
| | | | | | | | 22,801,789 | | | |
| Commercial Services – 1.0% | | | | | | |
| | 109,825 | | | Aggreko PLC | | | 2,776,277 | | | |
| Distribution/Wholesale – 2.8% | | | | | | |
| | 96,960 | | | Adani Enterprises, Ltd. | | | 1,449,399 | | | |
| | 1,218,000 | | | Li & Fung, Ltd. | | | 6,240,091 | | | |
| | | | | | | | 7,689,490 | | | |
| Diversified Banking Institutions – 4.7% | | | | | | |
| | 83,754 | | | Credit Suisse Group A.G. | | | 3,560,138 | | | |
| | 468,194 | | | HSBC Holdings PLC | | | 4,813,813 | | | |
| | 134,264 | | | UBS A.G.* | | | 2,409,791 | | | |
| | 814,063 | | | UniCredit SpA | | | 2,011,741 | | | |
| | | | | | | | 12,795,483 | | | |
| Diversified Minerals – 1.6% | | | | | | |
| | 93,617 | | | BHP Billiton, Ltd. | | | 4,507,464 | | | |
| E-Commerce/Services – 1.9% | | | | | | |
| | 123,945 | | | Ctrip.com International, Ltd.* | | | 5,142,478 | | | |
| Electric – Integrated – 1.7% | | | | | | |
| | 137,175 | | | Fortum Oyj | | | 4,657,248 | | | |
| Electronic Components – Semiconductors – 0.9% | | | | | | |
| | 272,708 | | | ARM Holdings PLC | | | 2,515,191 | | | |
| Electronic Connectors – 1.6% | | | | | | |
| | 39,500 | | | Hirose Electric Co., Ltd. | | | 4,255,892 | | | |
| Electronic Measuring Instruments – 1.2% | | | | | | |
| | 12,400 | | | Keyence Corp. | | | 3,174,555 | | | |
| Enterprise Software/Services – 1.1% | | | | | | |
| | 117,444 | | | Autonomy Corp. PLC* | | | 2,993,368 | | | |
| Finance – Other Services – 1.5% | | | | | | |
| | 187,400 | | | Hong Kong Exchanges & Clearing, Ltd. | | | 4,071,661 | | | |
| Food – Catering – 0% | | | | | | |
| | 1,216,275 | | | FU JI Food & Catering Services Holdings, Ltd.*,°° ,§ | | | 0 | | | |
| Food – Miscellaneous/Diversified – 1.4% | | | | | | |
| | 59,906 | | | Groupe Danone | | | 3,912,837 | | | |
| Food – Wholesale/Distribution – 1.6% | | | | | | |
| | 1,967,000 | | | Olam International, Ltd. | | | 4,370,417 | | | |
| Industrial Automation and Robotics – 2.6% | | | | | | |
| | 47,500 | | | Fanuc, Ltd. | | | 7,191,258 | | | |
| Industrial Gases – 1.2% | | | | | | |
| | 20,648 | | | Linde A.G. | | | 3,260,811 | | | |
| Life and Health Insurance – 4.0% | | | | | | |
| | 1,677,000 | | | AIA Group, Ltd.* | | | 5,163,616 | | | |
| | 514,083 | | | Prudential PLC | | | 5,825,735 | | | |
| | | | | | | | 10,989,351 | | | |
| Medical – Drugs – 2.2% | | | | | | |
| | 70,260 | | | Novartis A.G. | | | 3,812,190 | | | |
| | 125,000 | | | Shionogi & Co., Ltd. | | | 2,132,937 | | | |
| | | | | | | | 5,945,127 | | | |
| Medical – Generic Drugs – 2.0% | | | | | | |
| | 106,500 | | | Teva Pharmaceutical S.P. (ADR) | | | 5,343,105 | | | |
| Metal – Diversified – 2.2% | | | | | | |
| | 85,637 | | | Rio Tinto PLC | | | 6,015,084 | | | |
| Multi-Line Insurance – 1.5% | | | | | | |
| | 313,822 | | | ING Groep N.V.* | | | 3,971,468 | | | |
| Multimedia – 1.5% | | | | | | |
| | 335,609 | | | WPP PLC | | | 4,136,974 | | | |
| Oil – Field Services – 2.5% | | | | | | |
| | 237,525 | | | AMEC PLC | | | 4,545,222 | | | |
| | 68,808 | | | Eurasia Drilling Co., Ltd. (ADR) | | | 2,339,472 | | | |
| | | | | | | | 6,884,694 | | | |
| Oil Companies – Exploration and Production – 5.2% | | | | | | |
| | 388,235 | | | Cairn Energy PLC* | | | 2,877,637 | | | |
| | 175,770 | | | Gazprom OAO | | | 5,689,675 | | | |
| | 388 | | | INPEX Corp. | | | 2,944,059 | | | |
| | 121,802 | | | Tullow Oil PLC | | | 2,828,970 | | | |
| | | | | | | | 14,340,341 | | | |
| Oil Companies – Integrated – 5.3% | | | | | | |
| | 204,057 | | | BG Group PLC | | | 5,076,550 | | | |
| | 126,660 | | | Petroleo Brasileiro S.A. (ADR) | | | 5,120,864 | | | |
| | 71,592 | | | Total S.A. | | | 4,357,584 | | | |
| | | | | | | | 14,554,998 | | | |
| Oil Refining and Marketing – 2.1% | | | | | | |
| | 110,710 | | | Petroplus Holdings A.G.* | | | 1,748,307 | | | |
| | 166,477 | | | Reliance Industries, Ltd. | | | 3,916,820 | | | |
| | | | | | | | 5,665,127 | | | |
| Real Estate Management/Services – 0.9% | | | | | | |
| | 147,000 | | | Mitsubishi Estate Co., Ltd. | | | 2,487,121 | | | |
| Real Estate Operating/Development – 2.7% | | | | | | |
| | 380,270 | | | DLF, Ltd. | | | 2,290,234 | | | |
| | 1,167,000 | | | Hang Lung Properties, Ltd. | | | 5,108,616 | | | |
| | | | | | | | 7,398,850 | | | |
See Notes to Schedules of Investments and Financial Statements.
68 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Retail – Apparel and Shoe – 0.7% | | | | | | |
| | 15,700 | | | Fast Retailing Co., Ltd. | | $ | 1,965,332 | | | |
| Retail – Consumer Electronics – 1.4% | | | | | | |
| | 58,030 | | | Yamada Denki Co., Ltd. | | | 3,914,722 | | | |
| Retail – Jewelry – 1.2% | | | | | | |
| | 6,272,000 | | | Hengdeli Holdings, Ltd. | | | 3,306,018 | | | |
| Semiconductor Equipment – 2.0% | | | | | | |
| | 122,153 | | | ASML Holding N.V. | | | 5,383,096 | | | |
| Soap and Cleaning Preparations – 1.2% | | | | | | |
| | 66,657 | | | Reckitt Benckiser Group PLC | | | 3,423,516 | | | |
| Steel – Producers – 1.0% | | | | | | |
| | 75,732 | | | ArcelorMittal | | | 2,739,131 | | | |
| Tobacco – 3.7% | | | | | | |
| | 125,396 | | | Imperial Tobacco Group PLC | | | 3,875,884 | | | |
| | 1,732 | | | Japan Tobacco, Inc. | | | 6,258,610 | | | |
| | | | | | | | 10,134,494 | | | |
| Transportation – Railroad – 1.3% | | | | | | |
| | 45,889 | | | Canadian National Railway Co. | | | 3,463,455 | | | |
| Transportation – Services – 2.3% | | | | | | |
| | 45,525 | | | Kuehne + Nagel International A.G. | | | 6,371,120 | | | |
| Wire and Cable Products – 1.4% | | | | | | |
| | 177,198 | | | Prysmian SpA | | | 3,801,476 | | | |
| |
| |
| Total Common Stock (cost $223,806,827) | | | 262,916,601 | | | |
| |
| |
| Money Market – 3.0% | | | | | | |
| | 8,199,288 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $8,199,288) | | | 8,199,288 | | | |
| |
| |
| Total Investments (total cost $232,006,115) – 99.0% | | | 271,115,889 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities – 1.0% | | | 2,637,587 | | | |
| |
| |
| Net Assets – 100% | | $ | 273,753,476 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 4,507,464 | | | | 1.7% | |
| Bermuda | | | 8,418,886 | | | | 3.1% | |
| Brazil | | | 10,531,011 | | | | 3.9% | |
| Canada | | | 6,226,596 | | | | 2.3% | |
| Cayman Islands | | | 10,787,968 | | | | 4.0% | |
| China | | | 3,157,017 | | | | 1.2% | |
| Finland | | | 4,657,248 | | | | 1.7% | |
| France | | | 8,270,421 | | | | 3.0% | |
| Germany | | | 12,238,457 | | | | 4.5% | |
| Hong Kong | | | 14,343,893 | | | | 5.3% | |
| India | | | 7,656,453 | | | | 2.8% | |
| Ireland | | | 2,173,015 | | | | 0.8% | |
| Israel | | | 5,343,105 | | | | 2.0% | |
| Italy | | | 5,813,217 | | | | 2.1% | |
| Japan | | | 43,529,091 | | | | 16.1% | |
| Jersey | | | 4,136,974 | | | | 1.5% | |
| Luxembourg | | | 2,739,131 | | | | 1.0% | |
| Netherlands | | | 12,550,402 | | | | 4.6% | |
| Russia | | | 5,689,675 | | | | 2.1% | |
| Singapore | | | 9,139,221 | | | | 3.4% | |
| Spain | | | 6,928,767 | | | | 2.6% | |
| Switzerland | | | 17,901,546 | | | | 6.6% | |
| United Kingdom | | | 56,177,043 | | | | 20.7% | |
United States†† | | | 8,199,288 | | | | 3.0% | |
| |
| |
| Total | | $ | 271,115,889 | | | | 100.0% | |
| | | |
| †† | | Includes all Cash Equivalents. |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 69
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 |
Performance
Janus Overseas Fund’s Class T Shares returned 7.94% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the MSCI All Country World ex-U.S. Index, returned 10.85%, and its secondary benchmark, the MSCI EAFE Index, returned 10.20% during the period.
Economic Update
The turmoil in the Middle East and North Africa and the tragic natural disaster in Japan notwithstanding, the global economic recovery had been reasonably strong, creating a positive environment for equities and other risk assets. Although emerging markets generally underperformed during the period, they have stood out as pillars of economic strength. Globalization, urbanization and infrastructure development remain powerful structural drivers of growth in emerging economies. In addition, China has significant capacity to use fiscal spending to support its economy in the case of another global downturn. In recent months, it has had to intervene to try to control rising property prices and inflation pressures.
Sovereign balance sheets, particularly for European countries, remain a focus for the markets. Clearly, significant risks still exist for Greece and other over-leveraged countries and sovereign financing difficulties could impact global markets. Yet I believe that measures taken by key European countries to address government finances are important positive steps toward long-term benefits. The U.S. and Japan eventually will be forced to tackle difficult fiscal questions to stabilize their own government finances, I believe.
Strategy Overview
I believe in driving returns through stock selection with a long-term view. In the recent months, however, many of these picks did not perform well. The sharp rise in oil prices hurt our performance. Our holdings in autos and airlines feel the pinch of higher oil prices while other names are economically sensitive. India’s fiscal health as a country is vulnerable to sustained high oil prices and our exposure there hurt relative performance.
Our holdings in Brazilian homebuilders and global financial companies were negatively impacted by what I view as higher risk aversion in light of the unrest in the Middle East.
While the short-term performance is disappointing, we are sticking to our process of finding undervalued opportunities in great long-term growth companies or in special situations, which I define as businesses significantly improving their operations, competitive advantages and return characteristics. With these stocks, such as airlines, auto companies, refiners and financial companies, I believe that the market misunderstands the value of these franchises and that structural changes, such as capacity reductions, will lead to higher than expected medium term profitability even though revenue growth may be limited.
Although it is within the guidelines of the Fund, our positions in the U.S. warrant discussion. In the aftermath of the 2008 global financial crisis and subsequent global economic downturn, I found a much greater number of special situations and many of them happened to be U.S.-based. As a result, the Fund’s U.S. exposure increased significantly.
Emerging market stocks remain an important part of the Fund. I expect economic growth in China, India, Brazil and other key emerging markets to significantly outpace the U.S. and Western countries for many years. In an environment of rapidly expanding economies, I believe that emerging markets will continue to offer some of the most exciting opportunities for investment in great growth companies.
Detractors from Performance
On a geographic basis, our holdings and overweights in Hong Kong, India and Brazil weighed the most on relative performance. On a sector basis, our investments in
70 | MARCH 31, 2011
(unaudited)
industrial, financial and consumer discretionary companies weighed on relative performance.
Delta Air Lines and International Airlines Group (IAG) were among our airline holdings that were negatively impacted by rising oil prices. We believe Delta will benefit from capacity reductions by legacy carriers, cost-cutting initiatives, balance sheet restructuring and gradual recovery of business and premium customers. Our shares in British Airways were converted into holding company IAG following the merger between British Airways and Iberia. We feel the new entity will benefit from cost-cutting and the rebound in trans-Atlantic business travel as a result of an improved global economy.
Leading Brazilian homebuilder Cyrela Brazil Realty’s shares also declined significantly during the period. We believe Cyrela is well positioned to benefit from increased demand for housing in Brazil due to the country’s strong economic growth and government initiatives to encourage low-cost housing.
Contributors to Performance
Stock selection in the U.K. and the Netherlands made these nations the largest relative contributors on a country basis while by our holdings and underweight in Japan also helped. On a sector basis, our investments in information technology, health-care and utility companies were the largest relative contributors.
Valero Energy’s shares rallied sharply during the period. We owned the U.S. refiner because of an attractive valuation and an expectation of better refining margins.
U.K.-based ARM Holdings, a long-term holding, was the second largest contributor to performance during the period. Competitive advantages in designing low-power semiconductor processors and widespread acceptance from semiconductor customers positioned the company to grow rapidly in a wide variety of end markets, such as smartphones, autos and appliances.
ASML Holdings also significantly contributed to performance. The leading producer of next generation semiconductor manufacturing equipment has experienced strong order growth, driven by global growth, particularly in memory semiconductors used in mobile devices.
We employed currency forwards, swaps and options during the period. We use these instruments to attempt to hedge some risks, to gain access to markets where direct access is limited, or to opportunistically establish positions quickly. In aggregate these positions slightly contributed to relative performance. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
During good markets, but especially during difficult ones, conviction in our investments is critical. When we underperform, I am especially intent on raising my conviction in my portfolio holdings. I rely on our team’s tremendous, in-depth fundamental research. I strive to move to the top of the portfolio the opportunities where I have the greatest conviction in the long-term prospects.
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 through high-conviction, long-term investments in what I consider to be world-class companies with exciting prospects and undeservedly low valuations.
Thank you for your continued investment in Janus Overseas Fund.
Janus Global & International Funds | 71
Janus Overseas Fund (unaudited)
Janus Overseas Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Valero Energy Corp. | | | 1.67% | |
| ARM Holdings PLC | | | 1.43% | |
| ASML Holding N.V. | | | 1.20% | |
| Ford Motor Co. | | | 0.82% | |
| Valeant Pharmaceuticals International, Inc. | | | 0.80% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Delta Air Lines, Inc. | | | –0.53% | |
| Cyrela Brazil Realty S.A. | | | –0.49% | |
| International Consolidated Airlines Group S.A. | | | –0.48% | |
| Li & Fung, Ltd. | | | –0.43% | |
| Reliance Capital, Ltd. | | | –0.40% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | | | Morgan Stanley Capital
|
| | | | | Fund Weighting
| | International All Country World ex-U.S.
|
| | | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
| |
| Information Technology | | | 3.57% | | | | 12.65% | | | | 6.57% | |
| Energy | | | 3.03% | | | | 13.89% | | | | 10.97% | |
| Health Care | | | 0.80% | | | | 2.24% | | | | 5.86% | |
| Materials | | | 0.69% | | | | 4.52% | | | | 12.80% | |
| Consumer Discretionary | | | 0.43% | | | | 19.17% | | | | 9.08% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | | | Morgan Stanley Capital
|
| | | | | Fund Weighting
| | International All Country World ex-U.S.
|
| | | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
| |
| Industrials | | | –0.42% | | | | 14.86% | | | | 10.77% | |
| Consumer Staples | | | –0.25% | | | | 3.26% | | | | 8.56% | |
| Telecommunication Services | | | –0.12% | | | | 0.25% | | | | 5.85% | |
| Utilities | | | 0.12% | | | | 0.21% | | | | 4.39% | |
| Financials | | | 0.25% | | | | 28.95% | | | | 25.15% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
72 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Li & Fung, Ltd.
Distribution/Wholesale | | | 5.7% | |
Reliance Industries, Ltd.
Oil Refining and Marketing | | | 5.5% | |
Bank of America Corp.
Diversified Banking Institutions | | | 4.4% | |
Banco Bilbao Vizcaya Argentaria S.A.
Commercial Banks | | | 4.1% | |
Ford Motor Co.
Automotive – Cars and Light Trucks | | | 4.0% | |
| | | | | |
| | | | 23.7% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 25.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Global & International Funds | 73
Janus Overseas Fund (unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 7.89% | | 11.24% | | 9.66% | | 11.10% | | 12.90% | | | 1.07% | | 1.07% |
| MOP | | 1.69% | | 4.85% | | 8.37% | | 10.44% | | 12.50% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Overseas Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 7.48% | | 10.50% | | 8.74% | | 10.34% | | 12.16% | | | 1.85% | | 1.85% |
| CDSC | | 6.41% | | 9.40% | | 8.74% | | 10.34% | | 12.16% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Overseas Fund – Class D Shares(1) | | 7.99% | | 11.46% | | 9.82% | | 11.23% | | 13.00% | | | 0.87% | | 0.87% |
| | | | | | | | | | | | | | | | |
| Janus Overseas Fund – Class I Shares | | 8.05% | | 11.58% | | 9.79% | | 11.22% | | 12.99% | | | 0.80% | | 0.80% |
| | | | | | | | | | | | | | | | |
| Janus Overseas Fund – Class R Shares | | 7.67% | | 10.81% | | 9.13% | | 10.65% | | 12.48% | | | 1.48% | | 1.48% |
| | | | | | | | | | | | | | | | |
| Janus Overseas Fund – Class S Shares | | 7.82% | | 11.10% | | 9.44% | | 10.91% | | 12.72% | | | 1.22% | | 1.22% |
| | | | | | | | | | | | | | | | |
| Janus Overseas Fund – Class T Shares | | 7.94% | | 11.35% | | 9.79% | | 11.22% | | 12.99% | | | 0.98% | | 0.98% |
| | | | | | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World ex-U.S. IndexSM | | 10.85% | | 13.15% | | 3.59% | | 7.41% | | N/A** | | | | | |
| | | | | | | | | | | | | | | | |
| Morgan Stanley Capital International EAFE® Index | | 10.20% | | 10.42% | | 1.30% | | 5.39% | | 5.01% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 3rd | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for International Funds | | – | | 779/1,309 | | 2/804 | | 12/463 | | 2/99 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
74 | MARCH 31, 2011
(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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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 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.
Janus Overseas Fund held approximately 14.0% of its investments in Indian securities as of March 31, 2011, 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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable fee and expense limitations or waivers.
Janus Global & International Funds | 75
Janus Overseas 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.
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. |
76 | MARCH 31, 2011
(unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,078.90 | | | $ | 5.44 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,075.00 | | | $ | 9.10 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.16 | | | $ | 8.85 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,079.90 | | | $ | 4.30 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,080.50 | | | $ | 3.94 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,076.90 | | | $ | 7.51 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.70 | | | $ | 7.29 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,078.40 | | | $ | 6.22 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.95 | | | $ | 6.04 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,079.60 | | | $ | 4.93 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.19 | | | $ | 4.78 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.05% for Class A Shares, 1.76% for Class C Shares, 0.83% for Class D Shares, 0.76% for Class I Shares, 1.45% for Class R Shares, 1.20% for Class S Shares and 0.95% 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 Global & International Funds | 77
Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amounts | | Value | | | |
| |
| Common Stock – 98.3% | | | | | | |
| Agricultural Chemicals – 2.7% | | | | | | |
| | 6,703,095 | | | Potash Corporation of Saskatchewan, Inc. | | $ | 395,532,401 | | | |
| | 96,075 | | | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | | | 5,661,700 | | | |
| | | | | | | | 401,194,101 | | | |
| Agricultural Operations – 0.8% | | | | | | |
| | 188,481,502 | | | Chaoda Modern Agriculture Holdings, Ltd.£ | | | 117,039,154 | | | |
| Airlines – 9.3% | | | | | | |
| | 43,773,061 | | | Delta Air Lines, Inc.*,**,£ | | | 428,975,998 | | | |
| | 16,858,794 | | | Deutsche Lufthansa A.G. | | | 357,256,793 | | | |
| | 70,098,125 | | | International Consolidated Airlines Group S.A.*,£ | | | 255,233,453 | | | |
| | 15,661,963 | | | United Continental Holdings, Inc.* | | | 360,068,529 | | | |
| | | | | | | | 1,401,534,773 | | | |
| Audio and Video Products – 0.2% | | | | | | |
| | 784,000 | | | Sony Corp.** | | | 25,115,152 | | | |
| Automotive – Cars and Light Trucks – 4.0% | | | | | | |
| | 40,155,666 | | | Ford Motor Co.*,** | | | 598,720,980 | | | |
| Building – Residential and Commercial – 1.0% | | | | | | |
| | 18,641,000 | | | MRV Engenharia e Participacoes S.A. | | | 149,182,830 | | | |
| Casino Hotels – 0.6% | | | | | | |
| | 10,748,663 | | | Crown, Ltd. | | | 90,589,237 | | | |
| Chemicals – Diversified – 1.0% | | | | | | |
| | 2,006,867 | | | K+S A.G. | | | 151,484,732 | | | |
| Commercial Banks – 8.7% | | | | | | |
| | 33,159,396 | | | Anglo Irish Bank Corp., Ltd.*,°° ,§ | | | 0 | | | |
| | 50,546,977 | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 613,178,980 | | | |
| | 16,265,968 | | | Commercial Bank of Ceylon PLC£ | | | 39,172,731 | | | |
| | 9,473,600 | | | Hatton National Bank PLC | | | 32,617,269 | | | |
| | 159,040,800 | | | Mizuho Financial Group, Inc.** | | | 263,920,520 | | | |
| | 7,836,326 | | | Punjab National Bank, Ltd. | | | 213,122,057 | | | |
| | 2,267,078 | | | State Bank of India, Ltd. | | | 140,595,443 | | | |
| | | | | | | | 1,302,607,000 | | | |
| Computers – 1.1% | | | | | | |
| | 2,955,253 | | | Research In Motion, Ltd. (U.S. Shares)* | | | 167,178,662 | | | |
| Distribution/Wholesale – 8.4% | | | | | | |
| | 27,053,881 | | | Adani Enterprises, Ltd. | | | 404,412,747 | | | |
| | 167,762,090 | | | Li & Fung, Ltd. | | | 859,483,343 | | | |
| | | | | | | | 1,263,896,090 | | | |
| Diversified Banking Institutions – 9.5% | | | | | | |
| | 49,910,407 | | | Bank of America Corp.** | | | 665,305,725 | | | |
| | 6,010,803 | | | Deutsche Bank A.G. | | | 353,338,665 | | | |
| | 2,109,970 | | | Julius Baer Group, Ltd. | | | 91,595,953 | | | |
| | 127,766,657 | | | UniCredit SpA | | | 315,741,441 | | | |
| | | | | | | | 1,425,981,784 | | | |
| Diversified Operations – 0.8% | | | | | | |
| | 3,768,000 | | | Aitken Spence & Co. PLC | | | 5,540,875 | | | |
| | 75,292,535 | | | Melco International Development, Ltd.*,£ | | | 51,303,040 | | | |
| | 1,219,723 | | | Orascom Development Holding A.G.* | | | 56,854,873 | | | |
| | | | | | | | 113,698,788 | | | |
| Diversified Operations – Commercial Services – 1.1% | | | | | | |
| | 64,902,100 | | | John Keells Holdings PLC£ | | | 167,944,548 | | | |
| Electric – Integrated – 0.9% | | | | | | |
| | 7,463,500 | | | Centrais Eletricas Brasileiras S.A. | | | 140,040,670 | | | |
| Electric Products – Miscellaneous – 1.1% | | | | | | |
| | 1,736,198 | | | LG Electronics, Inc. | | | 166,226,671 | | | |
| Electronic Components – Semiconductors – 2.0% | | | | | | |
| | 33,180,145 | | | ARM Holdings PLC£ | | | 306,021,163 | | | |
| Enterprise Software/Services – 1.1% | | | | | | |
| | 6,580,185 | | | Autonomy Corp. PLC* | | | 167,713,236 | | | |
| Finance – Investment Bankers/Brokers – 2.5% | | | | | | |
| | 71,826,900 | | | Nomura Holdings, Inc.** | | | 375,717,911 | | | |
| Finance – Mortgage Loan Banker – 0.5% | | | | | | |
| | 4,423,870 | | | Housing Development Finance Corp. | | | 69,567,563 | | | |
| Food – Catering – 0% | | | | | | |
| | 24,630,000 | | | FU JI Food & Catering Services Holdings, Ltd.*,°° ,§ | | | 0 | | | |
| Food – Meat Products – 0.5% | | | | | | |
| | 19,147,800 | | | JBS S.A. | | | 68,757,956 | | | |
| Hotels and Motels – 1.8% | | | | | | |
| | 102,807,165 | | | Shangri-La Asia, Ltd. | | | 265,665,250 | | | |
| Life and Health Insurance – 0.1% | | | | | | |
| | 5,125,015 | | | MAX India, Ltd.* | | | 18,361,093 | | | |
| Medical – Biomedical and Genetic – 0.9% | | | | | | |
| | 2,349,190 | | | Celgene Corp.* | | | 135,148,901 | | | |
| Metal – Diversified – 1.6% | | | | | | |
| | 8,597,779 | | | Ivanhoe Mines, Ltd.* | | | 235,880,049 | | | |
| Oil and Gas Drilling – 0.4% | | | | | | |
| | 7,191,180 | | | Karoon Gas Australia, Ltd.* | | | 53,244,864 | | | |
| Oil Companies – Exploration and Production – 2.5% | | | | | | |
| | 16,593,491 | | | Cairn Energy PLC* | | | 122,992,625 | | | |
| | 2,589,963 | | | Niko Resources, Ltd.£ | | | 248,521,006 | | | |
| | | | | | | | 371,513,631 | | | |
| Oil Companies – Integrated – 3.0% | | | | | | |
| | 11,176,174 | | | Petroleo Brasileiro S.A. (ADR)** | | | 451,852,715 | | | |
| Oil Refining and Marketing – 9.1% | | | | | | |
| | 5,798,026 | | | Neste Oil OYJ | | | 119,539,305 | | | |
| | 12,302,358 | | | Petroplus Holdings A.G.*,£ | | | 194,275,965 | | | |
| | 34,905,979 | | | Reliance Industries, Ltd. | | | 821,257,290 | | | |
| | 7,830,770 | | | Valero Energy Corp. | | | 233,513,562 | | | |
| | | | | | | | 1,368,586,122 | | | |
| Property and Casualty Insurance – 1.1% | | | | | | |
| | 12,182,579 | | | Reliance Capital, Ltd. | | | 159,324,309 | | | |
| Real Estate Management/Services – 0.1% | | | | | | |
| | 445,000 | | | Mitsubishi Estate Co., Ltd.** | | | 7,529,040 | | | |
| Real Estate Operating/Development – 8.6% | | | | | | |
| | 156,018,120 | | | Ayala Land, Inc. | | | 55,733,599 | | | |
| | 232,749,000 | | | China Overseas Land & Investment, Ltd. | | | 473,379,682 | | | |
| | 14,067,905 | | | Cyrela Brazil Realty S.A. | | | 133,446,393 | | | |
| | 3,506,511 | | | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes | | | 29,867,334 | | | |
| | 30,825,408 | | | DLF, Ltd. | | | 185,650,669 | | | |
| | 60,235,000 | | | Hang Lung Properties, Ltd. | | | 263,682,521 | | | |
| | 26,506,160 | | | PDG Realty S.A. Empreendimentos e Participacoes | | | 148,781,436 | | | |
| | | | | | | | 1,290,541,634 | | | |
See Notes to Schedules of Investments and Financial Statements.
78 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amounts | | Value | | | |
| |
| Retail – Consumer Electronics – 0.7% | | | | | | |
| | 1,521,760 | | | Yamada Denki Co., Ltd.** | | $ | 102,658,413 | | | |
| Retail – Miscellaneous/Diversified – 0.7% | | | | | | |
| | 9,327,414 | | | SM Investments Corp. | | | 111,567,824 | | | |
| Semiconductor Equipment – 2.8% | | | | | | |
| | 9,603,200 | | | ASML Holding N.V. | | | 423,198,322 | | | |
| Steel – Producers – 0.8% | | | | | | |
| | 1,943,424 | | | ArcelorMittal | | | 70,291,189 | | | |
| | 3,962,700 | | | Tokyo Steel Manufacturing Co., Ltd.** | | | 46,269,621 | | | |
| | | | | | | | 116,560,810 | | | |
| Sugar – 1.9% | | | | | | |
| | 12,253,642 | | | Bajaj Hindusthan, Ltd.£ | | | 19,538,774 | | | |
| | 1,149,300 | | | Bajaj Hindusthan, Ltd. (GDR)(144A) | | | 1,832,329 | | | |
| | 5,735,700 | | | Cosan S.A. Industria e Comercio | | | 89,274,330 | | | |
| | 14,108,974 | | | Cosan, Ltd. – Class A£ | | | 182,005,765 | | | |
| | | | | | | | 292,651,198 | | | |
| Telecommunication Equipment – 0% | | | | | | |
| | 119 | | | Nortel Networks Corp. (U.S. Shares)* | | | 3 | | | |
| Telecommunication Services – 0.4% | | | | | | |
| | 1,341,165 | | | Amdocs, Ltd. (U.S. Shares)* | | | 38,692,610 | | | |
| | 11,583,898 | | | Reliance Communications, Ltd. | | | 27,966,060 | | | |
| | | | | | | | 66,658,670 | | | |
| Toys – 1.9% | | | | | | |
| | 1,056,700 | | | Nintendo Co., Ltd.** | | | 285,522,475 | | | |
| Web Portals/Internet Service Providers – 2.1% | | | | | | |
| | 18,878,835 | | | Yahoo!, Inc.* | | | 314,332,603 | | | |
| |
| |
| Total Common Stock (cost $11,878,509,001) | | | 14,741,010,927 | | | |
| |
| |
| Purchased Options – Calls – 0.2% | | | | | | |
| | 49,600 | | | United States Oil Fund (ETF)
expires October 2011
exercise price $48.00 | | | 11,675,076 | | | |
| | 49,600 | | | United States Oil Fund (ETF)
expires October 2011
exercise price $48.00 | | | 11,675,076 | | | |
| | 50,500 | | | United States Oil Fund (ETF)
expires October 2011
exercise price $48.00 | | | 11,886,923 | | | |
| |
| |
| Total Purchased Options – Calls (premiums paid $32,787,644) | | | 35,237,075 | | | |
| |
| |
| Money Market – 0.1% | | | | | | |
| | 12,882,000 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $12,882,000) | | | 12,882,000 | | | |
| |
| |
| Total Investments (total cost $11,924,178,645) – 98.6% | | | 14,789,130,002 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities**– 1.4% | | | 208,964,348 | | | |
| |
| |
| Net Assets – 100% | | $ | 14,998,094,350 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 143,834,101 | | | | 1.0% | |
| Bermuda | | | 1,307,154,358 | | | | 8.8% | |
| Brazil | | | 1,211,203,664 | | | | 8.2% | |
| Canada | | | 1,052,773,821 | | | | 7.1% | |
| Cayman Islands | | | 117,039,154 | | | | 0.8% | |
| Finland | | | 119,539,305 | | | | 0.8% | |
| Germany | | | 862,080,190 | | | | 5.8% | |
| Guernsey | | | 38,692,610 | | | | 0.3% | |
| Hong Kong | | | 788,365,243 | | | | 5.3% | |
| India | | | 2,061,628,334 | | | | 14.0% | |
| Ireland | | | 0 | | | | 0.0% | |
| Italy | | | 315,741,441 | | | | 2.1% | |
| Japan | | | 1,106,733,132 | | | | 7.5% | |
| Luxembourg | | | 70,291,189 | | | | 0.5% | |
| Netherlands | | | 423,198,322 | | | | 2.9% | |
| Philippines | | | 167,301,423 | | | | 1.1% | |
| South Korea | | | 166,226,671 | | | | 1.1% | |
| Spain | | | 868,412,433 | | | | 5.9% | |
| Sri Lanka | | | 245,275,423 | | | | 1.7% | |
| Switzerland | | | 342,726,791 | | | | 2.3% | |
| United Kingdom | | | 596,727,024 | | | | 4.0% | |
United States†† | | | 2,784,185,373 | | | | 18.8% | |
| |
| |
| Total | | $ | 14,789,130,002 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (18.7% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
Credit Suisse Securities (USA) LLC:
Japanese Yen 5/6/11 | | | 42,650,000,000 | | | $ | 512,971,013 | | | $ | 9,301,067 | |
HSBC Securities (USA), Inc.:
Japanese Yen 5/12/11 | | | 38,080,000,000 | | | | 458,025,372 | | | | 11,497,732 | |
JPMorgan Chase & Co.:
Japanese Yen 4/28/11 | | | 32,500,000,000 | | | | 390,871,309 | | | | (548,903) | |
RBC Capital Markets Corp.:
Japanese Yen 4/7/11 | | | 25,200,000,000 | | | | 303,035,965 | | | | 5,416,586 | |
| |
| |
| Total | | | | | | $ | 1,664,903,659 | | | $ | 25,666,482 | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 79
Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2011
Total Return Swaps outstanding at March 31, 2011
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Unrealized
|
| | | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
| |
| Goldman Sachs | | | 17,714,475,954 JPY | | | | GSBLBank | | | 1-month LIBOR plus 35
basis points | | 11/16/11 | | $ | 3,162,194 |
| Morgan Stanley | | | 6,979,701,563 JPY | | | | GSBLBank | | | 1-month LIBOR plus 35
basis points | | 11/29/11 | | | (59,158,212) |
| Morgan Stanley | | $ | 108,375,109 | | | | Sberbank | | | 1-month LIBOR plus 85
basis points | | 1/17/13 | | | 14,766,229 |
| UBS A.G. | | $ | 108,985,319 | | | | Sberbank | | | 1-month LIBOR plus 85
basis points | | 6/13/11 | | | 9,347,873 |
| |
| |
| Total | | | | | | | | | | | | | | $ | (31,881,916) |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
80 | MARCH 31, 2011
Janus Worldwide Fund (unaudited)
| | | | | | | |
Fund Snapshot
Janus Worldwide Fund invests globally, seeking companies with competitive advantages that lead to high or improving returns on capital and long-term growth. We invest where we believe we have differentiated research in an effort to deliver superior risk-adjusted results over the long-term.
| | | | | | 
George Maris
portfolio manager |
Performance
Janus Worldwide Fund’s Class T Shares returned 10.48% over the six-month period ended March 31, 2011, while its primary benchmark, the MSCI World Index, returned 14.18%. The Fund’s secondary benchmark, the MSCI All Country World Index, returned 13.54%.
Management Change
George Maris was named portfolio manager of Janus Worldwide Fund effective March 14. He replaced Brent Lynn, who took over management of the Fund on an interim basis in May 2010. Maris joined Janus from Northern Trust, where he managed U.S., international and global large-cap strategies for institutional and retail clients. He has thirteen years of investment management experience including positions at Columbia Management Group, Putnam Investments and Northern Trust. Maris will work hand-in-hand with Janus’ team of equity analysts to identify the best ideas across sectors throughout the world.
Strategy Overview
The Fund’s objective is to generate consistent outperformance regardless of the market environment. My investment philosophy is to invest in companies where the market underestimates the underlying cash flow and earnings power. This investment discipline demands a thorough fundamental analysis of a company’s growth prospects, valuation and catalysts. I concentrate on factors including competitive positioning, industry structure, executive management, end market opportunities and balance sheet health. This analysis is vital in identifying the most promising growth opportunities. Our fundamental analysis drives our estimates of cash flow and earnings growth.
In addition to assessing growth prospects, I determine whether the market is materially underestimating a company’s prospects. Clearly earnings and cash flow growth matter, but measures such as capital intensity, working capital efficiency and financial leverage are also important. Valuations of similar companies matter as well.
While rigorous analysis of growth and valuation are critical to identifying attractive investments, I also use elements of behavioral finance to gain a better understanding of market dynamics and opportunities. The historical volatility of markets indicates recurring inefficiencies that disciplined investors can use to their advantage. As a result, the Fund will represent views that are frequently contrarian and go beyond shorter-term consensus views.
To be contrarian means you must be open-minded, not boxed in by labels. Forget artificial categories of growth, value or core, and instead find companies where the stock price does not reflect earnings power. I want the Fund to retain the flexibility to take advantage of the opportunities provided in both growth- and value-style led environments.
Most of the time, I do not plan to significantly overweight or underweight sectors in the Fund. I will take large industry and stock positions relative to the index. I want to generate consistently good performance from stock picking and avoid macro decisions where the precision needed seems too great for recurring success. Janus research, not an index, decides how I deploy capital.
Similarly, regional analysis generally will not be my predominant focus. With globalization, the majority of returns are attributable to industry exposures, not country of domicile. Certainly, for industries retaining more local characteristics, such as financials in fiscally-troubled countries, regional analysis is critical. At times, indiscriminate sell-offs, as we saw following the tragic earthquake and tsunami in Japan, may lead to establishing opportunistic positions. Country positioning, however, is an opportunistic, not recurring strategy.
As I look at markets – and generally attractive stock valuations – I think stock picking should matter a great deal. While Japan undertakes a massive reconstruction effort, it is also important to understand the evolving mindset among corporate managements to focus on profitability and not merely market share. In Europe, the
Janus Global & International Funds | 81
Janus Worldwide Fund (unaudited)
worst-case scenarios involving sovereign debt largely are behind us, although Greece, Ireland and Portugal struggle. The U.K.’s austerity measures should put the economy on better footing over the long-run. Meanwhile, the economies of Germany and France are doing well, and should continue to fare well relative to most other developed economies. The U.S. has a strong corporate sector, stable consumer and resurgent exports, despite its fiscally strapped public sector. Emerging markets too are maturing with better focus on returns on capital and corporate governance. Consequently, the period of relative calm after the volatility of the last few years argues for greater impact of company selection and greater value in our fundamental, bottom-up approach.
Performance Overview
I took over the portfolio on March 14 and tried to provide some perspective on my philosophy. Let us look back at first quarter performance, including a discussion of positions in place before I joined.
Our holdings in industrials, financials and consumers discretionary detracted the most from relative performance. Individually, Educomp Solutions declined significantly during the period. The Indian education company is transitioning its business model from subscription-based to license-based, which should increase both profits and growth opportunities in our view. We also consider India one of the world’s largest untapped opportunities, given the fact the Indian government is implementing policies that should lead to more schools in the country, which should benefit Educomp.
Another India-based company, Jain Irrigation Systems, was also among key detractors. We like the company’s market-leading position in India’s micro-irrigation systems, which are subsidized by the government. We feel these irrigation systems are the fastest way to improve yields and represent a large market opportunity, given the unpredictability of India’s monsoon season and that many farms don’t have simple water catchment systems.
Finally, networking giant Cisco Systems also traded down during the period after reporting disappointing earnings. We established a position during the period due to our appreciation of the company’s large market share and the increasing role of networking we see in technology.
Contributors included our holdings in health care, information technology and utilities. Our underweight in utilities also helped our relative performance. Individually, ASML Holdings was our most significant contributor. The leading producer of next generation semiconductor manufacturing equipment has experienced strong order growth, driven by global growth, particularly in memory semiconductors used in mobile devices. ASML continued to build its market lead.
Monsanto Co. also posted strong gains during the period. The U.S. company, which has benefited from strong agricultural commodity prices, is a worldwide provider of agricultural products for farmers. The company’s seeds, biotechnology trait products and herbicides provide farmers with solutions to produce foods for consumers and feed for animals.
In addition, Apple was among top contributors. We feel the computer and mobile device maker’s growth surge is in the early stages internationally. We like the company’s durable franchise, long-term growth prospects and demonstrated ability to win in various economic environments. (Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.)
Thank you for your continued support of Janus Worldwide Fund.
82 | MARCH 31, 2011
(unaudited)
Janus Worldwide Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| ASML Holding N.V. | | | 0.99% | |
| Monsanto Co. | | | 0.67% | |
| Apple, Inc. | | | 0.61% | |
| Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | | | 0.56% | |
| Energy Transfer Equity L.P. | | | 0.55% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Educomp Solutions, Ltd. | | | –0.61% | |
| Jain Irrigation Systems, Ltd. | | | –0.47% | |
| Cisco Systems, Inc. | | | –0.38% | |
| Lloyds Banking Group PLC | | | –0.27% | |
| Li & Fung, Ltd. | | | –0.27% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
| |
| Information Technology | | | 3.38% | | | | 20.70% | | | | 11.76% | |
| Energy | | | 3.06% | | | | 10.10% | | | | 11.00% | |
| Materials | | | 1.78% | | | | 7.91% | | | | 8.02% | |
| Health Care | | | 1.78% | | | | 9.62% | | | | 9.31% | |
| Financials | | | 1.06% | | | | 23.23% | | | | 20.34% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
| |
| Industrials | | | –0.24% | | | | 7.45% | | | | 11.28% | |
| Telecommunication Services | | | 0.06% | | | | 1.74% | | | | 4.23% | |
| Consumer Discretionary | | | 0.19% | | | | 12.14% | | | | 10.33% | |
| Utilities | | | 0.21% | | | | 0.43% | | | | 4.00% | |
| Consumer Staples | | | 0.26% | | | | 6.68% | | | | 9.73% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Global & International Funds | 83
Janus Worldwide Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Banco Bilbao Vizcaya Argentaria S.A.
Commercial Banks | | | 3.3% | |
Potash Corporation of Saskatchewan, Inc. (U.S. Shares)
Agricultural Chemicals | | | 2.8% | |
Celgene Corp.
Medical – Biomedical and Genetic | | | 2.8% | |
Total S.A.
Oil Companies – Integrated | | | 2.7% | |
NVR, Inc.
Building – Residential and Commercial | | | 2.6% | |
| | | | | |
| | | | 14.2% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 7.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
84 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 11.95% | | 14.66% | | 2.09% | | 1.06% | | 8.74% | | | 1.00% | | 1.00% |
| MOP | | 5.51% | | 8.06% | | 1.06% | | 0.54% | | 8.44% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Worldwide Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 11.55% | | 13.73% | | 1.43% | | 0.42% | | 8.07% | | | 1.86% | | 1.86% |
| CDSC | | 10.43% | | 12.59% | | 1.43% | | 0.42% | | 8.07% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Worldwide Fund – Class D Shares(1) | | 10.54% | | 13.29% | | 2.11% | | 1.07% | | 8.74% | | | 0.83% | | 0.83% |
| | | | | | | | | | | | | | | | |
| Janus Worldwide Fund – Class I Shares | | 12.09% | | 14.90% | | 2.09% | | 1.06% | | 8.74% | | | 0.76% | | 0.76% |
| | | | | | | | | | | | | | | | |
| Janus Worldwide Fund – Class R Shares | | 11.71% | | 14.18% | | 1.81% | | 0.72% | | 8.38% | | | 1.41% | | 1.41% |
| | | | | | | | | | | | | | | | |
| Janus Worldwide Fund – Class S Shares | | 11.86% | | 14.46% | | 2.07% | | 0.95% | | 8.61% | | | 1.16% | | 1.16% |
| | | | | | | | | | | | | | | | |
| Janus Worldwide Fund – Class T Shares | | 10.48% | | 13.20% | | 2.09% | | 1.06% | | 8.74% | | | 0.92% | | 0.92% |
| | | | | | | | | | | | | | | | |
| Morgan Stanley Capital International World IndexSM | | 14.18% | | 13.45% | | 2.08% | | 4.21% | | 6.77% | | | | | |
| | | | | | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World IndexSM | | 13.54% | | 14.08% | | 2.94% | | 5.04% | | N/A** | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 3rd | | 3rd | | 4th | | 2nd | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Funds | | – | | 361/647 | | 189/354 | | 179/180 | | 8/19 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
Janus Global & International Funds | 85
Janus Worldwide 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 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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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 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 from 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.
Class A Shares, Class C Shares, Class R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares, reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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.
86 | MARCH 31, 2011
(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 applicable 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.
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 March 14, 2011, George Maris is portfolio manager of Janus Worldwide Fund.
| | | |
| * | | The Fund’s inception date – May 15, 1991 |
| ** | | 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 Global & International Funds | 87
Janus Worldwide Fund (unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,120.00 | | | $ | 5.60 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.65 | | | $ | 5.34 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,115.50 | | | $ | 9.60 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.86 | | | $ | 9.15 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,105.40 | | | $ | 4.51 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,121.30 | | | $ | 4.02 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,117.60 | | | $ | 7.66 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.70 | | | $ | 7.29 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,118.80 | | | $ | 6.34 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.95 | | | $ | 6.04 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,104.80 | | | $ | 4.99 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.19 | | | $ | 4.78 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.06% for Class A Shares, 1.82% for Class C Shares, 0.86% for Class D Shares, 0.76% for Class I Shares, 1.45% for Class R Shares, 1.20% for Class S Shares and 0.95% 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. |
88 | MARCH 31, 2011
Janus Worldwide Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Common Stock – 97.5% | | | | | | |
| Aerospace and Defense – 1.0% | | | | | | |
| | 321,360 | | | General Dynamics Corp. | | $ | 24,603,322 | | | |
| Agricultural Chemicals – 5.6% | | | | | | |
| | 605,025 | | | Monsanto Co. | | | 43,719,106 | | | |
| | 321,640 | | | Mosaic Co. | | | 25,329,150 | | | |
| | 1,177,215 | | | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | | | 69,373,280 | | | |
| | | | | | | | 138,421,536 | | | |
| Agricultural Operations – 0.6% | | | | | | |
| | 24,162,415 | | | Chaoda Modern Agriculture Holdings, Ltd. | | | 15,003,852 | | | |
| Automotive – Cars and Light Trucks – 0.8% | | | | | | |
| | 1,250,695 | | | Ford Motor Co.* | | | 18,647,862 | | | |
| Bicycle Manufacturing – 0.7% | | | | | | |
| | 369,800 | | | Shimano, Inc.** | | | 18,476,659 | | | |
| Building – Residential and Commercial – 2.6% | | | | | | |
| | 84,095 | | | NVR, Inc.* | | | 63,575,820 | | | |
| Cable Television – 0.9% | | | | | | |
| | 23,095 | | | Jupiter Telecommunications Co., Ltd.** | | | 22,689,532 | | | |
| Commercial Banks – 5.9% | | | | | | |
| | 6,606,859 | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 80,146,971 | | | |
| | 18,741,915 | | | Lloyds Banking Group PLC* | | | 17,463,073 | | | |
| | 1,838,369 | | | Standard Chartered PLC | | | 47,681,295 | | | |
| | | | | | | | 145,291,339 | | | |
| Commercial Services – 1.9% | | | | | | |
| | 1,866,940 | | | Aggreko PLC | | | 47,194,557 | | | |
| Computer Aided Design – 1.0% | | | | | | |
| | 461,324 | | | ANSYS, Inc.* | | | 24,999,148 | | | |
| Computers – 1.0% | | | | | | |
| | 71,726 | | | Apple, Inc.* | | | 24,992,925 | | | |
| Computers – Integrated Systems – 0.5% | | | | | | |
| | 241,900 | | | Terdata Corp.* | | | 12,264,330 | | | |
| Computers – Memory Devices – 0.5% | | | | | | |
| | 457,850 | | | EMC Corp.* | | | 12,155,918 | | | |
| Cosmetics and Toiletries – 0.7% | | | | | | |
| | 228,240 | | | Colgate-Palmolive Co. | | | 18,432,662 | | | |
| Distribution/Wholesale – 2.3% | | | | | | |
| | 11,239,550 | | | Li & Fung, Ltd. | | | 57,582,771 | | | |
| Diversified Banking Institutions – 6.9% | | | | | | |
| | 8,219,655 | | | Citigroup, Inc. | | | 36,330,875 | | | |
| | 424,065 | | | Deutsche Bank A.G. | | | 24,928,210 | | | |
| | 1,115,230 | | | JPMorgan Chase & Co. | | | 51,412,103 | | | |
| | 894,450 | | | Morgan Stanley | | | 24,436,374 | | | |
| | 533,328 | | | Societe Generale – Class A | | | 34,649,846 | | | |
| | | | | | | | 171,757,408 | | | |
| Diversified Minerals – 1.1% | | | | | | |
| | 562,573 | | | BHP Billiton, Ltd. | | | 27,086,719 | | | |
| Diversified Operations – 1.3% | | | | | | |
| | 4,260,935 | | | China Merchants Holdings International Co., Ltd. | | | 17,995,155 | | | |
| | 1,835,400 | | | Investimentos Itau S.A. | | | 14,396,176 | | | |
| | | | | | | | 32,391,331 | | | |
| Educational Software – 3.4% | | | | | | |
| | 1,482,285 | | | Blackboard, Inc.*,£ | | | 53,718,009 | | | |
| | 3,234,040 | | | Educomp Solutions, Ltd. | | | 30,418,398 | | | |
| | | | | | | | 84,136,407 | | | |
| Electric – Distribution – 0.3% | | | | | | |
| | 892,771 | | | Equatorial Energia S.A. | | | 6,953,318 | | | |
| Electric – Integrated – 1.0% | | | | | | |
| | 745,574 | | | Fortum Oyj | | | 25,313,089 | | | |
| Electronic Components – Miscellaneous – 1.0% | | | | | | |
| | 721,110 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 25,109,050 | | | |
| Electronic Measuring Instruments – 1.6% | | | | | | |
| | 155,700 | | | Keyence Corp.** | | | 39,861,147 | | | |
| Enterprise Software/Services – 1.2% | | | | | | |
| | 491,418 | | | Autonomy Corp. PLC* | | | 12,525,074 | | | |
| | 424,462 | | | Temenos Group A.G.* | | | 16,087,211 | | | |
| | | | | | | | 28,612,285 | | | |
| Finance – Investment Bankers/Brokers – 2.2% | | | | | | |
| | 10,585,300 | | | Nomura Holdings, Inc.** | | | 55,370,437 | | | |
| Finance – Mortgage Loan Banker – 0.9% | | | | | | |
| | 1,447,433 | | | Housing Development Finance Corp. | | | 22,761,606 | | | |
| Finance – Other Services – 0.6% | | | | | | |
| | 2,046,332 | | | IG Group Holdings PLC | | | 14,987,091 | | | |
| Food – Wholesale/Distribution – 1.5% | | | | | | |
| | 16,767,625 | | | Olam International, Ltd. | | | 37,255,475 | | | |
| Gold Mining – 0.9% | | | | | | |
| | 388,620 | | | Newmont Mining Corp. | | | 21,210,880 | | | |
| Hotels and Motels – 0.7% | | | | | | |
| | 6,424,000 | | | Shangri-La Asia, Ltd. | | | 16,600,337 | | | |
| Independent Power Producer – 1.6% | | | | | | |
| | 1,838,385 | | | NRG Energy, Inc.* | | | 39,598,813 | | | |
| Investment Management and Advisory Services – 0.4% | | | | | | |
| | 2,404,398 | | | GP Investments, Ltd. (BDR)* | | | 9,355,921 | | | |
| Life and Health Insurance – 2.7% | | | | | | |
| | 12,542,800 | | | AIA Group, Ltd.* | | | 38,620,272 | | | |
| | 2,500,229 | | | Prudential PLC | | | 28,333,308 | | | |
| | | | | | | | 66,953,580 | | | |
| Medical – Biomedical and Genetic – 3.8% | | | | | | |
| | 1,184,560 | | | Celgene Corp.*,** | | | 68,147,737 | | | |
| | 523,165 | | | Vertex Pharmaceuticals, Inc.* | | | 25,075,298 | | | |
| | | | | | | | 93,223,035 | | | |
| Medical – Drugs – 1.6% | | | | | | |
| | 1,630,649 | | | GlaxoSmithKline PLC | | | 31,112,168 | | | |
| | 501,100 | | | Mitsubishi Tanabe Pharma Corp.** | | | 8,134,740 | | | |
| | | | | | | | 39,246,908 | | | |
| Medical – Generic Drugs – 0.7% | | | | | | |
| | 768,626 | | | Mylan, Inc.* | | | 17,424,751 | | | |
| Medical – HMO – 1.4% | | | | | | |
| | 479,470 | | | Humana, Inc.* | | | 33,534,132 | | | |
| Medical Instruments – 1.0% | | | | | | |
| | 480,552 | | | St. Jude Medical, Inc. | | | 24,633,096 | | | |
| Networking Products – 1.7% | | | | | | |
| | 2,424,565 | | | Cisco Systems, Inc. | | | 41,581,290 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 89
Janus Worldwide Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Oil – Field Services – 2.1% | | | | | | |
| | 717,145 | | | Baker Hughes, Inc. | | $ | 52,659,957 | | | |
| Oil Companies – Exploration and Production – 1.6% | | | | | | |
| | 373,465 | | | Occidental Petroleum Corp. | | | 39,023,358 | | | |
| Oil Companies – Integrated – 6.5% | | | | | | |
| | 1,205,808 | | | BG Group PLC | | | 29,998,207 | | | |
| | 1,326,975 | | | Petroleo Brasileiro S.A. (ADR) | | | 53,649,599 | | | |
| | 320,862 | | | Petroleo Brasileiro S.A. (U.S. Shares) | | | 11,403,435 | | | |
| | 1,089,997 | | | Total S.A. | | | 66,344,756 | | | |
| | | | | | | | 161,395,997 | | | |
| Oil Field Machinery and Equipment – 0.8% | | | | | | |
| | 378,647 | | | Dresser-Rand Group, Inc.* | | | 20,303,052 | | | |
| Pharmacy Services – 1.1% | | | | | | |
| | 501,850 | | | Medco Health Solutions, Inc.* | | | 28,183,896 | | | |
| Pipelines – 2.4% | | | | | | |
| | 1,338,725 | | | Energy Transfer Equity L.P. | | | 60,242,625 | | | |
| Printing – Commercial – 1.2% | | | | | | |
| | 550,175 | | | VistaPrint N.V. (U.S. Shares)* | | | 28,554,083 | | | |
| Real Estate Operating/Development – 1.1% | | | | | | |
| | 6,238,435 | | | Hang Lung Properties, Ltd. | | | 27,309,144 | | | |
| Retail – Consumer Electronics – 1.4% | | | | | | |
| | 526,250 | | | Yamada Denki Co., Ltd.** | | | 35,500,992 | | | |
| Retail – Drug Store – 0.5% | | | | | | |
| | 312,165 | | | Walgreen Co. | | | 12,530,303 | | | |
| Retail – Major Department Stores – 1.0% | | | | | | |
| | 575,180 | | | Nordstrom, Inc. | | | 25,814,078 | | | |
| Rubber/Plastic Products – 1.3% | | | | | | |
| | 8,183,360 | | | Jain Irrigation Systems, Ltd. | | | 32,832,543 | | | |
| Schools – 1.2% | | | | | | |
| | 1,496,470 | | | Estacio Participacoes S.A. | | | 24,300,787 | | | |
| | 10,369,483 | | | Raffles Education Corp., Ltd. | | | 6,418,185 | | | |
| | | | | | | | 30,718,972 | | | |
| Semiconductor Equipment – 0.8% | | | | | | |
| | 434,361 | | | ASML Holding N.V. | | | 19,141,624 | | | |
| Telecommunication Services – 1.5% | | | | | | |
| | 1,263,250 | | | Amdocs, Ltd. (U.S. Shares)* | | | 36,444,762 | | | |
| Telephone – Integrated – 1.1% | | | | | | |
| | 1,081,303 | | | Telefonica S.A. | | | 27,066,283 | | | |
| Tobacco – 2.9% | | | | | | |
| | 474,540 | | | British American Tobacco PLC | | | 19,044,320 | | | |
| | 14,407 | | | Japan Tobacco, Inc.** | | | 52,059,927 | | | |
| | | | | | | | 71,104,247 | | | |
| Toys – 0.4% | | | | | | |
| | 36,900 | | | Nintendo Co., Ltd.** | | | 9,970,455 | | | |
| Transportation – Railroad – 0.5% | | | | | | |
| | 229,835 | | | Kansas City Southern* | | | 12,514,516 | | | |
| Transportation – Services – 1.5% | | | | | | |
| | 337,640 | | | C.H. Robinson Worldwide, Inc. | | | 25,029,253 | | | |
| | 86,953 | | | Kuehne + Nagel International A.G. | | | 12,168,875 | | | |
| | | | | | | | 37,198,128 | | | |
| Wireless Equipment – 1.1% | | | | | | |
| | 298,536 | | | Crown Castle International Corp.* | | | 12,702,707 | | | |
| | 338,375 | | | SBA Communications Corp. – Class A* | | | 13,426,720 | | | |
| | | | | | | | 26,129,427 | | | |
| |
| |
| Total Common Stock (cost $2,131,704,318) | | | 2,413,928,781 | | | |
| |
| |
| Corporate Bond – 1.1% | | | | | | |
| Enterprise Software/Services – 1.1% | | | | | | |
| | $15,150,000 | | | Autonomy Corp. PLC
3.2500%, 3/4/15 (cost $23,977,560) | | | 27,022,328 | | | |
| |
| |
| Warrant – 1.4% | | | | | | |
| Diversified Financial Services – 1.4% | | | | | | |
| | 2,026,056 | | | JPMorgan Chase & Co.* (cost $21,780,102) | | | 33,997,219 | | | |
| |
| |
| Money Market – 0.7% | | | | | | |
| | 17,732,000 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $17,732,000) | | | 17,732,000 | | | |
| |
| |
| Total Investments (total cost $2,195,193,980) – 100.7% | | | 2,492,680,328 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.7)% | | | (16,723,507) | | | |
| |
| |
| Net Assets – 100% | | $ | 2,475,956,821 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 27,086,719 | | | | 1.1% | |
| Bermuda | | | 83,539,029 | | | | 3.4% | |
| Brazil | | | 110,703,315 | | | | 4.4% | |
| Canada | | | 69,373,280 | | | | 2.8% | |
| Cayman Islands | | | 15,003,852 | | | | 0.6% | |
| Finland | | | 25,313,089 | | | | 1.0% | |
| France | | | 100,994,602 | | | | 4.1% | |
| Germany | | | 24,928,210 | | | | 1.0% | |
| Guernsey | | | 36,444,762 | | | | 1.5% | |
| Hong Kong | | | 83,924,571 | | | | 3.4% | |
| India | | | 86,012,547 | | | | 3.4% | |
| Japan | | | 242,063,889 | | | | 9.7% | |
| Netherlands | | | 47,695,707 | | | | 1.9% | |
| Singapore | | | 43,673,660 | | | | 1.8% | |
| Spain | | | 107,213,254 | | | | 4.3% | |
| Switzerland | | | 53,365,136 | | | | 2.1% | |
| United Kingdom | | | 275,361,421 | | | | 11.0% | |
United States†† | | | 1,059,983,285 | | | | 42.5% | |
| |
| |
| Total | | $ | 2,492,680,328 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (41.8% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
90 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
Credit Suisse Securities (USA) LLC:
Japanese Yen 5/6/11 | | | 5,337,000,000 | | | $ | 64,190,534 | | | $ | 1,027,654 | |
HSBC Securities (USA), Inc.:
Japanese Yen 5/12/11 | | | 5,015,000,000 | | | | 60,320,306 | | | | 1,451,429 | |
JPMorgan Chase & Co.:
Japanese Yen 4/28/11 | | | 3,681,000,000 | | | | 44,270,686 | | | | (62,170) | |
RBC Capital Markets Corp.:
Japanese Yen 4/7/11 | | | 1,803,000,000 | | | | 21,681,502 | | | | 261,496 | |
| |
| |
| Total | | | | | | $ | 190,463,028 | | | $ | 2,678,409 | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 91
Statements of Assets and Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Janus
| | Janus
|
As of March 31, 2011 (unaudited)
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus International
| | Overseas
| | Worldwide
|
| (all numbers in thousands except net asset value per share) | | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund | | Equity Fund | | Fund | | Fund |
|
| |
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments at cost | | $ | 11,817 | | | $ | 555,387 | | | $ | 234,329 | | | $ | 3,151,568 | | | $ | 793,798 | | | $ | 232,006 | | | $ | 11,924,179 | | | $ | 2,195,194 | |
| Unaffiliated investments at value | | $ | 11,473 | | | $ | 695,043 | | | $ | 280,446 | | | $ | 3,374,742 | | | $ | 914,150 | | | $ | 262,917 | | | $ | 13,366,644 | | | $ | 2,421,230 | |
| Affiliated investments at value | | | 514 | | | | 6,993 | | | | 3,608 | | | | 390,614 | | | | 47,221 | | | | 8,199 | | | | 1,422,486 | | | | 71,450 | |
| Cash | | | 2,181 | | | | 265 | | | | 2 | | | | 33,458 | | | | – | | | | 122 | | | | – | | | | – | |
| Cash denominated in foreign currency(1) | | | 20 | | | | – | | | | – | | | | – | | | | – | | | | 111 | | | | – | | | | 267 | |
| Restricted cash (Note 1) | | | 700 | | | | – | | | | – | | | | 38,454 | | | | – | | | | – | | | | 190,206 | | | | – | |
| Deposits with broker for short sales | | | – | | | | – | | | | – | | | | 8,332 | | | | 9,979 | | | | – | | | | – | | | | – | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments sold | | | 32 | | | | 21 | | | | – | | | | 17,529 | | | | 4,445 | | | | 2,828 | | | | – | | | | 17,492 | |
| Fund shares sold | | | 180 | | | | 140 | | | | 196 | | | | 737 | | | | 256 | | | | 265 | | | | 19,120 | | | | 210 | |
| Dividends | | | 23 | | | | 983 | | | | 657 | | | | 4,780 | | | | 642 | | | | 674 | | | | 25,786 | | | | 4,426 | |
| Foreign dividend tax reclaim | | | – | | | | 609 | | | | 50 | | | | – | | | | – | | | | 64 | | | | 1,999 | | | | 84 | |
| Due from adviser | | | 102 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Interest | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 57 | |
| Outstanding swap contracts at value | | | 103 | | | | – | | | | – | | | | 9,319 | | | | – | | | | – | | | | 27,276 | | | | – | |
| Dividends and interest on swap contracts | | | 1 | | | | – | | | | – | | | | 267 | | | | – | | | | – | | | | 18,058 | | | | – | |
| Non-interested Trustees’ deferred compensation | | | – | | | | 17 | | | | 7 | | | | 94 | | | | 24 | | | | 7 | | | | 370 | | | | 61 | |
| Variation margin | | | – | | | | – | | | | – | | | | 196 | | | | – | | | | – | | | | – | | | | – | |
| Other assets | | | – | | | | 53 | | | | 6 | | | | 57 | | | | 3 | | | | 2 | | | | 132 | | | | 35 | |
| Forward currency contracts | | | – | | | | 270 | | | | – | | | | 3,223 | | | | 375 | | | | – | | | | 26,215 | | | | 2,741 | |
| Total Assets | | | 15,329 | | | | 704,394 | | | | 284,972 | | | | 3,881,802 | | | | 977,095 | | | | 275,189 | | | | 15,098,292 | | | | 2,518,053 | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short sales, at value(2) | | | – | | | | – | | | | – | | | | 6,785 | | | | 6,767 | | | | – | | | | – | | | | – | |
| Options written, at value(3) | | | 17 | | | | – | | | | – | | | | 45,701 | | | | – | | | | – | | | | – | | | | – | |
| Due to custodian | | | – | | | | – | | | | – | | | | – | | | | 13 | | | | – | | | | 4,364 | | | | – | |
| Investments purchased | | | 239 | | | | 1,648 | | | | 1,281 | | | | 22,376 | | | | 16,544 | | | | 857 | | | | 2,731 | | | | 37,042 | |
| Fund shares repurchased | | | 5 | | | | 489 | | | | 76 | | | | 2,366 | | | | 385 | | | | 189 | | | | 18,061 | | | | 2,242 | |
| Dividends | | | – | | | | – | | | | 3 | | | | – | | | | – | | | | – | | | | 2 | | | | 1 | |
| Outstanding swap contracts at value | | | 16 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 59,158 | | | | – | |
| Dividends and interest on swap contracts | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 90 | | | | – | |
| Advisory fees | | | 12 | | | | 372 | | | | 179 | | | | 2,047 | | | | 512 | | | | 178 | | | | 8,057 | | | | 1,308 | |
| Administrative services fees | | | 1 | | | | 95 | | | | 39 | | | | 524 | | | | 128 | | | | 4 | | | | 2,127 | | | | 374 | |
| Distribution fees and shareholder servicing fees | | | 1 | | | | 1 | | | | 1 | | | | 27 | | | | 1 | | | | 37 | | | | 985 | | | | 15 | |
| Administrative, networking and omnibus fees | | | – | | | | 1 | | | | 5 | | | | 13 | | | | 1 | | | | 27 | | | | 326 | | | | 15 | |
| Non-interested Trustees’ fees and expenses | | | 1 | | | | 3 | | | | 1 | | | | 14 | | | | 3 | | | | – | | | | 59 | | | | 13 | |
| Non-interested Trustees’ deferred compensation fees | | | – | | | | 17 | | | | 7 | | | | 94 | | | | 24 | | | | 7 | | | | 370 | | | | 61 | |
| Foreign tax liability | | | – | | | | – | | | | – | | | | 316 | | | | – | | | | – | | | | – | | | | – | |
| Accrued expenses and other payables | | | 48 | | | | 284 | | | | 108 | | | | 999 | | | | 413 | | | | 137 | | | | 3,319 | | | | 963 | |
| Forward currency contracts | | | – | | | | 337 | | | | – | | | | 10,592 | | | | 185 | | | | – | | | | 549 | | | | 62 | |
| Total Liabilities | | | 340 | | | | 3,247 | | | | 1,700 | | | | 91,854 | | | | 24,976 | | | | 1,436 | | | | 100,198 | | | | 42,096 | |
| Net Assets | | $ | 14,989 | | | $ | 701,147 | | | $ | 283,272 | | | $ | 3,789,948 | | | $ | 952,119 | | | $ | 273,753 | | | $ | 14,998,094 | | | $ | 2,475,957 | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
92 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
93
Statements of Assets and Liabilities (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Janus
| | Janus
|
As of March 31, 2011 (unaudited)
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus International
| | Overseas
| | Worldwide
|
| (all numbers in thousands except net asset value per share) | | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund | | Equity Fund | | Fund | | Fund |
|
| |
| Net Assets Consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital (par value and paid-in surplus)* | | $ | 14,832 | | | $ | 712,910 | | | $ | 269,240 | | | $ | 3,968,888 | | | $ | 844,523 | | | $ | 261,847 | | | $ | 12,041,470 | | | $ | 3,563,570 | |
| Undistributed net investment income/(loss)* | | | 6 | | | | 1,096 | | | | (448) | | | | (36,992) | | | | (1,590) | | | | 990 | | | | (26,464) | | | | 544 | |
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | | | (111) | | | | (159,491) | | | | (35,249) | | | | (760,581) | | | | (61,789) | | | | (28,193) | | | | 124,249 | | | | (1,388,308) | |
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation(4) | | | 262 | | | | 146,632 | | | | 49,729 | | | | 618,633 | | | | 170,975 | | | | 39,109 | | | | 2,858,839 | | | | 300,151 | |
| Total Net Assets | | $ | 14,989 | | | $ | 701,147 | | | $ | 283,272 | | | $ | 3,789,948 | | | $ | 952,119 | | | $ | 273,753 | | | $ | 14,998,094 | | | $ | 2,475,957 | |
| Net Assets - Class A Shares | | $ | 1,096 | | | $ | 1,963 | | | $ | 1,599 | | | $ | 39,960 | | | $ | 2,330 | | | $ | 81,153 | | | $ | 1,017,214 | | | $ | 2,896 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 109 | | | | 79 | | | | 106 | | | | 3,254 | | | | 130 | | | | 6,877 | | | | 19,864 | | | | 60 | |
| Net Asset Value Per Share(5) | | $ | 10.10 | | | $ | 24.78 | | | $ | 15.05 | | | $ | 12.28 | | | $ | 17.96 | | | $ | 11.80 | | | $ | 51.21 | | | $ | 48.65 | |
| Maximum Offering Price Per Share(6) | | $ | 10.72 | | | $ | 26.29 | | | $ | 15.97 | | | $ | 13.03 | | | $ | 19.06 | | | $ | 12.52 | | | $ | 54.33 | | | $ | 51.62 | |
| Net Assets - Class C Shares | | $ | 853 | | | $ | 232 | | | $ | 1,149 | | | $ | 18,355 | | | $ | 1,262 | | | $ | 20,996 | | | $ | 348,282 | | | $ | 1,592 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 84 | | | | 9 | | | | 77 | | | | 1,506 | | | | 71 | | | | 1,814 | | | | 6,867 | | | | 33 | |
| Net Asset Value Per Share(5) | | $ | 10.10 | | | $ | 24.53 | | | $ | 14.89 | | | $ | 12.19 | | | $ | 17.73 | | | $ | 11.58 | | | $ | 50.71 | | | $ | 48.29 | |
| Net Assets - Class D Shares | | $ | 6,951 | | | $ | 458,246 | | | $ | 129,033 | | | $ | 2,300,012 | | | $ | 641,318 | | | $ | 9,586 | | | $ | 2,573,612 | | | $ | 1,328,050 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 688 | | | | 18,422 | | | | 8,547 | | | | 186,941 | | | | 35,596 | | | | 814 | | | | 50,147 | | | | 27,615 | |
| Net Asset Value Per Share | | $ | 10.11 | | | $ | 24.87 | | | $ | 15.10 | | | $ | 12.30 | | | $ | 18.02 | | | $ | 11.78 | | | $ | 51.32 | | | $ | 48.09 | |
| Net Assets - Class I Shares | | $ | 3,934 | | | $ | 4,547 | | | $ | 27,623 | | | $ | 48,859 | | | $ | 8,008 | | | $ | 149,999 | | | $ | 2,184,758 | | | $ | 14,832 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 389 | | | | 183 | | | | 1,832 | | | | 3,971 | | | | 443 | | | | 12,730 | | | | 42,530 | | | | 304 | |
| Net Asset Value Per Share | | $ | 10.10 | | | $ | 24.86 | | | $ | 15.08 | | | $ | 12.30 | | | $ | 18.06 | | | $ | 11.78 | | | $ | 51.37 | | | $ | 48.74 | |
| Net Assets - Class R Shares | | | N/A | | | | N/A | | | | N/A | | | $ | 3,636 | | | | N/A | | | $ | 880 | | | $ | 196,692 | | | $ | 847 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | N/A | | | | N/A | | | | N/A | | | | 297 | | | | N/A | | | | 75 | | | | 3,860 | | | | 17 | |
| Net Asset Value Per Share | | | N/A | | | | N/A | | | | N/A | | | $ | 12.24 | | | | N/A | | | $ | 11.69 | | | $ | 50.96 | | | $ | 48.57 | |
| Net Assets - Class S Shares | | $ | 842 | | | $ | 213 | | | $ | 232 | | | $ | 8,531 | | | $ | 254 | | | $ | 6,461 | | | $ | 1,904,819 | | | $ | 62,088 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83 | | | | 9 | | | | 15 | | | | 692 | | | | 14 | | | | 541 | | | | 37,236 | | | | 1,276 | |
| Net Asset Value Per Share | | $ | 10.10 | | | $ | 24.73 | | | $ | 15.04 | | | $ | 12.32 | | | $ | 17.91 | | | $ | 11.95 | | | $ | 51.16 | | | $ | 48.68 | |
| Net Assets - Class T Shares | | $ | 1,313 | | | $ | 235,946 | | | $ | 123,636 | | | $ | 1,370,595 | | | $ | 298,947 | | | $ | 4,678 | | | $ | 6,772,717 | | | $ | 1,065,652 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 130 | | | | 9,489 | | | | 8,194 | | | | 111,431 | | | | 16,608 | | | | 399 | | | | 132,053 | | | | 22,186 | |
| Net Asset Value Per Share | | $ | 10.10 | | | $ | 24.86 | | | $ | 15.09 | | | $ | 12.30 | | | $ | 18.00 | | | $ | 11.72 | | | $ | 51.29 | | | $ | 48.03 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Includes cost of $19,343, $111,314, and $267,237 for Janus Emerging Markets Fund, Janus International Equity Fund, and Janus Worldwide Fund, respectively. |
| (2) | | Includes proceeds of $7,799,850 and $9,978,470 on short sales for Janus Global Select Fund and Janus Global Technology Fund, respectively. |
| (3) | | Includes premiums of $21,400 and $45,704,066 on written options for Janus Emerging Markets Fund and Janus Global Select Fund, respectively. |
| (4) | | Net of foreign tax on investments of $316,197 for Janus Global Select Fund. |
| (5) | | Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
| (6) | | Maximum offering price is computed at 100/94.25 of net asset value. |
| | | |
| | | |
See Notes to Financial Statements.
94 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
95
Statements of Operations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Janus
| | | | |
For the six-month period ended March 31, 2011 (unaudited)
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | International
| | Janus
| | Janus
|
| (all numbers in thousands) | | Markets Fund(1) | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund | | Equity Fund | | Overseas Fund | | Worldwide Fund |
|
| |
| Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | $ | – | | | $ | (1) | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | 1 | | | $ | 297 | |
| Interest proceeds from short sales | | | – | | | | 341 | | | | – | | | | 305 | | | | 283 | | | | – | | | | – | | | | – | |
| Dividends | | | 45 | | | | 297 | | | | 1,945 | | | | 20,803 | | | | 2,598 | | | | 2,850 | | | | 52,868 | | | | 12,641 | |
| Dividends from affiliates | | | 1 | | | | 7 | | | | 5 | | | | 496 | | | | 29 | | | | 7 | | | | 4,483 | | | | 74 | |
| Foreign tax withheld | | | (3) | | | | (322) | | | | (47) | | | | (1,175) | | | | (80) | | | | (128) | | | | (4,935) | | | | (488) | |
| Total Investment Income | | | 43 | | | | 322 | | | | 1,903 | | | | 20,429 | | | | 2,830 | | | | 2,729 | | | | 52,417 | | | | 12,524 | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Advisory fees | | | 27 | | | | 2,178 | | | | 1,007 | | | | 12,122 | | | | 2,927 | | | | 1,009 | | | | 45,990 | | | | 7,805 | |
| Shareholder reports expense | | | 22 | | | | 131 | | | | 32 | | | | 559 | | | | 215 | | | | 23 | | | | 759 | | | | 431 | |
| Transfer agent fees and expenses | | | 4 | | | | 113 | | | | 26 | | | | 388 | | | | 167 | | | | 6 | | | | 260 | | | | 312 | |
| Registration fees | | | 103 | | | | 51 | | | | 53 | | | | 78 | | | | 53 | | | | 59 | | | | 214 | | | | 60 | |
| Custodian fees | | | 19 | | | | 25 | | | | 27 | | | | 177 | | | | 28 | | | | 37 | | | | 1,358 | | | | 148 | |
| Professional fees | | | 16 | | | | 22 | | | | 18 | | | | 36 | | | | 23 | | | | 21 | | | | 86 | | | | 30 | |
| Non-interested Trustees’ fees and expenses | | | 1 | | | | 13 | | | | 5 | | | | 73 | | | | 18 | | | | 5 | | | | 275 | | | | 48 | |
| Short sales dividend expense | | | – | | | | 32 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Short sales interest expense | | | – | | | | 32 | | | | – | | | | 53 | | | | 75 | | | | – | | | | – | | | | – | |
| Stock loan fees | | | – | | | | 142 | | | | – | | | | 222 | | | | 108 | | | | – | | | | – | | | | – | |
| Administrative services fees - Class D Shares | | | 1 | | | | 265 | | | | 74 | | | | 1,354 | | | | 367 | | | | 5 | | | | 1,545 | | | | 787 | |
| Administrative services fees - Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 4 | | | | N/A | | | | 1 | | | | 227 | | | | 1 | |
| Administrative services fees - Class S Shares | | | 1 | | | | – | | | | – | | | | 12 | | | | – | | | | 8 | | | | 2,336 | | | | 79 | |
| Administrative services fees - Class T Shares | | | 1 | | | | 291 | | | | 156 | | | | 1,763 | | | | 366 | | | | 4 | | | | 8,232 | | | | 1,356 | |
| Distribution fees and shareholder servicing fees - Class A Shares | | | 1 | | | | 2 | | | | 1 | | | | 47 | | | | 2 | | | | 100 | | | | 1,164 | | | | 3 | |
| Distribution fees and shareholder servicing fees - Class C Shares | | | 2 | | | | 1 | | | | 4 | | | | 84 | | | | 4 | | | | 104 | | | | 1,568 | | | | 7 | |
| Distribution fees and shareholder servicing fees - Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 9 | | | | N/A | | | | 2 | | | | 453 | | | | 2 | |
| Distribution fees and shareholder servicing fees - Class S Shares | | | 1 | | | | – | | | | – | | | | 12 | | | | – | | | | 8 | | | | 2,336 | | | | 79 | |
| Administrative, networking and omnibus fees - Class A Shares | | | – | | | | 1 | | | | – | | | | 20 | | | | 1 | | | | 38 | | | | 472 | | | | 2 | |
| Administrative, networking and omnibus fees - Class C Shares | | | – | | | | – | | | | – | | | | 8 | | | | 1 | | | | 12 | | | | 143 | | | | 1 | |
| Administrative, networking and omnibus fees - Class I Shares | | | – | | | | 3 | | | | 14 | | | | 30 | | | | 5 | | | | 16 | | | | 615 | | | | 4 | |
| Other expenses | | | 7 | | | | 21 | | | | 11 | | | | 108 | | | | 29 | | | | 12 | | | | 1,325 | | | | 74 | |
| Non-recurring costs (Note 4) | | | N/A | | | | – | | | | N/A | | | | 1 | | | | – | | | | N/A | | | | 1 | | | | 2 | |
| Costs assumed by Janus Capital Management LLC (Note 4) | | | N/A | | | | – | | | | N/A | | | | (1) | | | | – | | | | N/A | | | | (1) | | | | (2) | |
| Total Expenses | | | 206 | | | | 3,323 | | | | 1,428 | | | | 17,159 | | | | 4,389 | | | | 1,470 | | | | 69,358 | | | | 11,229 | |
| Expense and Fee Offset | | | – | | | | – | | | | – | | | | (18) | | | | – | | | | – | | | | (18) | | | | (1) | |
| Net Expenses | | | 206 | | | | 3,323 | | | | 1,428 | | | | 17,141 | | | | 4,389 | | | | 1,470 | | | | 69,340 | | | | 11,228 | |
| Less: Excess Expense Reimbursement | | | (169) | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | – | |
| Net Expenses after Expense Reimbursement | | | 37 | | | | 3,323 | | | | 1,428 | | | | 17,141 | | | | 4,389 | | | | 1,470 | | | | 69,340 | | | | 11,228 | |
| Net Investment Income/(Loss) | | | 6 | | | | (3,001) | | | | 475 | | | | 3,288 | | | | (1,559) | | | | 1,259 | | | | (16,923) | | | | 1,296 | |
| Net Realized and Unrealized Gain/(Loss) on Investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized gain/(loss) from investment and foreign currency transactions | | | (27) | | | | 37,033 | | | | 16,060 | | | | 555,371 | | | | 125,131 | | | | 13,754 | | | | 868,552 | | | | 265,896 | |
| Net realized gain from futures contracts | | | – | | | | – | | | | – | | | | 6,270 | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from short sales | | | – | | | | (2,268) | | | | – | | | | (7,130) | | | | 2,987 | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from swap contracts | | | (84) | | | | – | | | | – | | | | 1,003 | | | | – | | | | – | | | | 87,993 | | | | – | |
| Net realized gain/(loss) from written options contracts | | | – | | | | – | | | | – | | | | 291 | | | | – | | | | – | | | | – | | | | (321) | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(2) | | | 262 | | | | 49,250 | | | | 14,633 | | | | (101,921) | | | | 18,533 | | | | 6,884 | | | | 98,119 | | | | (20,210) | |
| Net Gain on Investments | | | 151 | | | | 84,015 | | | | 30,693 | | | | 453,884 | | | | 146,651 | | | | 20,638 | | | | 1,054,664 | | | | 245,365 | |
| Net Increase in Net Assets Resulting from Operations | | $ | 157 | | | $ | 81,014 | | | $ | 31,168 | | | $ | 457,172 | | | $ | 145,092 | | | $ | 21,897 | | | $ | 1,037,741 | | | $ | 246,661 | |
| | | |
| (1) | | Period from December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Net of foreign tax on investments of $316,197 for Janus Global Select Fund. |
| | | |
| | | |
See Notes to Financial Statements.
96 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
97
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | | | | | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
|
fiscal year ended October 31, 2009
| | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund |
| (all numbers in thousands) | | 2011(1) | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 |
|
| |
| Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | $ | 6 | | | $ | (3,001) | | | $ | 7,451 | | | $ | 1,715 | | | $ | 475 | | | $ | 1,519 | | | $ | 930 | | | $ | 3,288 | | | $ | 11,475 | | | $ | 3,436 | | | $ | (1,559) | | | $ | (3,846) | | | $ | (1,876) | |
| Net realized gain/(loss) from investment and foreign currency transactions | | | (27) | | | | 37,033 | | | | 30,248 | | | | (66,294) | | | | 16,060 | | | | 15,397 | | | | (48,473) | | | | 555,371 | | | | 614,657 | | | | (1,148,994) | | | | 125,131 | | | | 117,222 | | | | (96,525) | |
| Net realized gain/(loss) from futures contracts | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 6,270 | | | | (11,386) | | | | (75,144) | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from short sales | | | – | | | | (2,268) | | | | (2,118) | | | | (90) | | | | – | | | | – | | | | – | | | | (7,130) | | | | (25,214) | | | | (16,120) | | | | 2,987 | | | | (10,324) | | | | (6,224) | |
| Net realized gain/(loss) from swap contracts | | | (84) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 103 | | | | 1,003 | | | | 2,586 | | | | 28,469 | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from written options contracts | | | – | | | | – | | | | (403) | | | | – | | | | – | | | | (80) | | | | 29 | | | | 291 | | | | 14,377 | | | | (13,065) | | | | – | | | | (862) | | | | 628 | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 262 | | | | 49,250 | | | | 43,716 | | | | 129,261 | | | | 14,633 | | | | 21,198 | | | | 91,300 | | | | (101,921) | | | | 64,216 | | | | 1,902,262 | | | | 18,533 | | | | 47,814 | | | | 287,168 | |
| Net Increase in Net Assets Resulting from Operations | | | 157 | | | | 81,014 | | | | 78,894 | | | | 64,592 | | | | 31,168 | | | | 38,034 | | | | 43,889 | | | | 457,172 | | | | 670,711 | | | | 680,844 | | | | 145,092 | | | | 150,004 | | | | 183,171 | |
| Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | (11) | | | | – | | | | – | | | | (8) | | | | – | | | | – | | | | (360) | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class C Shares | | | – | | | | (1) | | | | – | | | | – | | | | (4) | | | | – | | | | – | | | | (62) | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | – | | | | (2,271) | | | | – | | | | N/A | | | | (1,072) | | | | – | | | | N/A | | | | (24,499) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | – | | | | (30) | | | | (1) | | | | – | | | | (168) | | | | – | | | | – | | | | (700) | | | | (13) | | | | – | | | | – | | | | – | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (24) | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | (1) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (38) | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | (1,056) | | | | (48) | | | | (2,217) | | | | (1,040) | | | | (69) | | | | (1,526) | | | | (14,271) | | | | (1,030) | | | | (24,663) | | | | – | | | | – | | | | – | |
| Net Realized Gain/(Loss) from Investment Transactions* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | – | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (2,380) | | | | – | | | | – | | | | – | |
| Net Decrease from Dividends and Distributions | | | – | | | | (3,370) | | | | (49) | | | | (2,217) | | | | (2,292) | | | | (69) | | | | (1,526) | | | | (39,954) | | | | (1,043) | | | | (27,043) | | | | – | | | | – | | | | – | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
98 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
99
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | | | | | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
|
fiscal year ended October 31, 2009
| | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund |
| (all numbers in thousands) | | 2011(1) | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 |
|
| |
| Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 1,080 | | | | 557 | | | | 1,813 | | | | 62 | | | | 1,096 | | | | 701 | | | | 89 | | | | 7,442 | | | | 14,747 | | | | 2,765 | | | | 1,141 | | | | 1,571 | | | | 235 | |
| Class C Shares | | | 844 | | | | 33 | | | | 166 | | | | 21 | | | | 771 | | | | 238 | | | | 199 | | | | 3,858 | | | | 5,585 | | | | 801 | | | | 595 | | | | 849 | | | | 36 | |
| Class D Shares | | | 7,155 | | | | 6,205 | | | | 7,141 | | | | N/A | | | | 15,278 | | | | 7,174 | | | | N/A | | | | 57,845 | | | | 85,951 | | | | N/A | | | | 36,920 | | | | 16,383 | | | | N/A | |
| Class I Shares | | | 4,130 | | | | 590 | | | | 4,102 | | | | 1,026 | | | | 15,786 | | | | 14,179 | | | | 86 | | | | 9,624 | | | | 52,979 | | | | 8,481 | | | | 2,465 | | | | 4,744 | | | | 1,028 | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 814 | | | | 2,036 | | | | 494 | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | 834 | | | | 10 | | | | 220 | | | | 11 | | | | 244 | | | | – | | | | 13 | | | | 924 | | | | 3,517 | | | | 4,793 | | | | 39 | | | | 224 | | | | 67 | |
| Class T Shares | | | 1,295 | | | | 7,574 | | | | 29,466 | | | | 31,274 | | | | 20,446 | | | | 37,919 | | | | 42,892 | | | | 98,818 | | | | 271,529 | | | | 304,003 | | | | 28,582 | | | | 52,080 | | | | 75,365 | |
| Shares Issued in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class D Shares | | | N/A | | | | N/A | | | | 447,205 | | | | N/A | | | | N/A | | | | 104,194 | | | | N/A | | | | N/A | | | | 2,004,372 | | | | N/A | | | | N/A | | | | 507,853 | | | | 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 | | | | 21,320 | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 7,379 | | | | N/A | | | | N/A | | | | N/A | |
| Class I Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1,203 | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 543 | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 6,068 | | | | N/A | | | | N/A | | | | N/A | |
| Redemption Fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | |
| Class C Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | |
| Class D Shares | | | 4 | | | | 3 | | | | 8 | | | | N/A | | | | 6 | | | | 4 | | | | N/A | | | | 2 | | | | – | | | | N/A | | | | 18 | | | | 18 | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | 1 | | | | – | | | | – | | | | 1 | | | | – | | | | – | | | | – | | | | N/A | | | | – | | | | 2 | | | | – | |
| 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 | |
| Class T Shares | | | – | | | | 2 | | | | 23 | | | | 63 | | | | 4 | | | | 14 | | | | 56 | | | | 5 | | | | – | | | | N/A | | | | 8 | | | | 50 | | | | 75 | |
| Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | 11 | | | | – | | | | – | | | | 7 | | | | – | | | | – | | | | 324 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | | | | – | | | | 4 | | | | – | | | | – | | | | 40 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | – | | | | 2,238 | | | | – | | | | N/A | | | | 1,051 | | | | – | | | | N/A | | | | 24,055 | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | – | | | | 25 | | | | – | | | | – | | | | 165 | | | | – | | | | – | | | | 565 | | | | 2 | | | | – | | | | – | | | | – | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 22 | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | 1 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 38 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | 1,026 | | | | 47 | | | | 2,178 | | | | 1,032 | | | | 68 | | | | 1,505 | | | | 13,940 | | | | 1,013 | | | | 26,546 | | | | – | | | | – | | | | – | |
| Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | (379) | | | | (370) | | | | – | | | | (354) | | | | (113) | | | | – | | | | (5,654) | | | | (10,309) | | | | (4,160) | | | | (330) | | | | (647) | | | | – | |
| Class C Shares | | | – | | | | (11) | | | | (10) | | | | – | | | | (140) | | | | (25) | | | | (4) | | | | (1,627) | | | | (2,951) | | | | (860) | | | | (54) | | | | (297) | | | | – | |
| Class D Shares | | | (255) | | | | (33,209) | | | | (32,264) | | | | N/A | | | | (11,841) | | | | (14,408) | | | | N/A | | | | (149,908) | | | | (200,017) | | | | N/A | | | | (39,537) | | | | (44,071) | | | | N/A | |
| Class I Shares | | | (250) | | | | (889) | | | | (1,053) | | | | (8) | | | | (3,935) | | | | (1,731) | | | | (52) | | | | (18,981) | | | | (15,655) | | | | (194) | | | | (1,476) | | | | (433) | | | | – | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (1,031) | | | | (709) | | | | (139) | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | (10) | | | | (39) | | | | – | | | | (26) | | | | (2) | | | | – | | | | (5,762) | | | | (7,216) | | | | (510) | | | | (37) | | | | (107) | | | | – | |
| Class T Shares | | | (5) | | | | (29,868) | | | | (65,792) | | | | (102,818) | | | | (26,803) | | | | (43,827) | | | | (51,120) | | | | (281,783) | | | | (442,095) | | | | (536,130) | | | | (41,702) | | | | (74,819) | | | | (78,462) | |
| Shares Reorganized in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class T Shares | | | N/A | | | | N/A | | | | (447,205) | | | | N/A | | | | N/A | | | | (104,194) | | | | N/A | | | | N/A | | | | (2,004,372) | | | | N/A | | | | N/A | | | | (507,853) | | | | N/A | |
| Net Increase/(Decrease) from Capital Share Transactions | | | 14,832 | | | | (46,091) | | | | (56,541) | | | | (68,191) | | | | 12,791 | | | | 192 | | | | (6,336) | | | | (246,430) | | | | (241,593) | | | | (157,597) | | | | (13,368) | | | | (44,453) | | | | (1,656) | |
| Net Increase/(Decrease) in Net Assets | | | 14,989 | | | | 31,553 | | | | 22,304 | | | | (5,816) | | | | 41,667 | | | | 38,157 | | | | 36,027 | | | | 170,788 | | | | 428,075 | | | | 496,204 | | | | 131,724 | | | | 105,551 | | | | 181,515 | |
| Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | | – | | | | 669,594 | | | | 647,290 | | | | 653,106 | | | | 241,605 | | | | 203,448 | | | | 167,421 | | | | 3,619,160 | | | | 3,191,085 | | | | 2,694,881 | | | | 820,395 | | | | 714,844 | | | | 533,329 | |
| End of period | | $ | 14,989 | | | $ | 701,147 | | | $ | 669,594 | | | $ | 647,290 | | | $ | 283,272 | | | $ | 241,605 | | | $ | 203,448 | | | $ | 3,789,948 | | | $ | 3,619,160 | | | $ | 3,191,085 | | | $ | 952,119 | | | $ | 820,395 | | | $ | 714,844 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Undistributed Net Investment Income/(Loss)* | | $ | 6 | | | $ | 1,096 | | | $ | 7,466 | | | $ | 38 | | | $ | (448) | | | $ | 1,369 | | | $ | 64 | | | $ | (36,992) | | | $ | (326) | | | $ | (209) | | | $ | (1,590) | | | $ | (31) | | | $ | 42 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Period from December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| | | |
| | | |
See Notes to Financial Statements.
100 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
101
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited), the eleven-month fiscal period or
| | Janus International
| | Janus
| | Janus
|
fiscal year ended September 30, 2010 and the fiscal year ended October 31, 2009
| | Equity Fund | | Overseas Fund | | Worldwide Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 |
|
| |
| Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | $ | 1,259 | | | $ | 1,821 | | | $ | (16,923) | | | $ | 20,369 | | | $ | 48,788 | | | $ | 1,296 | | | $ | 14,723 | | | $ | 26,617 | |
| Net realized gain/(loss) from investment and foreign currency transactions | | | 13,754 | | | | 17,205 | | | | 868,552 | | | | 438,470 | | | | (703,715) | | | | 265,896 | | | | 327,513 | | | | (938,617) | |
| Net realized gain/(loss) from swap contracts | | | – | | | | – | | | | 87,993 | | | | (4,864) | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from written options contracts | | | – | | | | (201) | | | | – | | | | – | | | | – | | | | (321) | | | | (1,006) | | | | – | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 6,884 | | | | 6,587 | | | | 98,119 | | | | 1,871,580 | | | | 3,029,158 | | | | (20,210) | | | | 32,578 | | | | 1,327,687 | |
| Net Increase in Net Assets Resulting from Operations | | | 21,897 | | | | 25,412 | | | | 1,037,741 | | | | 2,325,555 | | | | 2,374,231 | | | | 246,661 | | | | 373,808 | | | | 415,687 | |
| Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (427) | | | | (50) | | | | (896) | | | | (1,772) | | | | – | | | | (8) | | | | (14) | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | | | | (204) | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | (66) | | | | – | | | | (4,170) | | | | – | | | | N/A | | | | (5,617) | | | | – | | | | N/A | |
| Class I Shares | | | (1,214) | | | | (422) | | | | (4,933) | | | | (2,716) | | | | – | | | | (63) | | | | (214) | | | | – | |
| Class R Shares | | | (2) | | | | – | | | | – | | | | (225) | | | | – | | | | – | | | | (1) | | | | – | |
| Class S Shares | | | (27) | | | | (7) | | | | – | | | | (4,125) | | | | – | | | | (72) | | | | (195) | | | | – | |
| Class T Shares | | | (30) | | | | – | | | | (7,055) | | | | (27,378) | | | | (38,008) | | | | (4,903) | | | | (10,450) | | | | (40,661) | |
| Net Realized Gain/(Loss) from Investment Transactions* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | – | | | | – | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class R Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class S Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | – | | | | – | | | | – | | | | (207,095) | | | | – | | | | – | | | | – | |
| Net Decrease from Dividends and Distributions | | | (1,766) | | | | (479) | | | | (17,054) | | | | (36,420) | | | | (245,103) | | | | (10,663) | | | | (10,874) | | | | (40,661) | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
102 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
103
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited), the eleven-month fiscal period or
| | Janus International
| | Janus
| | Janus
|
fiscal year ended September 30, 2010 and the fiscal year ended October 31, 2009
| | Equity Fund | | Overseas Fund | | Worldwide Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2011 | | 2010(2) | | 2009 | | 2011 | | 2010(2) | | 2009 |
|
| |
| Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 10,077 | | | | 29,144 | | | | 320,578 | | | | 422,467 | | | | 155,314 | | | | 596 | | | | 1,781 | | | | 1,633 | |
| Class C Shares | | | 1,760 | | | | 6,798 | | | | 78,507 | | | | 96,660 | | | | 39,334 | | | | 303 | | | | 263 | | | | 342 | |
| Class D Shares | | | 4,984 | | | | 5,980 | | | | 125,465 | | | | 127,243 | | | | N/A | | | | 15,129 | | | | 17,843 | | | | N/A | |
| Class I Shares | | | 29,661 | | | | 63,611 | | | | 709,448 | | | | 997,956 | | | | 174,339 | | | | 3,727 | | | | 18,118 | | | | 3,059 | |
| Class R Shares | | | 88 | | | | 359 | | | | 48,453 | | | | 60,545 | | | | 15,327 | | | | 236 | | | | 164 | | | | 74 | |
| Class S Shares | | | 510 | | | | 2,263 | | | | 309,400 | | | | 474,379 | | | | 169,128 | | | | 6,118 | | | | 8,103 | | | | 5,006 | |
| Class T Shares | | | 2,384 | | | | 2,141 | | | | 1,070,284 | | | | 1,567,802 | | | | 1,662,937 | | | | 23,439 | | | | 49,603 | | | | 65,476 | |
| Shares Issued in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class D Shares | | | N/A | | | | N/A | | | | N/A | | | | 2,197,142 | | | | N/A | | | | N/A | | | | 1,183,914 | | | | N/A | |
| Shares Issued in Connection with Acquisition (Note 10) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 400,243 | | | | N/A | | | | N/A | | | | 2,041 | |
| Class C Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 179,919 | | | | N/A | | | | N/A | | | | 879 | |
| Class I Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 335,846 | | | | N/A | | | | N/A | | | | 28,194 | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 90,316 | | | | N/A | | | | N/A | | | | 506 | |
| Class S Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1,118,975 | | | | N/A | | | | N/A | | | | 46,030 | |
| Redemption Fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class D Shares | | | 7 | | | | 3 | | | | 64 | | | | 193 | | | | N/A | | | | 5 | | | | 10 | | | | N/A | |
| Class I Shares | | | – | | | | 9 | | | | 48 | | | | 314 | | | | 19 | | | | – | | | | 2 | | | | 1 | |
| Class R Shares | | | – | | | | – | | | | 5 | | | | 16 | | | | 1 | | | | – | | | | – | | | | – | |
| Class S Shares | | | – | | | | 1 | | | | 144 | | | | 211 | | | | 164 | | | | 3 | | | | 6 | | | | 7 | |
| Class T Shares | | | – | | | | – | | | | 400 | | | | 1,349 | | | | 1,095 | | | | 17 | | | | 29 | | | | 69 | |
| Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 419 | | | | 49 | | | | 776 | | | | 1,531 | | | | – | | | | 7 | | | | 14 | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | | | | 137 | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | 65 | | | | – | | | | 4,059 | | | | – | | | | N/A | | | | 5,450 | | | | – | | | | N/A | |
| Class I Shares | | | 1,101 | | | | 373 | | | | 4,218 | | | | 2,188 | | | | – | | | | 53 | | | | 202 | | | | – | |
| Class R Shares | | | 2 | | | | – | | | | – | | | | 163 | | | | – | | | | – | | | | 1 | | | | – | |
| Class S Shares | | | 26 | | | | 6 | | | | – | | | | 4,083 | | | | – | | | | 72 | | | | 195 | �� | | | – | |
| Class T Shares | | | 29 | | | | – | | | | 6,905 | | | | 26,807 | | | | 239,274 | | | | 4,813 | | | | 10,222 | | | | 39,764 | |
| Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (11,165) | | | | (33,832) | | | | (148,670) | | | | (223,249) | | | | (97,815) | | | | (537) | | | | (2,739) | | | | (140) | |
| Class C Shares | | | (3,605) | | | | (4,424) | | | | (32,836) | | | | (46,631) | | | | (10,886) | | | | (143) | | | | (289) | | | | (40) | |
| Class D Shares | | | (1,550) | | | | (664) | | | | (185,903) | | | | (196,239) | | | | N/A | | | | (70,756) | | | | (88,586) | | | | N/A | |
| Class I Shares | | | (23,478) | | | | (26,002) | | | | (187,103) | | | | (207,819) | | | | (40,453) | | | | (2,171) | | | | (41,948) | | | | (956) | |
| Class R Shares | | | (39) | | | | (424) | | | | (22,625) | | | | (26,389) | | | | (9,324) | | | | (51) | | | | (180) | | | | (29) | |
| Class S Shares | | | (949) | | | | (1,272) | | | | (269,243) | | | | (436,368) | | | | (112,877) | | | | (12,143) | | | | (17,565) | | | | (6,739) | |
| Class T Shares | | | (111) | | | | (120) | | | | (893,622) | | | | (1,672,414) | | | | (1,010,443) | | | | (121,294) | | | | (235,634) | | | | (300,525) | |
| Shares Reorganized in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class T Shares | | | N/A | | | | N/A | | | | N/A | | | | (2,197,142) | | | | N/A | | | | N/A | | | | (1,183,914) | | | | N/A | |
| Net Increase/(Decrease) from Capital Share Transactions | | | 10,216 | | | | 43,999 | | | | 938,752 | | | | 974,935 | | | | 3,300,433 | | | | (147,127) | | | | (280,385) | | | | (115,348) | |
| Net Increase in Net Assets | | | 30,347 | | | | 68,932 | | | | 1,959,439 | | | | 3,264,070 | | | | 5,429,561 | | | | 88,871 | | | | 82,549 | | | | 259,678 | |
| Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | | 243,406 | | | | 174,474 | | | | 13,038,655 | | | | 9,774,585 | | | | 4,345,024 | | | | 2,387,086 | | | | 2,304,537 | | | | 2,044,859 | |
| End of period | | $ | 273,753 | | | $ | 243,406 | | | $ | 14,998,094 | | | $ | 13,038,655 | | | $ | 9,774,585 | | | $ | 2,475,957 | | | $ | 2,387,086 | | | $ | 2,304,537 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Undistributed Net Investment Income/(Loss)* | | $ | 990 | | | $ | 1,497 | | | $ | (26,464) | | | $ | 7,513 | | | $ | 30,403 | | | $ | 544 | | | $ | 9,910 | | | $ | 9,238 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Period from October 1, 2009 through September 30, 2010. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| | | |
| | | |
See Notes to Financial Statements.
104 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
105
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2011 (unaudited),
| | Janus Emerging
| | Janus Global Life
| | |
the eleven-month fiscal period ended September 30, 2010 and the fiscal period
| | Markets Fund | | Sciences Fund | | |
| ended October 31, 2009 | | 2011(1) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.00 | | | | $22.16 | | | | $19.69 | | | | $17.81 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.14) | | | | .21 | | | | (.01) | | | |
| Net gain on investments (both realized and unrealized) | | | .10 | | | | 2.90 | | | | 2.28 | | | | 1.89 | | | |
| Total from Investment Operations | | | .10 | | | | 2.76 | | | | 2.49 | | | | 1.88 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.14) | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | (.14) | | | | (.02) | | | | – | | | |
| Net Asset Value, End of Period | | | $10.10 | | | | $24.78 | | | | $22.16 | | | | $19.69 | | | |
| Total Return** | | | 1.00% | | | | 12.49% | | | | 12.65% | | | | 10.56% | | | |
| Net Assets, End of Period (in thousands) | | | $1,096 | | | | $1,963 | | | | $1,571 | | | | $61 | | | |
| Average Net Assets for the Period (in thousands) | | | $873 | | | | $1,813 | | | | $849 | | | | $27 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.35% | | | | 1.13%(5) | | | | 1.11%(5) | | | | 1.10% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.35% | | | | 1.13%(5) | | | | 1.11%(5) | | | | 1.05% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.15% | | | | (1.05)% | | | | 1.66% | | | | (0.19)% | | | |
| Portfolio Turnover Rate*** | | | 161% | | | | 46% | | | | 46% | | | | 70% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period ended
| | Janus Global
| | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Research Fund | | Janus Global Select Fund | | |
| 2009 | | 2011 | | 2010(2) | | 2009(3) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $13.48 | | | | $11.38 | | | | $9.81 | | | | $10.99 | | | | $9.03 | | | | $7.59 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .07 | | | | .05 | | | | (.01) | | | | – | | | | (.01) | | | | (.01) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.64 | | | | 2.07 | | | | 1.58 | | | | 1.40 | | | | 1.97 | | | | 1.45 | | | |
| Total from Investment Operations | | | 1.71 | | | | 2.12 | | | | 1.57 | | | | 1.40 | | | | 1.96 | | | | 1.44 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.14) | | | | (.02) | | | | – | | | | (.11) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | – | | | | –(6) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.14) | | | | (.02) | | | | – | | | | (.11) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $15.05 | | | | $13.48 | | | | $11.38 | | | | $12.28 | | | | $10.99 | | | | $9.03 | | | |
| Total Return** | | | 12.69% | | | | 18.64% | | | | 16.00% | | | | 12.80% | | | | 21.71% | | | | 18.97% | | | |
| Net Assets, End of Period (in thousands) | | | $1,599 | | | | $756 | | | | $85 | | | | $39,960 | | | | $33,737 | | | | $23,859 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,030 | | | | $291 | | | | $7 | | | | $37,833 | | | | $29,501 | | | | $24,760 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.23% | | | | 1.28% | | | | 1.37% | | | | 1.08%(7) | | | | 1.11%(7) | | | | 1.18%(7) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.23% | | | | 1.27% | | | | 0.93% | | | | 1.08%(7) | | | | 1.10%(7) | | | | 1.16%(7) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.32% | | | | 0.58% | | | | (3.12)% | | | | 0.01% | | | | 0.19% | | | | (0.36)% | | | |
| Portfolio Turnover Rate*** | | | 73% | | | | 74% | | | | 99% | | | | 107% | | | | 127% | | | | 125% | | | |
| | | |
| * | | 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 December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from July 6, 2009 (inception date) through October 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.07% and 1.07%, respectively, in 2011 and 1.07% and 1.07%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (6) | | Redemption fees 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.06% and 1.06%, respectively, in 2011, 1.09% and 1.09%, respectively, in 2010 and 1.16% and 1.14%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
106 | MARCH 31, 2011
Class A Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Global
| | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Technology Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $15.25 | | | | $12.56 | | | | $10.96 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.03) | | | | (.03) | | | | .01 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 2.74 | | | | 2.72 | | | | 1.59 | | | |
| Total from Investment Operations | | | 2.71 | | | | 2.69 | | | | 1.60 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $17.96 | | | | $15.25 | | | | $12.56 | | | |
| Total Return** | | | 17.77% | | | | 21.42% | | | | 14.60% | | | |
| Net Assets, End of Period (in thousands) | | | $2,330 | | | | $1,273 | | | | $232 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,698 | | | | $818 | | | | $88 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.18%(5) | | | | 1.26%(5) | | | | 1.07%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.18%(5) | | | | 1.26%(5) | | | | 0.99%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.54)% | | | | (0.66)% | | | | (0.45)% | | | |
| Portfolio Turnover Rate*** | | | 84% | | | | 76% | | | | 111% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2009 and each fiscal year or period ended
| | Janus International Equity Fund | | |
| July 31 | | 2011 | | 2010 | | 2009(6) | | 2009(7) | | 2008 | | 2007(8)(9) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.90 | | | | $9.65 | | | | $9.11 | | | | $11.53 | | | | $11.35 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .05 | | | | .06 | | | | .02 | | | | .12 | | | | (.02) | | | | .09 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .91 | | | | 1.20 | | | | .52 | | | | (2.29) | | | | .29 | | | | 1.26 | | | |
| Total from Investment Operations | | | .96 | | | | 1.26 | | | | .54 | | | | (2.17) | | | | .27 | | | | 1.35 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.06) | | | | (.01) | | | | – | | | | (.16) | | | | (.04) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (.09) | | | | (.05) | | | | – | | | |
| Redemption fees | | | – | | | | –(3) | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions and Other | | | (.06) | | | | (.01) | | | | – | | | | (.25) | | | | (.09) | | | | – | | | |
| Net Asset Value, End of Period | | | $11.80 | | | | $10.90 | | | | $9.65 | | | | $9.11 | | | | $11.53 | | | | $11.35 | | | |
| Total Return** | | | 8.84% | | | | 13.04% | | | | 5.93% | | | | (18.29)% | | | | 2.29% | | | | 13.50% | | | |
| Net Assets, End of Period (in thousands) | | | $81,153 | | | | $75,583 | | | | $71,609 | | | | $65,443 | | | | $73,749 | | | | $800 | | | |
| Average Net Assets for the Period (in thousands) | | | $80,457 | | | | $68,357 | | | | $69,156 | | | | $54,721 | | | | $21,952 | | | | $643 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.23% | | | | 1.34% | | | | 1.31% | | | | 1.41% | | | | 1.28% | | | | 1.50% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.23% | | | | 1.34% | | | | 1.31% | | | | 1.41% | | | | 1.27% | | | | 1.50% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.84% | | | | 0.76% | | | | 1.02% | | | | 1.49%(10) | | | | 1.32% | | | | 1.44% | | | |
| Portfolio Turnover Rate*** | | | 90% | | | | 132% | | | | 115% | | | | 176% | | | | 39% | | | | 57% | | | |
| | | |
| * | | 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 September 30, 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. |
| (5) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.14% and 1.14%, respectively, in 2011, 1.14% and 1.13%, 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. |
| (6) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
| (7) | | Period from August 1, 2008 through July 31, 2009. |
| (8) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
| (9) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
| (10) | | 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 107
Financial Highlights (continued)
Class A Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended
| | Janus Overseas Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.51 | | | | $38.63 | | | | $33.51 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.08) | | | | (.01) | | | | .22 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.83 | | | | 9.03 | | | | 4.90 | | | |
| Total from Investment Operations | | | 3.75 | | | | 9.02 | | | | 5.12 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.05) | | | | (.14) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.05) | | | | (.14) | | | | – | | | |
| Net Asset Value, End of Period | | | $51.21 | | | | $47.51 | | | | $38.63 | | | |
| Total Return** | | | 7.89% | | | | 23.39% | | | | 15.28% | | | |
| Net Assets, End of Period (in thousands) | | | $1,017,214 | | | | $781,965 | | | | $462,533 | | | |
| Average Net Assets for the Period (in thousands) | | | $933,409 | | | | $614,405 | | | | $452,405 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.05% | | | | 1.07% | | | | 1.00% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.05% | | | | 1.07% | | | | 1.00% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.31)% | | | | 0.13% | | | | 0.39% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 45% | | | |
Class A Shares
| | | | | | | | | | | | | | | |
| | | Janus Worldwide
| | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the eleven-
| | Fund | | |
| month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $43.56 | | | | $37.43 | | | | $33.40 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | .07 | | | | .04 | | | |
| Net gain on investments (both realized and unrealized) | | | 5.22 | | | | 6.23 | | | | 3.99 | | | |
| Total from Investment Operations | | | 5.22 | | | | 6.30 | | | | 4.03 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.13) | | | | (.17) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.13) | | | | (.17) | | | | – | | | |
| Net Asset Value, End of Period | | | $48.65 | | | | $43.56 | | | | $37.43 | | | |
| Total Return** | | | 12.00% | | | | 16.87% | | | | 12.07% | | | |
| Net Assets, End of Period (in thousands) | | | $2,896 | | | | $2,575 | | | | $3,084 | | | |
| Average Net Assets for the Period (in thousands) | | | $2,774 | | | | $2,620 | | | | $2,020 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.06% | | | | 1.00% | | | | 1.20% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.06% | | | | 1.00% | | | | 1.17% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.03)% | | | | 0.45% | | | | 0.81% | | | |
| Portfolio Turnover Rate*** | | | 97% | | | | 94% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
108 | MARCH 31, 2011
Class C Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2011 (unaudited),
| | Janus Emerging
| | Janus Global Life
| | |
the eleven-month fiscal period ended September 30, 2010 and the fiscal period
| | Markets Fund | | Sciences Fund | | |
| ended October 31, 2009 | | 2011(1) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.00 | | | | $21.97 | | | | $19.64 | | | | $17.81 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.19) | | | | .13 | | | | (.03) | | | |
| Net gain on investments (both realized and unrealized) | | | .10 | | | | 2.84 | | | | 2.20 | | | | 1.86 | | | |
| Total from Investment Operations | | | .10 | | | | 2.65 | | | | 2.33 | | | | 1.83 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.09) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | (.09) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $10.10 | | | | $24.53 | | | | $21.97 | | | | $19.64 | | | |
| Total Return** | | | 1.00% | | | | 12.07% | | | | 11.86% | | | | 10.28% | | | |
| Net Assets, End of Period (in thousands) | | | $853 | | | | $232 | | | | $187 | | | | $21 | | | |
| Average Net Assets for the Period (in thousands) | | | $820 | | | | $201 | | | | $75 | | | | $7 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.36%(5) | | | | 1.86%(6) | | | | 1.88%(6) | | | | 1.87% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.36%(5) | | | | 1.86%(6) | | | | 1.88%(6) | | | | 1.80% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.02% | | | | (1.73)% | | | | 1.27% | | | | (1.09)% | | | |
| Portfolio Turnover Rate*** | | | 161% | | | | 46% | | | | 46% | | | | 70% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period ended
| | Janus Global
| | Janus Global
| | |
September 30, 2010 and the fiscal period ended October 31,
| | Research Fund | | Select Fund | | |
| 2009 | | 2011 | | 2010(2) | | 2009(3) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $13.34 | | | | $11.34 | | | | $9.81 | | | | $10.89 | | | | $9.01 | | | | $7.59 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .02 | | | | .01 | | | | (.01) | | | | (.03) | | | | (.07) | | | | (.03) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.62 | | | | 2.01 | | | | 1.54 | | | | 1.37 | | | | 1.95 | | | | 1.45 | | | |
| Total from Investment Operations | | | 1.64 | | | | 2.02 | | | | 1.53 | | | | 1.34 | | | | 1.88 | | | | 1.42 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.09) | | | | (.02) | | | | – | | | | (.04) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | – | | | | –(7) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.09) | | | | (.02) | | | | – | | | | (.04) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $14.89 | | | | $13.34 | | | | $11.34 | | | | $12.19 | | | | $10.89 | | | | $9.01 | | | |
| Total Return** | | | 12.28% | | | | 17.79% | | | | 15.60% | | | | 12.35% | | | | 20.87% | | | | 18.71% | | | |
| Net Assets, End of Period (in thousands) | | | $1,149 | | | | $447 | | | | $188 | | | | $18,355 | | | | $14,285 | | | | $9,611 | | | |
| Average Net Assets for the Period (in thousands) | | | $724 | | | | $248 | | | | $28 | | | | $16,862 | | | | $12,066 | | | | $9,297 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.95% | | | | 1.95% | | | | 1.55% | | | | 1.81%(8) | | | | 1.88%(8) | | | | 1.95%(8) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.95% | | | | 1.95% | | | | 1.31% | | | | 1.81%(8) | | | | 1.88%(8) | | | | 1.93%(8) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.46)% | | | | (0.03)% | | | | (1.32)% | | | | (0.72)% | | | | (0.57)% | | | | (1.14)% | | | |
| Portfolio Turnover Rate*** | | | 73% | | | | 74% | | | | 99% | | | | 107% | | | | 127% | | | | 125% | | | |
| | | |
| * | | 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 December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
| (4) | | See Note 6 in Notes to Financial Statements. |
| (5) | | 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 2.34% and 2.34%, respectively, without the waiver of these fees and expenses. |
| (6) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.80% and 1.80%, respectively, in 2011 and 1.84% and 1.84%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (7) | | Redemption fees aggregated less than $.01 on a per share basis. |
| (8) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.80% and 1.80%, respectively, in 2011, 1.87% and 1.86%, respectively, in 2010 and 1.93% and 1.91%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Global & International Funds | 109
Financial Highlights (continued)
Class C Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Global
| | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Technology Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $15.12 | | | | $12.53 | | | | $10.96 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.03) | | | | (.09) | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 2.64 | | | | 2.68 | | | | 1.57 | | | |
| Total from Investment Operations | | | 2.61 | | | | 2.59 | | | | 1.57 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $17.73 | | | | $15.12 | | | | $12.53 | | | |
| Total Return** | | | 17.26% | | | | 20.67% | | | | 14.32% | | | |
| Net Assets, End of Period (in thousands) | | | $1,262 | | | | $613 | | | | $36 | | | |
| Average Net Assets for the Period (in thousands) | | | $849 | | | | $441 | | | | $14 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.88%(5) | | | | 1.98%(5) | | | | 1.82%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.88%(5) | | | | 1.98%(5) | | | | 1.75%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.22)% | | | | (1.35)% | | | | (1.20)% | | | |
| Portfolio Turnover Rate*** | | | 84% | | | | 76% | | | | 111% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2009 and each fiscal year or period ended
| | Janus International Equity Fund | | |
| July 31 | | 2011 | | 2010 | | 2009(6) | | 2009(7) | | 2008 | | 2007(8) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.68 | | | | $9.52 | | | | $9.00 | | | | $11.37 | | | | $11.30 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.02) | | | | .01 | | | | .06 | | | | (.02) | | | | .04 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .90 | | | | 1.18 | | | | .51 | | | | (2.26) | | | | .14 | | | | 1.26 | | | |
| Total from Investment Operations | | | .90 | | | | 1.16 | | | | .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 | | | $11.58 | | | | $10.68 | | | | $9.52 | | | | $9.00 | | | | $11.37 | | | | $11.30 | | | |
| Total Return** | | | 8.43% | | | | 12.18% | | | | 5.78% | | | | (18.88)% | | | | 1.02% | | | | 13.00% | | | |
| Net Assets, End of Period (in thousands) | | | $20,996 | | | | $21,096 | | | | $16,596 | | | | $15,260 | | | | $16,623 | | | | $846 | | | |
| Average Net Assets for the Period (in thousands) | | | $21,670 | | | | $18,979 | | | | $15,959 | | | | $12,613 | | | | $5,971 | | | | $619 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.97% | | | | 2.13% | | | | 2.08% | | | | 2.20% | | | | 2.04% | | | | 2.26% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.97% | | | | 2.13% | | | | 2.07% | | | | 2.20% | | | | 2.04% | | | | 2.25% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.11% | | | | (0.04)% | | | | 0.24% | | | | 0.75%(9) | | | | 0.51% | | | | 0.63% | | | |
| Portfolio Turnover Rate*** | | | 90% | | | | 132% | | | | 115% | | | | 176% | | | | 39% | | | | 57% | | | |
| | | |
| * | | 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 September 30, 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. |
| (5) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.84% and 1.84%, respectively, in 2011, 1.85% and 1.85%, 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. |
| (6) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
| (7) | | Period from August 1, 2008 through July 31, 2009. |
| (8) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
| (9) | | 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. |
See Notes to Financial Statements.
110 | MARCH 31, 2011
Class C Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Overseas Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.17 | | | | $38.52 | | | | $33.51 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.22) | | | | (.24) | | | | .10 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.76 | | | | 8.93 | | | | 4.91 | | | |
| Total from Investment Operations | | | 3.54 | | | | 8.69 | | | | 5.01 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.04) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | (.04) | | | | – | | | |
| Net Asset Value, End of Period | | | $50.71 | | | | $47.17 | | | | $38.52 | | | |
| Total Return** | | | 7.50% | | | | 22.57% | | | | 14.95% | | | |
| Net Assets, End of Period (in thousands) | | | $348,282 | | | | $281,217 | | �� | | $185,858 | | | |
| Average Net Assets for the Period (in thousands) | | | $322,366 | | | | $239,154 | | | | $170,640 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.76% | | | | 1.76% | | | | 1.93% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.76% | | | | 1.76% | | | | 1.92% | | | |
| Ratio of Net Investment Loss to Average Net Assets*** | | | (1.02)% | | | | (0.56)% | | | | (0.56)% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 45% | | | |
Class C Shares
| | | | | | | | | | | | | | | |
| | | Janus Worldwide
| | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the eleven-
| | Fund | | |
| month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $43.29 | | | | $37.34 | | | | $33.40 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.15) | | | | (.17) | | | | (.05) | | | |
| Net gain on investments (both realized and unrealized) | | | 5.15 | | | | 6.12 | | | | 3.99 | | | |
| Total from Investment Operations | | | 5.00 | | | | 5.95 | | | | 3.94 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $48.29 | | | | $43.29 | | | | $37.34 | | | |
| Total Return** | | | 11.55% | | | | 15.93% | | | | 11.80% | | | |
| Net Assets, End of Period (in thousands) | | | $1,592 | | | | $1,303 | | | | $1,144 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,436 | | | | $1,221 | | | | $1,063 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.82% | | | | 1.86% | | | | 2.07% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.82% | | | | 1.86% | | | | 2.05% | | | |
| Ratio of Net Investment Loss to Average Net Assets*** | | | (0.78)% | | | | (0.32)% | | | | (0.14)% | | | |
| Portfolio Turnover Rate*** | | | 97% | | | | 94% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 111
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | | | | | | |
| | | Janus Emerging
| | Janus Global Life
| | |
For a share outstanding during the period ended March 31, 2011 (unaudited) and the
| | Markets Fund | | Sciences Fund | | |
| fiscal period ended September 30, 2010 | | 2011(1) | | 2011 | | 2010(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.00 | | | | $22.21 | | | | $21.65 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .01 | | | | (.09) | | | | .24 | | | |
| Net gain on investments (both realized and unrealized) | | | .09 | | | | 2.87 | | | | .32 | | | |
| Total from Investment Operations | | | .10 | | | | 2.78 | | | | .56 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.12) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | .01 | | | | –(3) | | | | –(3) | | | |
| Total Distributions and Other | | | .01 | | | | (.12) | | | | – | | | |
| Net Asset Value, End of Period | | | $10.11 | | | | $24.87 | | | | $22.21 | | | |
| Total Return** | | | 1.10% | | | | 12.55% | | | | 2.59% | | | |
| Net Assets, End of Period (in thousands) | | | $6,951 | | | | $458,246 | | | | $432,620 | | | |
| Average Net Assets for the Period (in thousands) | | | $4,474 | | | | $442,659 | | | | $426,969 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.33%(5) | | | | 0.94%(6) | | | | 1.00%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.33%(5) | | | | 0.94%(6) | | | | 1.00%(6) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.33% | | | | (0.84)% | | | | 1.74% | | | |
| Portfolio Turnover Rate*** | | | 161% | | | | 46% | | | | 46% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | | |
| | | Janus Global
| | Janus Global
| | |
For a share outstanding during the six-month period ended March 31, 2011
| | Research Fund | | Select Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(2) | | 2011 | | 2010(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $13.51 | | | | $11.79 | | | | $11.01 | | | | $9.82 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .03 | | | | .09 | | | | .01 | | | | .01 | | | |
| Net gain on investments (both realized and unrealized) | | | 1.69 | | | | 1.63 | | | | 1.41 | | | | 1.18 | | | |
| Total from Investment Operations | | | 1.72 | | | | 1.72 | | | | 1.42 | | | | 1.19 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.13) | | | | – | | | | (.13) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | – | | | |
| Total Distributions and Other | | | (.13) | | | | – | | | | (.13) | | | | – | | | |
| Net Asset Value, End of Period | | | $15.10 | | | | $13.51 | | | | $12.30 | | | | $11.01 | | | |
| Total Return** | | | 12.76% | | | | 14.59% | | | | 12.94% | | | | 12.12% | | | |
| Net Assets, End of Period (in thousands) | | | $129,033 | | | | $111,287 | | | | $2,300,012 | | | | $2,121,813 | | | |
| Average Net Assets for the Period (in thousands) | | | $122,862 | | | | $106,191 | | | | $2,262,070 | | | | $2,043,615 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.01% | | | | 1.09% | | | | 0.85%(7) | | | | 0.90%(7) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.01% | | | | 1.08% | | | | 0.85%(7) | | | | 0.90%(7) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.41% | | | | 1.21% | | | | 0.23% | | | | 0.57% | | | |
| Portfolio Turnover Rate*** | | | 73% | | | | 74% | | | | 107% | | | | 127% | | | |
| | | |
| * | | 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 December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
| (3) | | Redemption fees aggregated less than $.01 on a per share basis. |
| (4) | | See Note 6 in Notes to Financial Statements. |
| (5) | | 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 1.64% and 1.64%, respectively, without the waiver of these fees and expenses. |
| (6) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.88% and 0.88%, respectively, in 2011 and 0.95% and 0.95%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (7) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include 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 2011 and 0.88% and 0.88%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
112 | MARCH 31, 2011
Class D Shares
| | | | | | | | | | | | | | | | | | | |
| | | | | | | Janus
| | |
| | | Janus Global
| | International
| | |
For a share outstanding during the six-month period ended March 31, 2011
| | Technology Fund | | Equity Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(1) | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $15.29 | | | | $13.46 | | | | $10.91 | | | | $9.71 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.03) | | | | .02 | | | | .05 | | | | .03 | | | |
| Net gain on investments (both realized and unrealized) | | | 2.76 | | | | 1.81 | | | | .91 | | | | 1.16 | | | |
| Total from Investment Operations | | | 2.73 | | | | 1.83 | | | | .96 | | | | 1.19 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | (.10) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(2) | | | | –(2) | | | | .01 | | | | .01 | | | |
| Total Distributions and Other | | | – | | | | – | | | | (.09) | | | | .01 | | | |
| Net Asset Value, End of Period | | | $18.02 | | | | $15.29 | | | | $11.78 | | | | $10.91 | | | |
| Total Return** | | | 17.85% | | | | 13.60% | | | | 8.93% | | | | 12.36% | | | |
| Net Assets, End of Period (in thousands) | | | $641,318 | | | | $546,899 | | | | $9,586 | | | | $5,558 | | | |
| Average Net Assets for the Period (in thousands) | | | $613,736 | | | | $526,770 | | | | $7,872 | | | | $2,807 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.93%(4) | | | | 1.08%(4) | | | | 1.24% | | | | 1.16% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.93%(4) | | | | 1.08%(4) | | | | 1.24% | | | | 1.16% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.31)% | | | | (0.39)% | | | | 0.84% | | | | 1.10% | | | |
| Portfolio Turnover Rate*** | | | 84% | | | | 76% | | | | 90% | | | | 132% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | | |
| | | Janus Overseas
| | Janus Worldwide
| | |
For a share outstanding during the six-month period ended March 31, 2011
| | Fund | | Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(1) | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.60 | | | | $41.51 | | | | $43.69 | | | | $38.92 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.03) | | | | .16 | | | | .04 | | | | .19 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.83 | | | | 5.92 | | | | 4.56 | | | | 4.58 | | | |
| Total from Investment Operations | | | 3.80 | | | | 6.08 | | | | 4.60 | | | | 4.77 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.08) | | | | – | | | | (.20) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(2) | | | | .01 | | | | –(2) | | | | –(2) | | | |
| Total Distributions and Other | | | (.08) | | | | .01 | | | | (.20) | | | | – | | | |
| Net Asset Value, End of Period | | | $51.32 | | | | $47.60 | | | | $48.09 | | | | $43.69 | | | |
| Total Return** | | | 7.99% | | | | 14.67% | | | | 10.54% | | | | 12.26% | | | |
| Net Assets, End of Period (in thousands) | | | $2,573,612 | | | | $2,440,197 | | | | $1,328,050 | | | | $1,253,472 | | | |
| Average Net Assets for the Period (in thousands) | | | $2,582,045 | | | | $2,308,567 | | | | $1,314,734 | | | | $1,210,028 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.83% | | | | 0.87% | | | | 0.86% | | | | 0.83% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.83% | | | | 0.87% | | | | 0.86% | | | | 0.83% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.11)% | | | | 0.66% | | | | 0.16% | | | | 0.93% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 97% | | | | 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 February 16, 2010 (inception date) through September 30, 2010. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.89% and 0.89%, respectively, in 2011 and 0.97% and 0.96%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Global & International Funds | 113
Financial Highlights (continued)
Class I Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2011 (unaudited),
| | Janus Emerging
| | Janus Global Life
| | |
the eleven-month fiscal period ended September 30, 2010 and the fiscal period
| | Markets Fund | | Sciences Fund | | |
| ended October 31, 2009 | | 2011(1) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.00 | | | | $22.22 | | | | $19.71 | | | | $17.81 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.10) | | | | .24 | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | .10 | | | | 2.89 | | | | 2.28 | | | | 1.90 | | | |
| Total from Investment Operations | | | .10 | | | | 2.79 | | | | 2.52 | | | | 1.90 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.15) | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(4) | | | | – | | | | .01 | | | | – | | | |
| Total Distributions and Other | | | – | | | | (.15) | | | | (.01) | | | | – | | | |
| Net Asset Value, End of Period | | | $10.10 | | | | $24.86 | | | | $22.22 | | | | $19.71 | | | |
| Total Return** | | | 1.00% | | | | 12.62% | | | | 12.85% | | | | 10.67% | | | |
| Net Assets, End of Period (in thousands) | | | $3,934 | | | | $4,547 | | | | $4,319 | | | | $991 | | | |
| Average Net Assets for the Period (in thousands) | | | $2,559 | | | | $4,453 | | | | $2,645 | | | | $249 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.33% | | | | 0.92%(6) | | | | 0.92%(6) | | | | 0.87% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.33% | | | | 0.92%(6) | | | | 0.91%(6) | | | | 0.77% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.26% | | | | (0.89)% | | | | 1.81% | | | | 0.10% | | | |
| Portfolio Turnover Rate*** | | | 161% | | | | 46% | | | | 46% | | | | 70% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period ended
| | Janus Global Research Fund | | Janus Global Select Fund | | |
| October 31, 2009 | | 2011 | | 2010(2) | | 2009(3) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $13.51 | | | | $11.38 | | | | $9.81 | | | | $11.03 | | | | $9.04 | | | | $7.59 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .05 | | | | .09 | | | | .03 | | | | (.01) | | | | .03 | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | 1.68 | | | | 2.06 | | | | 1.54 | | | | 1.43 | | | | 1.97 | | | | 1.45 | | | |
| Total from Investment Operations | | | 1.73 | | | | 2.15 | | | | 1.57 | | | | 1.42 | | | | 2.00 | | | | 1.45 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.16) | | | | (.02) | | | | – | | | | (.15) | | | | (.01) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(4) | | | | –(4) | | | | – | | | | –(4) | | | | – | | | | N/A | | | |
| Total Distributions and Other | | | (.16) | | | | (.02) | | | | – | | | | (.15) | | | | (.01) | | | | – | | | |
| Net Asset Value, End of Period | | | $15.08 | | | | $13.51 | | | | $11.38 | | | | $12.30 | | | | $11.03 | | | | $9.04 | | | |
| Total Return** | | | 12.82% | | | | 18.93% | | | | 16.00% | | | | 12.90% | | | | 22.17% | | | | 19.10% | | | |
| Net Assets, End of Period (in thousands) | | | $27,623 | | | | $14,228 | | | | $37 | | | | $48,859 | | | | $52,107 | | | | $9,121 | | | |
| Average Net Assets for the Period (in thousands) | | | $17,842 | | | | $8,698 | | | | $31 | | | | $54,185 | | | | $28,520 | | | | $2,354 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.05% | | | | 0.96% | | | | 0.43% | | | | 0.83%(7) | | | | 0.79%(7) | | | | 0.74%(7) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.05% | | | | 0.96% | | | | 0.39% | | | | 0.83%(7) | | | | 0.79%(7) | | | | 0.66%(7) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.51% | | | | 1.34% | | | | 1.01% | | | | 0.25% | | | | 0.57% | | | | (0.31)% | | | |
| Portfolio Turnover Rate*** | | | 73% | | | | 74% | | | | 99% | | | | 107% | | | | 127% | | | | 125% | | | |
| | | |
| * | | 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 December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
| (4) | | Redemption fees 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.86% and 0.86%, respectively, in 2011 and 0.88% and 0.88%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (7) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.82% and 0.82%, respectively, in 2011, 0.78% and 0.77%, respectively, in 2010 and 0.73% and 0.65%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
114 | MARCH 31, 2011
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended
| | Janus Global Technology Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $15.32 | | | | $12.57 | | | | $10.96 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.02) | | | | – | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 2.76 | | | | 2.74 | | | | 1.61 | | | |
| Total from Investment Operations | | | 2.74 | | | | 2.74 | | | | 1.61 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | .01 | | | | – | | | |
| Total Distributions and Other | | | – | | | | .01 | | | | – | | | |
| Net Asset Value, End of Period | | | $18.06 | | | | $15.32 | | | | $12.57 | | | |
| Total Return** | | | 17.89% | | | | 21.88% | | | | 14.69% | | | |
| Net Assets, End of Period (in thousands) | | | $8,008 | | | | $5,959 | | | | $973 | | | |
| Average Net Assets for the Period (in thousands) | | | $6,893 | | | | $1,876 | | | | $123 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.91%(5) | | | | 1.10%(5) | | | | 0.85%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.91%(5) | | | | 1.10%(5) | | | | 0.63%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.28)% | | | | (0.52)% | | | | (1.27)% | | | |
| Portfolio Turnover Rate*** | | | 84% | | | | 76% | | | | 111% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2009 and each fiscal year or period ended
| | Janus International Equity Fund | | |
| July 31 | | 2011 | | 2010 | | 2009(6) | | 2009(7) | | 2008 | | 2007(8) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.90 | | | | $9.65 | | | | $9.11 | | | | $11.52 | | | | $11.39 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .06 | | | | .09 | | | | .02 | | | | .14 | | | | .08 | | | | .05 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .92 | | | | 1.20 | | | | .52 | | | | (2.27) | | | | .16 | | | | 1.34 | | | |
| Total from Investment Operations | | | .98 | | | | 1.29 | | | | .54 | | | | (2.13) | | | | .24 | | | | 1.39 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.10) | | | | (.04) | | | | – | | | | (.19) | | | | (.06) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (.09) | | | | (.05) | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | –(3) | | | | –(3) | | | | – | | | |
| Total Distributions and Other | | | (.10) | | | | (.04) | | | | – | | | | (.28) | | | | (.11) | | | | – | | | |
| Net Asset Value, End of Period | | | $11.78 | | | | $10.90 | | | | $9.65 | | | | $9.11 | | | | $11.52 | | | | $11.39 | | | |
| Total Return** | | | 8.99% | | | | 13.44% | | | | 5.93% | | | | (17.89)% | | | | 2.02% | | | | 13.90% | | | |
| Net Assets, End of Period (in thousands) | | | $149,999 | | | | $131,905 | | | | $80,850 | | | | $71,578 | | | | $68,397 | | | | $22,761 | | | |
| Average Net Assets for the Period (in thousands) | | | $141,788 | | | | $110,413 | | | | $75,168 | | | | $52,295 | | | | $43,172 | | | | $6,599 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.91% | | | | 0.99% | | | | 0.97% | | | | 1.04% | | | | 1.19% | | | | 1.26% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.91% | | | | 0.99% | | | | 0.97% | | | | 1.04% | | | | 1.18% | | | | 1.25% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.18% | | | | 1.13% | | | | 1.37% | | | | 2.00%(9) | | | | 1.17% | | | | 2.28% | | | |
| Portfolio Turnover Rate*** | | | 90% | | | | 132% | | | | 115% | | | | 176% | | | | 39% | | | | 57% | | | |
| | | |
| * | | 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 September 30, 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. |
| (5) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.87% and 0.87%, respectively, in 2011, 0.98% and 0.98%, 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. |
| (6) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
| (7) | | Period from August 1, 2008 through July 31, 2009. |
| (8) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
| (9) | | 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 115
Financial Highlights (continued)
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended
| | Janus Overseas Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.67 | | | | $38.67 | | | | $33.51 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.01) | | | | .08 | | | | .21 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.84 | | | | 9.08 | | | | 4.95 | | | |
| Total from Investment Operations | | | 3.83 | | | | 9.16 | | | | 5.16 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.13) | | | | (.17) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | .01 | | | | –(3) | | | |
| Total Distributions and Other | | | (.13) | | | | (.16) | | | | – | | | |
| Net Asset Value, End of Period | | | $51.37 | | | | $47.67 | | | | $38.67 | | | |
| Total Return** | | | 8.05% | | | | 23.78% | | | | 15.40% | | | |
| Net Assets, End of Period (in thousands) | | | $2,184,758 | | | | $1,534,256 | | | | $542,392 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,914,278 | | | | $913,570 | | | | $447,943 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.76% | | | | 0.77% | | | | 0.70% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.76% | | | | 0.77% | | | | 0.69% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.01)% | | | | 0.48% | | | | 0.64% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 45% | | | |
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Worldwide
| | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $43.68 | | | | $37.49 | | | | $33.40 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .07 | | | | .23 | | | | .09 | | | |
| Net gain on investments (both realized and unrealized) | | | 5.22 | | | | 6.18 | | | | 4.00 | | | |
| Total from Investment Operations | | | 5.29 | | | | 6.41 | | | | 4.09 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.23) | | | | (.22) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | |
| Total Distributions and Other | | | (.23) | | | | (.22) | | | | – | | | |
| Net Asset Value, End of Period | | | $48.74 | | | | $43.68 | | | | $37.49 | | | |
| Total Return** | | | 12.13% | | | | 17.15% | | | | 12.25% | | | |
| Net Assets, End of Period (in thousands) | | | $14,832 | | | | $11,999 | | | | $30,008 | | | |
| Average Net Assets for the Period (in thousands) | | | $13,410 | | | | $25,646 | | | | $27,800 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.76% | | | | 0.66% | | | | 0.77% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.76% | | | | 0.66% | | | | 0.76% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.27% | | | | 0.85% | | | | 1.12% | | | |
| Portfolio Turnover Rate*** | | | 97% | | | | 94% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
116 | MARCH 31, 2011
Class R Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Global Select Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.94 | | | | $9.02 | | | | $7.59 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.03) | | | | (.03) | | | | (.01) | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 1.41 | | | | 1.95 | | | | 1.44 | | | |
| Total from Investment Operations | | | 1.38 | | | | 1.92 | | | | 1.43 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.08) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | – | | | | N/A | | | |
| Total Distributions and Other | | | (.08) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $12.24 | | | | $10.94 | | | | $9.02 | | | |
| Total Return** | | | 12.64% | | | | 21.29% | | | | 18.84% | | | |
| Net Assets, End of Period (in thousands) | | | $3,636 | | | | $3,426 | | | | $1,597 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,460 | | | | $2,334 | | | | $1,374 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.47%(5) | | | | 1.50%(5) | | | | 1.49%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.47%(5) | | | | 1.50%(5) | | | | 1.47%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.38)% | | | | (0.21)% | | | | (0.71)% | | | |
| Portfolio Turnover Rate*** | | | 107% | | | | 127% | | | | 125% | | | |
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended September 30,
| | | | | | | | | | | | | | |
2010, the two-month fiscal period ended September 30, 2009 and
| | Janus International Equity Fund | | |
| each fiscal year or period ended July 31 | | 2011 | | 2010 | | 2009(6) | | 2009(7) | | 2008 | | 2007(8) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.79 | | | | $9.58 | | | | $9.05 | | | | $11.40 | | | | $11.32 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .02 | | | | .03 | | | | .01 | | | | .09 | | | | (.01) | | | | .07 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .91 | | | | 1.18 | | | | .52 | | | | (2.26) | | | | .14 | | | | 1.25 | | | |
| Total from Investment Operations | | | .93 | | | | 1.21 | | | | .53 | | | | (2.17) | | | | .13 | | | | 1.32 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.03) | | | | – | | | | – | | | | (.09) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (.09) | | | | (.05) | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions and Other | | | (.03) | | | | – | | | | – | | | | (.18) | | | | (.05) | | | | – | | | |
| Net Asset Value, End of Period | | | $11.69 | | | | $10.79 | | | | $9.58 | | | | $9.05 | | | | $11.40 | | | | $11.32 | | | |
| Total Return** | | | 8.63% | | | | 12.63% | | | | 5.86% | | | | (18.61)% | | | | 1.11% | | | | 13.20% | | | |
| Net Assets, End of Period (in thousands) | | | $880 | | | | $764 | | | | $716 | | | | $670 | | | | $750 | | | | $566 | | | |
| Average Net Assets for the Period (in thousands) | | | $832 | | | | $672 | | | | $694 | | | | $538 | | | | $647 | | | | $553 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.64% | | | | 1.71% | | | | 1.71% | | | | 1.78% | | | | 2.00% | | | | 2.00% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.64% | | | | 1.71% | | | | 1.71% | | | | 1.78% | | | | 2.00% | | | | 2.00% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.45% | | | | 0.41% | | | | 0.60% | | | | 1.18%(9) | | | | 0.22% | | | | 0.85% | | | |
| Portfolio Turnover Rate*** | | | 90% | | | | 132% | | | | 115% | | | | 176% | | | | 39% | | | | 57% | | | |
| | | |
| * | | 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 September 30, 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. |
| (5) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.46% and 1.46%, respectively, in 2011, 1.49% and 1.49%, respectively, in 2010 and 1.48% and 1.45%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (6) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
| (7) | | Period from August 1, 2008 through July 31, 2009. |
| (8) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
| (9) | | 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 117
Financial Highlights (continued)
Class R Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Overseas Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.32 | | | | $38.58 | | | | $33.51 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.16) | | | | (.13) | | | | .16 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.80 | | | | 8.95 | | | | 4.91 | | | |
| Total from Investment Operations | | | 3.64 | | | | 8.82 | | | | 5.07 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.09) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | .01 | | | | – | | | |
| Total Distributions and Other | | | – | | | | (.08) | | | | – | | | |
| Net Asset Value, End of Period | | | $50.96 | | | | $47.32 | | | | $38.58 | | | |
| Total Return** | | | 7.69% | | | | 22.91% | | | | 15.13% | | | |
| Net Assets, End of Period (in thousands) | | | $196,692 | | | | $158,469 | | | | $99,338 | | | |
| Average Net Assets for the Period (in thousands) | | | $181,686 | | | | $128,643 | | | | $95,361 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.45% | | | | 1.48% | | | | 1.44% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.45% | | | | 1.48% | | | | 1.43% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.71)% | | | | (0.27)% | | | | (0.07)% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 45% | | | |
Class R Shares
| | | | | | | | | | | | | | | |
| | | Janus Worldwide
| | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the eleven-
| | Fund | | |
| month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $43.46 | | | | $37.40 | | | | $33.40 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.06) | | | | – | | | | .01 | | | |
| Net gain on investments (both realized and unrealized) | | | 5.17 | | | | 6.14 | | | | 3.99 | | | |
| Total from Investment Operations | | | 5.11 | | | | 6.14 | | | | 4.00 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.08) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | – | | | | – | | | | – | | | |
| Total Distributions and Other | | | – | | | | (.08) | | | | – | | | |
| Net Asset Value, End of Period | | | $48.57 | | | | $43.46 | | | | $37.40 | | | |
| Total Return** | | | 11.76% | | | | 16.44% | | | | 11.98% | | | |
| Net Assets, End of Period (in thousands) | | | $847 | | | | $598 | | | | $532 | | | |
| Average Net Assets for the Period (in thousands) | | | $698 | | | | $544 | | | | $494 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.45% | | | | 1.41% | | | | 1.52% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.45% | | | | 1.41% | | | | 1.51% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.39)% | | | | 0.13% | | | | 0.39% | | | |
| Portfolio Turnover Rate*** | | | 97% | | | | 94% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
118 | MARCH 31, 2011
Class S Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2011 (unaudited),
| | Janus Emerging
| | Janus Global Life
| | |
the eleven-month fiscal period ended September 30, 2010 and the fiscal period
| | Markets Fund | | Sciences Fund | | |
| ended October 31, 2009 | | 2011(1) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.00 | | | | $22.09 | | | | $19.66 | | | | $17.81 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.14) | | | | .21 | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | .10 | | | | 2.86 | | | | 2.23 | | | | 1.85 | | | |
| Total from Investment Operations | | | .10 | | | | 2.72 | | | | 2.44 | | | | 1.85 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.08) | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | – | | | | – | | | | .01 | | | | – | | | |
| Total Distributions and Other | | | – | | | | (.08) | | | | (.01) | | | | – | | | |
| Net Asset Value, End of Period | | | $10.10 | | | | $24.73 | | | | $22.09 | | | | $19.66 | | | |
| Total Return** | | | 1.00% | | | | 12.35% | | | | 12.46% | | | | 10.39% | | | |
| Net Assets, End of Period (in thousands) | | | $842 | | | | $213 | | | | $189 | | | | $11 | | | |
| Average Net Assets for the Period (in thousands) | | | $818 | | | | $203 | | | | $149 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.34%(5) | | | | 1.30%(6) | | | | 1.33%(6) | | | | 1.48% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.34%(5) | | | | 1.30%(6) | | | | 1.33%(6) | | | | 1.24% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.03% | | | | (1.21)% | | | | 1.16% | | | | (0.07)% | | | |
| Portfolio Turnover Rate*** | | | 161% | | | | 46% | | | | 46% | | | | 70% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Global Research Fund | | Janus Global Select Fund | | |
| 2009 | | 2011 | | 2010(2) | | 2009(3) | | 2011 | | 2010(2) | | 2009(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $13.43 | | | | $11.36 | | | | $9.81 | | | | $10.98 | | | | $9.03 | | | | $7.59 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .08 | | | | .03 | | | | (.01) | | | | (.04) | | | | (.03) | | | | (.01) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.61 | | | | 2.06 | | | | 1.56 | | | | 1.43 | | | | 1.98 | | | | 1.45 | | | |
| Total from Investment Operations | | | 1.69 | | | | 2.09 | | | | 1.55 | | | | 1.39 | | | | 1.95 | | | | 1.44 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.08) | | | | (.02) | | | | – | | | | (.05) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(7) | | | | –(7) | | | | – | | | | – | | | | – | | | | N/A | | | |
| Total Distributions and Other | | | (.08) | | | | (.02) | | | | – | | | | (.05) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $15.04 | | | | $13.43 | | | | $11.36 | | | | $12.32 | | | | $10.98 | | | | $9.03 | | | |
| Total Return** | | | 12.59% | | | | 18.40% | | | | 15.80% | | | | 12.70% | | | | 21.59% | | | | 18.97% | | | |
| Net Assets, End of Period (in thousands) | | | $232 | | | | $13 | | | | $13 | | | | $8,531 | | | | $12,076 | | | | $13,346 | | | |
| Average Net Assets for the Period (in thousands) | | | $83 | | | | $12 | | | | $2 | | | | $9,949 | | | | $13,398 | | | | $10,379 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.41% | | | | 1.45% | | | | 1.42% | | | | 1.22%(8) | | | | 1.24%(8) | | | | 1.24%(8) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.41% | | | | 1.45% | | | | 1.16% | | | | 1.22%(8) | | | | 1.24%(8) | | | | 1.21%(8) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.52% | | | | 0.40% | | | | (1.18)% | | | | (0.21)% | | | | 0.04% | | | | (0.46)% | | | |
| Portfolio Turnover Rate*** | | | 73% | | | | 74% | | | | 99% | | | | 107% | | | | 127% | | | | 125% | | | |
| | | |
| * | | 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 December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
| (4) | | See Note 6 in Notes to Financial Statements. |
| (5) | | 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 1.84% and 1.84%, respectively, without the waiver of these fees and expenses. |
| (6) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and
may include stock loan fees. The ratios would have been 1.24% and 1.24%, respectively, in 2011 and 1.29% and 1.29%, respectively, in 2010 without the inclusion of
any applicable dividends and interest on short positions and any stock loan fees. |
| (7) | | Redemption fees aggregated less than $.01 on a per share basis. |
| (8) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and
may include stock loan fees. The ratios would have been 1.21% and 1.21%, respectively, in 2011, 1.23% and 1.23%, respectively, in 2010 and 1.22% and 1.19%,
respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Global & International Funds | 119
Financial Highlights (continued)
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended
| | Janus Global Technology Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $15.22 | | | | $12.55 | | | | $10.96 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.06) | | | | (.05) | | | | .01 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 2.75 | | | | 2.72 | | | | 1.58 | | | |
| Total from Investment Operations | | | 2.69 | | | | 2.67 | | | | 1.59 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | – | | | | –(3) | | | | – | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $17.91 | | | | $15.22 | | | | $12.55 | | | |
| Total Return** | | | 17.67% | | | | 21.27% | | | | 14.51% | | | |
| Net Assets, End of Period (in thousands) | | | $254 | | | | $213 | | | | $67 | | | |
| Average Net Assets for the Period (in thousands) | | | $243 | | | | $165 | | | | $38 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.27%(5) | | | | 1.43%(5) | | | | 1.31%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.27%(5) | | | | 1.42%(5) | | | | 1.26%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.66)% | | | | (0.80)% | | | | (0.61)% | | | |
| Portfolio Turnover Rate*** | | | 84% | | | | 76% | | | | 111% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended September 30,
| | | | | | | | | | | | | | |
2010, the two-month fiscal period ended September 30, 2009 and
| | Janus International Equity Fund | | |
| each fiscal year or period ended July 31 | | 2011 | | 2010 | | 2009(6) | | 2009(7) | | 2008 | | 2007(8) | | |
| |
| Net Asset Value, Beginning of Period | | | $11.04 | | | | $9.78 | | | | $9.24 | | | | $11.62 | | | | $11.34 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .05 | | | | .04 | | | | .02 | | | | .07 | | | | .03 | | | | .08 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .91 | | | | 1.23 | | | | .52 | | | | (2.25) | | | | – | | | | 1.26 | | | |
| Total from Investment Operations | | | .96 | | | | 1.27 | | | | .54 | | | | (2.18) | | | | .03 | | | | 1.34 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.05) | | | | (.01) | | | | – | | | | (.12) | | | | (.01) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (.09) | | | | (.05) | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | .01 | | | | .31 | | | | – | | | |
| Total Distributions and Other | | | (.05) | | | | (.01) | | | | – | | | | (.20) | | | | .25 | | | | – | | | |
| Net Asset Value, End of Period | | | $11.95 | | | | $11.04 | | | | $9.78 | | | | $9.24 | | | | $11.62 | | | | $11.34 | | | |
| Total Return** | | | 8.70% | | | | 13.03% | | | | 5.84% | | | | (18.22)% | | | | 2.94% | | | | 13.40% | | | |
| Net Assets, End of Period (in thousands) | | | $6,461 | | | | $6,363 | | | | $4,702 | | | | $4,279 | | | | $3,426 | | | | $602 | | | |
| Average Net Assets for the Period (in thousands) | | | $6,514 | | | | $5,510 | | | | $4,556 | | | | $2,738 | | | | $2,837 | | | | $565 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.39% | | | | 1.46% | | | | 1.46% | | | | 1.54% | | | | 1.54% | | | | 1.75% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.39% | | | | 1.46% | | | | 1.46% | | | | 1.54% | | | | 1.54% | | | | 1.75% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.70% | | | | 0.63% | | | | 0.86% | | | | 1.50%(9) | | | | 1.07% | | | | 1.10% | | | |
| Portfolio Turnover Rate*** | | | 90% | | | | 132% | | | | 115% | | | | 176% | | | | 39% | | | | 57% | | | |
| | | |
| * | | 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 September 30, 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. |
| (5) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include 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, in 2011, 1.30% and 1.29%, 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. |
| (6) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
| (7) | | Period from August 1, 2008 through July 31, 2009. |
| (8) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
| (9) | | 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. |
See Notes to Financial Statements.
120 | MARCH 31, 2011
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | |
the eleven-month fiscal period ended September 30, 2010 and the fiscal period ended
| | Janus Overseas Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.44 | | | | $38.61 | | | | $33.51 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.12) | | | | (.04) | | | | .20 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.84 | | | | 8.97 | | | | 4.89 | | | |
| Total from Investment Operations | | | 3.72 | | | | 8.93 | | | | 5.09 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.11) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | .01 | | | | .01 | | | |
| Total Distributions and Other | | | – | | | | (.10) | | | | .01 | | | |
| Net Asset Value, End of Period | | | $51.16 | | | | $47.44 | | | | $38.61 | | | |
| Total Return** | | | 7.84% | | | | 23.20% | | | | 15.22% | | | |
| Net Assets, End of Period (in thousands) | | | $1,904,819 | | | | $1,728,739 | | | | $1,371,807 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,873,985 | | | | $1,601,017 | | | | $1,344,815 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.20% | | | | 1.22% | | | | 1.19% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.20% | | | | 1.22% | | | | 1.18% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.47)% | | | | (0.04)% | | | | 0.18% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 45% | | | |
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Worldwide
| | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $43.56 | | | | $37.43 | | | | $33.40 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.05) | | | | .09 | | | | .04 | | | |
| Net gain on investments (both realized and unrealized) | | | 5.22 | | | | 6.16 | | | | 3.98 | | | |
| Total from Investment Operations | | | 5.17 | | | | 6.25 | | | | 4.02 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.05) | | | | (.12) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | .01 | | | |
| Total Distributions and Other | | | (.05) | | | | (.12) | | | | .01 | | | |
| Net Asset Value, End of Period | | | $48.68 | | | | $43.56 | | | | $37.43 | | | |
| Total Return** | | | 11.88% | | | | 16.73% | | | | 12.07% | | | |
| Net Assets, End of Period (in thousands) | | | $62,088 | | | | $61,881 | | | | $61,824 | | | |
| Average Net Assets for the Period (in thousands) | | | $63,595 | | | | $62,208 | | | | $62,260 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.20% | | | | 1.16% | | | | 1.27% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.20% | | | | 1.16% | | | | 1.26% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.19)% | | | | 0.38% | | | | 0.64% | | | |
| Portfolio Turnover Rate*** | | | 97% | | | | 94% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 121
Financial Highlights (continued)
Class T Shares
| | | | | | | |
| | | Janus Emerging
| | |
| | | Markets Fund | | |
| For a share outstanding during the period ended March 31, 2011 (unaudited) | | 2011(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | |
| Net investment income/(loss) | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .10 | | | |
| Total from Investment Operations | | | .10 | | | |
| Less Distributions: | | | | | | |
| Dividends (from net investment income)* | | | – | | | |
| Distributions (from capital gains)* | | | – | | | |
| Total Distributions | | | – | | | |
| Net Asset Value, End of Period | | | $10.10 | | | |
| Total Return** | | | 1.00% | | | |
| Net Assets, End of Period (in thousands) | | | $1,313 | | | |
| Average Net Assets for the Period (in thousands) | | | $963 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.35% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.35% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.20% | | | |
| Portfolio Turnover Rate*** | | | 161% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the eleven-month
| | | | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and each
| | Janus Global Life Sciences Fund |
| fiscal year ended October 31 | | 2011 | | 2010(3) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $22.19 | | | | $19.70 | | | | $17.78 | | | | $24.12 | | | | $20.25 | | | | $19.37 | | | | $16.08 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.10) | | | | .27 | | | | .04 | | | | .03 | | | | – | | | | – | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 2.87 | | | | 2.22 | | | | 1.94 | | | | (6.38) | | | | 3.87 | | | | .88 | | | | 3.29 | | | |
| Total from Investment Operations | | | 2.77 | | | | 2.49 | | | | 1.98 | | | | (6.35) | | | | 3.87 | | | | .88 | | | | 3.29 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.10) | | | | –(4) | | | | (.06) | | | | – | | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(5) | | | | –(5) | | | | –(5) | | | | .01 | | | | –(5) | | | | –(5) | | | | –(5) | | | |
| Total Distributions and Other | | | (.10) | | | | – | | | | (.06) | | | | .01 | | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $24.86 | | | | $22.19 | | | | $19.70 | | | | $17.78 | | | | $24.12 | | | | $20.25 | | | | $19.37 | | | |
| Total Return** | | | 12.54% | | | | 12.65% | | | | 11.21% | | | | (26.29)% | | | | 19.11% | | | | 4.54% | | | | 20.46% | | | |
| Net Assets, End of Period (in thousands) | | | $235,946 | | | | $230,708 | | | | $646,206 | | | | $653,106 | | | | $894,002 | | | | $982,030 | | | | $1,149,666 | | | |
| Average Net Assets for the Period (in thousands) | | | $233,302 | | | | $381,186 | | | | $618,360 | | | | $835,370 | | | | $874,776 | | | | $1,101,726 | | | | $1,181,741 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.05%(6) | | | | 1.01%(6) | | | | 1.04% | | | | 0.98% | | | | 1.01% | | | | 1.02% | | | | 0.97% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.05%(6) | | | | 1.01%(6) | | | | 1.03% | | | | 0.97% | | | | 0.99% | | | | 1.01% | | | | 0.96% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.96)% | | | | 0.80% | | | | 0.28% | | | | 0.15% | | | | (0.27)% | | | | (0.39)% | | | | (0.49)% | | | |
| Portfolio Turnover Rate*** | | | 46% | | | | 46% | | | | 70% | | | | 81% | | | | 61% | | | | 87% | | | | 77% | | | |
| | | |
| * | | 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 December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | See Note 6 in Notes to Financial Statements. |
| (3) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (4) | | Dividends (from net investment income) aggregated less than $.01 on a per share basis. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.99% and 0.99%, respectively, in 2011 and 0.98% and 0.98%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
122 | MARCH 31, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the eleven-month
| | | | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and each fiscal
| | Janus Global Research Fund |
| year or period ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $13.50 | | | | $11.38 | | | | $8.81 | | | | $17.11 | | | | $13.16 | | | | $11.11 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .02 | | | | .06 | | | | .05 | | | | .04 | | | | .04 | | | | .10 | | | | (.01) | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 1.69 | | | | 2.06 | | | | 2.60 | | | | (7.58) | | | | 4.72 | | | | 2.22 | | | | 1.12 | | | |
| Total from Investment Operations | | | 1.71 | | | | 2.12 | | | | 2.65 | | | | (7.54) | | | | 4.76 | | | | 2.32 | | | | 1.11 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.12) | | | | –(3) | | | | (.08) | | | | (.05) | | | | (.05) | | | | (.04) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (.72) | | | | (.76) | | | | (.23) | | | | – | | | |
| Redemption fees | | | –(4) | | | | –(4) | | | | –(4) | | | | .01 | | | | –(4) | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.12) | | | | – | | | | (.08) | | | | (.76) | | | | (.81) | | | | (.27) | | | | – | | | |
| Net Asset Value, End of Period | | | $15.09 | | | | $13.50 | | | | $11.38 | | | | $8.81 | | | | $17.11 | | | | $13.16 | | | | $11.11 | | | |
| Total Return** | | | 12.70% | | | | 18.67% | | | | 30.46% | | | | (45.95)% | | | | 38.09% | | | | 21.21% | | | | 11.10% | | | |
| Net Assets, End of Period (in thousands) | | | $123,636 | | | | $114,874 | | | | $203,125 | | | | $167,476 | | | | $284,162 | | | | $113,025 | | | | $47,404 | | | |
| Average Net Assets for the Period (in thousands) | | | $125,517 | | | | $142,843 | | | | $166,030 | | | | $260,977 | | | | $173,760 | | | | $79,500 | | | | $29,920 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.12% | | | | 1.18% | | | | 1.25% | | | | 1.15% | | | | 1.12% | | | | 1.16% | | | | 1.27% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.12% | | | | 1.18% | | | | 1.24% | | | | 1.14% | | | | 1.11% | | | | 1.14% | | | | 1.25% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.28% | | | | 0.47% | | | | 0.56% | | | | 0.39%(6) | | | | 0.36% | | | | 0.48% | | | | (0.24)% | | | |
| Portfolio Turnover Rate*** | | | 73% | | | | 74% | | | | 99% | | | | 95% | | | | 72% | | | | 118% | | | | 86% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended September 30,
| | Janus Global Select Fund |
| 2010 and each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006(7) | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $11.01 | | | | $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 gain/(loss) on investments (both realized and unrealized) | | | 1.41 | | | | 1.99 | | | | 1.95 | | | | (6.47) | | | | 4.07 | | | | 1.71 | | | | 1.52 | | | |
| Total from Investment Operations | | | 1.41 | | | | 1.98 | | | | 1.96 | | | | (6.39) | | | | 4.10 | | | | 1.75 | | | | 1.55 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.12) | | | | –(3) | | | | (.06) | | | | (.04) | | | | (.02) | | | | (.06) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | (.01) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| Redemption fees | | | –(4) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.12) | | | | – | | | | (.07) | | | | (.04) | | | | (.02) | | | | (.06) | | | | – | | | |
| Net Asset Value, End of Period | | | $12.30 | | | | $11.01 | | | | $9.03 | | | | $7.14 | | | | $13.57 | | | | $9.49 | | | | $7.80 | | | |
| Total Return** | | | 12.84% | | | | 21.96% | | | | 27.96% | | | | (47.21)% | | | | 43.32% | | | | 22.58% | | | | 24.80% | | | |
| Net Assets, End of Period (in thousands) | | | $1,370,595 | | | | $1,381,716 | | | | $3,133,551 | | | | $2,694,881 | | | | $5,188,347 | | | | $3,243,102 | | | | $691,401 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,414,069 | | | | $2,008,730 | | | | $2,600,372 | | | | $4,709,077 | | | | $3,773,555 | | | | $966,223 | | | | $590,421 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 0.97%(8) | | | | 0.95%(8) | | | | 0.97%(8) | | | | 0.94%(8) | | | | 0.93% | | | | 1.00% | | | | 1.02% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 0.97%(8) | | | | 0.95%(8) | | | | 0.96%(8) | | | | 0.94%(8) | | | | 0.92% | | | | 0.99% | | | | 1.01% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.11% | | | | 0.22% | | | | 0.14% | | | | 0.67% | | | | 0.34% | | | | 0.80% | | | | 0.52% | | | |
| Portfolio Turnover Rate*** | | | 107% | | | | 127% | | | | 125% | | | | 144% | | | | 24% | | | | 63% | | | | 68% | | | |
| | | |
| * | | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (2) | | Period from February 25, 2005 (inception date) through October 31, 2005. |
| (3) | | Dividends (from net investment income) aggregated less than $.01 on a per share basis. |
| (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 0.03%. The adjustment had no impact on the total net assets of the class. |
| (7) | | Effective October 31, 2006, Janus Olympus Fund merged into Janus Global Select Fund. |
| (8) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include 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, in 2011, 0.94% and 0.94%, 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 123
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the eleven-
| | | | | | | | | | | | | | | | |
month fiscal period ended September 30, 2010 and
| | Janus Global Technology Fund |
| each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $15.28 | | | | $12.57 | | | | $9.29 | | | | $16.51 | | | | $12.23 | | | | $10.88 | | | | $9.70 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.04) | | | | (.05) | | | | – | | | | – | | | | .06 | | | | – | | | | .01 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 2.76 | | | | 2.76 | | | | 3.28 | | | | (7.16) | | | | 4.22 | | | | 1.36 | | | | 1.17 | | | |
| Total from Investment Operations | | | 2.72 | | | | 2.71 | | | | 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 | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (.06) | | | | – | | | | (.01) | | | | – | | | |
| Net Asset Value, End of Period | | | $18.00 | | | | $15.28 | | | | $12.57 | | | | $9.29 | | | | $16.51 | | | | $12.23 | | | | $10.88 | | | |
| Total Return** | | | 17.80% | | | | 21.56% | | | | 35.31% | | | | (43.51)% | | | | 35.00% | | | | 12.48% | | | | 12.16% | | | |
| Net Assets, End of Period (in thousands) | | | $298,947 | | | | $265,438 | | | | $713,536 | | | | $533,329 | | | | $1,028,084 | | | | $914,349 | | | | $993,663 | | | |
| Average Net Assets for the Period (in thousands) | | | $293,648 | | | | $424,663 | | | | $584,300 | | | | $828,435 | | | | $915,092 | | | | $999,147 | | | | $1,109,908 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.02%(4) | | | | 1.13%(4) | | | | 1.06%(4) | | | | 1.02%(4) | | | | 1.04% | | | | 1.13% | | | | 1.04% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.02%(4) | | | | 1.13%(4) | | | | 1.05%(4) | | | | 1.01%(4) | | | | 1.03% | | | | 1.11% | | | | 1.03% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.41)% | | | | (0.66)% | | | | (0.32)% | | | | (0.15)%(5) | | | | 0.40% | | | | (0.30)% | | | | 0.07% | | | |
| Portfolio Turnover Rate*** | | | 84% | | | | 76% | | | | 111% | | | | 90% | | | | 57% | | | | 85% | | | | 31% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | | | |
the fiscal year ended September 30, 2010, the two-month fiscal period ended
| | Janus International Equity Fund | | |
| September 30, 2009 and the fiscal period ended July 31, 2009 | | 2011 | | 2010 | | 2009(6) | | 2009(7) | | |
| |
| Net Asset Value, Beginning of Period | | | $10.86 | | | | $9.64 | | | | $9.10 | | | | $8.34 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .05 | | | | .05 | | | | .02 | | | | .01 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .91 | | | | 1.22 | | | | .52 | | | | .75 | | | |
| Total from Investment Operations | | | .96 | | | | 1.27 | | | | .54 | | | | .76 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.10) | | | | (.05) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(2) | | | | –(2) | | | | – | | | | – | | | |
| Total Distributions and Other | | | (.10) | | | | (.05) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $11.72 | | | | $10.86 | | | | $9.64 | | | | $9.10 | | | |
| Total Return** | | | 8.88% | | | | 13.22% | | | | 5.93% | | | | 9.11% | | | |
| Net Assets, End of Period (in thousands) | | | $4,678 | | | | $2,137 | | | | $1 | | | | $1 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,460 | | | | $645 | | | | $1 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.14% | | | | 1.26% | | | | 1.07% | | | | 1.50% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.14% | | | | 1.26% | | | | 1.07% | | | | 1.50% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.93% | | | | 1.14% | | | | 1.23% | | | | (0.41)% | | | |
| Portfolio Turnover Rate*** | | | 90% | | | | 132% | | | | 115% | | | | 176% | | | |
| | | |
| * | | 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 September 30, 2010. The Fund changed its fiscal year end from October 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 include 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 2011, 0.99% and 0.99%, 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. |
| (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%. The adjustment had no impact on the total net assets of the class. |
| (6) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
| (7) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
See Notes to Financial Statements.
124 | MARCH 31, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | |
the eleven-month fiscal period ended
| | | | | | | | | | | | | | | | |
September 30, 2010 and each fiscal year
| | Janus Overseas Fund |
| ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $47.56 | | | | $38.65 | | | | $27.12 | | | | $63.02 | | | | $42.45 | | | | $28.42 | | | | $21.62 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.05) | | | | .01 | | | | .41 | | | | .63 | | | | .36 | | | | .49 | | | | .21 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.83 | | | | 9.04 | | | | 12.66 | | | | (31.38) | | | | 20.74 | | | | 13.80 | | | | 6.82 | | | |
| Total from Investment Operations | | | 3.78 | | | | 9.05 | | | | 13.07 | | | | (30.75) | | | | 21.10 | | | | 14.29 | | | | 7.03 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.05) | | | | (.15) | | | | (.22) | | | | (.88) | | | | (.55) | | | | (.28) | | | | (.23) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | (1.33) | | | | (4.29) | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(2) | | | | .01 | | | | .01 | | | | .02 | | | | .02 | | | | .02 | | | | –(2) | | | |
| Total Distributions and Other | | | (.05) | | | | (.14) | | | | (1.54) | | | | (5.15) | | | | (.53) | | | | (.26) | | | | (.23) | | | |
| Net Asset Value, End of Period | | | $51.29 | | | | $47.56 | | | | $38.65 | | | | $27.12 | | | | $63.02 | | | | $42.45 | | | | $28.42 | | | |
| Total Return** | | | 7.96% | | | | 23.48% | | | | 51.63% | | | | (52.78)% | | | | 50.24% | | | | 50.71% | | | | 32.74% | | | |
| Net Assets, End of Period (in thousands) | | | $6,772,717 | | | | $6,113,812 | | | | $7,112,657 | | | | $4,345,024 | | | | $11,424,962 | | | | $5,317,122 | | | | $2,554,621 | | | |
| Average Net Assets for the Period (in thousands) | | | $6,603,695 | | | | $6,528,596 | | | | $5,182,633 | | | | $9,214,669 | | | | $7,916,993 | | | | $3,933,175 | | | | $2,272,200 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.95% | | | | 0.95% | | | | 0.91% | | | | 0.90% | | | | 0.89% | | | | 0.92% | | | | 0.90% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.95% | | | | 0.95% | | | | 0.91% | | | | 0.89% | | | | 0.89% | | | | 0.91% | | | | 0.89% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.22)% | | | | 0.14% | | | | 0.90% | | | | 0.79% | | | | 0.77% | | | | 1.69% | | | | 0.88% | | | |
| Portfolio Turnover Rate*** | | | 35% | | | | 33% | | | | 45% | | | | 50% | | | | 51% | | | | 61% | | | | 57% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended
| | Janus Worldwide
|
September 30, 2010 and each fiscal year
| | Fund |
| ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $43.67 | | | | $37.49 | | | | $31.36 | | | | $60.04 | | | | $48.05 | | | | $41.41 | | | | $38.12 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .02 | | | | .20 | | | | .41 | | | | .43 | | | | .32 | | | | .65 | | | | .46 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 4.55 | | | | 6.16 | | | | 6.37 | | | | (28.82) | | | | 12.31 | | | | 6.48 | | | | 3.14 | | | |
| Total from Investment Operations | | | 4.57 | | | | 6.36 | | | | 6.78 | | | | (28.39) | | | | 12.63 | | | | 7.13 | | | | 3.60 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.21) | | | | (.18) | | | | (.65) | | | | (.29) | | | | (.64) | | | | (.49) | | | | (.31) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | |
| Total Distributions and Other | | | (.21) | | | | (.18) | | | | (.65) | | | | (.29) | | | | (.64) | | | | (.49) | | | | (.31) | | | |
| Net Asset Value, End of Period | | | $48.03 | | | | $43.67 | | | | $37.49 | | | | $31.36 | | | | $60.04 | | | | $48.05 | | | | $41.41 | | | |
| Total Return** | | | 10.48% | | | | 17.01% | | | | 22.08% | | | | (47.49)% | | | | 26.53% | | | | 17.34% | | | | 9.47% | | | |
| Net Assets, End of Period (in thousands) | | | $1,065,652 | | | | $1,055,258 | | | | $2,207,945 | | | | $2,044,859 | | | | $4,645,253 | | | | $4,373,358 | | | | $4,957,669 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,087,805 | | | | $1,454,113 | | | | $1,971,727 | | | | $3,480,275 | | | | $4,522,584 | | | | $4,601,953 | | | | $5,984,293 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.95% | | | | 0.87% | | | | 0.76% | | | | 0.83% | | | | 0.88% | | | | 0.87% | | | | 0.85% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.95% | | | | 0.86% | | | | 0.76% | | | | 0.83% | | | | 0.87% | | | | 0.86% | | | | 0.85% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.06% | | | | 0.55% | | | | 1.34% | | | | 0.82% | | | | 0.53% | | | | 1.31% | | | | 0.90% | | | |
| Portfolio Turnover Rate*** | | | 97% | | | | 94% | | | | 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) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 125
Notes to Schedules of Investments (unaudited)
| | |
| Lipper Emerging Markets Funds | | Funds that seek long-term capital appreciation by investing at least 65% of total assets in emerging market equity securities, where “emerging market” is defined by a country’s GNP per capita or other economic measures. |
| |
| 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 Emerging Markets IndexSM | | A free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. |
| |
| 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. |
| |
| 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. |
| |
| 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 |
126 | MARCH 31, 2011
| | |
| ETF | | Exchange-Traded Fund |
| |
| GDR | | Global Depositary Receipt |
| |
| LIBOR | | London Interbank Offered Rate |
| |
| PCL | | Public Company Limited |
| |
| PLC | | Public Limited Company |
| |
| U.S. Shares | | Securities of foreign companies trading on an American Stock Exchange. |
| | | |
| * | | 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. |
∞ Schedule of Fair Valued Securities (as of March 31, 2011)
| | | | | | | | |
| | | | | Value as a
| | |
| | | Value | | % of Net Assets | | |
| |
| |
Janus Global Life Sciences Fund | | | | | | | |
| Fibrogen, Inc. – Private Placement | | $ | 5,786,786 | | 0.8% | | |
| GMP Co. | | | 134,369 | | 0.0% | | |
| Lifesync Holdings, Inc. | | | 758,545 | | 0.1% | | |
| 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 | | 0.4% | | |
| Mediquest Therapeutics – Private Placement, (Series A-1), 0% | | | 1,557,765 | | 0.2% | | |
| Portola Pharmaceuticals, Inc. – Private Placement, 0% | | | 4,846,045 | | 0.7% | | |
| |
| |
| | | $ | 15,592,769 | | 2.2% | | |
| |
| |
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 Overseas Fund | | | | | | | |
| Anglo Irish Bank Corp., Ltd. | | $ | – | | 0.0% | | |
| FU JI Food & Catering Services Holdings, Ltd. | | | – | | 0.0% | | |
| |
| |
| | | $ | – | | 0.0% | | |
| |
| |
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, 2011)
| | | | | | | | | | | | | |
| | | 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 | | $ | 5,786,786 | | 0.8% | | |
| 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 | | 0.4% | | |
| Mediquest Therapeutics – Private Placement, (Series A-1), 0% | | 3/31/09 | | | 3,135,054 | | | 1,557,765 | | 0.2% | | |
| Portola Pharmaceuticals, Inc. – Private Placement, 0% | | 7/3/08 | | | 4,130,815 | | | 4,846,045 | | 0.7% | | |
| |
| |
| | | | | $ | 18,165,231 | | $ | 14,699,855 | | 2.1% | | |
| |
| |
Janus Global Research Fund | | | | | | | | | | | | |
| FU JI Food & Catering Services Holdings, Ltd. | | 11/12/07-7/8/08 | | $ | 3,115,375 | | $ | – | | 0.0% | | |
| |
| |
Janus International Equity Fund | | | | | | | | | | | | |
| FU JI Food & Catering Services Holdings, Ltd. | | 8/9/07-8/14/08 | | $ | 2,173,340 | | $ | – | | 0.0% | | |
| |
| |
Janus Overseas Fund | | | | | | | | | | | | |
| Anglo Irish Bank Corp., Ltd. | | 6/14/02-9/16/08 | | $ | 330,695,946 | | $ | – | | 0.0% | | |
| FU JI Food & Catering Services Holdings, Ltd. | | 1/15/08-1/31/08 | | | 44,396,141 | | | – | | 0.0% | | |
| |
| |
| | | | | $ | 375,092,087 | | $ | – | | 0.0% | | |
| |
| |
The Funds have registration rights for certain restricted securities held as of March 31, 2011. The issuer incurs all registration costs.
Janus Global & International Funds | 127
Notes to Schedules of Investments (unaudited) (continued)
| |
| 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. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2011 is indicated in the table below: |
| | | | | | | | | | | |
| | | | | | Value as a %
| | | |
| Fund | | Value | | | of Net Assets | | | |
| |
| Janus Global Life Sciences Fund | | $ | 3,381,475 | | | | 0.5 | % | | |
| Janus Overseas Fund | | | 1,832,329 | | | | 0.0 | % | | |
| |
| |
| |
| £ | 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, 2011. |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Global Life Sciences Fund | | | | | | | | | | | | | | | | | | | | | |
GMP Co.(1) | | – | | $ | – | | – | | $ | – | | $ | – | | $ | – | | $ | 134,369 | | |
| Lifesync Holdings, Inc. | | – | | | – | | – | | | – | | | – | | | – | | | 758,545 | | |
Mediquest Therapeutics – Private Placement§ | | – | | | – | | – | | | – | | | – | | | – | | | 2,509,255 | | |
| |
| |
| | | | | $ | – | | | | $ | – | | $ | – | | $ | – | | $ | 3,402,169 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Global Select Fund | | | | | | | | | | | | | | | | | | | | | |
Bwin.Party Digital Entertainment PLC*(2)(3) | | 15,834,318 | | $ | 46,232,724 | | – | | $ | – | | $ | – | | $ | – | | $ | N/A | | |
| Chroma ATE, Inc. | | 3,664,000 | | | 8,752,839 | | – | | | – | | | – | | | – | | | 73,592,278 | | |
| EVA Precision Industrial Holdings, Ltd. | | 49,030,000 | | | 39,455,726 | | – | | | – | | | – | | | – | | | 35,866,539 | | |
| Tellabs, Inc. | | 13,361,716 | | | 72,582,955 | | – | | | – | | | – | | | 378,956 | | | 119,658,680 | | |
Wesco International, Inc.*(2) | | – | | | – | | 1,309,000 | | | 35,821,412 | | | 32,440,304 | | | – | | | N/A | | |
| |
| |
| | | | | $ | 167,024,244 | | | | $ | 35,821,412 | | $ | 32,440,304 | | $ | 378,956 | | $ | 229,117,497 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Global Technology Fund | | | | | | | | | | | | | | | | | | | | | |
| Vocus, Inc.* | | – | | $ | – | | – | | $ | – | | $ | – | | $ | – | | $ | 26,224,367 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Overseas Fund | | | | | | | | | | | | | | | | | | | | | |
ARM Holdings PLC(2) | | – | | $ | – | | 47,094,470 | | $ | 111,392,845 | | $ | 270,136,432 | | $ | – | | $ | N/A | | |
| Bajaj Hindusthan, Ltd. | | – | | | – | | – | | | – | | | – | | | 190,612 | | | 19,538,774 | | |
| Chaoda Modern Agriculture Holdings, Ltd. | | – | | | – | | – | | | – | | | – | | | 2,183,734 | | | 117,039,154 | | |
Commercial Bank of Ceylon PLC(2)(4) | | – | | | – | | – | | | – | | | – | | | 217,271 | | | N/A | | |
| Cosan, Ltd. – Class A | | – | | | – | | – | | | – | | | – | | | – | | | 182,005,765 | | |
| Delta Air Lines, Inc.* | | 7,200,000 | | | 75,488,319 | | – | | | – | | | – | | | – | | | 428,975,998 | | |
International Consolidated Airlines Group S.A.*(2)(5) | | – | | | – | | – | | | – | | | – | | | – | | | N/A | | |
| John Keells Holdings PLC | | – | | | – | | – | | | – | | | – | | | 1,169,447 | | | 167,944,548 | | |
| Melco International Development, Ltd.* | | – | | | – | | – | | | – | | | – | | | 145,242 | | | 51,303,040 | | |
| Niko Resources, Ltd. | | – | | | – | | – | | | – | | | – | | | 314,614 | | | 248,521,006 | | |
| Petroplus Holdings A.G.* | | – | | | – | | – | | | – | | | – | | | – | | | 194,275,965 | | |
| |
| |
| | | | | $ | 75,488,319 | | | | $ | 111,392,845 | | $ | 270,136,432 | | $ | 4,220,920 | | $ | 1,409,604,250 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Worldwide Fund | | | | | | | | | | | | | | | | | | | | | |
| Blackboard, Inc.* | | – | | $ | – | | 244,230 | | $ | 11,177,334 | | $ | (1,257,185) | | $ | – | | $ | 53,718,009 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Certificates will be issued under new company name, Lifesync Holdings, Inc. |
128 | MARCH 31, 2011
| | |
| (2) | | Company was no longer an affiliate as of March 31, 2011. |
| (3) | | On March 31, 2011 PartyGaming PLC merged with bwin Interactive Entertainment to form Bwin.Party Digital Entertainment PLC. Prior to the merger PartyGaming PLC was an affiliate of the Fund. |
| (4) | | Shares were adjusted to reflect a 0.643% stock dividend on 3/31/11. |
| (5) | | On January 24, 2011 British Airways PLC merged with Iberia LAE S.A. to form International Consolidated Airlines Group S.A. Prior to the merger British Airways PLC was an affiliate of the Fund. |
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, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2011)
| | | | | | | | | | | | | | | |
| | | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Emerging Markets Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Cellular Telecommunications | | $ | 176,035 | | $ | 351,804 | | $ | – | | | | | |
| Commercial Banks | | | 381,068 | | | 805,867 | | | – | | | | | |
| Diversified Minerals | | | 88,784 | | | 144,472 | | | – | | | | | |
| Electric – Integrated | | | – | | | 233,476 | | | – | | | | | |
| Insurance Brokers | | | – | | | 131,363 | | | – | | | | | |
| Metal – Aluminum | | | – | | | 104,401 | | | – | | | | | |
| Oil Companies – Exploration and Production | | | 313,034 | | | 622,061 | | | – | | | | | |
| Oil Companies – Integrated | | | – | | | 392,703 | | | – | | | | | |
| Oil Refining and Marketing | | | 48,272 | | | 209,881 | | | – | | | | | |
| Platinum | | | 167,246 | | | 70,610 | | | – | | | | | |
| Rubber/Plastic Products | | | – | | | 115,551 | | | – | | | | | |
| Steel – Producers | | | 347,690 | | | 186,158 | | | – | | | | | |
| Telecommunication Services | | | – | | | 188,671 | | | – | | | | | |
| All Other | | | 5,303,884 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Exchange-Traded Funds | | | 903,376 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred Stock | | | – | | | 186,800 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 514,463 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 7,729,389 | | $ | 4,258,281 | | $ | – | | | | | |
| |
| |
| Janus Global Life Sciences Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Medical – Biomedical and Genetic | | $ | 158,803,289 | | $ | – | | $ | 5,786,786 | | | | | |
| Medical – Drugs | | | 192,714,262 | | | 32,408,136 | | | – | | | | | |
| Medical – Generic Drugs | | | 16,317,073 | | | 14,320,341 | | | 2,509,255 | | | | | |
| Medical Instruments | | | 20,106,436 | | | – | | | 758,545 | | | | | |
| All Other | | | 248,182,467 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 6,538,179 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Warrants | | | – | | | – | | | 4 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 3,591,000 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 636,123,527 | | $ | 50,319,477 | | $ | 15,592,769 | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Global Research Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Airlines | | $ | – | | $ | 1,656,658 | | $ | – | | | | | |
| Cellular Telecommunications | | | 1,680,266 | | | 1,158,921 | | | – | | | | | |
| Food – Catering | | | – | | | – | | | – | | | | | |
| Medical – Drugs | | | 6,248,438 | | | 800,141 | | | – | | | | | |
| Oil Companies – Integrated | | | – | | | 1,604,909 | | | – | | | | | |
| All Other | | | 267,296,792 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 3,607,915 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 275,225,496 | | $ | 8,828,544 | | $ | – | | | | | |
| |
| |
Janus Global & International Funds | 129
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 Global Select Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Commercial Banks | | $ | 312,500,124 | | $ | 32,628,201 | | $ | – | | | | | |
| Oil Companies – Exploration and Production | | | 192,804,883 | | | 79,169,089 | | | – | | | | | |
| All Other | | | 2,975,339,909 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 161,496,533 | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 3,480,644,916 | | $ | 273,293,823 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Global Technology Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| E-Commerce/Services | | $ | 31,186,394 | | $ | 11,987,913 | | $ | – | | | | | |
| Internet Content – Entertainment | | | – | | | 6,884,199 | | | – | | | | | |
| Telecommunication Equipment | | | 12,480,920 | | | 3,409,802 | | | – | | | | | |
| Transactional Software | | | – | | | 12,628,641 | | | – | | | | | |
| Wireless Equipment | | | 33,274,659 | | | 2,470,663 | | | – | | | | | |
| All Other | | | 823,755,850 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 20,997,073 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 900,697,823 | | $ | 58,378,291 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus International Equity Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Airlines | | $ | 2,785,806 | | $ | 2,173,015 | | $ | – | | | | | |
| E-Commerce/Services | | | – | | | 5,142,478 | | | – | | | | | |
| Food – Catering | | | – | | | – | | | – | | | | | |
| Medical – Generic Drugs | | | – | | | 5,343,105 | | | – | | | | | |
| Oil – Field Services | | | 4,545,222 | | | 2,339,472 | | | – | | | | | |
| Oil Companies – Exploration and Production | | | 8,650,666 | | | 5,689,675 | | | – | | | | | |
| Oil Companies – Integrated | | | 9,434,134 | | | 5,120,864 | | | – | | | | | |
| All Other | | | 211,692,164 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 8,199,288 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 237,107,992 | | $ | 34,007,897 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Overseas Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Commercial Banks | | $ | 1,302,607,000 | | $ | – | | $ | – | | | | | |
| Food – Catering | | | – | | | – | | | – | | | | | |
| Oil Companies – Integrated | | | – | | | 451,852,715 | | | – | | | | | |
| Sugar | | | 290,818,869 | | | 1,832,329 | | | – | | | | | |
| All Other | | | 12,693,900,014 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 12,882,000 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 14,287,325,883 | | $ | 466,567,044 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Worldwide Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Investment Management and Advisory Services | | $ | – | | $ | 9,355,921 | | $ | – | | | | | |
| Oil Companies – Integrated | | | 96,342,963 | | | 65,053,034 | | | – | | | | | |
| All Other | | | 2,243,176,863 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Corporate Bond | | | – | | | 27,022,328 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Warrant | | | – | | | 33,997,219 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 17,732,000 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 2,339,519,826 | | $ | 153,160,502 | | $ | – | | | | | |
| |
| |
Investments in Purchased Options: | | | | | | | | | | | | | | |
| Janus Global Select Fund | | $ | – | | $ | 11,417,104 | | $ | – | | | | | |
| Janus Global Technology Fund | | | – | | | 2,295,437 | | | – | | | | | |
| Janus Overseas Fund | | | – | | | 35,237,075 | | | – | | | | | |
| |
| |
130 | MARCH 31, 2011
| | | | | | | | | | | | | | | |
| | | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
| |
Investments in Securities Sold Short: | | | | | | | | | | | | | | |
| Janus Global Select Fund | | $ | (6,784,500) | | $ | – | | $ | – | | | | | |
| Janus Global Technology Fund | | | (6,766,825) | | | – | | | – | | | | | |
| |
| |
Other Financial Instruments(b): | | | | | | | | | | | | | | |
| Janus Emerging Markets Fund | | $ | – | | $ | 69,661 | | $ | – | | | | | |
| Janus Global Life Sciences Fund | | | – | | | (67,324) | | | – | | | | | |
| Janus Global Select Fund | | | 196,076 | | | (43,750,377) | | | – | | | | | |
| Janus Global Technology Fund | | | – | | | 190,213 | | | – | | | | | |
| Janus Overseas Fund | | | – | | | (6,215,434) | | | – | | | | | |
| Janus Worldwide Fund | | | – | | | 2,678,409 | | | – | | | | | |
| |
| |
| | | |
| (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 fiscal period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Change in
| | | | | | Transfers In
| | | | |
| | | | | | | Unrealized
| | | | | | and/or
| | | | |
| | | Balance as of
| | Realized
| | Appreciation/
| | | | | | Out of
| | Balance as of
| | |
| | | September 30, 2010 | | Gain/(Loss)(a) | | (Depreciation)(b) | | Gross Purchases | | Gross Sales | | Level 3 | | March 31, 2011 | | |
| |
Investments in Securities: | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Global Life Sciences Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
| Medical – Biomedical and Genetic | | $ | 5,786,786 | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | 5,786,786 | | |
| Medical – Generic Drugs | | | 2,509,255 | | | – | | | – | | | – | | | – | | | – | | | 2,509,255 | | |
| Medical Instruments | | | 892,914 | | | – | | | – | | | – | | | (134,369) | | | – | | | 758,545 | | |
Preferred Stock | | | 6,403,810 | | | – | | | – | | | 134,369 | | | – | | | – | | | 6,538,179 | | |
Warrants | | | 4 | | | – | | | – | | | – | | | – | | | – | | | 4 | | |
| Janus Global Research Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
| Food – Catering | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
| Janus International Equity Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
| Food – Catering | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
| Janus Overseas Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial Banks | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
| Food – Catering | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
| |
| |
| | | |
| (a) | | Included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statements of Operations. |
| (b) | | 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, 2011 is noted below.
| | | | | | |
| Fund | | Aggregate Value | | |
| |
| |
| Janus Emerging Markets Fund | | $ | 5,941,847 | | |
| Janus Global Life Sciences Fund | | | 91,260,355 | | |
| Janus Global Select Fund | | | 2,523,434,123 | | |
| Janus Global Technology Fund | | | 151,219,113 | | |
| Janus Overseas Fund | | | 2,218,489,543 | | |
| Janus Worldwide Fund | | | 270,828,889 | | |
| |
| |
Janus Global & International Funds | 131
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 Emerging Markets Fund, Janus Global Life Sciences Fund, Janus Global Research Fund, Janus Global Select Fund, Janus Global Technology Fund, Janus International Equity 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. The financial statements include information for the period from December 28, 2010 (inception date) through March 31, 2011 for Janus Emerging Markets Fund and for the six-month period ended March 31, 2011 for Janus Global Life Sciences Fund, Janus Global Research Fund, Janus Global Select Fund, Janus Global Technology Fund, Janus International Equity Fund, Janus Overseas Fund, and Janus Worldwide Fund. The Trust offers thirty-nine 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 Select Fund, which is 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. The Shares are available only to investors who hold accounts directly with the Janus funds 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, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the 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 (“OTC”) 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
132 | MARCH 31, 2011
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 nonsignificant 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 equity 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 REITs’ 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
Janus Global & International Funds | 133
Notes to Financial Statements (unaudited) (continued)
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 period ended March 31, 2011, 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, 2011, Janus Emerging Markets Fund, Janus Global Select Fund and Janus Overseas Fund had restricted cash in the amounts of $700,136, $38,453,548 and $190,206,412, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at March 31, 2011. The restricted cash is held at the Funds’ 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” 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.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC 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 and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that are categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), warrants, swaps, investments in mutual funds, OTC options, and forward contracts. 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. These are generally categorized as Level 2 in the hierarchy.
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
134 | MARCH 31, 2011
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.
For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under the FASB Guidance. These are categorized as Level 3 in the hierarchy.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal period or fiscal year.
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, 2011 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.
The Funds adopted FASB Accounting Standards Update “Fair Value Measurements and Disclosures” (the “Update”). This Update applies to a Fund’s disclosures about transfers in and out of Level 1 and Level 2 of the fair value hierarchy and the reasons for the transfers. Disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy are summarized under the Level 2 and Level 3 categories listed above.
The following table shows transfers between Level 1 and Level 2 of the fair value hierarchy during the period ended March 31, 2011.
| | | | | | | | | | | |
| | | Transfers In
| | | Transfers Out
| | | |
| | | Level 1 to
| | | Level 2
| | | |
| Fund | | Level 2 | | | to Level 1 | | | |
| |
| |
| Janus Global Life Sciences Fund | | $ | – | | | $ | 54,554,623 | | | |
| Janus Global Research Fund | | | – | | | | 71,724,451 | | | |
| Janus Global Select Fund | | | – | | | | 674,052,443 | | | |
| Janus Global Technology Fund | | | – | | | | 81,506,306 | | | |
| Janus International Equity Fund | | | – | | | | 151,033,992 | | | |
| Janus Overseas Fund | | | – | | | | 7,111,821,551 | | | |
| Janus Worldwide Fund | | | – | | | | 750,674,013 | | | |
| |
| |
Financial assets were transferred from Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the beginning of the fiscal year and no factor was applied at the end of the period.
The Funds recognize transfers between the levels as of the beginning of the fiscal period or fiscal year.
| |
| 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. Each derivative instrument that was held by one or more Funds during the period ended March 31, 2011 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
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 equity 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
Janus Global & International Funds | 135
Notes to Financial Statements (unaudited) (continued)
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, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk.
Derivatives may generally be traded 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 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.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| | |
| | • | Counterparty Risk – Counterparty risk is the risk that the counterparty or a third party will not fulfill its obligation to a Fund. |
| |
| | • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. |
| |
| | • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. |
| |
| | • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. |
| |
| | • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. |
| |
| | • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. |
| |
| | • | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested. |
| |
| | • | Liquidity Risk – Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth. |
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 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
136 | MARCH 31, 2011
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, equity 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, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use options 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 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 OTC 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.
Janus Global & International Funds | 137
Notes to Financial Statements (unaudited) (continued)
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC 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 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 period ended March 31, 2011 is indicated in the tables below:
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Emerging Markets Fund | | | | | | | | |
| Options outstanding at December 28, 2010 | | | – | | $ | – | | |
| Options written | | | 114 | | | 11,857 | | |
| Options closed | | | – | | | – | | |
| Options expired | | | – | | | – | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 114 | | $ | 11,857 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Emerging Markets Fund | | | | | | | | |
| Options outstanding at December 28, 2010 | | | – | | $ | – | | |
| Options written | | | 38 | | | 9,543 | | |
| Options closed | | | – | | | – | | |
| Options expired | | | – | | | – | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 38 | | $ | 9,543 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Global Select Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 15,727 | | $ | 3,807,950 | | |
| Options written | | | 213,656 | | | 38,558,824 | | |
| Options closed | | | (123,019) | | | (22,761,653) | | |
| Options expired | | | (47,694) | | | (6,164,477) | | |
| Options exercised | | | (46,450) | | | (2,932,144) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 12,220 | | $ | 10,508,500 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Global Select Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 51,027 | | $ | 5,781,181 | | |
| Options written | | | 1,021,561 | | | 85,466,734 | | |
| Options closed | | | (464,980) | | | (40,232,550) | | |
| Options expired | | | (239,658) | | | (15,280,016) | | |
| Options exercised | | | (99,500) | | | (539,783) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 268,450 | | $ | 35,195,566 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Worldwide Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 13,189 | | $ | 1,107,981 | | |
| Options written | | | – | | | – | | |
| Options closed | | | (13,189) | | | (1,107,981) | | |
| Options expired | | | – | | | – | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | – | | $ | – | | |
| |
| |
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 equity 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).
Dividend swap agreements involve an exchange by the parties of their respective commitments to pay or right to receive the changes in a dividend index point. The Funds gain exposure by either paying or receiving an amount in
138 | MARCH 31, 2011
respect of an increase or decrease in the change of the relevant dividend index point based on a notional amount. For example, if a Fund took a long position on a dividend index swap, the Fund would receive payments if the relevant index point increased in value and would be obligated to pay if that index point decreased in value.
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 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.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2011.
Fair Value of Derivative Instruments as of March 31, 2011
| | | | | | | | | | | | | |
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 Emerging Markets Fund | | | | | | | | | | | | |
| Equity Contracts | | | | | | | | Options written, at value | | $ | 17,089 | |
| Equity Contracts | | Swap contracts | | $ | 102,815 | | | Swap contracts | | | 16,065 | |
| |
| |
| Total | | | | $ | 102,815 | | | | | $ | 33,154 | |
| |
| |
| | | | | | | | | | | | | |
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 Life Sciences Fund | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | $ | 269,804 | | | Forward currency contracts | | $ | 337,128 | |
| |
| |
| Total | | | | $ | 269,804 | | | | | $ | 337,128 | |
| |
| |
| | | | | | | | | | | | | |
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 Global Select Fund | | | | | | | | | | | | |
| Equity Contracts | | Variation margin | | $ | 196,076 | | | | | | | |
| Equity Contracts | | Unaffiliated investments at value | | | 11,417,104 | | | Options written, at value | | $ | 45,701,033 | |
| Equity Contracts | | Swap contracts | | | 9,319,235 | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | | 3,223,232 | | | Forward currency contracts | | | 10,591,811 | |
| |
| |
| Total | | | | $ | 24,155,647 | | | | | $ | 56,292,844 | |
| |
| |
| | | | | | | | | | | | | |
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 Technology Fund | | | | | | | | | | | | |
| Equity Contracts | | Unaffiliated investments at value | | $ | 2,295,437 | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | | 375,280 | | | Forward currency contracts | | $ | 185,067 | |
| |
| |
| Total | | | | $ | 2,670,717 | | | | | $ | 185,067 | |
| |
| |
| | | | | | | | | | | | | |
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 Overseas Fund | | | | | | | | | | | | |
| Equity Contracts | | Unaffiliated investments at value | | $ | 35,237,075 | | | | | | | |
| Equity Contracts | | Swap contracts | | | 27,276,296 | | | Swap contracts | | $ | 59,158,212 | |
| Foreign Exchange Contracts | | Forward currency contracts | | | 26,215,385 | | | Forward currency contracts | | | 548,903 | |
| |
| |
| Total | | | | $ | 88,728,756 | | | | | $ | 59,707,115 | |
| |
| |
Janus Global & International Funds | 139
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | |
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 Worldwide Fund | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | $ | 2,740,579 | | | Forward currency contracts | | $ | 62,170 | |
| |
| |
| Total | | | | $ | 2,740,579 | | | | | $ | 62,170 | |
| |
| |
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2011.
The effect of Derivative Instruments on the Statements of Operations for the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | |
| 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 Emerging Markets Fund(1) | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | (83,655 | ) | | $ | (1,715 | ) | | $ | – | | | $ | (85,370 | ) |
| |
| |
| Total | | $ | – | | | $ | (83,655 | ) | | $ | (1,715 | ) | | $ | – | | | $ | (85,370 | ) |
| |
| |
| | |
| (1) | | Period from December 28, 2010 (inception date) through March 31, 2011. |
| | | | | | | | | | | | | | | | | | | | | |
| 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 Emerging Markets Fund(1) | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | 86,749 | | | $ | 4,312 | | | $ | – | | | $ | 91,061 | |
| |
| |
| Total | | $ | – | | | $ | 86,749 | | | $ | 4,312 | | | $ | – | | | $ | 91,061 | |
| |
| |
| | |
| (1) | | Period from December 28, 2010 (inception date) through March 31, 2011. |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | (2,367,749 | ) | | $ | (2,367,749 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (2,367,749 | ) | | $ | (2,367,749 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | 785,479 | | | $ | 785,479 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | 785,479 | | | $ | 785,479 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 Select Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | 6,270,083 | | | $ | 1,003,369 | | | $ | (17,232,241 | ) | | $ | – | | | $ | (9,958,789 | ) |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (36,212,502 | ) | | | (36,212,502 | ) |
| |
| |
| Total | | $ | 6,270,083 | | | $ | 1,003,369 | | | $ | (17,232,241 | ) | | $ | (36,212,502 | ) | | $ | (46,171,291 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 Select Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | 2,039,406 | | | $ | 9,319,235 | | | $ | (10,138,478 | ) | | $ | – | | | $ | 1,220,163 | |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 1,077,725 | | | | 1,077,725 | |
| |
| |
| Total | | $ | 2,039,406 | | | $ | 9,319,235 | | | $ | (10,138,478 | ) | | $ | 1,077,725 | | | $ | 2,297,888 | |
| |
| |
140 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | (426,628 | ) | | $ | – | | | $ | (426,628 | ) |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (1,710,953 | ) | | | (1,710,953 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | (426,628 | ) | | $ | (1,710,953 | ) | | $ | (2,137,581 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | 1,277,779 | | | $ | – | | | $ | 1,277,779 | |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 403,768 | | | | 403,768 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 1,277,779 | | | $ | 403,768 | | | $ | 1,681,547 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | 87,992,938 | | | $ | – | | | $ | – | | | $ | 87,992,938 | |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (40,539,678 | ) | | | (40,539,678 | ) |
| |
| |
| Total | | $ | – | | | $ | 87,992,938 | | | $ | – | | | $ | (40,539,678 | ) | | $ | 47,453,260 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | (39,516,298 | ) | | $ | 2,449,431 | | | $ | – | | | $ | (37,066,867 | ) |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 40,249,437 | | | | 40,249,437 | |
| |
| |
| Total | | $ | – | | | $ | (39,516,298 | ) | | $ | 2,449,431 | | | $ | 40,249,437 | | | $ | 3,182,570 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 Worldwide Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | – | | | $ | (321,316 | ) | | $ | – | | | $ | (321,316 | ) |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (6,227,736 | ) | | | (6,227,736 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | (321,316 | ) | | $ | (6,227,736 | ) | | $ | (6,549,052 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | 326,881 | | | $ | – | | | $ | 326,881 | |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 4,933,561 | | | | 4,933,561 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 326,881 | | | $ | 4,933,561 | | | $ | 5,260,442 | |
| |
| |
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 both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. 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 NAV, and an increase in Fund expenses. Such unforeseen events may make it unusually difficult to
Janus Global & International Funds | 141
Notes to Financial Statements (unaudited) (continued)
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.
Further, the instability experienced in the financial markets has resulted in the U.S. Government and various other governmental and regulatory entities taking actions to address the financial crisis. These actions include, but are not limited to, the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in July 2010 which is expected to dramatically change the way in which the U.S. financial system is supervised and regulated. More specifically, the Dodd-Frank Act provides for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, over-the-counter derivatives, investment advisers, credit rating agencies, and mortgage lending, which expands federal oversight in the financial sector and may affect the investment management industry as a whole. Given the broad scope, sweeping nature, and the fact that many provisions of the Dodd-Frank Act must be implemented through future rulemaking, the ultimate impact of the Dodd-Frank Act, and any resulting regulation, is not yet certain. As a result, there can be no assurance that these measures will not have an adverse effect on the value or marketability of securities held by a Fund, including potentially limiting or completely restricting the ability of the Fund to use a particular investment instrument as part of its investment strategy, increasing the costs of using these instruments, or possibly making them less effective in general. Furthermore, no assurance can be made that the U.S. Government or any U.S. regulatory entity (or other authority or regulatory entity) will not continue to take further legislative or regulatory action in response to the economic crisis or otherwise, and the effect of such actions, if taken, cannot be known.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornados, mudslides or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds’ investment portfolio and, in the longer term, could impair the ability of issuers in which the Funds invest to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to 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 balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. 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.
Emerging Market Investing
Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices, stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. In addition, the Funds’ investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Funds’ investments. To the extent that a Fund invests a significant portion of its assets in the securities
142 | MARCH 31, 2011
of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on a Fund’s performance.
Exchange-Traded Funds
The Funds may invest in exchange-traded funds (“ETFs”), 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 a Fund’s total return. 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 Funds may not experience similar performance as their 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 through lending their securities to certain qualified broker-dealers and institutions on a short-term or long-term basis. The Funds may lend portfolio securities on a short-term or long-term basis, in an amount equal to up to 1/3 of their total assets as determined at the time of the loan origination. When the Funds lend their securities, they receive collateral (including cash collateral), at least equal to the value of securities loaned. The Funds may earn income by investing this collateral in one or more affiliated or non-affiliated cash management vehicles. It is also possible that, due to a decline in the value of a cash management vehicle, the Funds may lose money. There is also the risk that when portfolio securities are lent, the securities may not be returned on a timely basis, and the Funds may experience delays and costs in recovering the security or gaining access to the collateral provided to the Funds to collateralize the loan. If the Funds are unable to recover a security on loan, the Funds may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Funds. Janus Capital intends to manage the cash collateral in an affiliated cash management vehicle and will receive an investment advisory fee for managing such assets.
The borrower pays fees at the Funds’ direction to Deutsche Bank AG (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
Janus Global & International Funds | 143
Notes to Financial Statements (unaudited) (continued)
Funds’ portion of the interest income earned on cash collateral are included on the Statements of Operations (if applicable).
The Funds did not have any securities on loan during the period.
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 positions (through short sales of stocks, structured products, futures, swaps, 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 restricted cash or 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 options 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 Emerging Markets Fund | | | N/A | | | 1.00 | | |
| Janus Global Life Sciences Fund | | | All Asset Levels | | | 0.64 | | |
| Janus Global Research Fund | | | N/A | | | 0.64 | | |
| Janus Global Select Fund | | | All Asset Levels | | | 0.64 | | |
| Janus Global Technology Fund | | | All Asset Levels | | | 0.64 | | |
| Janus International Equity Fund | | | N/A | | | 0.68 | | |
| Janus Overseas Fund | | | N/A | | | 0.64 | | |
| Janus Worldwide Fund | | | N/A | | | 0.60 | | |
| |
| |
For Janus Emerging Markets Fund, Janus Global Research Fund, Janus International Equity Fund, Janus Overseas 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 Emerging Markets Fund | | | MSCI Emerging Markets IndexSM | | |
| Janus Global Research Fund | | | MSCI World Growth Index | | |
| Janus International Equity Fund | | | MSCI EAFE® Index | | |
| Janus Overseas 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, and December 2007 for Janus International Equity Fund and will apply until November
144 | MARCH 31, 2011
2011 for Janus Overseas Fund and January 2012 for Janus Emerging Markets Fund. 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 (15 months for Janus Overseas Fund). When a Fund’s performance-based fee structure has been in effect for at least 12 months (15 months for Janus Overseas Fund), but less than 36 months, the performance measurement period will be 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, and December 2007 for Janus International Equity Fund and will begin November 2011 for Janus Overseas Fund and January 2012 for Janus Emerging Markets Fund.
No Performance Adjustment is applied unless the difference between a 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 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 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. 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 a Fund’s load-waived Class A Shares. 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
Janus Global & International Funds | 145
Notes to Financial Statements (unaudited) (continued)
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 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, if applicable.
During the period ended March 31, 2011, the following Funds recorded a Performance Adjustment as indicated in the table below:
| | | | | | |
| | | Performance
| | |
| Fund | | Adjustment | | |
| |
| |
| Janus Global Research Fund | | $ | 151,931 | | |
| Janus International Equity Fund | | | 118,357 | | |
| Janus Worldwide Fund | | | 371,799 | | |
| |
| |
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Class D Shares of the Funds pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by the Shares of each Fund for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class R Shares, Class S Shares and Class T Shares of the Funds for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares and Class T Shares of each Fund.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A, Class C, 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. Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus.
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 are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in the “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse certain Funds until at least February 1, 2012 (until at least January 31, 2012 for Janus Global Select Fund) 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 services 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
146 | MARCH 31, 2011
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 Emerging Markets Fund | | | 1.25 | | |
| Janus Global Research Fund | | | 1.00 | | |
| Janus Global Select Fund | | | 0.90 | | |
| Janus International Equity 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, 2011 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 period ended March 31, 2011 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 period ended March 31, 2011.
For the period ended March 31, 2011, Janus Capital assumed $18,217 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 $285,682 was paid by the Trust during the period ended March 31, 2011. 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 of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2011, Janus Distributors retained the following upfront sales charges:
| | | | | | |
| | | Upfront
| | |
| Fund (Class A Shares) | | Sales Charge | | |
| |
| |
| Janus Emerging Markets Fund | | $ | 206 | | |
| Janus Global Life Sciences Fund | | | 344 | | |
| Janus Global Research Fund | | | 2,499 | | |
| Janus Global Select Fund | | | 5,029 | | |
| Janus Global Technology Fund | | | 1,710 | | |
| Janus International Equity Fund | | | 3,638 | | |
| Janus Overseas Fund | | | 116,026 | | |
| Janus Worldwide Fund | | | 494 | | |
| |
| |
A contingent deferred sales charge of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no contingent deferred sales charges paid by redeeming shareholders of Class A Shares during the period ended March 31, 2011.
Class C Shares include a 1.00% contingent deferred sales charge paid by redeeming shareholders 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 period ended March 31, 2011,
Janus Global & International Funds | 147
Notes to Financial Statements (unaudited) (continued)
redeeming shareholders of Class C Shares paid the following contingent deferred sales charges:
| | | | | | |
| | | Contingent Deferred
| | |
| Fund (Class C Shares) | | Sales Charge | | |
| |
| |
| Janus Global Life Sciences Fund | | $ | 100 | | |
| Janus Global Research Fund | | | 105 | | |
| Janus Global Select Fund | | | 287 | | |
| Janus International Equity Fund | | | 113 | | |
| Janus Overseas Fund | | | 3,799 | | |
| |
| |
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. Effective for Class D Shares, Class I Shares, Class R Shares, Class S Shares, and Class T Shares purchased on or after January 28, 2011, a 2.00% redemption fee may apply if you sell Shares of Janus Global Select Fund held for 90 days or less.
Total redemption fees received by the Funds for the period ended March 31, 2011 are indicated in the table below:
| | | | | | |
| Fund | | Redemption Fee | | |
| |
| |
| Janus Emerging Markets Fund | | $ | 3,700 | | |
| Janus Global Life Sciences Fund | | | 4,434 | | |
| Janus Global Research Fund | | | 9,982 | | |
| Janus Global Select Fund | | | 7,473 | | |
| Janus Global Technology Fund | | | 26,108 | | |
| Janus International Equity Fund | | | 7,284 | | |
| Janus Overseas Fund | | | 662,019 | | |
| Janus Worldwide Fund | | | 25,245 | | |
| |
| |
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 currently 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 period ended March 31, 2011, 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 3/31/11 | | |
| |
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
| Janus Emerging Markets Fund | | $ | 11,963,463 | | $ | (11,449,000) | | $ | 560 | | $ | 514,463 | | |
| Janus Global Life Sciences Fund | | | 86,182,198 | | | (92,239,198) | | | 6,830 | | | 3,591,000 | | |
| Janus Global Research Fund | | | 39,808,915 | | | (38,382,000) | | | 4,789 | | | 3,607,915 | | |
| Janus Global Select Fund | | | 1,001,887,649 | | | (934,377,009) | | | 117,461 | | | 161,496,533 | | |
| Janus Global Technology Fund | | | 199,951,136 | | | (195,768,000) | | | 29,430 | | | 20,997,073 | | |
| Janus International Equity Fund | | | 65,090,767 | | | (62,685,412) | | | 7,266 | | | 8,199,288 | | |
| Janus Overseas Fund | | | 2,035,607,649 | | | (2,221,954,311) | | | 262,516 | | | 12,882,000 | | |
| Janus Worldwide Fund | | | 397,196,314 | | | (468,753,412) | | | 74,259 | | | 17,732,000 | | |
| |
| |
| | | $ | 3,837,688,091 | | $ | (4,025,608,342) | | $ | 503,111 | | $ | 229,020,272 | | |
| |
| |
148 | MARCH 31, 2011
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended March 31, 2011, as indicated in the following table.
| | | | | | | | | | | | | | | | | | | | | |
| | | Seed
| | | | | | | | | | Seed
| | |
| | | Capital at
| | | | Date of
| | | | Date of
| | Capital at
| | |
| Fund | | 9/30/10* | | Purchases | | Purchases | | Redemptions | | Redemptions | | 3/31/11 | | |
| |
| |
Janus Emerging Markets Fund -
Class A Shares | | $ | – | | $ | 833,333 | | | 12/27/10 | | $ | – | | | – | | $ | 833,333 | | |
Janus Emerging Markets Fund -
Class C Shares | | | – | | | 833,334 | | | 12/27/10 | | | – | | | – | | | 833,334 | | |
Janus Emerging Markets Fund -
Class D Shares | | | – | | | 833,333 | | | 12/27/10 | | | – | | | – | | | 833,333 | | |
Janus Emerging Markets Fund -
Class I Shares | | | – | | | 833,333 | | | 12/27/10 | | | – | | | – | | | 833,333 | | |
Janus Emerging Markets Fund -
Class S Shares | | | – | | | 833,334 | | | 12/27/10 | | | – | | | – | | | 833,334 | | |
Janus Emerging Markets Fund -
Class T Shares | | | – | | | 833,333 | | | 12/27/10 | | | – | | | – | | | 833,333 | | |
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 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 | | | – | | | – | | | – | | | – | | | 10,000 | | |
Janus International Equity Fund -
Class R Shares | | | 100,000 | | | – | | | – | | | – | | | – | | | 100,000 | | |
Janus International Equity Fund -
Class T Shares | | | 1,000 | | | – | | | – | | | – | | | – | | | 1,000 | | |
| |
| |
| | | |
| * | | Seed capital is at 9/30/10 for Janus Global Life Sciences Fund, Janus Global Research Fund, Janus Global Technology Fund, and Janus International Equity Fund. |
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, 2011 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between
Janus Global & International Funds | 149
Notes to Financial Statements (unaudited) (continued)
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 Emerging Markets Fund | | $ | 11,843,998 | | $ | 392,401 | | $ | (248,729) | | $ | 143,672 | | |
| Janus Global Life Sciences Fund | | | 564,599,786 | | | 154,907,669 | | | (17,471,682) | | | 137,435,987 | | |
| Janus Global Research Fund | | | 236,062,281 | | | 52,880,226 | | | (4,888,467) | | | 47,991,759 | | |
| Janus Global Select Fund | | | 3,184,272,484 | | | 698,013,279 | | | (116,929,920) | | | 581,083,359 | | |
| Janus Global Technology Fund | | | 798,933,186 | | | 188,112,598 | | | (25,674,233) | | | 162,438,365 | | |
| Janus International Equity Fund | | | 232,263,931 | | | 43,164,207 | | | (4,312,249) | | | 38,851,958 | | |
| Janus Overseas Fund | | | 11,949,911,446 | | | 3,716,644,279 | | | (877,425,723) | | | 2,839,218,556 | | |
| Janus Worldwide Fund | | | 2,200,958,344 | | | 364,643,069 | | | (72,921,085) | | | 291,721,984 | | |
| |
| |
Information on the tax components of securities sold short as of March 31, 2011 is as follows:
| | | | | | | | | | | | | | | |
| | | Federal Tax
| | Unrealized
| | Unrealized
| | Net Tax
| | |
| Fund | | Cost | | (Appreciation) | | Depreciation | | Depreciation | | |
| |
| |
| Janus Global Select Fund | | $ | (7,217,100) | | $ | – | | $ | 432,600 | | $ | 432,600 | | |
| Janus Global Technology Fund | | | (9,978,470) | | | – | | | 3,211,645 | | | 3,211,645 | | |
| |
| |
Net capital loss carryovers as of September 30, 2010 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 eleven-month fiscal period or fiscal year ended September 30, 2010
| | | | | | | | | | | | | | | |
| | | September 30,
| | September 30,
| | September 30,
| | Accumulated
| | |
| Fund | | 2011 | | 2016 | | 2017 | | Capital Losses | | |
| |
| |
| Janus Global Life Sciences Fund | | $ | (103,237,607) | | $ | – | | $ | (71,904,532) | | $ | (175,142,139) | | |
| Janus Global Research Fund | | | – | | | – | | | (48,797,190) | | | (48,797,190) | | |
Janus Global Select Fund(1) | | | – | | | (12,940,052) | | | (1,303,454,084) | | | (1,316,394,136) | | |
| Janus Global Technology Fund | | | (83,082,507) | | | – | | | (100,992,979) | | | (184,075,486) | | |
| Janus International Equity Fund | | | – | | | (2,985,056) | | | (38,438,932) | | | (41,423,988) | | |
Janus Overseas Fund(1) | | | – | | | (425,553,183) | | | (404,730,246) | | | (830,283,429) | | |
Janus Worldwide Fund(1) | | | (670,957,456) | | | (23,171,454) | | | (953,343,061) | | | (1,647,471,971) | | |
| |
| |
| | | |
| (1) | | Capital loss carryovers subject to annual limitations. |
Capital losses may be used to offset future taxable capital gains until expiration. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
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.
150 | MARCH 31, 2011
For the six-month period ended March 31, 2011 (unaudited),
the eleven-month fiscal period or fiscal year ended September 30, 2010,
the two-month fiscal period ended September 30, 2009 and
each fiscal year or period ended July 31 or October 31
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus International
| | Janus Overseas
| | Janus Worldwide
|
| | | Markets Fund | | Research Fund | | Select Fund | | Equity Fund | | Fund | | Fund |
| |
| |
| Class A Shares |
| 2011 | | | 7.16%(1) | | | | 1.23% | | | | 1.08% | | | | 1.23% | | | | 1.05% | | | | 1.06% | |
2010(2) | | | N/A | | | | 1.28% | | | | 1.11% | | | | N/A | | | | 1.07% | | | | 1.00% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.34% | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.31% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | 1.40% | | | | 1.19% | | | | N/A | | | | 1.00% | | | | 1.20% | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.41% | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.28% | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 9.77%(7) | | | | N/A | | | | N/A | |
| |
| |
| Class C Shares |
| 2011 | | | 7.66%(1) | | | | 1.95% | | | | 1.81% | | | | 1.97% | | | | 1.76% | | | | 1.82% | |
2010(2) | | | N/A | | | | 1.95% | | | | 1.88% | | | | N/A | | | | 1.76% | | | | 1.86% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 2.13% | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 2.08% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | 1.55% | | | | 2.13% | | | | N/A | | | | 2.01% | | | | 2.28% | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 2.20% | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 2.04% | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 11.49%(7) | | | | N/A | | | | N/A | |
| |
| |
| Class D Shares |
| 2011 | | | 8.13%(1) | | | | 1.01% | | | | 0.85% | | | | 1.24% | | | | 0.83% | | | | 0.86% | |
2010(8) | | | N/A | | | | 1.09% | | | | 0.90% | | | | 1.16% | | | | 0.87% | | | | 0.83% | |
| |
| |
| Class I Shares |
| 2011 | | | 6.98%(1) | | | | 1.05% | | | | 0.83% | | | | 0.91% | | | | 0.76% | | | | 0.76% | |
2010(2) | | | N/A | | | | 0.96% | | | | 0.79% | | | | N/A | | | | 0.80% | | | | 0.76% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 0.99% | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 0.97% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | 0.43% | | | | 0.74% | | | | N/A | | | | 0.70% | | | | 0.77% | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.04% | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.19% | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 2.40%(7) | | | | N/A | | | | N/A | |
| |
| |
| Class R Shares |
| 2011 | | | N/A | | | | N/A | | | | 1.47% | | | | 1.64% | | | | 1.45% | | | | 1.45% | |
2010(2) | | | N/A | | | | N/A | | | | 1.50% | | | | N/A | | | | 1.48% | | | | 1.41% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.71% | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.71% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | 1.49% | | | | N/A | | | | 1.44% | | | | 1.52% | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.78% | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 2.07% | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 11.43%(7) | | | | N/A | | | | N/A | |
| |
| |
| Class S Shares |
| 2011 | | | 7.12%(1) | | | | 1.41% | | | | 1.22% | | | | 1.39% | | | | 1.20% | | | | 1.20% | |
2010(2) | | | N/A | | | | 1.45% | | | | 1.24% | | | | N/A | | | | 1.22% | | | | 1.16% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | 1.42% | | | | 1.24% | | | | N/A | | | | 1.19% | | | | 1.27% | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.54% | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.54% | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 11.01%(7) | | | | N/A | | | | N/A | |
Janus Global & International Funds | 151
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus International
| | Janus Overseas
| | Janus Worldwide
|
| | | Markets Fund | | Research Fund | | Select Fund | | Equity Fund | | Fund | | Fund |
| |
| |
| Class T Shares |
| 2011 | | | 7.18%(1) | | | | 1.12% | | | | 0.97% | | | | 1.14% | | | | 0.95% | | | | 0.95% | |
2010(2) | | | N/A | | | | 1.18% | | | | 0.95% | | | | N/A | | | | 0.95% | | | | 0.87% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.26% | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.07% | | | | N/A | | | | N/A | |
2009(9) | | | N/A | | | | 1.25% | | | | 0.97% | | | | N/A | | | | 0.91% | | | | 0.76% | |
2009(10) | | | N/A | | | | N/A | | | | N/A | | | | 1.31% | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | 1.15% | | | | 0.94% | | | | N/A | | | | 0.90% | | | | 0.83% | |
| 2007 | | | N/A | | | | 1.12% | | | | 0.93% | | | | N/A | | | | 0.89% | | | | 0.89% | |
| 2006 | | | N/A | | | | 1.16% | | | | 1.00% | | | | N/A | | | | 0.92% | | | | 0.90% | |
| 2005 | | | N/A | | | | 1.61%(11) | | | | 1.02% | | | | N/A | | | | 0.90% | | | | 0.85% | |
| |
| |
| | | |
(1)
| | Period from December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from October 1, 2009 through September 30, 2010. |
| (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 October 31, 2009. |
| (6) | | Period from August 1, 2008 through July 31, 2009. |
| (7) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
| (8) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
| (9) | | Period from November 1, 2008 through October 31, 2009. |
| (10) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
| (11) | | Period from February 25, 2005 (inception date) through October 31, 2005. |
152 | MARCH 31, 2011
| |
| 7. | Capital Share Transactions |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 (unaudited),
| | Janus
| | | Janus
| | | | | | | | | | | | Janus
| | | |
the eleven-month fiscal period
| | Emerging
| | | Global Life
| | | Janus
| | | Global
| | | |
ended September 30, 2010 and
| | Markets
| | | Sciences
| | | Global Research
| | | Select
| | | |
the fiscal year ended October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | |
| (all numbers in thousands) | | 2011(1) | | | 2011 | | | 2010(2) | | | 2009(3) | | | 2011 | | | 2010(2) | | | 2009(3) | | | 2011 | | | 2010(2) | | | 2009(3) | | | |
| |
| 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 | | | | N/A | | | | N/A | | | | 2,773 | | | |
| Shares sold | | | 109 | | | | 24 | | | | 85 | | | | 3 | | | | 74 | | | | 58 | | | | 7 | | | | 629 | | | | 1,448 | | | | 317 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | 1 | | | | – | | | | – | | | | 27 | | | | – | | | | – | | | |
| Shares repurchased | | | – | | | | (16) | | | | (17) | | | | – | | | | (25) | | | | (9) | | | | – | | | | (472) | | | | (1,020) | | | | (448) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 109 | | | | 8 | | | | 68 | | | | 3 | | | | 50 | | | | 49 | | | | 7 | | | | 184 | | | | 428 | | | | 2,642 | | | |
| Shares Outstanding, Beginning of Period | | | – | | | | 71 | | | | 3 | | | | – | | | | 56 | | | | 7 | | | | – | | | | 3,070 | | | | 2,642 | | | | – | | | |
| Shares Outstanding, End of Period | | | 109 | | | | 79 | | | | 71 | | | | 3 | | | | 106 | | | | 56 | | | | 7 | | | | 3,254 | | | | 3,070 | | | | 2,642 | | | |
| 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 | | | | N/A | | | | N/A | | | | 1,076 | | | |
| Shares sold | | | 84 | | | | 1 | | | | 8 | | | | 1 | | | | 53 | | | | 19 | | | | 17 | | | | 328 | | | | 544 | | | | 89 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | |
| Shares repurchased | | | – | | | | (1) | | | | – | | | | – | | | | (10) | | | | (2) | | | | – | | | | (137) | | | | (299) | | | | (98) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 84 | | | | – | | | | 8 | | | | 1 | | | | 43 | | | | 17 | | | | 17 | | | | 194 | | | | 245 | | | | 1,067 | | | |
| Shares Outstanding, Beginning of Period | | | – | | | | 9 | | | | 1 | | | | – | | | | 34 | | | | 17 | | | | – | | | | 1,312 | | | | 1,067 | | | | – | | | |
| Shares Outstanding, End of Period | | | 84 | | | | 9 | | | | 9 | | | | 1 | | | | 77 | | | | 34 | | | | 17 | | | | 1,506 | | | | 1,312 | | | | 1,067 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with restructuring (Note 9) | | | N/A | | | | N/A | | | | 20,661(4) | | | | N/A | | | | N/A | | | | 8,834(4) | | | | N/A | | | | N/A | | | | 204,036(4) | | | | N/A | | | |
| Shares sold | | | 714 | | | | 265 | | | | 330(4) | | | | N/A | | | | 1,043 | | | | 569(4) | | | | N/A | | | | 4,832 | | | | 8,272(4) | | | | N/A | | | |
| Reinvested dividends and distributions | | | – | | | | 96 | | | | –(4) | | | | N/A | | | | 72 | | | | –(4) | | | | N/A | | | | 2,035 | | | | –(4) | | | | N/A | | | |
| Shares repurchased | | | (26) | | | | (1,421) | | | | (1,509)(4) | | | | N/A | | | | (808) | | | | (1,163)(4) | | | | N/A | | | | (12,589) | | | | (19,645)(4) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | 688 | | | | (1,060) | | | | 19,482(4) | | | | N/A | | | | 307 | | | | 8,240(4) | | | | N/A | | | | (5,722) | | | | 192,663(4) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | – | | | | 19,482 | | | | – | | | | N/A | | | | 8,240 | | | | – | | | | N/A | | | | 192,663 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 688 | | | | 18,422 | | | | 19,482 | | | | N/A | | | | 8,547 | | | | 8,240 | | | | N/A | | | | 186,941 | | | | 192,663 | | | | 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 | | | | N/A | | | | N/A | | | | 146 | | | |
| Shares sold | | | 415 | | | | 25 | | | | 194 | | | | 50 | | | | 1,031 | | | | 1,193 | | | | 8 | | | | 797 | | | | 5,281 | | | | 884 | | | |
| Reinvested dividends and distributions | | | – | | | | 1 | | | | – | | | | – | | | | 11 | | | | – | | | | – | | | | 48 | | | | – | | | | – | | | |
| Shares repurchased | | | (26) | | | | (37) | | | | (50) | | | | – | | | | (263) | | | | (143) | | | | (5) | | | | (1,599) | | | | (1,565) | | | | (21) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 389 | | | | (11) | | | | 144 | | | | 50 | | | | 779 | | | | 1,050 | | | | 3 | | | | (754) | | | | 3,716 | | | | 1,009 | | | |
| Shares Outstanding, Beginning of Period | | | – | | | | 194 | | | | 50 | | | | – | | | | 1,053 | | | | 3 | | | | – | | | | 4,725 | | | | 1,009 | | | | – | | | |
| Shares Outstanding, End of Period | | | 389 | | | | 183 | | | | 194 | | | | 50 | | | | 1,832 | | | | 1,053 | | | | 3 | | | | 3,971 | | | | 4,725 | | | | 1,009 | | | |
Janus Global & International Funds | 153
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 (unaudited),
| | Janus
| | | Janus
| | | | | | | | | | | | Janus
| | | |
the eleven-month fiscal period
| | Emerging
| | | Global Life
| | | Janus
| | | Global
| | | |
ended September 30, 2010 and
| | Markets
| | | Sciences
| | | Global Research
| | | Select
| | | |
the fiscal year ended October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | |
| (all numbers in thousands) | | 2011(1) | | | 2011 | | | 2010(2) | | | 2009(3) | | | 2011 | | | 2010(2) | | | 2009(3) | | | 2011 | | | 2010(2) | | | 2009(3) | | | |
| |
| 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 | | | | N/A | | | | N/A | | | | 136 | | | |
| Shares sold | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 70 | | | | 204 | | | | 58 | | | |
| Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2 | | | | – | | | | – | | | |
| Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (88) | | | | (69) | | | | (16) | | | |
| Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (16) | | | | 135 | | | | 178 | | | |
| Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 313 | | | | 178 | | | | – | | | |
| Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 297 | | | | 313 | | | | 178 | | | |
| 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 | | | | N/A | | | | N/A | | | | 1,012 | | | |
| Shares sold | | | 83 | | | | – | | | | 10 | | | | 1 | | | | 16 | | | | – | | | | 1 | | | | 79 | | | | 343 | | | | 523 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | |
| Shares repurchased | | | – | | | | – | | | | (2) | | | | – | | | | (2) | | | | – | | | | – | | | | (490) | | | | (721) | | | | (57) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 83 | | | | – | | | | 8 | | | | 1 | | | | 14 | | | | – | | | | 1 | | | | (408) | | | | (378) | | | | 1,478 | | | |
| Shares Outstanding, Beginning of Period | | | – | | | | 9 | | | | 1 | | | | – | | | | 1 | | | | 1 | | | | – | | | | 1,100 | | | | 1,478 | | | | – | | | |
| Shares Outstanding, End of Period | | | 83 | | | | 9 | | | | 9 | | | | 1 | | | | 15 | | | | 1 | | | | 1 | | | | 692 | | | | 1,100 | | | | 1,478 | | | |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | N/A | | | | (20,661) | | | | N/A | | | | N/A | | | | (8,834) | | | | N/A | | | | N/A | | | | (204,036) | | | | N/A | | | |
| Shares sold | | | 131 | | | | 323 | | | | 1,362 | | | | 1,802 | | | | 1,402 | | | | 3,101 | | | | 4,483 | | | | 8,255 | | | | 26,628 | | | | 43,375 | | | |
| Reinvested dividends and distributions | | | – | | | | 44 | | | | 2 | | | | 127 | | | | 71 | | | | 6 | | | | 175 | | | | 1,179 | | | | 102 | | | | 4,234 | | | |
| Shares repurchased | | | (1) | | | | (1,273) | | | | (3,106) | | | | (5,857) | | | | (1,790) | | | | (3,617) | | | | (5,804) | | | | (23,539) | | | | (43,999) | | | | (78,440) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 130 | | | | (906) | | | | (22,403) | | | | (3,928) | | | | (317) | | | | (9,344) | | | | (1,146) | | | | (14,105) | | | | (221,305) | | | | (30,831) | | | |
| Shares Outstanding, Beginning of Period | | | – | | | | 10,395 | | | | 32,798 | | | | 36,726 | | | | 8,511 | | | | 17,855 | | | | 19,001 | | | | 125,536 | | | | 346,841 | | | | 377,672 | | | |
| Shares Outstanding, End of Period | | | 130 | | | | 9,489 | | | | 10,395 | | | | 32,798 | | | | 8,194 | | | | 8,511 | | | | 17,855 | | | | 111,431 | | | | 125,536 | | | | 346,841 | | | |
| | | |
| (1) | | Period from December 28, 2010 (inception date) through March 31, 2011. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from July 6, 2009 (inception date) through October 31, 2009 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares and November 1, 2008 through October 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) through September 30, 2010. |
154 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
period or fiscal year
| | Janus
| | | Janus
| | | | | | | | | | | | | | | | | | | | | |
ended September 30, 2010 and
| | Global
| | | International
| | | Janus
| | | Janus
| | | |
the fiscal year ended
| | Technology
| | | Equity
| | | Overseas
| | | Worldwide
| | | |
October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(3) | | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 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 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 10,354 | | | | N/A | | | | N/A | | | | 43 | | | |
| Shares sold | | | 66 | | | | 110 | | | | 18 | | | | 881 | | | | 2,889 | | | | 6,331 | | | | 9,649 | | | | 4,006 | | | | 12 | | | | 44 | | | | 43 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 37 | | | | 5 | | | | 15 | | | | 37 | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (19) | | | | (45) | | | | – | | | | (973) | | | | (3,383) | | | | (2,942) | | | | (5,198) | | | | (2,388) | | | | (11) | | | | (67) | | | | (4) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 47 | | | | 65 | | | | 18 | | | | (55) | | | | (489) | | | | 3,404 | | | | 4,488 | | | | 11,972 | | | | 1 | | | | (23) | | | | 82 | | | |
| Shares Outstanding, Beginning of Period | | | 83 | | | | 18 | | | | – | | | | 6,932 | | | | 7,421 | | | | 16,460 | | | | 11,972 | | | | – | | | | 59 | | | | 82 | | | | – | | | |
| Shares Outstanding, End of Period | | | 130 | | | | 83 | | | | 18 | | | | 6,877 | | | | 6,932 | | | | 19,864 | | | | 16,460 | | | | 11,972 | | | | 60 | | | | 59 | | | | 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 | | | | N/A | | | | 22 | | | |
| Shares sold | | | 33 | | | | 59 | | | | 3 | | | | 157 | | | | 684 | | | | 1,559 | | | | 2,218 | | | | 1,009 | | | | 6 | | | | 7 | | | | 10 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (3) | | | | (21) | | | | – | | | | (319) | | | | (452) | | | | (654) | | | | (1,084) | | | | (284) | | | | (4) | | | | (7) | | | | (1) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 30 | | | | 38 | | | | 3 | | | | (162) | | | | 232 | | | | 905 | | | | 1,137 | | | | 4,825 | | | | 2 | | | | – | | | | 31 | | | |
| Shares Outstanding, Beginning of Period | | | 41 | | | | 3 | | | | – | | | | 1,976 | | | | 1,744 | | | | 5,962 | | | | 4,825 | | | | – | | | | 31 | | | | 31 | | | | – | | | |
| Shares Outstanding, End of Period | | | 71 | | | | 41 | | | | 3 | | | | 1,814 | | | | 1,976 | | | | 6,867 | | | | 5,962 | | | | 4,825 | | | | 33 | | | | 31 | | | | 31 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with restructuring (Note 9) | | | N/A | | | | 37,742(4) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 52,930(4) | | | | N/A | | | | N/A | | | | 30,419(4) | | | | N/A | | | |
| Shares sold | | | 2,117 | | | | 1,133(4) | | | | N/A | | | | 433 | | | | 575(4) | | | | 2,470 | | | | 2,838(4) | | | | N/A | | | | 323 | | | | 435(4) | | | | N/A | | | |
| Reinvested dividends and distributions | | | – | | | | –(4) | | | | N/A | | | | 6 | | | | –(4) | | | | 81 | | | | –(4) | | | | N/A | | | | 117 | | | | –(4) | | | | N/A | | | |
| Shares repurchased | | | (2,300) | | | | (3,096)(4) | | | | N/A | | | | (135) | | | | (65)(4) | | | | (3,673) | | | | (4,499)(4) | | | | N/A | | | | (1,515) | | | | (2,164)(4) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | (183) | | | | 35,779(4) | | | | N/A | | | | 304 | | | | 510(4) | | | | (1,122) | | | | 51,269(4) | | | | N/A | | | | (1,075) | | | | 28,690(4) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | 35,779 | | | | – | | | | N/A | | | | 510 | | | | – | | | | 51,269 | | | | – | | | | N/A | | | | 28,690 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 35,596 | | | | 35,779 | | | | N/A | | | | 814 | | | | 510 | | | | 50,147 | | | | 51,269 | | | | N/A | | | | 27,615 | | | | 28,690 | | | | N/A | | | |
Janus Global & International Funds | 155
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
period or fiscal year
| | Janus
| | | Janus
| | | | | | | | | | | | | | | | | | | | | |
ended September 30, 2010 and
| | Global
| | | International
| | | Janus
| | | Janus
| | | |
the fiscal year ended
| | Technology
| | | Equity
| | | Overseas
| | | Worldwide
| | | |
October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(3) | | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(1) | | | 2009(2) | | | |
| |
| 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 | | | | N/A | | | | 748 | | | |
| Shares sold | | | 137 | | | | 343 | | | | 77 | | | | 2,595 | | | | 6,284 | | | | 13,922 | | | | 22,935 | | | | 4,294 | | | | 74 | | | | 457 | | | | 78 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 98 | | | | 38 | | | | 84 | | | | 52 | | | | – | | | | 1 | | | | 5 | | | | – | | | |
| Shares repurchased | | | (83) | | | | (31) | | | | – | | | | (2,060) | | | | (2,605) | | | | (3,664) | | | | (4,825) | | | | (1,067) | | | | (46) | | | | (987) | | | | (26) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 54 | | | | 312 | | | | 77 | | | | 633 | | | | 3,717 | | | | 10,342 | | | | 18,162 | | | | 14,026 | | | | 29 | | | | (525) | | | | 800 | | | |
| Shares Outstanding, Beginning of Period | | | 389 | | | | 77 | | | | – | | | | 12,097 | | | | 8,380 | | | | 32,188 | | | | 14,026 | | | | – | | | | 275 | | | | 800 | | | | – | | | |
| Shares Outstanding, End of Period | | | 443 | | | | 389 | | | | 77 | | | | 12,730 | | | | 12,097 | | | | 42,530 | | | | 32,188 | | | | 14,026 | | | | 304 | | | | 275 | | | | 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 | | | | N/A | | | | 13 | | | |
| Shares sold | | | N/A | | | | N/A | | | | N/A | | | | 7 | | | | 36 | | | | 960 | | | | 1,382 | | | | 400 | | | | 4 | | | | 4 | | | | 2 | | | |
| Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | 4 | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | (3) | | | | (40) | | | | (449) | | | | (612) | | | | (253) | | | | (1) | | | | (4) | | | | (1) | | | |
| Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 4 | | | | (4) | | | | 511 | | | | 774 | | | | 2,575 | | | | 3 | | | | – | | | | 14 | | | |
| Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | 71 | | | | 75 | | | | 3,349 | | | | 2,575 | | | | – | | | | 14 | | | | 14 | | | | – | | | |
| Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | 75 | | | | 71 | | | | 3,860 | | | | 3,349 | | | | 2,575 | | | | 17 | | | | 14 | | | | 14 | | | |
| 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 | | | | N/A | | | | 1,698 | | | |
| Shares sold | | | 2 | | | | 16 | | | | 5 | | | | 44 | | | | 221 | | | | 6,116 | | | | 10,853 | | | | 4,383 | | | | 112 | | | | 198 | | | | 136 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 2 | | | | 1 | | | | – | | | | 97 | | | | – | | | | 1 | | | | 5 | | | | – | | | |
| Shares repurchased | | | (2) | | | | (7) | | | | – | | | | (81) | | | | (126) | | | | (5,318) | | | | (10,038) | | | | (2,965) | | | | (258) | | | | (434) | | | | (182) | | | |
| Net Increase/(Decrease) in Fund Shares | | | – | | | | 9 | | | | 5 | | | | (35) | | | | 96 | | | | 798 | | | | 912 | | | | 35,526 | | | | (145) | | | | (231) | | | | 1,652 | | | |
| Shares Outstanding, Beginning of Period | | | 14 | | | | 5 | | | | – | | | | 576 | | | | 480 | | | | 36,438 | | | | 35,526 | | | | – | | | | 1,421 | | | | 1,652 | | | | – | | | |
| Shares Outstanding, End of Period | | | 14 | | | | 14 | | | | 5 | | | | 541 | | | | 576 | | | | 37,236 | | | | 36,438 | | | | 35,526 | | | | 1,276 | | | | 1,421 | | | | 1,652 | | | |
156 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
period or fiscal year
| | Janus
| | | Janus
| | | | | | | | | | | | | | | | | | | | | |
ended September 30, 2010 and
| | Global
| | | International
| | | Janus
| | | Janus
| | | |
the fiscal year ended
| | Technology
| | | Equity
| | | Overseas
| | | Worldwide
| | | |
October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(3) | | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(1) | | | 2009(2) | | | |
| |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | (37,742) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (52,930) | | | | N/A | | | | N/A | | | | (30,419) | | | | N/A | | | |
| Shares sold | | | 1,641 | | | | 3,713 | | | | 7,009 | | | | 209 | | | | 209 | | | | 21,009 | | | | 35,861 | | | | 49,207 | | | | 502 | | | | 1,213 | | | | 2,041 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | 137 | | | | 638 | | | | 9,733 | | | | 104 | | | | 256 | | | | 1,299 | | | |
| Shares repurchased | | | (2,405) | | | | (5,371) | | | | (7,640) | | | | (10) | | | | (12) | | | | (17,630) | | | | (39,077) | | | | (35,098) | | | | (2,586) | | | | (5,776) | | | | (9,661) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (764) | | | | (39,400) | | | | (631) | | | | 202 | | | | 197 | | | | 3,516 | | | | (55,508) | | | | 23,842 | | | | (1,980) | | | | (34,726) | | | | (6,321) | | | |
| Shares Outstanding, Beginning of Period | | | 17,372 | | | | 56,772 | | | | 57,403 | | | | 197 | | | | – | | | | 128,537 | | | | 184,045 | | | | 160,203 | | | | 24,166 | | | | 58,892 | | | | 65,213 | | | |
| Shares Outstanding, End of Period | | | 16,608 | | | | 17,372 | | | | 56,772 | | | | 399 | | | | 197 | | | | 132,053 | | | | 128,537 | | | | 184,045 | | | | 22,186 | | | | 24,166 | | | | 58,892 | | | |
| | | |
| (1) | | Period from November 1, 2009 through September 30, 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 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares and November 1, 2008 through October 31, 2009 for Class T Shares. |
| (3) | | Period from October 1, 2009 through September 30, 2010. |
| (4) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
| |
| 8. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2011, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and short-term 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 Emerging Markets Fund | | $ | 15,190,173 | | $ | 3,899,552 | | $ | – | | $ | – | | |
| Janus Global Life Sciences Fund | | | 155,144,330 | | | 206,124,866 | | | – | | | – | | |
| Janus Global Research Fund | | | 107,558,494 | | | 95,469,544 | | | – | | | – | | |
| Janus Global Select Fund | | | 1,911,085,181 | | | 2,415,169,129 | | | – | | | – | | |
| Janus Global Technology Fund | | | 379,800,245 | | | 368,763,680 | | | – | | | – | | |
| Janus International Equity Fund | | | 119,002,449 | | | 113,607,873 | | | – | | | – | | |
| Janus Overseas Fund | | | 3,353,074,372 | | | 2,438,656,272 | | | – | | | – | | |
| Janus Worldwide Fund | | | 1,166,837,613 | | | 1,237,454,883 | | | – | | | – | | |
| |
| |
| |
| 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 and in the Capital Share Transactions table in Note 7.
On July 6, 2009, Janus Global Select Fund, Janus Overseas Fund and Janus Worldwide Fund acquired all of the net assets of Janus Adviser Orion Fund, Janus Adviser International Growth Fund and Janus Adviser Worldwide Fund, respectively, pursuant to separate plans of reorganization approved by the Trustees of the Trust.
Janus Global & International Funds | 157
Notes to Financial Statements (unaudited) (continued)
The reorganization involved certain funds that were a series of the Janus Adviser Series trust (“JAD Trust”) being merged into 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 Global Select Fund | | 4,043,427 | | $ | 39,032,881 | | 5,142,393 | | $ | 2,684,570,634 | | $ | 2,723,603,515 | | $ | 2,519,525 |
| 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 in several state and federal jurisdictions 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. 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 trial court for further proceedings. In June 2010, the United States Supreme Court agreed to review the Fourth Circuit’s decision. As a result of these developments at the Supreme Court, the trial court has stayed all further proceedings until the Supreme Court rules on the matter. In the Steinberg case (action (ii) above), the trial 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, in February 2010, Plaintiffs appealed the trial court’s decision with the Fourth Circuit.
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, “Improving Disclosures About Fair Value Measurements.” The Accounting Standards Update requires disclosures about purchases, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. This disclosure is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Funds have early adopted the disclosure and are disclosing purchases and sales on a gross basis in the Level 3 roll forward accordingly. The adoption of this Accounting Standards Update did not have any impact on each Fund’s financial position or the results of its operations.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22,
158 | MARCH 31, 2011
2010. The Act makes changes to a number of tax rules impacting the Funds. Under the Act, future capital losses generated by a fund may be carried over indefinitely, but these losses must be used prior to the utilization of any pre-enactment capital losses. Since pre-enactment capital losses may only be carried forward for eight years, there may be a greater likelihood that all or a portion of a fund’s pre-enactment capital losses will expire unused. In general, the provisions of the Act will be effective for the Funds’ fiscal year ending September 30, 2012.
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2011 and through 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 Global & International Funds | 159
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
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “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 nine 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 Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and at the request of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 3, 2010, 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, 2011 through February 1, 2012, 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
160 | MARCH 31, 2011
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 several 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 Global & International Funds | 161
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 many Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the actual 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, including research and analysis conduct by the Trustees’ independent fee consultant, 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 3, 2010 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.
FOR JANUS EMERGING MARKETS FUND
The Trustees considered the proposed investment advisory agreement for Janus Emerging Markets Fund (the “New Fund”). In the course of their consideration of that agreement, the Trustees met in executive session and were advised by their independent legal counsel. The Trustees received and reviewed a substantial amount of information provided by Janus Capital in response to requests of the Trustees and their counsel, and also considered information provided by their independent fee consultant. Based on their evaluation of that information, as well as other information, the Trustees, at meetings held on December 3, 2010, December 21, 2010, and March 17, 2011, unanimously approved the investment advisory agreement for the New Fund for an initial term through February 1, 2012, subject to earlier termination as provided for in the agreement.
In considering the agreement and reaching their conclusions, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below.
Nature, Extent and Quality of Services
The Trustees’ analysis of the nature, extent, and quality of Janus Capital’s proposed services to the New Fund took into account the investment objective and strategies of the New Fund and the knowledge of the Trustees gained
162 | MARCH 31, 2011
from their regular meetings with management on at least a quarterly basis, and their ongoing reviews of information related to Janus funds. In addition, the Trustees reviewed Janus Capital’s resources and key personnel, especially those employees who would be providing investment management and administrative services to the New Fund. The Trustees also considered other services to be provided to the New Fund by Janus Capital, such as the managing the execution of portfolio transactions and the selection of broker-dealers for those transactions, serving as the New Fund’s administrator, monitoring adherence to the New Fund’s investment restrictions, producing shareholder reports, providing support services for the Trustees and Trustee committees, and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations.
The Trustees concluded that the nature and extent of the services to be provided by Janus Capital to the New Fund were appropriate and consistent with the terms of the proposed investment advisory agreement and that the New Fund was likely to benefit from services provided under its agreement with Janus Capital. They also concluded that the quality of Janus Capital’s services to the other Funds for which it serves as investment adviser has generally been very good, and has been consistent with or superior to quality norms in the mutual fund industry; that Janus Capital have sufficient personnel, with the appropriate education and experience, to serve the New Fund effectively; and that Janus Capital’s financial condition is sound. In reaching their conclusions, the Trustees considered information provided by Janus Capital for their consideration of the proposed agreement, as well as information previously provided to them by Janus Capital in connection with their consideration of the continuation of other investment advisory agreements entered into with Janus Capital on behalf of other Funds.
Costs of Services Provided
The Trustees examined the proposed fee information and estimated expenses for the New Fund in comparison to information for other comparable funds as provided by an independent provider of investment company data.
The Trustees considered the methodology used by Janus Capital in determining compensation payable to the portfolio managers and the competition for investment management talent, as well as the competitive market for mutual funds in different distribution channels.
The Trustees concluded that the estimated overall expense ratio of each class of shares of the New Fund, taking into account the expense limitation agreed to by Janus Capital, was comparable to or more favorable than the median expense ratio of its peers and that the fees that the New Fund will pay to Janus Capital are reasonable in relation to the nature and quality of the services to be provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies and the fees Janus Capital charges to other similarly situated clients. The Trustees also concluded that until there was significant growth in the New Fund’s assets, it was premature to attempt to analyze potential future economies of scale.
Benefits Derived from the Relationship with the New Fund
The Trustees also considered benefits that would accrue to Janus Capital and its affiliates from their relationship with the New Fund, noting that two affiliates of Janus Capital would serve the New Fund as transfer agent and distributor, respectively, and that the transfer agent would receive compensation from the New Fund’s Class S Shares for its services to the New Fund. They also considered Janus Capital’s proposed use of commissions (to be paid by the New Fund on its portfolio brokerage transactions) to obtain proprietary and third-party research products and services benefiting the New Fund and/or other clients of Janus Capital.
The Trustees concluded that, other than the services to be provided by Janus Capital and its affiliates pursuant to the proposed agreements and the fees to be paid by the New Fund therefore, the New Fund and Janus Capital may potentially benefit from their relationship with each other in other ways. They also concluded that Janus Capital may potentially benefit from the receipt of proprietary research products and services to be acquired through commissions paid on portfolio transactions of the New Fund and that the New Fund may potentially 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 also concluded that success of the New Fund could attract other business to Janus Capital or its other Funds and that the success of Janus Capital could enhance Janus Capital’s ability to serve the New Fund.
After full consideration of the above factors, as well as other factors, all of the Trustees, all of whom are independent Trustees, concluded that approval of the New Fund’s investment advisory agreement was in the best interest of the New Fund and its shareholders.
Janus Global & International Funds | 163
Explanations of Charts, Tables and
Financial Statements (unaudited)
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 prior 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 based on average net assets as of the fiscal period ended September 30, 2010. 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
164 | MARCH 31, 2011
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.
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
Janus Global & International Funds | 165
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
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, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments and the investment style and/or outlook of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
166 | MARCH 31, 2011
Notes
Janus Global & International Funds | 167
Notes
168 | MARCH 31, 2011
Notes
Janus Global & International Funds | 169
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 fixed income 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).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Funds distributed by Janus Distributors LLC (05/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
| C-0411-017 | 125-24-01000 05-11 |
2011 SEMIANNUAL REPORT
Janus Growth
& Core Funds
Janus Contrarian Fund
Janus Enterprise Fund
Janus Forty Fund
Janus Fund
Janus Growth and Income 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 |
Table of Contents
Janus Growth & Core Funds
| | | |
| | 1 |
| | 4 |
| | |
| | 6 |
| | 24 |
| | 37 |
| | 46 |
| | 56 |
| | 66 |
| | 76 |
| | 87 |
| | 97 |
| | 105 |
| | 116 |
| | 120 |
| | 122 |
| | 130 |
| | 153 |
| | 159 |
| | 190 |
| | 193 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Co-Chief Investment Officers’ Market Perspective (unaudited)
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
We would like to take this opportunity to thank you for investing with Janus. We are proud to share that we have been recognized by Lipper for top risk-adjusted performance across many of our funds. For the third year in a row, Janus earned Top Asset Class honors from Lipper with the Mixed-Asset Large Company award for the three-year period, which includes Janus Balanced Fund, Janus Growth Allocation Fund, Janus Moderate Allocation Fund and Janus Conservative Allocation Fund. Additionally, Top Individual Fund honors went to Janus Overseas Fund Class D Shares, Janus Global Real Estate Fund Class I Shares, Janus Conservative Allocation Fund Class D Shares, Janus Moderate Allocation Fund Class D Shares and Janus Growth Allocation Fund Class D Shares. We continue to be committed to our disciplined investment process and believe these awards demonstrate the strong results that Janus’ disciplined investment approach can generate for investors over time.
In the broader economic environment, the global recovery remains on track despite some challenging macro events. We are seeing healthy vital signs in many of the companies that we follow and U.S. equities continue to offer extremely compelling valuations, in our view. Although the overall bond market has become more susceptible to interest rate volatility, we continue to see attractive risk-reward opportunities in corporate credit.
NEW RISKS AND NEW OPPORTUNITIES
Geopolitical concerns and the natural disaster in Japan took center stage during the period, weighing on investor sentiment after a strong start to the year. Some other issues that arose – such as higher oil prices, sovereign debt risk in Europe and rising inflationary pressures – certainly raised risks. However, equity markets rebounded to finish the period higher, rising on improved economic data and confidence. We find this resilience in the face of bad news to be impressive and suggestive of pent-up demand for equities from investors who have fled the asset class in recent years.
While the disaster in Japan took a tragic human toll, the global impact is likely to be limited. Near-term, Japan’s economy will almost certainly weaken, and damage to some factories and infrastructure may lead to supply-chain disruptions. However, we expect these disruptions to be manageable and don’t think Japan’s slowdown will drag significantly on global growth. Rebuilding efforts are likely to stimulate Japan’s economy longer-term, creating opportunities for infrastructure-related companies.
Rising oil prices pose a potentially longer-term challenge. Even before the crisis in the Middle East, demand in 2010 grew at the fastest pace in history, leaving little spare capacity. Japan’s reconstruction will be very energy-intensive and may lead to additional demand for oil and natural gas. The flipside of these pressures is lower demand, which is likely to be substantial if crude prices continue to rise.
U.S. AND GLOBAL OUTLOOK
In the U.S., the economic climate continues to improve. The manufacturing sector continues to strengthen, unemployment is easing and we are seeing early indications of improving confidence at the corporate level, with management teams indicating interest in hiring. We are even seeing some hopeful signs of fiscal discipline in Washington. A bipartisan approach to tackling the debt seems to be emerging, and while there will certainly be politicians from both parties who seek political gain from this issue, we are encouraged that serious members of Congress recognize the need for change.
Non-U.S. markets continue to offer attractive opportunities, albeit with some caveats. Near-term, Europe faces a number of challenges, including the impact of austerity measures, inflationary pressures and monetary tightening. Long-term, we think austerity programs will strengthen euro-zone economies. We are monitoring how core Europe deals with these issues and their banking institutions’ debt exposure to peripheral regions such as Greece and Portugal.
In emerging markets, inflation pressures are a growing concern. Rising energy and food price inflation is a serious issue, especially in India. In addition, rising costs for labor, raw materials and capital are depressing corporate margins and could potentially slow economic growth. Countries such as China and Brazil have been raising
Janus Growth & Core Funds | 1
Continued
interest rates and tightening capital requirements to contain inflation. Nonetheless, these are real pressures and are among the reasons that emerging markets underperformed last year. We think central banks in these countries are behaving responsibly to contain inflation and promote long-term growth, but we could see a slowdown in the near-term.
EQUITIES: VALUATIONS REMAIN ATTRACTIVE
Equity valuations remain compelling, in our view, particularly for U.S.-based large cap companies. The valuation gap between large- and small-caps is at a 10-year high creating opportunities to invest in global growth businesses at historically discounted prices. Small cap multiples look high, in contrast, but we think many of these companies deserve premium valuations at this stage in the economic cycle. Margins for small-cap stocks are well below their peak of the late 1990s. For small companies with good growth profiles, there is plenty of room for margin expansion. More than anything, we think this reinforces the value of active management and deep fundamental research. Stock selection matters.
Naturally, we do see some trouble spots. Cost pressures are building and we worry that companies can’t or won’t pass through price increases. The U.S. housing market remains worrisome too; prices slipped in January for the sixth month in a row, and foreclosures continue to weigh on inventory. Despite these macro challenges, we remain confident in our security selection. Many of our top holdings trade at a discount to the market with the potential to generate faster growth; other holdings trade at a premium but justify their multiples with strong growth trajectories and opportunities for margin expansion. These characteristics create very compelling risk-reward profiles that we think will result in higher returns long-term.
FIXED INCOME: NAVIGATING CRITICAL CHALLENGES
Volatility was a central theme in the first quarter as investors grew increasingly concerned about building inflationary pressures in the global economy and the potential for changes in the monetary policy positions of central banks around the globe.
Looking beyond the headlines, two key inflation components – wages and housing – remain weak. With unemployment near 9%, we have not seen much evidence of wage inflation, a key component of sustainable inflation. The housing market, meanwhile, continues to struggle. These imbalances help to explain why the Federal Reserve has called recent inflationary pressures “transitory” and hasn’t signaled a change in rate policy (although we do expect the Fed’s quantitative easing program to wind down in June, potentially adding to rising rate pressures).
In light of these challenges, we think an active approach to fixed income – with a slightly more defensive posture – makes sense. Due to the fundamental changes in the fixed income market brought about by the financial crisis the overall bond market is much more susceptible to interest rate volatility. Thus, a passive allocation in fixed income comes with an outright bullish view on interest rates (i.e. that rates will decline), a position with which we fundamentally disagree. Corporate debt or credit remains the primary non-government alternative in the fixed-income markets, and we believe our focus on security selection in this segment represents the most effective way to generate excess returns, as well as to protect against rising rates.
Overall, we believe additional upside remains in fixed income and we are finding attractive opportunities across various sectors in the credit markets. We remain disciplined in our individual security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure.
LOOKING AHEAD
Staying active and maintaining a balanced portfolio is crucial. Uncertainty remains a prevalent theme in today’s market, highlighting the importance of in-depth research both to mitigate risk and to uncover opportunities offering the most attractive risk-adjusted returns. We can’t say that geopolitical risks won’t rise again or that the correlations won’t spike. However, tuning out the short-term noise and staying focused on company fundamentals, we believe,
2 | MARCH 31, 2011
Co-Chief Investment Officers’ Market Perspective (unaudited)
remains the best way to achieve attractive long-term results for our shareholders.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of March 2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Only eligible investors may purchase Class D Shares and Class I Shares. See the prospectus for eligibility requirements.
For Asset Class Group Awards, fund groups with at least five equity, five bond, or three mixed-asset portfolios in the respective asset classes are eligible for a group award. The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period ending 12-31-2010. In cases of identical results the lower average percentile rank will determine the winner.
For Best Individual Funds the calculation periods extend over 36, 60 and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over three, five or ten year periods ending 12-31-2010 only and not for other time periods.
The Mixed-Asset Large Company asset class award was judged against 46 firms. Individual fund award winners were judged against the following number of funds: Janus Overseas Fund – 119 funds for the 3-year period, 81 funds for the 5-year period and 41 funds for the 10-year period; Janus Conservative Allocation Fund, Janus Moderate Allocation Fund and Janus Growth Allocation Fund – 301, 390 and 409 funds respectively for the 5-year period; Janus Global Real Estate Fund – 70 funds for the 3-year period.
Price/Earnings Ratio is a valuation ratio of a company’s current share price compared to its per-share earnings. This ratio represents equity securities within the portfolio, and is not intended to demonstrate the growth of the portfolio, income earned by the portfolio, or distributions made by the portfolio.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 the 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.
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 is 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, 2011. 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 services 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 a 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, 2010 to March 31, 2011.
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 services 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 1, 2012. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information
4 | MARCH 31, 2011
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 7.75% for the six-month period ended March 31, 2011, compared with an 8.86% 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 17.31% and -0.88%, respectively.
Economic Overview
U.S. equities turned in a strong performance during the period amid improving economic data, a second round of quantitative easing (QE2) from the Federal Reserve (Fed) and hope of a more business friendly tone coming out of Washington, D.C. following the mid-term elections. Gains continued until unrest in the Middle East and North Africa and a tragic earthquake and tsunami in Japan led to a modest retreat late in the period. Higher oil prices, ongoing geopolitical conflicts, worries over reduced demand from Japan and disruption in supply chains for auto makers and technology companies were immediate concerns and contributed to significant market uncertainty near period end. While we are still monitoring global events, we continue positioning the Fund’s equity category attempting to benefit from what we believe will be an incrementally improving economic environment. The Fed will likely maintain low interest rates, which should offset a still-weak housing market and soft employment numbers. The biggest risk we see to our constructive economic view would be another sharp decline in the housing market, caused by more foreclosed houses hitting the market than is currently anticipated, thereby stifling demand for new homes.
Volatility remained a central theme in the fixed income markets during the period. Bond investors continued to fret over the current easy-money environment potentially ending in inflation while keeping a worried eye on a stubbornly high unemployment rate and a weak housing market in the U.S. Investors were drawn to riskier assets based on stronger signals of economic growth, but that reversed temporarily during a flight to safety in reaction to political events in the Middle East and North Africa and earthquakes in Japan and New Zealand. Over the closing weeks of the period, inflationary concerns returned to the fore and pushed rates higher. The yield-curve steepened during the period, resulting in long-term U.S. Treasury bonds turning in the worst performance within fixed income. Short-term rates also rose, creating a drag on total returns at the front end of the curve. Strong corporate health continued to support corporate credit however, contributing to the narrowing of spreads during the period. High-yield spreads relative to U.S. Treasuries declined 156 basis points (bps). Couple this with high yield’s shorter duration and this segment was the top performer for the period. Meanwhile, investment grade spreads narrowed 33 bps, which was not enough to overcome the negative impact of rising rates thus leaving this segment with modestly negative returns. Spreads of mortgage-backed securities (MBS) also narrowed 53 bps, leading to this segment’s outperformance relative to the Barclays Capital U.S. Aggregate Bond Index.
The Fund had an overweight to equities, 60.2%, given our improving views on the economy. Within our equity sleeve, 84% represented U.S. holdings and 14% non-U.S. Our fixed income weighting stood near 39% with the bulk of this sleeve invested in corporate credit. Breaking out the fixed income sleeve relative to the Barclays Capital U.S. Aggregate Bond Index, we had a significant overweighting in corporate credit (73% vs. 24%), while maintaining an underweight in U.S. Treasuries (24.9% vs. 32.9%) through period end.
In keeping with our positive outlook in equities, we have been modestly adding consumer discretionary names and some industrials while reducing our health care and consumer staples holdings. These changes are at the margin, however, and we continue to hold many of our key names from last year. Among the new holdings are companies in which we can justify valuations relative to improving prospects based on upward sloping business
6 | MARCH 31, 2011
(unaudited)
trends, or positive management changes among others. During the period, we added Coach, a luxury goods maker that has shown strong sales growth outside of the U.S., and U.S. Bancorp, a multistate financial services holding company that we view as well-managed with a historical ability to generate high returns on equity. CIT Group, a commercial and consumer finance company, was also added to the Fund based on its low valuation relative to its book value. The company is in the process of refinancing high-cost debt, which should improve its net interest margin and earnings.
Against the fixed income backdrop, we temporarily reduced the overall risk exposure, slightly increasing U.S. Treasury positions during late February. This proved beneficial to the Fund given the brief U.S. Treasury rally. Despite the small defensive shift, however, the fundamental positioning remained in place, and the period ended with fund allocations largely as they were when we began 2011.
Performance Overview
The Fund turned in modest returns during the period, underperforming its primary benchmark, the S&P 500 Index. This is not surprising given the strength in equity markets during the period. The Fund also underperformed the Balanced Index due to a more conservative positioning in equities that held back early relative results and due to certain stock-specific events. The second half of the period saw considerably better relative performance, narrowing the performance differential. Cyclical sectors, such as energy, consumer discretionary, industrials and materials, led equity markets higher and though we had been increasing our exposure to these more cyclical areas of the economy, we were still somewhat defensive early in the period. Our holdings and underweight in energy were the largest detractors from relative performance, while our holdings in consumer discretionary and industrials also weighed on performance. Our holdings in information technology were the largest contributors to performance followed by our zero weighting in utilities.
Our fixed income sleeve, meanwhile, outperformed primarily due to our corporate bond holdings. We maintained a significant overweighting to corporate credit and zero exposure to government agencies and agency mortgages. We have long argued that the financial crisis has resulted in major structural changes to the fixed income market. In essence, three of the four core bond sectors in the Barclays Capital U.S. Aggregate Bond Index (“the Agg”) have converged, with government agencies, agency mortgages and U.S. Treasuries all now representing one large government sector. With over 75% of the Agg now exhibiting Treasury-like characteristics, the overall bond market has become much more susceptible to interest rate volatility. Corporate credit remains the primary non-government alternative, and we believe our focus on security selection in this market segment represents the most effective way to capture alpha (a measure of the return for asset specific or residual risk) and manage portfolio risk.
At period end, corporate credit represented 73% of the fixed income sleeve. Within these holdings, we have been selectively rotating away from early stage sectors such as steel, chemicals and retail, incrementally emphasizing financials and later-cycle industries such as media and lodging. In general, high-beta names in high-yield corporates performed well, benefiting from positive economic and equity market momentum. In fact, sub-investment-grade yields tested a multiyear low in early February, although spreads remained near historical averages. This obviously raises the question around low yields and attractive spreads in the high yield market. We briefly reduced beta (a measurement of a portfolio’s returns in relation to the overall market) exposure in the segment during February, when yield spreads tightened to the lowest levels in almost a year. The timing was fortunate as the market’s risk appetite was interrupted with market unrest emerging in mid-February. Spreads began to open up in March and then narrowed toward period end. This offered select buying opportunities, but we remained extremely cognizant of binary risks in the market and continued to focus on closely scrutinizing each credit’s logical, as well as relative, value.
We also maintained a small weighting in bank loans, an asset class that experienced significant year-to-date demand as investors looked for ways to reduce portfolio interest rate sensitivity. Bank loans offer a variable rate that can be attractive in rising interest rate environments. However, an increasing number are being issued without maintenance covenants, indicating some erosion in bondholder protection. Opportunity in the segment may become more problematic with such high levels of demand and protections afforded bondholders trending to less friendly terms.
In real estate exposure, we scaled back real estate investment trust (REIT) positions that neared our target valuations but also found attractive entry points into commercial mortgage-backed securities (CMBS). Particularly appealing were some of the highest-collateralized tranches (portions of a structured financing), as well as select five- to 10-year AAA-rated securities. We initiated select positions in this area, focusing on lower-beta, relatively liquid names.
Janus Growth & Core Funds | 7
Janus Balanced Fund (unaudited)
As mentioned earlier, we continued to avoid government agencies and agency mortgages, preferring to gain government exposure through U.S. Treasuries. In our opinion, government agency debt valuations have remained unappealing given the uncertainty surrounding the U.S. government’s continued role in Fannie Mae and Freddie Mac. Within agency mortgages, we have been concerned with the substantial slowdown in prepayments, which has increased the segment’s interest rate sensitivity by extending its duration. Agency mortgages continue to face diminished foreign buyer interest and limited Fannie Mae and Freddie Mac purchases. The U.S. Treasury also recently announced a program to sell $140 billion in agency mortgages, providing additional supply to the market.
At times, the Fund may own various types of derivative instruments. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Equity Detractors
Delta Air Lines, which was negatively impacted by rising fuel prices, was our largest individual detractor. With a strong route network across the U.S., Europe and Asia, we think Delta has one of the better balance sheets in the industry and like that management is continuing to pay down debt. The company should also benefit from ongoing consolidation within the industry, which has improved pricing.
Ford Motor Co. also weighed on performance. As a result of cost-cutting and balance sheet restructuring as well as investing in new products, the U.S. auto maker is positioned to generate stronger cash flows and capture more market share in the U.S. in our view. We also believe management has a compelling plan to continue executing through the recovery.
Fixed Income Detractors
The top individual detractor during the period was Regions Financial Corp. We initially were attracted to this provider of commercial, retail and mortgage banking services given its improving credit performance, government support and new management team. The market became disappointed with Regions’ slower-than-expected pace of recovery and management surprised the street by terminating the firm’s risk management leadership without notice. Immediately afterwards, the firm was downgraded by a rating agency and the bonds underperformed. We subsequently exited the position.
Abbott Laboratories also weighed on performance. The global, diversified pharmaceutical company has recently used its balance sheet to further diversify its business into the generics market and plans to turn its focus on reducing debt. We felt the recent merger and acquisition activity provided an interesting opportunity for making an investment in the company given the debt reduction objectives.
Equity Contributors
Mass media holding CBS benefited from continued improvement in the advertising market and its ownership of the top-rated network. We like the company’s role as a provider of content, which we think will be highly valued going forward. We also appreciate the additional revenue the company is generating by re-transmitting its network to cable and satellite providers.
Energy company Hess Corp. received a boost from spiking energy prices late in the period. We think Hess remains an attractive holding given its meaningful exposure to a Brazilian offshore well, which it jointly owns with two other companies. We continue to see the company’s properties off the coast of Brazil offering substantial reserve potential.
Fixed Income Contributors
The top individual contributor during the period was Reckson Operating Partnership, a New York City-focused office property REIT owned by SL Green Realty. We like the company’s portfolio of high quality assets with long lease durations, many on a triple net basis. We also favor the recovery potential of the NYC office market which outperformed all other markets in 2010 driven by improvements in rent recovery, occupancy gains, and property values. We believe bond holders will continue to benefit as management actively pursues an investment grade rating to further reduce their cost of capital.
Qwest Communications was also a top contributor. The Internet, video and voice services provider’s management team has made significant progress in improving the fundamentals of its business and is pursuing a return to investment grade by retiring lower rated debt. This effort is further enhanced by the planned merger of Qwest with CenturyLink, already an investment grade company, creating the third-largest telecommunications company in the U.S. We anticipate Qwest will achieve greater synergies from the CenturyLink merger than the market anticipates, further strengthening our conviction in the company’s debt.
8 | MARCH 31, 2011
(unaudited)
Outlook
We remain optimistic on the U.S. economy overall but are cognizant of equity valuations. While we consider them to be more demanding, we do not see valuations as unreasonable and continue to find what we consider to be attractive opportunities in the U.S. We are seeing improvements in both the business and consumer sectors, something we could not say a year ago. We think this will continue and that businesses will start to make use of the record levels of cash sitting on their balance sheets. The large amounts of cash plus strong corporate profitability provide a favorable backdrop for U.S. equity markets, in our view, as it suggests the potential for more shareholder friendly activities – dividends, share repurchases and/or mergers and acquisitions. We remain committed to finding companies with strong free cash flows, improving margins and leaner capital structures. We like companies that run more efficiently because of the potential for them to generate higher free cash flows and earn greater returns on the capital deployed. We think this combination provides firms with the flexibility to return cash to shareholders, perhaps in the form of dividends, without sacrificing their growth prospects.
Looking ahead in fixed income, we expect increased levels of interest rate volatility to continue as markets navigate several critical challenges. First, the Fed will soon have to make the difficult choice between supporting job creation or fighting inflation. At the moment, it is pursuing the former, calling inflationary pressures such as the recent run-up in oil prices “transitory.” The bond market doesn’t seem to be buying this assertion, however, and is already pricing in higher inflation expectations. We acknowledge the consensus view about an upward trend in interest rates over the medium term, but in our opinion there remains considerable slack in the employment and goods markets that continues to mitigate upward price movements. That being said, should inflation momentum build – or worse yet stagflation begin to materialize – the Fed may be quickly forced to play catch-up, and aggressive monetary tightening could prove to be very painful for investors overexposed to the government fixed income sector.
Second, unexpected extreme market threats seem to be occurring with greater frequency. On their own, the situations in Europe, the Middle East and Japan would each have given markets reason to pause. Collectively, they simply force the question: What may be next? In addition, we are increasingly concerned about elevated and ever-climbing U.S. fiscal deficits. The traditionally seen domestic “buyer of last resort” (i.e., the U.S. government) is now the leveraged entity. It will also be interesting to see what happens when the Fed winds down its quantitative easing program (QE2) in June. This has kept interest rates artificially low, and its discontinuation may only add to rising rate pressures.
With these market challenges, we remain defensively positioned on interest rates and opportunistic in our credit allocation. We see continued evidence of improving corporate balance sheets, increasing free cash flow and continued focus on debt pay down; bolstering our bullish view on corporate credit. In our opinion, this segment of the market continues to offer the most compelling risk-adjusted potential, particularly in an environment where fixed income risks have changed so substantially and continue to evolve. Still, in what is likely to be a volatile and uncertain rate environment, we expect fundamental credit analysis and individual security selection to become even more critical in driving market outperformance.
Thank you for investing in Janus Balanced Fund.
Janus Growth & Core Funds | 9
Janus Balanced Fund (unaudited)
Janus Balanced Fund At A Glance
5 Top Performers – Equity Holdings
| | | | | |
| | | Contribution |
| |
| CBS Corp. – Class B | | | 1.01% | |
| Hess Corp. | | | 1.00% | |
| Philip Morris International, Inc. | | | 0.89% | |
| Oracle Corp. | | | 0.80% | |
| International Business Machines Corp. | | | 0.75% | |
5 Bottom Performers – Equity Holdings
| | | | | |
| | | Contribution |
| |
| Delta Air Lines, Inc. | | | –0.35% | |
| Ford Motor Co. | | | –0.32% | |
| Citigroup, Inc. | | | –0.19% | |
| CIT Group, Inc. | | | –0.17% | |
| Expedia, Inc. | | | –0.13% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | |
| | | Fund Contribution | | (Average % of Equity) | | S&P 500® Index Weighting |
| |
| Information Technology | | | 3.83% | | | | 21.37% | | | | 18.85% | |
| Energy | | | 2.40% | | | | 9.66% | | | | 12.07% | |
| Consumer Discretionary | | | 1.71% | | | | 15.74% | | | | 10.57% | |
| Industrials | | | 1.62% | | | | 11.74% | | | | 10.96% | |
| Materials | | | 1.33% | | | | 5.42% | | | | 3.64% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | |
| | | Fund Contribution | | (Average % of Equity) | | S&P 500® Index Weighting |
| |
| Utilities | | | 0.00% | | | | 0.00% | | | | 3.34% | |
| Telecommunication Services | | | 0.14% | | | | 1.10% | | | | 3.03% | |
| Health Care | | | 1.08% | | | | 11.47% | | | | 11.06% | |
| Financials | | | 1.13% | | | | 12.39% | | | | 15.86% | |
| Consumer Staples | | | 1.23% | | | | 11.11% | | | | 10.62% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
10 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Philip Morris International, Inc.
Tobacco | | | 2.6% | |
Oracle Corp.
Enterprise Software/Services | | | 2.0% | |
E.I. du Pont de Nemours & Co.
Chemicals – Diversified | | | 2.0% | |
Union Pacific Corp.
Transportation – Railroad | | | 1.7% | |
Hess Corp.
Oil Companies – Integrated | | | 1.5% | |
| | | | | |
| | | | 9.8% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 2.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Growth & Core Funds | 11
Janus Balanced Fund (unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 7.70% | | 8.24% | | 6.65% | | 6.04% | | 10.10% | | | 0.93% | | 0.93% |
| MOP | | 1.51% | | 2.03% | | 5.40% | | 5.41% | | 9.75% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Balanced Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 7.32% | | 7.53% | | 5.86% | | 5.28% | | 9.46% | | | 1.64% | | 1.64% |
| CDSC | | 6.29% | | 6.50% | | 5.86% | | 5.28% | | 9.46% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Balanced Fund – Class D Shares(1) | | 7.83% | | 8.52% | | 6.74% | | 6.09% | | 10.13% | | | 0.73% | | 0.73% |
| | | | | | | | | | | | | | | | |
| Janus Balanced Fund – Class I Shares | | 7.89% | | 8.61% | | 6.71% | | 6.08% | | 10.12% | | | 0.65% | | 0.65% |
| | | | | | | | | | | | | | | | |
| Janus Balanced Fund – Class R Shares | | 7.48% | | 7.84% | | 6.15% | | 5.55% | | 9.73% | | | 1.34% | | 1.34% |
| | | | | | | | | | | | | | | | |
| Janus Balanced Fund – Class S Shares | | 7.62% | | 8.11% | | 6.43% | | 5.81% | | 9.94% | | | 1.09% | | 1.09% |
| | | | | | | | | | | | | | | | |
| Janus Balanced Fund – Class T Shares | | 7.75% | | 8.39% | | 6.71% | | 6.08% | | 10.12% | | | 0.85% | | 0.85% |
| | | | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 8.54% | | | | | |
| | | | | | | | | | | | | | | | |
| Barclays Capital U.S. Aggregate Bond Index | | –0.88% | | 5.12% | | 6.03% | | 5.56% | | 6.26% | | | | | |
| | | | | | | | | | | | | | | | |
| Balanced Index | | 8.86% | | 11.27% | | 4.48% | | 4.68% | | 7.84% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 4th | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Mixed-Asset Target Allocation Moderate Funds | | – | | 464/499 | | 10/386 | | 23/192 | | 2/31 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
12 | MARCH 31, 2011
(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 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 general and 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 invests 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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
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.
There is no assurance that the investment process will consistently lead to successful investing.
Janus Growth & Core Funds | 13
Janus Balanced Fund (unaudited)
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 |
| (1) | | Closed to new investors. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,077.00 | | | $ | 4.92 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.19 | | | $ | 4.78 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,073.70 | | | $ | 8.48 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.75 | | | $ | 8.25 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,078.30 | | | $ | 3.83 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.24 | | | $ | 3.73 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,078.90 | | | $ | 3.27 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,074.80 | | | $ | 6.88 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,076.20 | | | $ | 5.59 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,077.50 | | | $ | 4.30 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.79 | | | $ | 4.18 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 0.95% for Class A Shares, 1.64% for Class C Shares, 0.74% for Class D Shares, 0.63% for Class I Shares, 1.33% for Class R Shares, 1.08% for Class S Shares and 0.83% 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. |
14 | MARCH 31, 2011
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Asset-Backed/Commercial Mortgage-Backed Securities – 0.7% | | | | | | |
| | $5,389,000 | | | Bear Stearns Commercial Mortgage Securities
5.5370%, 10/12/41 | | $ | 5,787,184 | | | |
| | 4,749,000 | | | Commercial Mortgage Pass Through Certificates
5.8148%, 12/10/49‡ | | | 5,152,893 | | | |
| | 5,132,625 | | | DBUBS Mortgage Trust
3.7420%, 6/1/17 (144A) | | | 5,199,917 | | | |
| | 4,905,000 | | | GS Mortgage Securities Corp. II
5.5600%, 11/10/39 | | | 5,275,532 | | | |
| | 3,277,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp.
5.6330%, 12/5/27 (144A) | | | 3,533,356 | | | |
| | 5,571,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp.
4.3110%, 8/5/32 (144A) | | | 5,347,276 | | | |
| | 3,246,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp.
5.8633%, 4/15/45‡ | | | 3,566,794 | | | |
| | 5,631,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp.
4.7171%, 2/15/46 (144A) | | | 5,650,739 | | | |
| | 4,856,000 | | | Morgan Stanley Capital I
3.8840%, 2/15/16 (144A) | | | 4,938,020 | | | |
| | 3,114,000 | | | Morgan Stanley Capital I
4.7530%, 3/10/44 | | | 3,135,933 | | | |
| | 3,000,000 | | | Oxbow Resources LLC
4.9690%, 5/1/36 | | | 3,015,000 | | | |
| |
| |
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $50,660,904) | | | 50,602,644 | | | |
| |
| |
| Bank Loans – 0.8% | | | | | | |
| Aerospace and Defense – Equipment – 0.2% | | | | | | |
| | 11,672,745 | | | TransDigm Group, Inc.
4.0000%, 2/14/17‡ | | | 11,745,700 | | | |
| Automotive – Cars and Light Trucks – 0.1% | | | | | | |
| | 3,931,195 | | | Ford Motor Co.
3.0100%, 12/15/13‡ | | | 3,927,971 | | | |
| Data Processing and Management – 0% | | | | | | |
| | 1,641,750 | | | Fidelity National Information
5.2500%, 7/18/16‡ | | | 1,651,321 | | | |
| Food – Canned – 0.2% | | | | | | |
| | 12,290,000 | | | Del Monte Foods Co.
4.5000%, 3/8/18‡ | | | 12,310,524 | | | |
| Retail – Apparel and Shoe – 0.1% | | | | | | |
| | 9,433,956 | | | Phillips-Van Heusen Corp.
3.5000%, 5/6/16‡ | | | 9,512,541 | | | |
| Retail – Restaurants – 0.2% | | | | | | |
| | 9,711,156 | | | DineEquity, Inc.
4.2500%, 10/19/17‡ | | | 9,779,911 | | | |
| Telecommunication Equipment – 0% | | | | | | |
| | 2,968,000 | | | CommScope, Inc.
5.0000%, 1/14/18‡ | | | 2,986,550 | | | |
| |
| |
| Total Bank Loans (cost $51,498,931) | | | 51,914,518 | | | |
| |
| |
| Common Stock – 60.0% | | | | | | |
| Aerospace and Defense – 1.1% | | | | | | |
| | 992,754 | | | Boeing Co. | | | 73,394,303 | | | |
| Agricultural Chemicals – 1.0% | | | | | | |
| | 996,351 | | | Syngenta A.G. (ADR)** | | | 64,932,195 | | | |
| Airlines – 0.5% | | | | | | |
| | 3,244,855 | | | Delta Air Lines, Inc.* | | | 31,799,579 | | | |
| Apparel Manufacturers – 1.4% | | | | | | |
| | 571,525 | | | Coach, Inc. | | | 29,742,161 | | | |
| | 500,370 | | | Polo Ralph Lauren Corp. | | | 61,870,751 | | | |
| | | | | | | | 91,612,912 | | | |
| Athletic Footwear – 1.2% | | | | | | |
| | 1,096,642 | | | NIKE, Inc. – Class B | | | 83,015,799 | | | |
| Automotive – Cars and Light Trucks – 1.7% | | | | | | |
| | 766,430 | | | Daimler A.G. | | | 54,255,580 | | | |
| | 3,791,565 | | | Ford Motor Co.* | | | 56,532,234 | | | |
| | | | | | | | 110,787,814 | | | |
| Broadcast Services and Programming – 0.4% | | | | | | |
| | 494,860 | | | Scripps Networks Interactive, Inc. – Class A | | | 24,787,537 | | | |
| Cable Television – 1.0% | | | | | | |
| | 836,055 | | | DIRECTV – Class A* | | | 39,127,374 | | | |
| | 377,465 | | | Time Warner Cable, Inc. – Class A | | | 26,928,353 | | | |
| | | | | | | | 66,055,727 | | | |
| Casino Hotels – 0.5% | | | | | | |
| | 724,240 | | | Las Vegas Sands Corp.* | | | 30,577,413 | | | |
| Cellular Telecommunications – 0.4% | | | | | | |
| | 1,002,333 | | | Vodafone Group PLC** | | | 28,817,074 | | | |
| Chemicals – Diversified – 2.4% | | | | | | |
| | 2,430,945 | | | E.I. du Pont de Nemours & Co. | | | 133,629,047 | | | |
| | 758,135 | | | LyondellBasell Industries N.V.* | | | 29,984,239 | | | |
| | | | | | | | 163,613,286 | | | |
| Commercial Banks – 3.0% | | | | | | |
| | 1,749,315 | | | CIT Group, Inc.* | | | 74,433,353 | | | |
| | 758,600 | | | ICICI Bank, Ltd. (ADR) | | | 37,801,038 | | | |
| | 1,715,660 | | | Itau Unibanco Holding S.A. (ADR) | | | 41,261,623 | | | |
| | 1,723,420 | | | Standard Chartered PLC** | | | 44,699,893 | | | |
| | | | | | | | 198,195,907 | | | |
| Commercial Services – Finance – 1.2% | | | | | | |
| | 170,580 | | | MasterCard, Inc. – Class A | | | 42,938,398 | | | |
| | 1,805,722 | | | Western Union Co. | | | 37,504,846 | | | |
| | | | | | | | 80,443,244 | | | |
| Computer Services – 1.1% | | | | | | |
| | 443,342 | | | International Business Machines Corp. | | | 72,295,780 | | | |
| Computers – 1.7% | | | | | | |
| | 225,049 | | | Apple, Inc.* | | | 78,418,324 | | | |
| | 618,640 | | | Research In Motion, Ltd. (U.S. Shares)* | | | 34,996,465 | | | |
| | | | | | | | 113,414,789 | | | |
| Computers – Integrated Systems – 0.6% | | | | | | |
| | 762,590 | | | Terdata Corp.* | | | 38,663,313 | | | |
| Cosmetics and Toiletries – 1.1% | | | | | | |
| | 690,805 | | | Colgate-Palmolive Co. | | | 55,789,412 | | | |
| | 190,590 | | | Estee Lauder Cos., Inc. – Class A | | | 18,365,252 | | | |
| | | | | | | | 74,154,664 | | | |
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, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Diversified Banking Institutions – 3.3% | | | | | | |
| | 12,130,155 | | | Citigroup, Inc. | | $ | 53,615,285 | | | |
| | 1,569,102 | | | Credit Suisse Group A.G. (ADR)** | | | 66,812,363 | | | |
| | 3,771,503 | | | Morgan Stanley | | | 103,037,462 | | | |
| | | | | | | | 223,465,110 | | | |
| E-Commerce/Services – 1.8% | | | | | | |
| | 2,536,335 | | | eBay, Inc.* | | | 78,727,839 | | | |
| | 189,340 | | | Netflix, Inc.* | | | 44,936,062 | | | |
| | | | | | | | 123,663,901 | | | |
| Electric Products – Miscellaneous – 0.6% | | | | | | |
| | 631,407 | | | Emerson Electric Co. | | | 36,893,111 | | | |
| Electronic Components – Semiconductors – 0.8% | | | | | | |
| | 420,908 | | | Broadcom Corp. – Class A | | | 16,575,357 | | | |
| | 639,246 | | | Microchip Technology, Inc. | | | 24,297,741 | | | |
| | 1,518,730 | | | ON Semiconductor Corp.* | | | 14,989,865 | | | |
| | | | | | | | 55,862,963 | | | |
| Electronic Connectors – 0.6% | | | | | | |
| | 764,695 | | | Amphenol Corp. – Class A | | | 41,591,761 | | | |
| Electronic Forms – 0.6% | | | | | | |
| | 1,294,965 | | | Adobe Systems, Inc.* | | | 42,941,039 | | | |
| Enterprise Software/Services – 2.0% | | | | | | |
| | 4,039,511 | | | Oracle Corp. | | | 134,798,482 | | | |
| Finance – Other Services – 1.3% | | | | | | |
| | 2,393,188 | | | NYSE Euronext | | | 84,168,422 | | | |
| Food – Miscellaneous/Diversified – 0.6% | | | | | | |
| | 720,998 | | | Nestle S.A.** | | | 41,342,349 | | | |
| Hotels and Motels – 0.8% | | | | | | |
| | 1,535,080 | | | Marriott International, Inc. – Class A | | | 54,618,146 | | | |
| Investment Management and Advisory Services – 1.1% | | | | | | |
| | 4,089,005 | | | Blackstone Group L.P. | | | 73,111,409 | | | |
| Life and Health Insurance – 0.3% | | | | | | |
| | 334,345 | | | AFLAC, Inc. | | | 17,646,729 | | | |
| Medical – Biomedical and Genetic – 1.7% | | | | | | |
| | 752,813 | | | Celgene Corp.* | | | 43,309,332 | | | |
| | 1,639,535 | | | Gilead Sciences, Inc.* | | | 69,581,865 | | | |
| | | | | | | | 112,891,197 | | | |
| Medical – Drugs – 2.9% | | | | | | |
| | 3,755,185 | | | Bristol-Myers Squibb Co. | | | 99,249,539 | | | |
| | 570,835 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 21,783,064 | | | |
| | 1,895,335 | | | Pfizer, Inc. | | | 38,494,254 | | | |
| | 383,930 | | | Shire PLC (ADR)** | | | 33,440,303 | | | |
| | | | | | | | 192,967,160 | | | |
| Medical – Generic Drugs – 0.6% | | | | | | |
| | 1,903,560 | | | Mylan, Inc.* | | | 43,153,705 | | | |
| Medical – HMO – 0.8% | | | | | | |
| | 758,135 | | | Humana, Inc.* | | | 53,023,962 | | | |
| Metal – Copper – 0.7% | | | | | | |
| | 883,181 | | | Freeport-McMoRan Copper & Gold, Inc. – Class B | | | 49,060,705 | | | |
| Metal Processors and Fabricators – 0.5% | | | | | | |
| | 230,102 | | | Precision Castparts Corp. | | | 33,866,412 | | | |
| Non-Hazardous Waste Disposal – 0.4% | | | | | | |
| | 807,565 | | | Waste Management, Inc. | | | 30,154,477 | | | |
| Oil Companies – Exploration and Production – 2.3% | | | | | | |
| | 1,515,950 | | | Canadian Natural Resources, Ltd. | | | 74,933,409 | | | |
| | 753,876 | | | Occidental Petroleum Corp. | | | 78,772,503 | | | |
| | | | | | | | 153,705,912 | | | |
| Oil Companies – Integrated – 3.2% | | | | | | |
| | 482,785 | | | Chevron Corp. | | | 51,865,592 | | | |
| | 1,230,084 | | | Hess Corp. | | | 104,815,458 | | | |
| | 1,670,650 | | | Petroleo Brasileiro S.A. (U.S. Shares) | | | 59,374,901 | | | |
| | | | | | | | 216,055,951 | | | |
| Pharmacy Services – 1.1% | | | | | | |
| | 1,341,585 | | | Express Scripts, Inc. – Class A* | | | 74,605,542 | | | |
| Pipelines – 0.6% | | | | | | |
| | 953,840 | | | Enterprise Products Partners L.P. | | | 41,072,350 | | | |
| Retail – Building Products – 0.7% | | | | | | |
| | 1,301,431 | | | Home Depot, Inc. | | | 48,231,033 | | | |
| Retail – Regional Department Stores – 0.7% | | | | | | |
| | 1,892,543 | | | Macy’s, Inc. | | | 45,913,093 | | | |
| Super-Regional Banks – 0.5% | | | | | | |
| | 1,186,525 | | | U.S. Bancorp. | | | 31,359,856 | | | |
| Telecommunication Equipment – Fiber Optics – 0.6% | | | | | | |
| | 1,799,878 | | | Corning, Inc. | | | 37,131,483 | | | |
| Telephone – Integrated – 0.3% | | | | | | |
| | 2,484,865 | | | Qwest Communications International, Inc. | | | 16,971,628 | | | |
| Television – 1.4% | | | | | | |
| | 3,818,344 | | | CBS Corp. – Class B | | | 95,611,334 | | | |
| Tobacco – 3.3% | | | | | | |
| | 1,748,216 | | | Altria Group, Inc. | | | 45,506,062 | | | |
| | 2,718,846 | | | Philip Morris International, Inc.** | | | 178,437,863 | | | |
| | | | | | | | 223,943,925 | | | |
| Toys – 0.9% | | | | | | |
| | 2,415,135 | | | Mattel, Inc. | | | 60,209,316 | | | |
| Transportation – Railroad – 2.3% | | | | | | |
| | 521,784 | | | Canadian National Railway Co. (U.S. Shares) | | | 39,274,682 | | | |
| | 1,162,213 | | | Union Pacific Corp. | | | 114,280,404 | | | |
| | | | | | | | 153,555,086 | | | |
| Transportation – Services – 0.4% | | | | | | |
| | 569,750 | | | Expeditors International of Washington, Inc. | | | 28,567,265 | | | |
| |
| |
| Total Common Stock (cost $3,248,334,760) | | | 4,018,716,150 | | | |
| |
| |
| Corporate Bonds – 31.2% | | | | | | |
| Advertising Services – 0.1% | | | | | | |
| | $1,741,000 | | | WPP Finance UK
5.8750%, 6/15/14** | | | 1,914,005 | | | |
| | 7,050,000 | | | WPP Finance UK
8.0000%, 9/15/14** | | | 8,217,586 | | | |
| | | | | | | | 10,131,591 | | | |
| Agricultural Chemicals – 0.5% | | | | | | |
| | 15,938,000 | | | CF Industries, Inc.
6.8750%, 5/1/18 | | | 17,890,405 | | | |
| | 6,049,000 | | | CF Industries, Inc.
7.1250%, 5/1/20 | | | 6,865,615 | | | |
See Notes to Schedules of Investments and Financial Statements.
16 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Agricultural Chemicals – (continued) | | | | | | |
| | | | | | | | | | | |
| | $4,814,000 | | | Incitec Pivot, Ltd.
4.0000%, 12/7/15 (144A) | | $ | 4,817,649 | | | |
| | 6,411,000 | | | Mosaic Co.
7.6250%, 12/1/16 (144A) | | | 6,923,880 | | | |
| | | | | | | | 36,497,549 | | | |
| Agricultural Operations – 0.1% | | | | | | |
| | 3,424,000 | | | Archer-Daniels Midland
4.4790%, 3/1/21 | | | 3,467,615 | | | |
| | 3,211,000 | | | Archer-Daniels Midland
5.7650%, 3/1/41 | | | 3,287,650 | | | |
| | | | | | | | 6,755,265 | | | |
| Apparel Manufacturers – 0.1% | | | | | | |
| | 7,101,000 | | | Hanesbrands, Inc.
3.8313%, 12/15/14‡ | | | 7,065,495 | | | |
| Automotive – Cars and Light Trucks – 0.2% | | | | | | |
| | 12,339,000 | | | Daimler Finance North America LLC
6.5000%, 11/15/13 | | | 13,779,862 | | | |
| Beverages – Non-Alcoholic – 0.6% | | | | | | |
| | 23,349,000 | | | Coca-Cola Co.
0.7500%, 11/15/13 | | | 23,011,911 | | | |
| | 15,873,000 | | | Coca-Cola Co.
1.5000%, 11/15/15 | | | 15,192,318 | | | |
| | 3,813,000 | | | PepsiCo, Inc.
3.7500%, 3/1/14 | | | 4,055,026 | | | |
| | | | | | | | 42,259,255 | | | |
| Building – Residential and Commercial – 0.2% | | | | | | |
| | 4,257,000 | | | D.R. Horton, Inc.
7.8750%, 8/15/11 | | | 4,299,570 | | | |
| | 6,146,000 | | | MDC Holdings, Inc.
5.3750%, 12/15/14 | | | 6,473,397 | | | |
| | | | | | | | 10,772,967 | | | |
| Building Products – Cement and Aggregate – 0.6% | | | | | | |
| | 1,555,000 | | | CRH America, Inc.
5.6250%, 9/30/11 | | | 1,589,627 | | | |
| | 3,426,000 | | | CRH America, Inc.
4.1250%, 1/15/16 | | | 3,429,337 | | | |
| | 5,074,000 | | | CRH America, Inc.
8.1250%, 7/15/18 | | | 5,971,819 | | | |
| | 12,585,000 | | | CRH America, Inc.
5.7500%, 1/15/21 | | | 12,913,921 | | | |
| | 11,018,000 | | | Hanson, Ltd.
6.1250%, 8/15/16** | | | 11,458,720 | | | |
| | 5,432,000 | | | Holcim U.S. Finance (U.S. Shares)
6.0000%, 12/30/19 (144A) | | | 5,693,084 | | | |
| | | | | | | | 41,056,508 | | | |
| Cable Television – 0.1% | | | | | | |
| | 7,275,000 | | | Comcast Corp.
5.1500%, 3/1/20 | | | 7,572,991 | | | |
| Chemicals – Diversified – 0.6% | | | | | | |
| | 9,416,000 | | | Dow Chemical Co.
4.2500%, 11/15/20 | | | 8,992,591 | | | |
| | 13,666,000 | | | LBI Escrow Corp.
8.0000%, 11/1/17 (144A) | | | 15,066,765 | | | |
| | 12,325,000 | | | Lyondell Chemical Co.
11.0000%, 5/1/18 | | | 13,834,812 | | | |
| | | | | | | | 37,894,168 | | | |
| Chemicals – Specialty – 0.2% | | | | | | |
| | 9,644,000 | | | Ashland, Inc.
9.1250%, 6/1/17 | | | 11,066,490 | | | |
| Coatings and Paint Products – 0.4% | | | | | | |
| | 12,756,000 | | | RPM International, Inc.
6.1250%, 10/15/19 | | | 13,381,121 | | | |
| | 10,210,000 | | | Sherwin-Williams Co.
3.1250%, 12/15/14 | | | 10,648,795 | | | |
| | | | | | | | 24,029,916 | | | |
| Commercial Banks – 2.5% | | | | | | |
| | 21,141,000 | | | American Express Bank FSB
5.5000%, 4/16/13 | | | 22,674,547 | | | |
| | 26,733,000 | | | Bank of Montreal
2.6250%, 1/25/16 (144A) | | | 26,605,617 | | | |
| | 6,458,736 | | | CIT Group, Inc.
7.0000%, 5/1/13 | | | 6,579,837 | | | |
| | 11,937,000 | | | CIT Group, Inc.
5.2500%, 4/1/14 (144A) | | | 12,011,845 | | | |
| | 13,001,000 | | | CIT Group, Inc.
7.0000%, 5/1/14 | | | 13,244,769 | | | |
| | 9,802,000 | | | CIT Group, Inc.
6.6250%, 4/1/18 (144A) | | | 9,945,296 | | | |
| | 9,156,000 | | | Credit Suisse New York
5.0000%, 5/15/13** | | | 9,774,900 | | | |
| | 4,912,000 | | | Discover Bank
7.0000%, 4/15/20 | | | 5,404,192 | | | |
| | 11,976,000 | | | HSBC USA, Inc.
5.0000%, 9/27/20 | | | 11,759,115 | | | |
| | 15,756,000 | | | Royal Bank of Scotland PLC
3.9500%, 9/21/15** | | | 15,767,927 | | | |
| | 9,462,000 | | | Royal Bank of Scotland PLC
4.3750%, 3/16/16** | | | 9,522,046 | | | |
| | 12,089,000 | | | SVB Financial Group
5.3750%, 9/15/20 | | | 11,891,139 | | | |
| | 11,230,000 | | | Zions Bancorp.
7.7500%, 9/23/14 | | | 12,195,960 | | | |
| | | | | | | | 167,377,190 | | | |
| Commercial Services – Finance – 0.4% | | | | | | |
| | 26,475,000 | | | Verisk Analytics, Inc.
5.8000%, 5/1/21 | | | 26,596,494 | | | |
| Computer Services – 0.1% | | | | | | |
| | 6,054,000 | | | Affiliated Computer Services, Inc.
5.2000%, 6/1/15 | | | 6,528,470 | | | |
| Computers – Memory Devices – 0.4% | | | | | | |
| | 12,171,000 | | | Seagate Technology
6.3750%, 10/1/11 | | | 12,444,848 | | | |
| | 9,874,000 | | | Seagate Technology
10.0000%, 5/1/14 (144A) | | | 11,503,210 | | | |
| | | | | | | | 23,948,058 | | | |
| Containers – Metal and Glass – 0.1% | | | | | | |
| | 6,403,000 | | | Ball Corp.
5.7500%, 5/15/21 | | | 6,274,940 | | | |
| Data Processing and Management – 0.1% | | | | | | |
| | 7,865,000 | | | Fiserv, Inc.
3.1250%, 10/1/15 | | | 7,827,476 | | | |
| Diversified Banking Institutions – 3.0% | | | | | | |
| | 13,010,000 | | | Bank of America Corp.
3.6250%, 3/17/16 | | | 12,826,793 | | | |
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, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Diversified Banking Institutions – (continued) | | | | | | |
| | | | | | | | | | | |
| | $18,544,000 | | | Bank of America Corp.
5.6250%, 7/1/20 | | $ | 19,038,680 | | | |
| | 6,986,000 | | | Citigroup, Inc.
5.6250%, 8/27/12 | | | 7,343,732 | | | |
| | 3,318,000 | | | Citigroup, Inc.
5.3000%, 10/17/12 | | | 3,501,240 | | | |
| | 12,510,000 | | | Citigroup, Inc.
5.0000%, 9/15/14 | | | 13,062,979 | | | |
| | 5,729,000 | | | Citigroup, Inc.
4.7500%, 5/19/15 | | | 6,005,161 | | | |
| | 22,331,000 | | | Citigroup, Inc.
5.3750%, 8/9/20 | | | 22,988,715 | | | |
| | 2,942,000 | | | GMAC, Inc.
6.8750%, 9/15/11 | | | 2,997,162 | | | |
| | 2,660,000 | | | Goldman Sachs Group, Inc.
3.7000%, 8/1/15 | | | 2,679,628 | | | |
| | 8,239,000 | | | Goldman Sachs Group, Inc.
3.6250%, 2/7/16 | | | 8,161,150 | | | |
| | 19,420,000 | | | Goldman Sachs Group, Inc.
5.3750%, 3/15/20 | | | 19,717,806 | | | |
| | 9,676,000 | | | JPMorgan Chase & Co.
6.0000%, 1/15/18 | | | 10,609,579 | | | |
| | 5,679,000 | | | JPMorgan Chase & Co.
4.4000%, 7/22/20 | | | 5,487,919 | | | |
| | 9,279,000 | | | JPMorgan Chase & Co.
4.2500%, 10/15/20 | | | 8,868,051 | | | |
| | 3,444,000 | | | Morgan Stanley
6.7500%, 4/15/11 | | | 3,449,707 | | | |
| | 3,384,000 | | | Morgan Stanley
5.2500%, 11/2/12 | | | 3,582,164 | | | |
| | 6,905,000 | | | Morgan Stanley
4.0000%, 7/24/15 | | | 7,017,413 | | | |
| | 7,097,000 | | | Morgan Stanley
3.4500%, 11/2/15 | | | 6,976,259 | | | |
| | 15,211,000 | | | Morgan Stanley
5.6250%, 9/23/19 | | | 15,535,527 | | | |
| | 5,679,000 | | | Morgan Stanley
5.5000%, 7/24/20 | | | 5,675,008 | | | |
| | 12,941,000 | | | Morgan Stanley
5.7500%, 1/25/21 | | | 13,061,299 | | | |
| | | | | | | | 198,585,972 | | | |
| Diversified Financial Services – 1.7% | | | | | | |
| | 15,447,000 | | | American Express Travel Related Services Co., Inc.
5.2500%, 11/21/11 (144A) | | | 15,878,373 | | | |
| | 4,424,000 | | | General Electric Capital Corp.
4.8000%, 5/1/13 | | | 4,700,549 | | | |
| | 6,356,000 | | | General Electric Capital Corp.
5.9000%, 5/13/14 | | | 7,015,308 | | | |
| | 29,204,000 | | | General Electric Capital Corp.
6.0000%, 8/7/19 | | | 31,883,934 | | | |
| | 17,821,000 | | | General Electric Capital Corp.
5.5000%, 1/8/20 | | | 18,854,939 | | | |
| | 10,956,000 | | | General Electric Capital Corp.
4.6250%, 1/7/21 | | | 10,789,710 | | | |
| | 20,304,000 | | | General Electric Capital Corp.
5.3000%, 2/11/21 | | | 20,622,143 | | | |
| | 3,434,000 | | | Hyundai Capital Services, Inc.
4.3750%, 7/27/16 (144A) | | | 3,452,245 | | | |
| | | | | | | | 113,197,201 | | | |
| Diversified Minerals – 0.4% | | | | | | |
| | 4,647,000 | | | Teck Resources, Ltd.
7.0000%, 9/15/12 | | | 4,964,743 | | | |
| | 4,107,000 | | | Teck Resources, Ltd.
9.7500%, 5/15/14 | | | 4,989,824 | | | |
| | 9,824,000 | | | Teck Resources, Ltd.
5.3750%, 10/1/15 | | | 10,654,786 | | | |
| | 4,385,000 | | | Teck Resources, Ltd.
10.2500%, 5/15/16 | | | 5,272,963 | | | |
| | | | | | | | 25,882,316 | | | |
| Diversified Operations – 0.4% | | | | | | |
| | 20,116,000 | | | Tyco Electronics Group S.A.
6.0000%, 10/1/12 | | | 21,442,328 | | | |
| | 2,163,000 | | | Tyco International Finance S.A.
4.1250%, 10/15/14 | | | 2,296,691 | | | |
| | | | | | | | 23,739,019 | | | |
| Diversified Operations – Commercial Services – 0.1% | | | | | | |
| | 6,686,000 | | | ARAMARK Corp.
8.5000%, 2/1/15 | | | 6,970,155 | | | |
| Electric – Integrated – 0.8% | | | | | | |
| | 4,844,000 | | | CMS Energy Corp.
8.5000%, 4/15/11 | | | 4,852,390 | | | |
| | 6,202,000 | | | CMS Energy Corp.
1.2531%, 1/15/13‡ | | | 6,124,475 | | | |
| | 10,103,000 | | | CMS Energy Corp.
4.2500%, 9/30/15 | | | 10,131,187 | | | |
| | 7,636,000 | | | CMS Energy Corp.
5.0500%, 2/15/18 | | | 7,604,479 | | | |
| | 6,279,000 | | | Public Service Co. of Colorado
3.2000%, 11/15/20 | | | 5,836,481 | | | |
| | 8,830,000 | | | Virginia Electric and Power Co.
5.1000%, 11/30/12 | | | 9,390,996 | | | |
| | 11,309,000 | | | Xcel Energy, Inc.
4.7000%, 5/15/20 | | | 11,643,113 | | | |
| | | | | | | | 55,583,121 | | | |
| Electronic Components – Semiconductors – 0.7% | | | | | | |
| | 13,000,000 | | | National Semiconductor Corp.
6.1500%, 6/15/12 | | | 13,657,228 | | | |
| | 17,220,000 | | | National Semiconductor Corp.
3.9500%, 4/15/15 | | | 17,541,050 | | | |
| | 11,912,000 | | | National Semiconductor Corp.
6.6000%, 6/15/17 | | | 13,107,893 | | | |
| | | | | | | | 44,306,171 | | | |
| Electronic Connectors – 0.3% | | | | | | |
| | 18,374,000 | | | Amphenol Corp.
4.7500%, 11/15/14 | | | 19,714,475 | | | |
| Electronic Measuring Instruments – 0.1% | | | | | | |
| | 3,885,000 | | | Agilent Technologies, Inc.
2.5000%, 7/15/13 | | | 3,919,615 | | | |
| Electronics – Military – 0.7% | | | | | | |
| | 31,413,000 | | | L-3 Communications Corp.
6.3750%, 10/15/15 | | | 32,355,390 | | | |
| | 3,540,000 | | | L-3 Communications Corp.
5.2000%, 10/15/19 | | | 3,692,443 | | | |
See Notes to Schedules of Investments and Financial Statements.
18 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Electronics – Military – (continued) | | | | | | |
| | | | | | | | | | | |
| | $8,871,000 | | | L-3 Communications Corp.
4.7500%, 7/15/20 | | $ | 8,834,859 | | | |
| | 4,874,000 | | | L-3 Communications Corp.
4.9500%, 2/15/21 | | | 4,902,440 | | | |
| | | | | | | | 49,785,132 | | | |
| Enterprise Software/Services – 0.2% | | | | | | |
| | 9,558,000 | | | BMC Software, Inc.
7.2500%, 6/1/18 | | | 10,874,213 | | | |
| | 1,941,000 | | | CA, Inc.
5.3750%, 12/1/19 | | | 1,999,748 | | | |
| | | | | | | | 12,873,961 | | | |
| Finance – Auto Loans – 0.4% | | | | | | |
| | 6,181,000 | | | Ford Motor Credit Co. LLC
7.2500%, 10/25/11 | | | 6,360,743 | | | |
| | 6,671,000 | | | Ford Motor Credit Co. LLC
7.5000%, 8/1/12 | | | 7,113,061 | | | |
| | 5,408,000 | | | Ford Motor Credit Co. LLC
8.0000%, 6/1/14 | | | 6,014,664 | | | |
| | 8,419,000 | | | Ford Motor Credit Co. LLC
6.6250%, 8/15/17 | | | 8,985,186 | | | |
| | 1,577,000 | | | Hyundai Capital America
3.7500%, 4/6/16 (144A) | | | 1,553,593 | | | |
| | | | | | | | 30,027,247 | | | |
| Finance – Consumer Loans – 0.2% | | | | | | |
| | 12,931,000 | | | SLM Corp.
6.2500%, 1/25/16 | | | 13,480,568 | | | |
| Finance – Credit Card – 0.1% | | | | | | |
| | 9,840,000 | | | American Express Co.
6.8000%, 9/1/66‡ | | | 10,036,800 | | | |
| Finance – Investment Bankers/Brokers – 0.8% | | | | | | |
| | 6,399,000 | | | Jefferies Group, Inc.
3.8750%, 11/9/15 | | | 6,385,191 | | | |
| | 11,284,000 | | | Jefferies Group, Inc.
8.5000%, 7/15/19 | | | 13,311,724 | | | |
| | 8,846,000 | | | Lazard Group LLC
7.1250%, 5/15/15 | | | 9,718,127 | | | |
| | 642,000 | | | Lazard Group LLC
6.8500%, 6/15/17 | | | 683,422 | | | |
| | 4,220,000 | | | Schwab Capital Trust I
7.5000%, 11/15/37‡ | | | 4,358,922 | | | |
| | 9,906,000 | | | TD Ameritrade Holding Corp.
4.1500%, 12/1/14 | | | 10,312,255 | | | |
| | 5,624,000 | | | TD Ameritrade Holding Corp.
5.6000%, 12/1/19 | | | 5,951,418 | | | |
| | | | | | | | 50,721,059 | | | |
| Food – Canned – 0% | | | | | | |
| | 1,419,000 | | | Blue Merger Sub, Inc.
7.6250%, 2/15/19 (144A) | | | 1,438,511 | | | |
| Food – Meat Products – 0.5% | | | | | | |
| | 348,000 | | | Smithfield Foods, Inc.
7.7500%, 5/15/13 | | | 374,100 | | | |
| | 30,533,000 | | | Tyson Foods, Inc.
6.8500%, 4/1/16 | | | 34,120,628 | | | |
| | | | | | | | 34,494,728 | | | |
| Food – Miscellaneous/Diversified – 0.6% | | | | | | |
| | 9,746,000 | | | Corn Products International, Inc.
3.2000%, 11/1/15 | | | 9,729,315 | | | |
| | 7,907,000 | | | Corn Products International, Inc.
6.6250%, 4/15/37 | | | 8,264,705 | | | |
| | 1,935,000 | | | Kellogg Co.
4.2500%, 3/6/13 | | | 2,040,434 | | | |
| | 3,282,000 | | | Kraft Foods, Inc.
2.6250%, 5/8/13 | | | 3,358,946 | | | |
| | 8,096,000 | | | Kraft Foods, Inc.
5.3750%, 2/10/20 | | | 8,547,320 | | | |
| | 10,448,000 | | | Kraft Foods, Inc.
6.5000%, 2/9/40 | | | 11,159,363 | | | |
| | | | | | | | 43,100,083 | | | |
| Food – Retail – 0.1% | | | | | | |
| | 8,644,000 | | | Delhaize Group
5.8750%, 2/1/14 | | | 9,437,519 | | | |
| Gold Mining – 0.1% | | | | | | |
| | 4,920,000 | | | Gold Fields Orogen Holding BVI, Ltd.
4.8750%, 10/7/20 (144A) | | | 4,721,419 | | | |
| Hotels and Motels – 0.1% | | | | | | |
| | 4,885,000 | | | Hyatt Hotels Corp.
5.7500%, 8/15/15 (144A) | | | 5,057,563 | | | |
| | 2,088,000 | | | Starwood Hotels & Resorts Worldwide, Inc.
6.7500%, 5/15/18 | | | 2,268,090 | | | |
| | | | | | | | 7,325,653 | | | |
| Investment Management and Advisory Services – 0.5% | | | | | | |
| | 9,187,000 | | | Ameriprise Financial, Inc.
7.3000%, 6/28/19 | | | 10,974,276 | | | |
| | 3,669,000 | | | Ameriprise Financial, Inc.
5.3000%, 3/15/20 | | | 3,889,081 | | | |
| | 11,554,000 | | | Ameriprise Financial, Inc.
7.5180%, 6/1/66‡ | | | 12,131,700 | | | |
| | 7,437,000 | | | FMR LLC
6.4500%, 11/15/39 (144A) | | | 7,321,860 | | | |
| | | | | | | | 34,316,917 | | | |
| Life and Health Insurance – 0% | | | | | | |
| | 2,164,000 | | | Prudential Financial, Inc.
4.7500%, 6/13/15 | | | 2,294,236 | | | |
| Medical – Biomedical and Genetic – 0.3% | | | | | | |
| | 435,000 | | | Bio-Rad Laboratories, Inc.
8.0000%, 9/15/16 | | | 481,762 | | | |
| | 4,108,000 | | | Genzyme Corp.
3.6250%, 6/15/15 | | | 4,267,555 | | | |
| | 5,130,000 | | | Genzyme Corp.
5.0000%, 6/15/20 | | | 5,448,086 | | | |
| | 9,813,000 | | | Gilead Sciences, Inc.
4.5000%, 4/1/21 | | | 9,696,372 | | | |
| | | | | | | | 19,893,775 | | | |
| Medical – Drugs – 0.1% | | | | | | |
| | 4,908,000 | | | Sanofi-Aventis S.A.
2.6250%, 3/29/16 | | | 4,865,811 | | | |
| | 4,908,000 | | | Sanofi-Aventis S.A.
4.0000%, 3/29/21 | | | 4,827,018 | | | |
| | | | | | | | 9,692,829 | | | |
| Medical – HMO – 0% | | | | | | |
| | 1,625,000 | | | Health Care Service Corp.
4.7000%, 1/15/21 (144A) | | | 1,631,196 | | | |
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, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Medical – Hospitals – 0.2% | | | | | | |
| | $13,150,000 | | | HCA, Inc.
9.2500%, 11/15/16 | | $ | 14,152,688 | | | |
| Medical Instruments – 0.1% | | | | | | |
| | 3,260,000 | | | Boston Scientific Corp.
4.5000%, 1/15/15 | | | 3,362,318 | | �� | |
| | 6,517,000 | | | Boston Scientific Corp.
6.0000%, 1/15/20 | | | 6,828,624 | | | |
| | | | | | | | 10,190,942 | | | |
| Medical Products – 0.1% | | | | | | |
| | 7,974,000 | | | CareFusion Corp.
4.1250%, 8/1/12 | | | 8,236,927 | | | |
| Money Center Banks – 0.1% | | | | | | |
| | 4,831,000 | | | Lloyds TSB Bank PLC
4.8750%, 1/21/16** | | | 4,981,360 | | | |
| | 3,864,000 | | | Lloyds TSB Bank PLC
6.3750%, 1/21/21** | | | 4,026,659 | | | |
| | | | | | | | 9,008,019 | | | |
| Multi-Line Insurance – 0.8% | | | | | | |
| | 8,152,000 | | | American International Group, Inc.
5.4500%, 5/18/17 | | | 8,368,346 | | | |
| | 26,180,000 | | | American International Group, Inc.
6.4000%, 12/15/20 | | | 27,941,757 | | | |
| | 7,949,000 | | | MetLife, Inc.
2.3750%, 2/6/14 | | | 7,959,755 | | | |
| | 4,166,000 | | | MetLife, Inc.
6.7500%, 6/1/16 | | | 4,815,662 | | | |
| | 4,765,000 | | | MetLife, Inc.
7.7170%, 2/15/19 | | | 5,792,215 | | | |
| | | | | | | | 54,877,735 | | | |
| Multimedia – 0.3% | | | | | | |
| | 11,246,000 | | | NBC Universal, Inc.
2.8750%, 4/1/16 (144A) | | | 10,986,296 | | | |
| | 6,344,000 | | | NBC Universal, Inc.
5.9500%, 4/1/41 (144A) | | | 6,079,246 | | | |
| | | | | | | | 17,065,542 | | | |
| Non-Hazardous Waste Disposal – 0.2% | | | | | | |
| | 11,348,000 | | | Allied Waste North America, Inc.
7.1250%, 5/15/16 | | | 11,844,475 | | | |
| Oil and Gas Drilling – 0.6% | | | | | | |
| | 4,849,000 | | | Ensco PLC
3.2500%, 3/15/16** | | | 4,831,165 | | | |
| | 8,082,000 | | | Ensco PLC
4.7000%, 3/15/21** | | | 8,022,242 | | | |
| | 26,713,000 | | | Nabors Industries, Inc.
5.0000%, 9/15/20 | | | 26,533,676 | | | |
| | 1,968,000 | | | Noble Holding International, Ltd.
3.4500%, 8/1/15 | | | 2,009,125 | | | |
| | | | | | | | 41,396,208 | | | |
| Oil Companies – Exploration and Production – 0.2% | | | | | | |
| | 15,865,000 | | | Forest Oil Corp.
8.0000%, 12/15/11 | | | 16,578,925 | | | |
| Oil Companies – Integrated – 0.5% | | | | | | |
| | 13,732,000 | | | BP Capital Markets PLC
3.1250%, 10/1/15** | | | 13,808,775 | | | |
| | 6,254,000 | | | BP Capital Markets PLC
4.5000%, 10/1/20** | | | 6,206,201 | | | |
| | 6,683,000 | | | Petrobras International Finance Co.
3.8750%, 1/27/16 | | | 6,727,676 | | | |
| | 6,792,000 | | | Petrobras International Finance Co.
5.3750%, 1/27/21 | | | 6,812,498 | | | |
| | 1,497,000 | | | Petrobras International Finance Co.
6.7500%, 1/27/41 | | | 1,542,220 | | | |
| | | | | | | | 35,097,370 | | | |
| Oil Refining and Marketing – 0.3% | | | | | | |
| | 782,000 | | | Frontier Oil Corp.
8.5000%, 9/15/16 | | | 848,470 | | | |
| | 7,573,000 | | | Motiva Enterprises LLC
5.7500%, 1/15/20 (144A) | | | 8,279,160 | | | |
| | 9,859,000 | | | NuStar Logistics L.P.
4.8000%, 9/1/20 | | | 9,697,519 | | | |
| | | | | | | | 18,825,149 | | | |
| Paper and Related Products – 0.2% | | | | | | |
| | 16,927,000 | | | Georgia-Pacific LLC
5.4000%, 11/1/20 (144A) | | | 16,714,955 | | | |
| Pipelines – 0.9% | | | | | | |
| | 4,831,000 | | | Buckeye Partners L.P.
4.8750%, 2/1/21 | | | 4,798,859 | | | |
| | 7,970,000 | | | DCP Midstream Operating L.P.
3.2500%, 10/1/15 | | | 7,809,963 | | | |
| | 1,852,000 | | | El Paso Pipeline Partners Operating Co. LLC
6.5000%, 4/1/20 | | | 2,036,520 | | | |
| | 2,727,000 | | | Kinder Morgan Energy Partners L.P.
5.9500%, 2/15/18 | | | 3,002,743 | | | |
| | 14,954,000 | | | Kinder Morgan Finance Co. ULC
5.7000%, 1/5/16 | | | 15,683,008 | | | |
| | 11,217,000 | | | Plains All American Pipeline L.P.
3.9500%, 9/15/15 | | | 11,567,486 | | | |
| | 2,877,000 | | | Plains All American Pipeline L.P.
8.7500%, 5/1/19 | | | 3,599,271 | | | |
| | 9,662,000 | | | Plains All American Pipeline L.P. / PAA Finance Corp.
5.0000%, 2/1/21 | | | 9,690,725 | | | |
| | 3,665,000 | | | Williams Partners L.P.
3.8000%, 2/15/15 | | | 3,793,935 | | | |
| | | | | | | | 61,982,510 | | | |
| Property and Casualty Insurance – 0.1% | | | | | | |
| | 4,806,000 | | | Fidelity National Financial, Inc.
6.6000%, 5/15/17 | | | 4,971,826 | | | |
| Publishing – Newspapers – 0.1% | | | | | | |
| | 1,273,000 | | | Gannett Co., Inc.
6.3750%, 9/1/15 (144A) | | | 1,323,920 | | | |
| | 4,956,000 | | | Gannett Co., Inc.
7.1250%, 9/1/18 (144A) | | | 4,968,390 | | | |
| | | | | | | | 6,292,310 | | | |
| Publishing – Periodicals – 0.2% | | | | | | |
| | 12,710,000 | | | United Business Media, Ltd.
5.7500%, 11/3/20 (144A) | | | 12,363,271 | | | |
| Real Estate Management/Services – 0.2% | | | | | | |
| | 3,817,000 | | | AMB Property L.P.
6.1250%, 12/1/16 | | | 4,177,226 | | | |
| | 3,975,000 | | | AMB Property L.P.
4.0000%, 1/15/18 | | | 3,846,417 | | | |
See Notes to Schedules of Investments and Financial Statements.
20 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Real Estate Management/Services – (continued) | | | | | | |
| | | | | | | | | | | |
| | $2,458,000 | | | AMB Property L.P.
6.6250%, 12/1/19 | | $ | 2,714,396 | | | |
| | 5,691,000 | | | CB Richard Ellis Services, Inc.
6.6250%, 10/15/20 | | | 5,861,730 | | | |
| | | | | | | | 16,599,769 | | | |
| Real Estate Operating/Development – 0.1% | | | | | | |
| | 7,737,000 | | | Post Apartment Homes L.P.
4.7500%, 10/15/17 | | | 7,609,989 | | | |
| Reinsurance – 0.8% | | | | | | |
| | 18,539,000 | | | Berkshire Hathaway Finance Corp.
4.0000%, 4/15/12 | | | 19,193,408 | | | |
| | 10,887,000 | | | Berkshire Hathaway, Inc.
1.4000%, 2/10/12 | | | 10,978,353 | | | |
| | 10,887,000 | | | Berkshire Hathaway, Inc.
2.1250%, 2/11/13 | | | 11,118,403 | | | |
| | 10,925,000 | | | Berkshire Hathaway, Inc.
3.2000%, 2/11/15 | | | 11,245,780 | | | |
| | | | | | | | 52,535,944 | | | |
| REIT – Diversified – 0.3% | | | | | | |
| | 4,944,000 | | | Goodman Funding Pty, Ltd.
6.3750%, 11/12/20 (144A) | | | 4,968,602 | | | |
| | 13,242,000 | | | Goodman Funding Pty, Ltd.
6.3750%, 4/15/21 (144A) | | | 13,213,556 | | | |
| | | | | | | | 18,182,158 | | | |
| REIT – Health Care – 0.4% | | | | | | |
| | 1,648,000 | | | HCP, Inc.
2.7000%, 2/1/14 | | | 1,652,936 | | | |
| | 1,694,000 | | | HCP, Inc.
3.7500%, 2/1/16 | | | 1,702,563 | | | |
| | 1,648,000 | | | HCP, Inc.
5.3750%, 2/1/21 | | | 1,664,285 | | | |
| | 6,329,000 | | | Senior Housing Properties Trust
6.7500%, 4/15/20 | | | 6,699,405 | | | |
| | 3,139,000 | | | Ventas Realty L.P. / Ventas Capital Corp.
6.5000%, 6/1/16 | | | 3,249,377 | | | |
| | 10,131,000 | | | Ventas Realty L.P. / Ventas Capital Corp.
6.7500%, 4/1/17 | | | 10,741,099 | | | |
| | | | | | | | 25,709,665 | | | |
| REIT – Hotels – 0.3% | | | | | | |
| | 4,872,000 | | | Host Hotels & Resorts L.P.
7.1250%, 11/1/13 | | | 4,945,080 | | | |
| | 11,764,000 | | | Host Hotels & Resorts L.P.
6.7500%, 6/1/16 | | | 12,131,625 | | | |
| | | | | | | | 17,076,705 | | | |
| REIT – Office Property – 0.4% | | | | | | |
| | 3,714,000 | | | Reckson Operating Partnership L.P.
6.0000%, 3/31/16 | | | 3,955,039 | | | |
| | 17,777,000 | | | Reckson Operating Partnership L.P.
7.7500%, 3/15/20 | | | 19,965,526 | | | |
| | | | | | | | 23,920,565 | | | |
| REIT – Regional Malls – 0.5% | | | | | | |
| | 21,500,000 | | | Rouse Co. L.P.
6.7500%, 5/1/13 (144A) | | | 22,225,625 | | | |
| | 11,745,000 | | | Rouse Co. L.P.
6.7500%, 11/9/15 | | | 12,214,800 | | | |
| | | | | | | | 34,440,425 | | | |
| REIT – Shopping Centers – 0.1% | | | | | | |
| | 4,879,000 | | | Developers Diversified Realty Corp.
4.7500%, 4/15/18 | | | 4,749,263 | | | |
| Resorts and Theme Parks – 0.1% | | | | | | |
| | 5,769,000 | | | Vail Resorts, Inc.
6.7500%, 2/15/14 | | | 5,841,113 | | | |
| Retail – Apparel and Shoe – 0.1% | | | | | | |
| | 3,263,000 | | | Phillips-Van Heusen Corp.
7.3750%, 5/15/20 | | | 3,450,623 | | | |
| Retail – Computer Equipment – 0% | | | | | | |
| | 1,156,000 | | | GameStop Corp.
8.0000%, 10/1/12 | | | 1,180,565 | | | |
| Retail – Regional Department Stores – 0.6% | | | | | | |
| | 6,026,000 | | | Macy’s Retail Holdings, Inc.
5.8750%, 1/15/13 | | | 6,410,157 | | | |
| | 12,553,000 | | | Macy’s Retail Holdings, Inc.
5.7500%, 7/15/14 | | | 13,431,710 | | | |
| | 12,214,000 | | | Macy’s Retail Holdings, Inc.
5.9000%, 12/1/16 | | | 13,130,050 | | | |
| | 5,706,000 | | | Macy’s Retail Holdings, Inc.
6.9000%, 4/1/29 | | | 5,777,325 | | | |
| | | | | | | | 38,749,242 | | | |
| Retail – Restaurants – 0.2% | | | | | | |
| | 13,265,000 | | | Brinker International
5.7500%, 6/1/14 | | | 13,963,906 | | | |
| Shipbuilding – 0.1% | | | | | | |
| | 2,634,000 | | | Huntington Ingalls Industries, Inc.
6.8750%, 3/15/18 (144A) | | | 2,749,238 | | | |
| | 2,524,000 | | | Huntington Ingalls Industries, Inc.
7.1250%, 3/15/21 (144A) | | | 2,631,270 | | | |
| | | | | | | | 5,380,508 | | | |
| Steel – Producers – 0% | | | | | | |
| | 1,496,000 | | | ArcelorMittal
5.3750%, 6/1/13 | | | 1,591,015 | | | |
| Super-Regional Banks – 0.5% | | | | | | |
| | 4,849,000 | | | KeyCorp
5.1000%, 3/24/21 | | | 4,819,067 | | | |
| | 5,340,000 | | | National City Corp.
6.8750%, 5/15/19 | | | 6,096,128 | | | |
| | 3,629,000 | | | PNC Funding Corp.
3.6250%, 2/8/15 | | | 3,751,831 | | | |
| | 6,454,000 | | | SunTrust Banks, Inc.
3.6000%, 4/15/16 | | | 6,415,508 | | | |
| | 13,163,000 | | | Wells Fargo & Co.
4.6000%, 4/1/21 | | | 13,016,957 | | | |
| | | | | | | | 34,099,491 | | | |
| Telecommunication Services – 0.1% | | | | | | |
| | 5,638,000 | | | Virgin Media Secured Finance PLC
6.5000%, 1/15/18** | | | 6,159,515 | | | |
| Telephone – Integrated – 0.8% | | | | | | |
| | 3,490,000 | | | Qwest Communications International, Inc.
7.5000%, 2/15/14 | | | 3,546,713 | | | |
| | 27,418,000 | | | Qwest Communications International, Inc.
7.1250%, 4/1/18 (144A) | | | 29,577,168 | | | |
| | 5,733,000 | | | Sprint Capital Corp.
8.3750%, 3/15/12 | | | 6,048,315 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 21
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Telephone – Integrated – (continued) | | | | | | |
| | | | | | | | | | | |
| | $6,440,000 | | | Telefonica Emisiones SAU
3.9920%, 2/16/16 | | $ | 6,471,163 | | | |
| | 6,440,000 | | | Telefonica Emisiones SAU
5.4620%, 2/16/21 | | | 6,521,852 | | | |
| | | | | | | | 52,165,211 | | | |
| Television – 0.2% | | | | | | |
| | 10,076,000 | | | CBS Corp.
8.2000%, 5/15/14 | | | 11,809,908 | | | |
| | 2,181,000 | | | CBS Corp.
4.3000%, 2/15/21 | | | 2,061,540 | | | |
| | | | | | | | 13,871,448 | | | |
| Transportation – Railroad – 0.3% | | | | | | |
| | 2,657,123 | | | CSX Corp.
8.3750%, 10/15/14 | | | 3,080,801 | | | |
| | 9,941,000 | | | Kansas City Southern de Mexico S.A. de C.V.
8.0000%, 2/1/18 | | | 10,835,690 | | | |
| | 4,276,000 | | | Kansas City Southern de Mexico S.A. de C.V.
6.6250%, 12/15/20 (144A) | | | 4,361,520 | | | |
| | 1,682,000 | | | Kansas City Southern Railway
13.0000%, 12/15/13 | | | 2,005,785 | | | |
| | | | | | | | 20,283,796 | | | |
| Transportation – Services – 0.5% | | | | | | |
| | 15,190,000 | | | Asciano Finance, Ltd.
5.0000%, 4/7/18 (144A)§ | | | 15,107,670 | | | |
| | 12,678,000 | | | Asciano Finance, Ltd.
4.6250%, 9/23/20 (144A) | | | 12,007,372 | | | |
| | 3,392,000 | | | Ryder System, Inc.
3.6000%, 3/1/16 | | | 3,426,927 | | | |
| | | | | | | | 30,541,969 | | | |
| Transportation – Truck – 0.2% | | | | | | |
| | 11,975,000 | | | JB Hunt Transport Services, Inc.
3.3750%, 9/15/15 | | | 11,869,919 | | | |
| |
| |
| Total Corporate Bonds (cost $2,031,855,263) | | | 2,094,176,019 | | | |
| |
| |
| Preferred Stock – 0.2% | | | | | | |
| Diversified Banking Institutions – 0.2% | | | | | | |
| | 349,650 | | | Citigroup Capital, 7.8750% | | | 9,580,410 | | | |
| Food – Miscellaneous/Diversified – 0% | | | | | | |
| | 19 | | | H.J. Heinz Finance Co., 8.0000% (144A) | | | 2,042,500 | | | |
| |
| |
| Total Preferred Stock (cost $11,124,094) | | | 11,622,910 | | | |
| |
| |
| U.S. Treasury Notes/Bonds – 5.7% | | | | | | |
| | | | | U.S. Treasury Notes/Bonds: | | | | | | |
| | $60,022,000 | | | 0.8750%, 1/31/12 | | | 60,319,769 | | | |
| | 51,749,000 | | | 1.3750%, 2/15/12 | | | 52,240,202 | | | |
| | 11,347,000 | | | 0.8750%, 2/29/12 | | | 11,406,345 | | | |
| | 25,845,000 | | | 0.6250%, 7/31/12 | | | 25,903,668 | | | |
| | 10,559,000 | | | 1.3750%, 9/15/12 | | | 10,688,105 | | | |
| | 2,065,000 | | | 1.3750%, 1/15/13 | | | 2,089,441 | | | |
| | 1,480,000 | | | 1.7500%, 4/15/13 | | | 1,507,987 | | | |
| | 9,842,000 | | | 1.1250%, 6/15/13 | | | 9,890,423 | | | |
| | 9,210,000 | | | 1.0000%, 7/15/13 | | | 9,224,368 | | | |
| | 11,212,000 | | | 0.7500%, 8/15/13 | | | 11,155,065 | | | |
| | 2,959,000 | | | 2.7500%, 10/31/13 | | | 3,087,299 | | | |
| | 10,899,000 | | | 1.7500%, 1/31/14 | | | 11,070,147 | | | |
| | 1,575,000 | | | 1.2500%, 2/15/14 | | | 1,575,984 | | | |
| | 20,404,000 | | | 1.8750%, 2/28/14 | | | 20,781,800 | | | |
| | 3,734,000 | | | 2.6250%, 7/31/14 | | | 3,878,693 | | | |
| | 3,351,000 | | | 2.3750%, 8/31/14 | | | 3,449,436 | | | |
| | 3,411,000 | | | 2.3750%, 9/30/14 | | | 3,509,332 | | | |
| | 808,000 | | | 2.1250%, 11/30/14 | | | 822,708 | | | |
| | 5,676,000 | | | 2.6250%, 12/31/14 | | | 5,876,431 | | | |
| | 34,217,000 | | | 2.2500%, 1/31/15 | | | 34,922,726 | | | |
| | 22,775,000 | | | 2.3750%, 2/28/15 | | | 23,330,255 | | | |
| | 11,616,441 | | | 0.5000%, 4/15/15ÇÇ | | | 12,057,506 | | | |
| | 1,500,000 | | | 2.5000%, 4/30/15 | | | 1,540,899 | | | |
| | 4,094,000 | | | 2.1250%, 5/31/15 | | | 4,138,788 | | | |
| | 1,355,000 | | | 1.8750%, 6/30/15 | | | 1,354,259 | | | |
| | 427,000 | | | 1.7500%, 7/31/15 | | | 423,798 | | | |
| | 865,000 | | | 1.2500%, 9/30/15 | | | 836,549 | | | |
| | 1,225,000 | | | 1.2500%, 10/31/15 | | | 1,182,029 | | | |
| | 17,215,000 | | | 2.0000%, 1/31/16 | | | 17,089,916 | | | |
| | 4,338,000 | | | 2.1250%, 2/29/16 | | | 4,324,444 | | | |
| | 9,410,000 | | | 3.6250%, 2/15/21 | | | 9,542,323 | | | |
| | 20,996,000 | | | 4.2500%, 11/15/40 | | | 20,080,700 | | | |
| | 4,283,000 | | | 4.7500%, 2/15/41 | | | 4,451,643 | | | |
| |
| |
| Total U.S. Treasury Notes/Bonds (cost $379,337,070) | | | 383,753,038 | | | |
| |
| |
| Money Market – 0.6% | | | | | | |
| | 38,385,929 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $38,385,929) | | | 38,385,929 | | | |
| |
| |
| Total Investments (total cost $5,811,196,951) – 99.2% | | | 6,649,171,208 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities – 0.8% | | | 51,024,156 | | | |
| |
| |
| Net Assets – 100% | | $ | 6,700,195,364 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 50,114,849 | | | | 0.8% | |
| Belgium | | | 9,437,519 | | | | 0.1% | |
| Brazil | | | 100,636,524 | | | | 1.5% | |
| Canada | | | 217,375,497 | | | | 3.3% | |
| Cayman Islands | | | 41,039,577 | | | | 0.6% | |
| France | | | 9,692,829 | | | | 0.1% | |
| Germany | | | 54,255,580 | | | | 0.8% | |
| India | | | 37,801,038 | | | | 0.6% | |
| Jersey | | | 45,803,574 | | | | 0.7% | |
| Luxembourg | | | 31,023,118 | | | | 0.5% | |
| Mexico | | | 15,197,210 | | | | 0.2% | |
| Netherlands | | | 29,984,239 | | | | 0.5% | |
| South Korea | | | 3,452,245 | | | | 0.1% | |
| Spain | | | 12,993,015 | | | | 0.2% | |
| Switzerland | | | 182,861,807 | | | | 2.7% | |
| United Kingdom | | | 168,433,168 | | | | 2.5% | |
United States†† | | | 5,634,348,000 | | | | 84.7% | |
| Virgin Islands (British) | | | 4,721,419 | | | | 0.1% | |
| |
| |
| Total | | $ | 6,649,171,208 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (84.2% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
22 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| British Pound 5/6/11 | | | 15,210,000 | | | $ | 24,387,008 | | | $ | 276,159 | |
| Swiss Franc 5/6/11 | | | 23,600,000 | | | | 25,708,708 | | | | (267,530) | |
| |
| |
| | | | | | | | 50,095,716 | | | | 8,629 | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| British Pound 5/12/11 | | | 11,875,000 | | | | 19,037,867 | | | | 248,083 | |
| Swiss Franc 5/12/11 | | | 15,300,000 | | | | 16,667,988 | | | | 240,892 | |
| |
| |
| | | | | | | | 35,705,855 | | | | 488,975 | |
| |
| |
JPMorgan Chase & Co.:
British Pound 4/28/11 | | | 4,400,000 | | | | 7,055,579 | | | | 115,836 | |
| |
| |
| Total | | | | | | $ | 92,857,150 | | | $ | 613,440 | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 23
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 |
Performance Overview
Thank you for your continued investment in the Janus Contrarian Fund. For the six-month period ending March 31, 2011, the Fund’s Class T Shares generated a return of 6.37%, significantly underperforming the 17.31% return of the S&P 500 Index, the Fund’s primary benchmark. It was a very disappointing period for the Fund, and I will spend quite a bit of time explaining the primary reasons for the underperformance.
As has been the case for the last couple of years, important macro events have had a significant impact on the equity markets. Most recently, the popular uprisings in the Middle East have boosted oil prices 20% just since February. While the long-term impact of increased personal freedoms should be beneficial for both the people and the stability of the region, the near-term implications are anything but stable. With the world’s economic engine tied to the uninterrupted supply of oil from the region, dislocations could cause spikes in oil prices that threaten to derail the current fragile global economic expansion. Unfortunately, unstable geopolitics lead to unstable appetites for risk, and the oil situation is one more cause of concern on top of fiscal deficits and sovereign debt problems in the U.S. and Europe. I therefore believe we can expect volatile equity markets for some time.
What Went Wrong
Factors that contributed to the underperformance included our Indian positions and two significant holdings: United Continental Holdings, Inc. and Assured Guaranty, Ltd.
India began underperforming in late October 2010, as the global increase in commodity prices, specifically food and oil, sparked a rapid rise in inflation. Emerging markets are much more impacted by increases in commodity prices because they represent a greater portion of incomes. With monetary policy tightening to address inflation, the Indian stock market came under pressure. I am a believer that commodities ultimately self-correct as reduced demand and increased supply normalize the spikes. For this reason, I was comfortable with the positions in the Fund because the fundamentals hadn’t changed and we were seeing a correction in a market that was probably due for one. However, in early November a couple of scandals gripped the market, the most important of which was a bribery scandal involving the allocation of telecommunication licenses by the Finance Minister at below market prices. Why did this scandal set in motion an extremely severe correction in the market? In my view, it destroyed confidence. The multiple of earnings accorded a stock or a market is a function of investors’ comfort and confidence in the safety of that investment. When investors have reason to question the safety of that investment, the multiple goes down and so then does the price. It is the primary reason the Russian market sells at a low multiple – investors legitimately have to factor in the risk from politics and corruption. Unfortunately, India was not priced to factor in this risk and investors now had another reason to sell. The Fund owns DB Realty, Ltd., a Mumbai real estate company, whose CEO was embroiled in the controversy. DB’s stock collapsed as the episode unfolded. I made the decision not to sell because we value the real estate that the company owns at a substantially greater value than is being accorded in its market capitalization. Losing the CEO no doubt changes the investment thesis, but selling at the height of fear is not the correct response. A number of the other Indian holdings in the Fund also experienced very severe corrections, even though they had nothing to do with the scandal. (One holding, JSW Steel, Ltd., suffered as well from rising input prices, but I expect those to normalize this year.)
The scandal damaged investor sentiment for the whole market, not just telecommunication stocks. Though the episode was incredibly unfortunate, I am hopeful that India will emerge stronger. India faces a lot of challenges, and corruption is a leading one. If this episode results in reduced levels of corruption, both India’s economy and stock market should benefit.
24 | MARCH 31, 2011
(unaudited)
After an outstanding couple of years, United Continental has performed poorly of late. Obviously, fuel is a critically important cost item for airlines (United’s CEO recently observed that the airline spends $25,000 per minute across its entire fleet), so the spike in fuel prices that resulted from the spreading unrest in the Middle East was sufficient to cause investors to sell/short the stock. From my perspective, barring a massive disruption in oil supply that leads to a further spike in oil prices to a level that stymies global growth, United’s stock remains extremely compelling. The competitive environment for airlines in general is as good as it has been in history. Consolidation of the industry, high margin ancillary fees such as those charged for checking bags, and much more disciplined management teams have resulted in substantially improved balance sheets and earnings power. We will only know if investing in airlines is different this time after the companies emerge from this current crisis, but I have confidence that this is a better time to buy than to sell.
Assured Guaranty is another company that performed very poorly in the six-month period. Assured guarantees municipal bonds, and as concerns about municipal defaults began to dominate morning financial shows, the stock came under severe pressure. In addition, in February a very surprising move by Standard & Poor’s to change the amount of capital required by municipal bond insurers jolted the stock even more. Faced with two lousy alternatives – to raise dilutive capital or to stop writing new business – the stock corrected. As it stands today, I believe the stock is massively undervalued. First, municipal defaults are extremely rare and, more importantly, recoveries are extremely high. Even if defaults are higher than expected, the payout on that insurance is very long in duration and we would expect recoveries to be much higher than is generally expected. Concerning the S&P directive, I believe the stock has very little value in it for the probability that it will ever write new business as it is, which suggests the risk-reward is exceptionally favorable.
What Went Right
There were a few positives that helped offset the negative contributors to performance discussed above. CB Richard Ellis Group, Inc., a real estate services firm, experienced substantially improved fundamentals as real estate transactions improved globally. The reason this position is in the portfolio is that it isn’t solely dependent on an improved commercial real estate market. It benefits from transaction volume, which can occur in both strong and weak environments.
CSX Corp. continues to benefit from the strength in the U.S. rail industry. With a highly competitive cost structure relative to trucking, the industry has tremendous room to improve price without losing its attractiveness to alternative forms of transportation.
Another company, Smurfit-Stone Container Corp., is an example of the type of situation I am attracted to as a contrarian. Coming out of bankruptcy, the company had margins substantially below the industry yet was very attractively valued. Janus Contrarian Fund made a large investment in the company last fall and the company was bought out by Rock-Tenn Co. early this year. Finding overlooked and attractively priced companies is the primary strategy of Janus Contrarian Fund, and benefiting from periodic mergers and acquisitions is confirmation of the strategy.
Finally, Vail Resorts, Inc. was an important contributor to the performance of the Fund. Vail has done a fabulous job of lessening its dependence on heavy snowfall by pre-selling a season pass called the Epic Pass. The success of this strategy has resulted in a highly stable stream of cash flows from a portfolio of ski resorts, including Vail, one of the best brands in the world. Despite excellent performance in the period, I believe the company remains undervalued.
Outlook
Just two months after major social uprisings in the Middle East and one of the worst earthquakes in history in Japan, predicting the future (an impossible task in normal times), is even more dangerous today. From my perspective, the direction of oil prices will have a bigger impact on the stock market than almost any other factor. While I don’t believe there are sufficient supply constraints in the oil market to justify the current price of oil relative to its price just two months ago, what matters in the oil market is much more than actual supply and demand. The fact that the probability of oil spiking to $200 or more is greater today than before the Middle East unrest is being factored into the price of oil both by hedgers and speculators. The problem, therefore, is that the expectation of higher prices can cause higher prices which can ultimately have very real economic consequences, even if the rationale for the higher prices proves wrong. Higher oil prices are spiking inflation across emerging markets and it is now clearly affecting both corporate cost structures as well as household budgets. In light of this, one must consider many potential outcomes when thinking about the future. The one thing I am certain of is that continued uncertainty will drive periodic volatility in global markets. I am of the opinion, however, that barring a severe disruption in the oil markets, the strength of the economic recovery will continue to surprise to the upside.
Janus Growth & Core Funds | 25
Janus Contrarian Fund (unaudited)
I am often asked if there are good opportunities for investment following a very strong rebound in stocks. While it is obviously the case that investment opportunities are fewer than in the last couple of years, the number of new additions to the portfolio in the last few months suggests that, yes, great opportunities continue to exist. During the period, I added RenaissanceRe Holdings, Ltd., a property-casualty reinsurer that sells near book value despite generating outstanding returns on equity (ROE) through disciplined underwriting standards. Likewise Domtar Corp., a Canadian paper company, is selling for less than five times free cash flow due to concerns about the uncoated free sheet business. Even Dell, Inc., which faces a very difficult competitive environment for PCs, is simply too cheap at seven times free cash flow.
All these companies have strong free cash flow in common, which provides the avenue for a return of shareholder value. This is very important because in environments that are not necessarily conducive to multiple expansion (meaning stocks going up because investors are willing to pay more for a given stream of earnings, such as in environments of decreasing interest rates or improving economic growth), the ability to generate strong cash flows and to return those cash flows to shareholders becomes increasingly important. The one common theme in investments I am making today is companies that are attractively valued relative to their cash flows and which have a commitment to returning that cash to shareholders. Basically, strong free cash flow relative to share price and a commitment to returning the cash to owners (shareholders and stakeholders) provides valuation support in turbulent markets.
This can take many forms:
| | |
| | • | Paying down debt. For example, this is the right thing for recent addition Telecom Italia to do. |
| |
| | • | Paying dividends. This is my preferred method following necessary debt reductions. |
| |
| | • | Buying back stock. This should only be done for the purpose of reducing deeply undervalued shares outstanding. Unfortunately, these two conditions (actually reducing shares and buying when the stock is very undervalued) are generally not met by companies, which is the primary reason share repurchase is generally a poor way of returning cash to shareholders. |
Derivatives
I wanted to speak briefly about the use of derivatives. Derivatives, primarily options, are used in the portfolio to generate income (through selling calls and selling puts), to have exposure to a position without owning it (generally selling a put to buy a call – often referred to as stock replacement), and periodically to hedge market risk (generally by buying puts in market indices, such as the S&P 500). The purpose of the option strategy is an attempt to generate income and reduce the risk in the portfolio. During the period, this strategy detracted from relative results.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
Thank you again for your continued investment in Janus Contrarian Fund. Despite what I would call a very disappointing period of performance for your Fund, it is important to emphasize that contrarian investing does not always follow the returns of the market or a benchmark. There may be in fact a large divergence because one cannot predict when an investment that is misunderstood or out of favor will become less so (in fact, as I write, Assured Guaranty has rebounded sharply due to a settlement with Bank of America Corp., substantially reducing the company’s credit risk). In my opinion, investing is the process of making decisions with incomplete information when the risk/reward is in one’s favor. There will be occasions where I am wrong, and in those occasions I will sell. However, there will be others when the investment takes substantially longer than I would have expected. On those occasions, if the initial thesis is still intact, I will resist emotional selling and hold the position or even buy more, even if it negatively impacts the short-term performance. In the longer-term, I have great confidence that this process has, and will continue to generate strong risk-adjusted returns. Please be assured that our team and I are committed to identifying excellent investment opportunities, irrespective of the investment climate.
26 | MARCH 31, 2011
(unaudited)
Janus Contrarian Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| CB Richard Ellis Group, Inc. – Class A | | | 1.53% | |
| CSX Corp. | | | 0.96% | |
| Smurfit-Stone Container Corp. | | | 0.90% | |
| Vail Resorts, Inc. | | | 0.84% | |
| Kinder Morgan Management LLC | | | 0.67% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| JSW Steel, Ltd. | | | –1.34% | |
| DB Realty, Ltd. | | | –0.85% | |
| Assured Guaranty, Ltd. | | | –0.58% | |
| Pantaloon Retail, Ltd. | | | –0.49% | |
| Newmont Mining Corp. | | | –0.38% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Energy | | | 2.92% | | | | 14.38% | | | | 12.08% | |
| Consumer Discretionary | | | 1.38% | | | | 16.33% | | | | 10.57% | |
| Health Care | | | 1.32% | | | | 9.59% | | �� | | 11.06% | |
| Industrials | | | 0.96% | | | | 10.88% | | | | 10.96% | |
| Telecommunication Services | | | 0.38% | | | | 5.64% | | | | 3.03% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Utilities | | | –0.14% | | | | 3.08% | | | | 3.34% | |
| Other** | | | –0.04% | | | | 0.06% | | | | 0.00% | |
| Financials | | | 0.07% | | | | 24.05% | | | | 15.86% | |
| Consumer Staples | | | 0.09% | | | | 1.74% | | | | 10.62% | |
| Information Technology | | | 0.13% | | | | 3.02% | | | | 18.85% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| ** | | Not a GICS classified sector. |
Janus Growth & Core Funds | 27
Janus Contrarian Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Telecom Italia SpA
Telephone – Integrated | | | 4.4% | |
United Continental Holdings, Inc.
Airlines | | | 4.3% | |
St. Joe Co.
Real Estate Operating/Development | | | 4.0% | |
HRT Participacoes em Petroleo S.A.
Oil Companies – Exploration and Production | | | 3.6% | |
Chesapeake Energy Corp.
Oil Companies – Exploration and Production | | | 3.6% | |
| | | | | |
| | | | 19.9% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 14.6% of total net assets.
Top Country Allocations – Long Positions – (% of Investment Securities)
As of March 31, 2011
28 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 6.27% | | 3.97% | | 1.70% | | 6.49% | | 5.90% | | | 1.06% | | 1.06% |
| MOP | | 0.18% | | –2.00% | | 0.50% | | 5.86% | | 5.34% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Contrarian Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 5.85% | | 3.17% | | 0.88% | | 5.70% | | 5.10% | | | 1.85% | | 1.85% |
| CDSC | | 4.79% | | 2.14% | | 0.88% | | 5.70% | | 5.10% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Contrarian Fund – Class D Shares(1) | | 6.39% | | 4.23% | | 1.89% | | 6.66% | | 6.06% | | | 0.80% | | 0.80% |
| | | | | | | | | | | | | | | | |
| Janus Contrarian Fund – Class I Shares | | 6.49% | | 4.34% | | 1.87% | | 6.65% | | 6.05% | | | 0.74% | | 0.74% |
| | | | | | | | | | | | | | | | |
| Janus Contrarian Fund – Class R Shares | | 6.11% | | 3.58% | | 1.24% | | 6.02% | | 5.43% | | | 1.43% | | 1.43% |
| | | | | | | | | | | | | | | | |
| Janus Contrarian Fund – Class S Shares | | 6.23% | | 3.85% | | 1.51% | | 6.29% | | 5.69% | | | 1.18% | | 1.18% |
| | | | | | | | | | | | | | | | |
| Janus Contrarian Fund – Class T Shares | | 6.37% | | 4.14% | | 1.87% | | 6.65% | | 6.05% | | | 0.96% | | 0.96% |
| | | | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 1.57% | | | | | |
| | | | | | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World IndexSM | | 13.54% | | 14.08% | | 2.94% | | 5.04% | | 2.35% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 4th | | 3rd | | 1st | | 2nd | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Multi-Cap Core Funds | | – | | 807/818 | | 365/585 | | 53/277 | | 64/218 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
Janus Growth & Core Funds | 29
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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 general and 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 invests 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.
The Fund held approximately 9.8% of its investments in Indian securities as of March 31, 2011, and the Fund may have experienced significant gains and/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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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, 2011
(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 applicable 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.
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.”
Effective June 30, 2011, Daniel Kozlowski is the portfolio manager of the Fund.
| | | |
| * | | The Fund’s inception date – February 29, 2000 |
| (1) | | Closed to new investors. |
Janus Growth & Core Funds | 31
Janus Contrarian Fund (unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,062.70 | | | $ | 4.94 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,058.50 | | | $ | 8.78 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 8.60 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,063.90 | | | $ | 3.70 | | | |
| |
| |
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 I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,064.90 | | | $ | 3.19 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.84 | | | $ | 3.13 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class R Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,061.10 | | | $ | 6.89 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,062.30 | | | $ | 5.60 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.50 | | | $ | 5.49 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,063.70 | | | $ | 4.32 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.74 | | | $ | 4.23 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 0.96% for Class A Shares, 1.71% for Class C Shares, 0.72% for Class D Shares, 0.62% for Class I Shares, 1.34% for Class R Shares, 1.09% for Class S Shares and 0.84% 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. |
32 | MARCH 31, 2011
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amounts | | Value | | | |
| |
| Common Stock – 99.1% | | | | | | |
| Airlines – 4.6% | | | | | | |
| | 1,614,695 | | | Republic Airways Holdings, Inc.* | | $ | 10,382,489 | | | |
| | 7,544,561 | | | United Continental Holdings, Inc.*,** | | | 173,449,457 | | | |
| | | | | | | | 183,831,946 | | | |
| Automotive – Cars and Light Trucks – 1.1% | | | | | | |
| | 296,485 | | | Volkswagen A.G. | | | 45,498,676 | | | |
| Automotive – Medium and Heavy Duty Trucks – 2.1% | | | | | | |
| | 5,720,110 | | | Fiat Industrial SpA* | | | 82,107,230 | | | |
| Automotive – Truck Parts and Equipment – Original – 3.0% | | | | | | |
| | 504,870 | | | Visteon Corp.* | | | 31,549,326 | | | |
| | 1,418,450 | | | Visteon Corp. (144A)*,** | | | 88,638,941 | | | |
| | | | | | | | 120,188,267 | | | |
| Broadcast Services and Programming – 2.2% | | | | | | |
| | 1,178,180 | | | Liberty Media Corp. – Capital – Class A* | | | 86,796,521 | | | |
| Casino Services – 1.2% | | | | | | |
| | 2,789,155 | | | International Game Technology | | | 45,267,986 | | | |
| | 125,600 | | | Universal Entertainment Corp. | | | 3,686,743 | | | |
| | | | | | | | 48,954,729 | | | |
| Coal – 1.1% | | | | | | |
| | 617,815 | | | Peabody Energy Corp. | | | 44,457,967 | | | |
| Commercial Banks – 6.4% | | | | | | |
| | 10,361,412 | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 125,692,978 | | | |
| | 252,595 | | | Credicorp, Ltd. | | | 26,504,793 | | | |
| | 18,491,230 | | | Popular, Inc.* | | | 53,809,479 | | | |
| | 20,007,910 | | | Synovus Financial Corp. | | | 48,018,984 | | | |
| | | | | | | | 254,026,234 | | | |
| Computers – 1.8% | | | | | | |
| | 4,808,260 | | | Dell, Inc.* | | | 69,767,853 | | | |
| Computers – Memory Devices – 1.6% | | | | | | |
| | 1,692,035 | | | Western Digital Corp.* | | | 63,095,985 | | | |
| Electric – Generation – 1.3% | | | | | | |
| | 12,184,256 | | | NTPC, Ltd. | | | 52,764,742 | | | |
| Electric – Transmission – 1.6% | | | | | | |
| | 28,298,551 | | | Power Grid Corp. of India, Ltd. | | | 64,669,709 | | | |
| Finance – Other Services – 1.0% | | | | | | |
| | 319,085 | | | IntercontinentalExchange, Inc.* | | | 39,419,761 | | | |
| Financial Guarantee Insurance – 2.3% | | | | | | |
| | 6,271,290 | | | Assured Guaranty, Ltd.** | | | 93,442,221 | | | |
| Internet Gambling – 0.9% | | | | | | |
| | 11,469,996 | | | Bwin.Party Digital Entertainment PLC*,** | | | 36,795,830 | | | |
| Medical – Generic Drugs – 3.7% | | | | | | |
| | 5,169,020 | | | Mylan, Inc.*,** | | | 117,181,683 | | | |
| | 374,375 | | | Perrigo Co.** | | | 29,770,300 | | | |
| | | | | | | | 146,951,983 | | | |
| Medical Products – 0.6% | | | | | | |
| | 454,355 | | | Covidien PLC (U.S. Shares) | | | 23,599,199 | | | |
| Metal Processors and Fabricators – 1.2% | | | | | | |
| | 6,068,163 | | | Bharat Forge, Ltd. | | | 47,263,355 | | | |
| Multimedia – 0.6% | | | | | | |
| | 1,349,365 | | | News Corp. – Class A | | | 23,694,849 | | | |
| Office Automation and Equipment – 0.4% | | | | | | |
| | 1,464,755 | | | Xerox Corp. | | | 15,599,641 | | | |
| Oil – Field Services – 3.8% | | | | | | |
| | 2,738,290 | | | Eurasia Drilling Co., Ltd. (ADR) | | | 93,101,860 | | | |
| | 1,147,355 | | | Halliburton Co. | | | 57,184,173 | | | |
| | | | | | | | 150,286,033 | | | |
| Oil Companies – Exploration and Production – 12.3% | | | | | | |
| | 1,110,480 | | | Canadian Natural Resources, Ltd. | | | 54,891,026 | | | |
| | 4,293,330 | | | Chesapeake Energy Corp.** | | | 143,912,422 | | | |
| | 139,200 | | | HRT Participacoes em Petroleo S.A.* | | | 145,094,185 | | | |
| | 809,570 | | | Pioneer Natural Resources Co. | | | 82,511,374 | | | |
| | 853,460 | | | Whitting Petroleum Corp.* | | | 62,686,637 | | | |
| | | | | | | | 489,095,644 | | | |
| Paper and Related Products – 5.5% | | | | | | |
| | 8,092,795 | | | Boise, Inc.*,£ | | | 74,130,002 | | | |
| | 1,246,305 | | | Domtar Corp. (U.S. Shares) | | | 114,385,873 | | | |
| | 1,044,465 | | | International Paper Co. | | | 31,521,954 | | | |
| | | | | | | | 220,037,829 | | | |
| Pharmacy Services – 2.3% | | | | | | |
| | 827,790 | | | Express Scripts, Inc. – Class A* | | | 46,033,402 | | | |
| | 1,585,030 | | | Omnicare, Inc. | | | 47,535,050 | | | |
| | | | | | | | 93,568,452 | | | |
| Pipelines – 2.7% | | | | | | |
| | 1,633,500 | | | Kinder Morgan Management LLC*,** | | | 107,141,265 | | | |
| Property and Casualty Insurance – 0.4% | | | | | | |
| | 1,746,476 | | | Lancashire Holdings, Ltd. | | | 16,738,089 | | | |
| Real Estate Management/Services – 3.6% | | | | | | |
| | 5,374,750 | | | CB Richard Ellis Group, Inc. – Class A*,** | | | 143,505,825 | | | |
| | 199,125 | | | Future Mall Management, Ltd.* | | | 208,324 | | | |
| | | | | | | | 143,714,149 | | | |
| Real Estate Operating/Development – 6.3% | | | | | | |
| | 5,359,336 | | | DB Realty, Ltd.* | | | 14,230,666 | | | |
| | 17,589,000 | | | Hang Lung Properties, Ltd. | | | 76,996,959 | | | |
| | 6,391,146 | | | St. Joe Co.*,**,£ | | | 160,226,030 | | | |
| | | | | | | | 251,453,655 | | | |
| Reinsurance – 3.5% | | | | | | |
| | 2,052,015 | | | RenaissanceRe Holdings, Ltd. | | | 141,568,515 | | | |
| REIT – Mortgage – 1.1% | | | | | | |
| | 2,322,775 | | | Annaly Mortgage Management, Inc. | | | 40,532,424 | | | |
| | 1,033,393 | | | Gramercy Capital Corp.* | | | 4,381,586 | | | |
| | | | | | | | 44,914,010 | | | |
| REIT – Warehouse and Industrial – 0.6% | | | | | | |
| | 1,591,533 | | | ProLogis | | | 25,432,697 | | | |
| Resorts and Theme Parks – 2.6% | | | | | | |
| | 2,107,823 | | | Vail Resorts, Inc.*,**,£ | | | 102,777,449 | | | |
| Retail – Apparel and Shoe – 1.0% | | | | | | |
| | 310,000 | | | Fast Retailing Co., Ltd. | | | 38,805,916 | | | |
| Retail – Major Department Stores – 0.6% | | | | | | |
| | 3,609,390 | | | Pantaloon Retail India, Ltd. | | | 20,940,776 | | | |
| | 373,153 | | | Pantaloon Retail India, Ltd. – Class B | | | 1,505,918 | | | |
| | | | | | | | 22,446,694 | | | |
| Semiconductor Components/Integrated Circuits – 1.2% | | | | | | |
| | 3,991,120 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 48,611,842 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 33
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amounts | | Value | | | |
| |
| Steel – Producers – 5.8% | | | | | | |
| | 1,448,500 | | | JFE Holdings, Inc. | | $ | 42,395,972 | | | |
| | 3,363,947 | | | Jindal Steel & Power, Ltd. | | | 52,605,522 | | | |
| | 6,549,160 | | | JSW Steel, Ltd. | | | 134,581,640 | | | |
| | | | | | | | 229,583,134 | | | |
| Telephone – Integrated – 5.7% | | | | | | |
| | 4,441,439 | | | Freenet A.G. | | | 50,788,433 | | | |
| | 115,596,216 | | | Telecom Italia SpA | | | 177,721,893 | | | |
| | | | | | | | 228,510,326 | | | |
| Transportation – Railroad – 1.4% | | | | | | |
| | 726,575 | | | CSX Corp.** | | | 57,108,795 | | | |
| |
| |
| Total Common Stock (cost $3,662,433,676) | | | 3,954,721,192 | | | |
| |
| |
| Purchased Options – Calls – 0.2% | | | | | | |
| | 4,165 | | | CSX Corp.
expires June 2011
exercise price $230.00 | | | 663,834 | | | |
| | 81,890 | | | Ford Motor Co.
expires May 2011
exercise price $17.00 | | | 1,071,825 | | | |
| | 94,707 | | | Ford Motor Co.
expires May 2011
exercise price $17.00 | | | 1,239,582 | | | |
| | 8,133 | | | St. Joe Co.
expires June 2011
exercise price $23.00 | | | 2,526,737 | | | |
| | 19,300 | | | United Continental Holdings, Inc.
expires April 2011
exercise price $25.00 | | | 532,528 | | | |
| |
| |
| Total Purchased Options – Calls (premiums paid $24,643,099) | | | 6,034,506 | | | |
| |
| |
| Purchased Options – Puts – 0.3% | | | | | | |
| | 8,000 | | | S&P 500® Index
expires April 2011
exercise price $1,025.00 | | | 23,197 | | | |
| | 8,000 | | | S&P 500® Index**
expires May 2011
exercise price $1,275.00 | | | 13,010,356 | | | |
| |
| |
| Total Purchased Options – Puts (premiums paid $33,844,000) | | | 13,033,553 | | | |
| |
| |
| Total Investments (total cost $3,720,920,775) – 99.6% | | | 3,973,789,251 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities**– 0.4% | | | 17,325,783 | | | |
| |
| |
| Net Assets – 100% | | $ | 3,991,115,034 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Bermuda | | $ | 278,253,618 | | | | 7.0% | |
| Brazil | | | 145,094,185 | | | | 3.7% | |
| Canada | | | 54,891,026 | | | | 1.4% | |
| Cayman Islands | | | 93,101,860 | | | | 2.3% | |
| Germany | | | 96,287,109 | | | | 2.4% | |
| Gibraltar | | | 36,795,830 | | | | 0.9% | |
| Hong Kong | | | 76,996,959 | | | | 1.9% | |
| India | | | 388,770,652 | | | | 9.8% | |
| Ireland | | | 23,599,199 | | | | 0.6% | |
| Italy | | | 259,829,123 | | | | 6.5% | |
| Japan | | | 84,888,631 | | | | 2.1% | |
| Puerto Rico | | | 53,809,479 | | | | 1.4% | |
| Spain | | | 125,692,978 | | | | 3.2% | |
| Taiwan | | | 48,611,842 | | | | 1.2% | |
| United States | | | 2,207,166,760 | | | | 55.6% | |
| |
| |
| Total | | $ | 3,973,789,251 | | | | 100.0% | |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | Currency
| | | Currency
| | | Unrealized
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | Appreciation | |
| | |
Credit Suisse Securities (USA) LLC:
British Pound 5/6/11 | | | 9,500,000 | | | $ | 15,231,859 | | | $ | 70,846 | |
HSBC Securities (USA), Inc.:
British Pound 5/12/11 | | | 11,000,000 | | | | 17,635,077 | | | | 188,272 | |
JPMorgan Chase & Co.:
British Pound 4/28/11 | | | 10,000,000 | | | | 16,035,406 | | | | 98,134 | |
| |
| |
| Total | | | | | | $ | 48,902,342 | | | $ | 357,252 | |
| | | | | |
| Schedule of Written Options – Calls | | Value | |
| | |
S&P 500® Index
expires May 2011
4,000 contracts
exercise price $1,375.00 | | $ | (3,041,812) | |
St. Joe Co.
expires June 2011
2,285 contracts
exercise price $27.00 | | | (197,882) | |
United Continental Holdings, Inc.
expires April 2011
38,600 contracts
exercise price $28.00 | | | (141,577) | |
| |
| |
Total Written Options – Calls
(premiums received $4,429,300 ) | | $ | (3,381,271) | |
| |
| |
| Schedule of Written Options – Puts | | | |
CSX Corp.
expires June 2011
4,165 contracts
exercise price $210.00 | | $ | (10,894,460) | |
Delta Air Lines, Inc.
expires April 2011
2,559 contracts
exercise price $10.00 | | | (120,586) | |
See Notes to Schedules of Investments and Financial Statements.
34 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| | | Value | |
| | |
| Schedule of Written Options – Puts – (continued) | |
Delta Air Lines, Inc.
expires April 2011
30,090 contracts
exercise price $10.00 | | $ | (1,384,203) | |
Delta Air Lines, Inc.
expires June 2011
2,559 contracts
exercise price $9.00 | | | (132,352) | |
Delta Air Lines, Inc.
expires June 2011
30,085 contracts
exercise price $9.00 | | | (1,538,806) | |
Ford Motor Co.
expires May 2011
65,390 contracts
exercise price $15.00 | | | (5,073,205) | |
Ford Motor Co.
expires May 2011
66,307 contracts
exercise price $15.00 | | | (5,144,349) | |
S&P 500® Index
expires May 2011
8,000 contracts
exercise price $1,150.00 | | | (2,657,826) | |
St. Joe Co.
expires June 2011
16,266 contracts
exercise price $20.00 | | | (792,963) | |
United Continental Holdings, Inc.
expires June 2011
4,284 contracts
exercise price $21.00 | | | (630,624) | |
United Continental Holdings, Inc.
expires June 2011
11,716 contracts
exercise price $21.00 | | | (1,724,649) | |
Xerox Corp.
expires July 2011
43,000 contracts
exercise price $10.00 | | | (1,833,692) | |
| |
| |
Total Written Options – Puts
(premiums received $38,365,098 ) | | $ | (31,927,715) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 35
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2011
Dividend Swap outstanding at March 31, 2011
| | | | | | | | | | | | | | | | |
| | | Notional
| | | Return Paid
| | Return Received
| | Termination
| | Unrealized
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Date | | Appreciation |
| |
| |
| Goldman Sachs International | | | 72,654,868 EUR | | | | 20,000 EUR for every 1 dividend
Dow Jones Euro STOXX 50 Index
point decrease in the actual
dividends from the Fixed Strike | | | 20,000 EUR for every 1 dividend
Dow Jones Euro STOXX 50 Index
point increase in the actual
dividends from the Fixed Strike | | 12/27/13 | | $ | 2,789,767 |
| |
| |
Total Return Swaps outstanding at March 31, 2011
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Unrealized
|
| | | Notional
| | | Return Paid
| | Return Received
| | Termination
| | Appreciation/
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Date | | (Depreciation) |
| |
| |
| Goldman Sachs International | | $ | 4,299,572 | | | | Mediatek, Inc. | | | USD LIBOR minus 400 basis points | | 11/14/11 | | $ | 93,469 |
| Goldman Sachs International | | | 18,549,850 | | | | Mediatek, Inc. | | | USD LIBOR minus 400 basis points | | 11/15/11 | | | 403,258 |
| Morgan Stanley | | | 20,095,072 | | | | Mediatek, Inc. | | | USD LIBOR minus 350 basis points | | 9/4/12 | | | (652,025) |
| |
| |
| Total | | | | | | | | | | | | | | $ | (155,298) |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
36 | MARCH 31, 2011
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 drive long-term growth over time.
| | | | | | 
Brian Demain
portfolio manager |
Performance Overview
Janus Enterprise Fund’s Class T Shares returned 20.30% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the Russell Midcap Growth Index, returned 22.97%.
Economic Overview
Continuing momentum from late 2010, the Russell Midcap Growth Index rose during the quarter as most economic readings continued to strengthen. Unrest in the Middle East and the natural disaster in Japan weighed on sentiment and caused volatility to rise. However, equities ended the period in positive territory as indicators like nonfarm payrolls and business confidence pointed to an ongoing recovery – and, to some extent, of the animal spirits that were less present through the downturn.
Asset Class Overview
Small- and mid-cap stocks outperformed large-caps during the period, while growth-style indices outperformed value. Top performing sectors within the Fund’s benchmark, the Russell Midcap Growth Index, were energy, materials and industrials, while telecommunications, utilities and information technology lagged the index.
Strategy Overview
The Fund was overweight industrials, information technology and health care, reflecting our view that stocks in these sectors have healthy secular growth, defensible franchises and strong free cash flow generation. Our industrial holdings remained concentrated in business services and asset light transportation firms – not core cyclical companies. In technology, we think companies will generate strong unit growth over the next decade as technology plays a larger role in the developed world and middle-class consumption continues to grow in emerging markets.
We remained underweight in materials and consumer stocks, as we have struggled to find companies in these sectors with attractive secular growth profiles and competitive advantages. Materials companies have exhibited good growth dynamics, given emerging market demand. However, most are high-cost producers in the U.S. mid-cap space and they tend not to earn their cost of capital through the cycle. On the consumer side, we have struggled to find companies with both unit growth and strong competitive advantages, and the few that do fit our criteria tend to trade at multiples we consider too high. Consumer deleveraging may continue to be a medium-term headwind, moreover, and we believe that the specialty and big-box retailers are approaching maturity.
While our stock selections in consumer discretionary, energy and financials rose during the period they detracted from relative results as they lagged their respective sector returns. Among our top individual detractors, shares of Equinix, Inc. were weak. Recent reports of pricing pressure in its core business indicated to us that the company’s business model faced challenges. We sold the position as these developments weakened our conviction in the thesis. Also in technology, wireless tower company Crown Castle International Corp. came under pressure due to concerns over consolidation among wireless carriers. Wireless carriers will continue to upgrade their networks, we believe, resulting in growing demand for tower space. We continue to feel strongly that Crown Castle will be able to improve free cash flow, generate strong returns on invested capital and create value over time.
Another weak performer was Li & Fung, Ltd. The Hong Kong-based outsourcing and logistics company has been able to grow through market share gains, new outsourcing customers and acquisitions. The firm, in our view, has open-ended opportunities to supply companies like Wal-Mart Stores, Inc. We feel the market continues to underestimate the growth prospects from this trend.
Contributors to performance included our holdings in health care and information technology. One of our largest
Janus Growth & Core Funds | 37
Janus Enterprise Fund (unaudited)
holdings, Atmel Corp., was also our top contributor. The semiconductor company has benefited from a restructuring program and success in its micro-controller business. In addition, the company’s touch platform has proved to be among the best for PC tablets, a new significant growth market within technology.
In energy, shares of parts and services supplier Dresser-Rand Group, Inc. continued to perform well. The company has benefited from a rise in oil prices, and management recently initiated a multi-year growth plan that will involve expanding service centers globally, which should allow the company to maintain its competitive advantage and grow the business. We think the firm should also benefit from an ongoing shift in oil production from multinational companies to state-controlled enterprises, which don’t have as much technical expertise to service highly-engineered parts.
Another top performer was Valeant Pharmaceuticals International, Inc. We believe management has transformed the specialty pharmaceutical company by improving margins, incentives and the company’s growth profile. Valeant has a strong and growing presence in two key emerging markets, Latin America and Eastern Europe, and it has demonstrated an ability to make value-enhancing acquisitions.
Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.
Outlook
The Federal Reserve’s (Fed) second round of quantitative easing (QE2) continues to have a stimulative impact on asset prices and the real interest rate. With funds more readily available, everyone from the federal government to the individual homebuyer can access credit more easily and cheaply than if the Fed were not providing credit directly through QE2. This credit availability is driving further consumption and investment. However, it is also driving capital flows towards emerging markets, which in turn drives demand and prices for commodities – and the potential for inflation down the road. Thus, the economy is in better shape than it has been, and there are reasons to be optimistic, but the impact of potential overheating in emerging markets must be watched closely.
Corporate America is very healthy. Public companies are carrying near record-levels of cash on their balance sheets, by some estimates, amounting to around $1.2 trillion for firms in the S&P 500. Additionally, profit margins are near multi-decade highs, while capital spending remains below depreciation, driving strong free cash flow generation. High yield debt defaults in 2010 were just 1.3%, well below the long-term average of 5.1%.
In such a strong environment, more volatile equities have tended to perform well. This stands to reason: when macroeconomic conditions are improving, more speculative-grade companies have the wind in their sails and tend to do well as stocks, on a relative basis. To some degree, this impacted performance of the Fund, as we focus on what we think are higher-quality, higher-margin companies with strong multi-year growth opportunities.
Despite these factors, we still see profound disconnections in the value of growth companies, which tend to have higher operating margins and cleaner balance sheets, relative to the market. We think that companies with higher growth rates, cleaner balance sheets and higher returns on capital deserve to trade at a material P/E premium to companies with lower growth rates, more leveraged balance sheets and lower returns on capital. Yet the multiple differential between high and low growers remains as narrow as it has been in 35 years of data. Moreover, high quality, higher growth equities could outperform if we hit a macroeconomic speed bump or companies begin competing away margins and balance sheets re-leverage.
While the Fund’s relative performance in the period was challenged, we have not changed our strategy and remain committed to holding high-quality companies. By investing in what we think are high-return growth companies at valuations that are very reasonable relative to lower-growth, lower-return companies, we should be able to continue delivering good risk-adjusted returns over multi-year periods. We believe our greatest value-added is in our ability to pick these potential winning stocks and we remain focused on finding these opportunities for our shareholders.
Thank you for your investment in Janus Enterprise Fund.
38 | MARCH 31, 2011
(unaudited)
Janus Enterprise Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Atmel Corp. | | | 2.62% | |
| Dresser-Rand Group, Inc. | | | 0.96% | |
| Valeant Pharmaceuticals International, Inc. | | | 0.89% | |
| IHS, Inc. – Class A | | | 0.89% | |
| St. Jude Medical, Inc. | | | 0.75% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Equinix, Inc. | | | –0.45% | |
| Li & Fung, Ltd. | | | –0.32% | |
| Crown Castle International Corp. | | | –0.18% | |
| Ryanair Holdings PLC (ADR) | | | –0.16% | |
| Staples, Inc. | | | –0.05% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell Midcap® Growth
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Information Technology | | | 8.26% | | | | 28.58% | | | | 23.80% | |
| Industrials | | | 5.21% | | | | 23.13% | | | | 15.82% | |
| Health Care | | | 4.84% | | | | 19.60% | | | | 12.91% | |
| Energy | | | 1.87% | | | | 6.26% | | | | 6.03% | |
| Financials | | | 1.10% | | | | 7.17% | | | | 7.17% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell Midcap® Growth
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Telecommunication Services | | | –0.18% | | | | 4.23% | | | | 1.84% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 0.29% | |
| Consumer Staples | | | 0.02% | | | | 0.90% | | | | 5.18% | |
| Consumer Discretionary | | | 0.12% | | | | 7.33% | | | | 20.06% | |
| Materials | | | 0.66% | | | | 2.80% | | | | 6.90% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Growth & Core Funds | 39
Janus Enterprise Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Crown Castle International Corp.
Wireless Equipment | | | 3.8% | |
IHS, Inc. – Class A
Computer Services | | | 3.0% | |
Verisk Analytics, Inc.
Commercial Services – Finance | | | 2.7% | |
Dresser-Rand Group, Inc.
Oil Field Machinery and Equipment | | | 2.6% | |
St. Jude Medical, Inc.
Medical Instruments | | | 2.5% | |
| | | | | |
| | | | 14.6% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
40 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 20.16% | | 25.88% | | 6.71% | | 5.70% | | 10.32% | | | 1.15% | | 1.15% |
| MOP | | 13.25% | | 18.63% | | 5.46% | | 5.07% | | 9.96% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Enterprise Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 19.71% | | 24.98% | | 5.84% | | 5.01% | | 9.52% | | | 1.96% | | 1.93% |
| CDSC | | 18.51% | | 23.73% | | 5.84% | | 5.01% | | 9.52% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Enterprise Fund – Class D Shares(1) | | 20.36% | | 26.33% | | 6.84% | | 5.79% | | 10.38% | | | 0.88% | | 0.88% |
| | | | | | | | | | | | | | | | |
| Janus Enterprise Fund – Class I Shares | | 20.40% | | 26.44% | | 6.82% | | 5.77% | | 10.38% | | | 0.81% | | 0.81% |
| | | | | | | | | | | | | | | | |
| Janus Enterprise Fund – Class R Shares | | 19.97% | | 25.55% | | 6.26% | | 5.32% | | 9.91% | | | 1.47% | | 1.47% |
| | | | | | | | | | | | | | | | |
| Janus Enterprise Fund – Class S Shares | | 20.12% | | 25.87% | | 6.54% | | 5.54% | | 10.16% | | | 1.22% | | 1.22% |
| | | | | | | | | | | | | | | | |
| Janus Enterprise Fund – Class T Shares | | 20.30% | | 26.19% | | 6.82% | | 5.77% | | 10.38% | | | 1.00% | | 1.00% |
| | | | | | | | | | | | | | | | |
| Russell Midcap® Growth Index | | 22.97% | | 26.60% | | 4.93% | | 6.94% | | 9.63% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 3rd | | 1st | | 3rd | | 2nd | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Mid-Cap Growth Funds | | – | | 262/418 | | 65/323 | | 118/205 | | 15/30 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
Janus Growth & Core Funds | 41
Janus Enterprise 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.
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 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
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.
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.”
42 | MARCH 31, 2011
(unaudited)
| | | |
| * | | The Fund’s inception date – September 1, 1992 |
| (1) | | Closed to new investors. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,201.60 | | | $ | 6.37 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.15 | | | $ | 5.84 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,197.10 | | | $ | 10.30 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.56 | | | $ | 9.45 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,203.60 | | | $ | 4.61 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.74 | | | $ | 4.23 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,204.00 | | | $ | 4.12 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.19 | | | $ | 3.78 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class R Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,199.70 | | | $ | 7.95 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.70 | | | $ | 7.29 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,201.20 | | | $ | 6.59 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.95 | | | $ | 6.04 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,203.00 | | | $ | 5.22 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.19 | | | $ | 4.78 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.16% for Class A Shares, 1.88% for Class C Shares, 0.84% for Class D Shares, 0.75% for Class I Shares, 1.45% for Class R Shares, 1.20% for Class S Shares and 0.95% 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 Growth & Core Funds | 43
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 95.1% | | | | | | |
| Advertising Sales – 0.9% | | | | | | |
| | 719,567 | | | Lamar Advertising Co. – Class A* | | $ | 26,580,805 | | | |
| Aerospace and Defense – 0.9% | | | | | | |
| | 317,800 | | | TransDigm Group, Inc.* | | | 26,641,174 | | | |
| Agricultural Chemicals – 2.1% | | | | | | |
| | 1,036,005 | | | Potash Corporation of Saskatchewan, Inc. (U.S. Shares) | | | 61,051,775 | | | |
| Airlines – 1.1% | | | | | | |
| | 1,131,226 | | | Ryanair Holdings PLC (ADR)*,** | | | 31,448,083 | | | |
| Apparel Manufacturers – 0.5% | | | | | | |
| | 123,437 | | | Polo Ralph Lauren Corp. | | | 15,262,985 | | | |
| Auction House – Art Dealer – 2.2% | | | | | | |
| | 2,231,395 | | | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 62,813,769 | | | |
| Commercial Services – 0.7% | | | | | | |
| | 304,790 | | | CoStar Group, Inc.* | | | 19,104,237 | | | |
| Commercial Services – Finance – 4.0% | | | | | | |
| | 798,707 | | | Global Payments, Inc. | | | 39,072,746 | | | |
| | 2,349,760 | | | Verisk Analytics, Inc.* | | | 76,978,138 | | | |
| | | | | | | | 116,050,884 | | | |
| Computer Aided Design – 0.4% | | | | | | |
| | 209,160 | | | ANSYS, Inc.* | | | 11,334,380 | | | |
| Computer Services – 3.0% | | | | | | |
| | 971,380 | | | IHS, Inc. – Class A* | | | 86,209,975 | | | |
| Computers – 1.3% | | | | | | |
| | 108,729 | | | Apple, Inc.* | | | 37,886,620 | | | |
| Consulting Services – 1.4% | | | | | | |
| | 967,237 | | | Gartner, Inc.* | | | 40,304,766 | | | |
| Containers – Metal and Glass – 0.6% | | | | | | |
| | 450,250 | | | Ball Corp. | | | 16,141,463 | | | |
| Decision Support Software – 2.3% | | | | | | |
| | 1,767,975 | | | MSCI Inc.* | | | 65,096,840 | | | |
| Diagnostic Equipment – 1.7% | | | | | | |
| | 744,268 | | | Gen-Probe, Inc.* | | | 49,382,182 | | | |
| Diagnostic Kits – 0.5% | | | | | | |
| | 204,480 | | | Idexx Laboratories, Inc.* | | | 15,789,946 | | | |
| Distribution/Wholesale – 4.4% | | | | | | |
| | 624,620 | | | Fastenal Co. | | | 40,494,114 | | | |
| | 13,460,695 | | | Li & Fung, Ltd. | | | 68,962,202 | | | |
| | 126,060 | | | W.W. Grainger, Inc. | | | 17,355,941 | | | |
| | | | | | | | 126,812,257 | | | |
| Educational Software – 0.5% | | | | | | |
| | 436,915 | | | Blackboard, Inc.* | | | 15,833,800 | | | |
| Electric Products – Miscellaneous – 0.9% | | | | | | |
| | 577,056 | | | AMETEK, Inc. | | | 25,315,447 | | | |
| Electronic Components – Miscellaneous – 2.6% | | | | | | |
| | 2,736,358 | | | Flextronics International, Ltd.* | | | 20,440,594 | | | |
| | 1,559,185 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 54,290,822 | | | |
| | | | | | | | 74,731,416 | | | |
| Electronic Components – Semiconductors – 2.0% | | | | | | |
| | 5,688,221 | | | ON Semiconductor Corp.* | | | 56,142,741 | | | |
| Electronic Connectors – 2.2% | | | | | | |
| | 1,159,250 | | | Amphenol Corp. – Class A | | | 63,051,608 | | | |
| Electronic Measuring Instruments – 0.9% | | | | | | |
| | 493,936 | | | Trimble Navigation, Ltd.* | | | 24,963,525 | | | |
| Entertainment Software – 0.7% | | | | | | |
| | 979,645 | | | Electronic Arts, Inc.* | | | 19,132,467 | | | |
| Fiduciary Banks – 0.5% | | | | | | |
| | 301,465 | | | Northern Trust Corp. | | | 15,299,349 | | | |
| Finance – Investment Bankers/Brokers – 0.8% | | | | | | |
| | 631,458 | | | LPL Investment Holdings, Inc.* | | | 22,612,511 | | | |
| Hazardous Waste Disposal – 0.5% | | | | | | |
| | 170,740 | | | Stericycle, Inc.* | | | 15,139,516 | | | |
| Instruments – Controls – 2.2% | | | | | | |
| | 162,355 | | | Mettler-Toledo International, Inc.* | | | 27,925,060 | | | |
| | 1,030,600 | | | Sensata Technologies Holding N.V.*,** | | | 35,792,738 | | | |
| | | | | | | | 63,717,798 | | | |
| Instruments – Scientific – 3.0% | | | | | | |
| | 1,010,396 | | | Thermo Fisher Scientific, Inc.* | | | 56,127,498 | | | |
| | 345,295 | | | Waters Corp.* | | | 30,006,135 | | | |
| | | | | | | | 86,133,633 | | | |
| Insurance Brokers – 0.7% | | | | | | |
| | 406,435 | | | AON Corp. | | | 21,524,798 | | | |
| Investment Management and Advisory Services – 1.9% | | | | | | |
| | 655,873 | | | Eaton Vance Corp. | | | 21,145,345 | | | |
| | 512,390 | | | T. Rowe Price Group, Inc. | | | 34,032,944 | | | |
| | | | | | | | 55,178,289 | | | |
| Machinery – General Industrial – 1.2% | | | | | | |
| | 402,320 | | | Roper Industries, Inc. | | | 34,784,587 | | | |
| Medical – Biomedical and Genetic – 4.2% | | | | | | |
| | 969,280 | | | Celgene Corp.*,** | | | 55,762,678 | | | |
| | 547,177 | | | Gilead Sciences, Inc.* | | | 23,222,192 | | | |
| | 1,151,380 | | | Incyte Corp., Ltd.* | | | 18,249,373 | | | |
| | 464,175 | | | Vertex Pharmaceuticals, Inc.* | | | 22,247,908 | | | |
| | | | | | | | 119,482,151 | | | |
| Medical – Drugs – 1.3% | | | | | | |
| | 778,494 | | | Valeant Pharmaceuticals International, Inc. | | | 38,776,786 | | | |
| Medical Information Systems – 1.0% | | | | | | |
| | 628,630 | | | athenahealth, Inc.* | | | 28,370,072 | | | |
| Medical Instruments – 3.3% | | | | | | |
| | 1,387,330 | | | St. Jude Medical, Inc. | | | 71,114,536 | | | |
| | 311,970 | | | Techne Corp. | | | 22,337,052 | | | |
| | | | | | | | 93,451,588 | | | |
| Medical Products – 4.1% | | | | | | |
| | 651,415 | | | Henry Schein, Inc.* | | | 45,709,790 | | | |
| | 1,045,273 | | | Varian Medical Systems, Inc.* | | | 70,702,266 | | | |
| | | | | | | | 116,412,056 | | | |
| Metal Processors and Fabricators – 1.2% | | | | | | |
| | 228,340 | | | Precision Castparts Corp. | | | 33,607,081 | | | |
| Networking Products – 0.9% | | | | | | |
| | 618,235 | | | Juniper Networks, Inc.* | | | 26,015,329 | | | |
| Oil Companies – Exploration and Production – 1.2% | | | | | | |
| | 718,669 | | | Ultra Petroleum Corp. (U.S. Shares)* | | | 35,394,448 | | | |
| Oil Field Machinery and Equipment – 2.6% | | | | | | |
| | 1,375,525 | | | Dresser-Rand Group, Inc.* | | | 73,755,650 | | | |
See Notes to Schedules of Investments and Financial Statements.
44 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Pipelines – 2.3% | | | | | | |
| | 729,747 | | | Energy Transfer Equity L.P. | | $ | 32,838,615 | | | |
| | 483,903 | | | Kinder Morgan Management LLC* | | | 31,739,198 | | | |
| | | | | | | | 64,577,813 | | | |
| Printing – Commercial – 2.3% | | | | | | |
| | 1,248,755 | | | VistaPrint N.V. (U.S. Shares)*,** | | | 64,810,385 | | | |
| Reinsurance – 0.6% | | | | | | |
| | 189,970 | | | Berkshire Hathaway, Inc. – Class B* | | | 15,887,191 | | | |
| Retail – Automobile – 1.6% | | | | | | |
| | 1,040,685 | | | Copart, Inc.* | | | 45,092,881 | | | |
| Retail – Bedding – 0.6% | | | | | | |
| | 356,198 | | | Bed Bath & Beyond, Inc.* | | | 17,193,677 | | | |
| Retail – Office Supplies – 0.5% | | | | | | |
| | 816,827 | | | Staples, Inc. | | | 15,862,780 | | | |
| Retail – Petroleum Products – 1.0% | | | | | | |
| | 726,040 | | | World Fuel Services Corp. | | | 29,484,484 | | | |
| Retail – Regional Department Stores – 0.6% | | | | | | |
| | 345,455 | | | Kohl’s Corp. | | | 18,322,933 | | | |
| Semiconductor Components/Integrated Circuits – 2.3% | | | | | | |
| | 4,826,567 | | | Atmel Corp.* | | | 65,786,108 | | | |
| Semiconductor Equipment – 2.6% | | | | | | |
| | 480,575 | | | ASML Holdings N.V. (U.S. Shares)** | | | 21,385,587 | | | |
| | 1,098,188 | | | KLA-Tencor Corp. | | | 52,021,166 | | | |
| | | | | | | | 73,406,753 | | | |
| Telecommunication Equipment – Fiber Optics – 0.7% | | | | | | |
| | 923,300 | | | Corning, Inc. | | | 19,047,679 | | | |
| Telecommunication Services – 1.8% | | | | | | |
| | 1,761,529 | | | Amdocs, Ltd. (U.S. Shares)* | | | 50,820,112 | | | |
| Transactional Software – 1.1% | | | | | | |
| | 591,536 | | | Solera Holdings, Inc. | | | 30,227,490 | | | |
| Transportation – Railroad – 0.6% | | | | | | |
| | 212,095 | | | Canadian National Railway Co. (U.S. Shares) | | | 15,964,391 | | | |
| Transportation – Services – 2.6% | | | | | | |
| | 615,855 | | | C.H. Robinson Worldwide, Inc. | | | 45,653,331 | | | |
| | 548,995 | | | Expeditors International of Washington, Inc. | | | 27,526,609 | | | |
| | | | | | | | 73,179,940 | | | |
| Transportation – Truck – 0.9% | | | | | | |
| | 597,825 | | | Landstar System, Inc. | | | 27,308,646 | | | |
| Vitamins and Nutrition Products – 0.8% | | | | | | |
| | 380,809 | | | Mead Johnson Nutrition Co. – Class A | | | 22,060,265 | | | |
| Wireless Equipment – 3.8% | | | | | | |
| | 2,533,278 | | | Crown Castle International Corp.* | | | 107,790,979 | | | |
| |
| |
| Total Common Stock (cost $1,867,820,793) | | | 2,723,563,294 | | | |
| |
| |
| Money Market – 4.8% | | | | | | |
| | 136,931,644 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $136,931,644) | | | 136,931,644 | | | |
| |
| |
| Total Investments (total cost $2,004,752,437) – 99.9% | | | 2,860,494,938 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | | | 1,580,690 | | | |
| |
| |
| Net Assets – 100% | | $ | 2,862,075,628 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Bermuda | | $ | 68,962,202 | | | | 2.4% | |
| Canada | | | 214,001,169 | | | | 7.5% | |
| Guernsey | | | 50,820,112 | | | | 1.8% | |
| Ireland | | | 31,448,083 | | | | 1.1% | |
| Netherlands | | | 121,988,710 | | | | 4.3% | |
| Singapore | | | 20,440,594 | | | | 0.7% | |
| Switzerland | | | 54,290,822 | | | | 1.9% | |
United States†† | | | 2,298,543,246 | | | | 80.3% | |
| |
| |
| Total | | $ | 2,860,494,938 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (75.6% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | Currency
| | | Currency
| | | Unrealized
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | Depreciation | |
| | |
Credit Suisse Securities (USA) LLC:
Euro 5/6/11 | | | 13,500,000 | | | $ | 19,116,884 | | | $ | (451,244) | |
HSBC Securities (USA), Inc.:
Euro 5/12/11 | | | 9,266,250 | | | | 13,119,888 | | | | (8,931) | |
JPMorgan Chase & Co.:
Euro 4/28/11 | | | 10,048,000 | | | | 14,231,028 | | | | (560,523) | |
| |
| |
| Total | | | | | | $ | 46,467,800 | | | $ | (1,020,698) | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 45
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 we believe have 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 |
Performance Overview
For the six-month period ended March 31, 2011, Janus Forty Fund’s Class S Shares returned 10.13% versus a return of 18.57% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 17.31% for the period.
Overview
U.S. equities continued to rally in the first quarter, overcoming heightened uncertainty and rising oil prices to finish the six-month period near the highest levels since June 2008. Economic data was modestly improved with positive reports on manufacturing and construction spending generally outweighing ongoing weakness in housing. The labor market improved, with unemployment declining to 8.8% in March, the lowest level in two years. Core inflation appears to be tame, although price pressures have been building.
Despite the heightened uncertainty, the portfolio’s positioning remains largely unchanged. We continue to invest where we have a differentiated view of company fundamentals and see multi-year growth opportunities. Our underweight in energy hurt performance, for example, as energy prices climbed. We are analyzing energy companies with attractive growth prospects and we may increase exposure as opportunities arise. However, we are not swayed by short-term changes in the price of the commodity. Higher crude prices do impact our holdings, but we have limited exposure to businesses that are sensitive to energy prices.
We have been overweight in financials and the results have been disappointing. Lending in the U.S. has not increased substantially and needs to pick up for a stronger recovery in bank profits. On the plus side, a steeper yield curve and higher interest rates should help improve net interest margins, and we are seeing improvements in credit availability and loan losses. Moreover, most of our financial holdings have significant growth opportunities in non-U.S. markets. We believe these factors aren’t yet reflected in valuations for our companies.
Thematically, we are emphasizing “faster-growth” companies, which have been driving up the portfolio’s average earnings growth rate. For example, we added to a position in Fanuc, Ltd., a Japanese firm that makes industrial robots and automation equipment. We think the company should benefit from growth in China and emerging Asian markets, where wage inflation is resulting in more factory automation. The disaster in Japan has not materially impacted its business. Similarly, we bought shares in logistics company C.H. Robinson Worldwide, Inc. because we like its business model as a middle-man between truckers and shippers. The company has attractive multi-year growth opportunities, in our view, and can pass on higher energy costs to customers. It is not under attack from emerging market competitors and has been growing at above-average rates.
Detractors
Cisco Systems, Inc. was the largest individual detractor during the period. Shares of the networking equipment company have been weak amid continued concerns over sluggish financial performance relative to expectations. The company has cited a variety of issues, including tight public spending on information technology, falling cable set-top box sales and retrenchment following strong “catch-up” sales in earlier quarters. While the company may be well-positioned to benefit from increasing data usage and Internet traffic, we are evaluating the position.
Microsoft Corp. also fell. The software company is a top holding and recent addition to the portfolio, trading at a very compelling valuation, in our view. We like Microsoft’s position in cloud-based computing, improved competitive position in search and online services, and software renewal cycles. These are multi-year growth opportunities that we feel the market has not fully recognized in the stock’s valuation.
46 | MARCH 31, 2011
(unaudited)
General Motors, Co. (GM) was another weak performer. We bought shares in the U.S. auto maker because we like its leaner business model. GM has reduced U.S. labor costs and debt, and cut the level of U.S. auto sales at which it can break even. We believe GM’s product momentum should pick up in 2012 as the company introduces higher margin products and free cash flow should continue to improve the balance sheet.
Contributors
Apple, Inc. remains a top position and continued to perform well. We like the company’s durable franchise, long-term growth prospects and demonstrated ability to win in various economic environments. We think the company’s integration of software and hardware across its product line is a key competitive advantage, and we believe the company’s success and market share gains in the U.S. can be replicated globally.
eBay, Inc. was another strong performer. While eBay’s core auction business continued to grow, we think the more attractive growth engine is its PayPal business, which we believe is an undervalued asset. PayPal has continued to expand internationally and more than 50% of revenues now come from external eBay sources. We added to our position during the period.
Shares of media company News Corp. also rose. We believe the company owns outstanding franchises (cable networks, Sky Italia, Fox Studios) that have generated strong cash flows and typically offset its cyclical assets. The company’s balance sheet and cash-flow generation remained robust and the firm continued to benefit from an improving TV-advertising spending environment, rising affiliate fees and new distribution buyers for its content.
Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.
Outlook
While the markets have moved higher over the past six months, valuations for large- and mega-cap companies remain extremely attractive based on our evaluation of the fundamentals. There continues to be a wide gap in multiples between large and smaller companies, with the largest companies trading at the greatest disparity. Our focus on mega-cap companies has been a drag on performance; where fundamentals have improved, the market has not rewarded these firms with higher stock prices. We continue to believe our companies are undervalued, however, and that their global franchises and competitive moats are key advantages in a period of heightened economic challenges.
Globally, we expect emerging markets to continue growing in excess of developed markets. Near term, we remain concerned about inflationary pressures, rising interest rates (especially in China) and the impact of higher energy prices. Longer term, we believe emerging markets have the capital, natural resources and structural frameworks in place to fuel investment and growth. These foundations should drive higher returns for companies that can capitalize on rising domestic consumption and export growth. That theme underlies many of our holdings, including recent additions such as Nike, which has a strong global franchise and opportunities for expansion in emerging Asia and Latin America.
Overall, we remain sanguine on growth prospects in the U.S. and global markets. The crisis in Japan and higher oil stemming from unrest in the Middle East raise the risk of slower growth and we are watching developments closely to assess their impact on our holdings. However, we believe the pieces are in place for a sustained global recovery. We are excited about the risk-reward profile of positions we have added to the portfolio and of the companies we continue to hold.
Thank you for your investment in Janus Forty Fund.
Janus Growth & Core Funds | 47
Janus Forty Fund (unaudited)
Janus Forty Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Apple, Inc. | | | 2.23% | |
| eBay, Inc. | | | 1.30% | |
| News Corp. – Class A | | | 1.24% | |
| Oracle Corp. | | | 1.10% | |
| Limited Brands, Inc. | | | 1.01% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Cisco Systems, Inc. | | | –1.13% | |
| Microsoft Corp. | | | –0.65% | |
| General Motors Co. | | | –0.20% | |
| Medco Health Solutions, Inc. | | | –0.18% | |
| NIKE, Inc. – Class B | | | –0.18% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Information Technology | | | 4.69% | | | | 38.87% | | | | 31.22% | |
| Consumer Discretionary | | | 2.52% | | | | 12.24% | | | | 14.59% | |
| Financials | | | 2.13% | | | | 17.61% | | | | 4.71% | |
| Industrials | | | 0.68% | | | | 7.16% | | | | 13.24% | |
| Health Care | | | 0.66% | | | | 11.01% | | | | 9.84% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Consumer Staples | | | –0.15% | | | | 5.65% | | | | 9.47% | |
| Telecommunication Services | | | –0.04% | | | | 3.02% | | | | 0.84% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
| Materials | | | 0.41% | | | | 2.04% | | | | 5.06% | |
| Energy | | | 0.62% | | | | 2.40% | | | | 10.95% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
48 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Apple, Inc.
Computers | | | 7.2% | |
eBay, Inc.
E-Commerce/Services | | | 6.2% | |
Celgene Corp.
Medical – Biomedical and Genetic | | | 5.7% | |
Google, Inc. – Class A
Web Portals/Internet Service Providers | | | 5.1% | |
Microsoft Corp.
Applications Software | | | 4.7% | |
| | | | | |
| | | | 28.9% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 1.4% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Growth & Core Funds | 49
Janus Forty Fund (unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 10.23% | | 3.23% | | 4.69% | | 5.06% | | 9.94% | | | 1.09% | | 1.03% |
| MOP | | 3.89% | | –2.71% | | 3.45% | | 4.59% | | 9.59% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Forty Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 9.80% | | 2.48% | | 3.92% | | 4.51% | | 9.41% | | | 1.85% | | 1.78% |
| CDSC | | 8.70% | | 1.46% | | 3.92% | | 4.51% | | 9.41% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Forty Fund – Class I Shares | | 10.39% | | 3.52% | | 4.97% | | 5.06% | | 9.94% | | | 0.77% | | 0.77% |
| | | | | | | | | | | | | | | | |
| Janus Forty Fund – Class R Shares | | 10.00% | | 2.83% | | 4.21% | | 4.81% | | 9.70% | | | 1.46% | | 1.46% |
| | | | | | | | | | | | | | | | |
| Janus Forty Fund – Class S Shares | | 10.13% | | 3.06% | | 4.47% | | 5.06% | | 9.94% | | | 1.20% | | 1.20% |
| | | | | | | | | | | | | | | | |
| Janus Forty Fund – Class T Shares | | 10.26% | | 3.33% | | 4.47% | | 5.06% | | 9.94% | | | 1.02% | | 1.02% |
| | | | | | | | | | | | | | | | |
| Russell 1000® Growth Index | | 18.57% | | 18.26% | | 4.34% | | 2.99% | | 4.54% | | | | | |
| | | | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 5.55% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class S Shares | | – | | 4th | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Large-Cap Growth Funds | | – | | 820/823 | | 145/631 | | 17/386 | | 2/170 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
50 | MARCH 31, 2011
(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 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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 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 from 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 (prior to the reorganization), calculated using the fees and expenses of Class A Shares of the JAD predecessor fund, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to September 30, 2004, the performance shown for Class A Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). 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). 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. If Class A 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 A Shares reflects the fees and expenses of Class A Shares, net of any applicable fee and expense limitations or waivers.
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 (prior to the reorganization), calculated using the fees and expenses of Class C Shares of the JAD predecessor fund, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to September 30, 2002, the performance shown for Class C Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). 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). 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 limitation or waivers. If Class C 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 C Shares reflects the fees and expenses of Class C Shares, net of any applicable fee and expense limitations or waivers.
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 the 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 applicable 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). For the periods prior to August 1, 2000, the performance shown for Class I 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
Janus Growth & Core Funds | 51
Janus Forty Fund (unaudited)
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 limitation 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 applicable fee and expense limitations or waivers.
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 the 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 applicable 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). For the periods prior to August 1, 2000, the performance shown for Class R 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). 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. If Class R 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 R Shares reflects the fees and expenses of Class R Shares, net of any applicable fee and expense limitations or waivers.
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 the 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 applicable 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. The performance shown for periods following the Fund’s commencement of Class S Shares reflects the fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. 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’s fund Class S Shares, without the effect of any fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class T 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 T 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 T Shares reflects the fees and expenses of Class T Shares, net of any applicable 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.
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 predecessor Fund’s inception date — May 1, 1997 |
52 | MARCH 31, 2011
(unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,102.30 | | | $ | 5.40 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.80 | | | $ | 5.19 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,098.00 | | | $ | 9.15 | | | |
| |
| |
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 I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,103.90 | | | $ | 3.83 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,100.00 | | | $ | 7.43 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,101.30 | | | $ | 6.08 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.15 | | | $ | 5.84 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,102.60 | | | $ | 4.82 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.34 | | | $ | 4.63 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.03% for Class A Shares, 1.75% for Class C Shares, 0.73% for Class I Shares, 1.42% for Class R Shares, 1.16% for Class S Shares and 0.92% 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 Growth & Core Funds | 53
Janus Forty Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 96.7% | | | | | | |
| Applications Software – 4.7% | | | | | | |
| | 11,822,350 | | | Microsoft Corp. | | $ | 299,814,796 | | | |
| Athletic Footwear – 1.2% | | | | | | |
| | 1,031,075 | | | NIKE, Inc. – Class B | | | 78,052,377 | | | |
| Automotive – Cars and Light Trucks – 4.9% | | | | | | |
| | 14,011,740 | | | Ford Motor Co.* | | | 208,915,043 | | | |
| | 3,290,250 | | | General Motors Co.* | | | 102,096,458 | | | |
| | | | | | | | 311,011,501 | | | |
| Brewery – 3.1% | | | | | | |
| | 3,522,820 | | | Anheuser-Busch InBev N.V. | | | 200,645,794 | | | |
| | 1,579,816 | | | Anheuser-Busch InBev N.V. – VVPR Strip* | | | 11,193 | | | |
| | | | | | | | 200,656,987 | | | |
| Chemicals – Diversified – 1.0% | | | | | | |
| | 4,017,578 | | | Israel Chemicals, Ltd. | | | 66,180,026 | | | |
| Commercial Banks – 2.0% | | | | | | |
| | 4,905,804 | | | Standard Chartered PLC | | | 127,240,553 | | | |
| Computers – 7.2% | | | | | | |
| | 1,330,523 | | | Apple, Inc.* | | | 463,620,739 | | | |
| Diversified Banking Institutions – 4.4% | | | | | | |
| | 21,088,326 | | | Bank of America Corp. | | | 281,107,386 | | | |
| E-Commerce/Services – 6.2% | | | | | | |
| | 12,774,520 | | | eBay, Inc.* | | | 396,521,101 | | | |
| Electronic Components – Miscellaneous – 2.2% | | | | | | |
| | 4,122,900 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 143,559,378 | | | |
| Electronic Connectors – 1.3% | | | | | | |
| | 1,493,770 | | | Amphenol Corp. – Class A | | | 81,246,150 | | | |
| Electronic Forms – 1.6% | | | | | | |
| | 3,023,375 | | | Adobe Systems, Inc.* | | | 100,255,115 | | | |
| Enterprise Software/Services – 2.8% | | | | | | |
| | 5,323,192 | | | Oracle Corp. | | | 177,634,917 | | | |
| Finance – Investment Bankers/Brokers – 2.7% | | | | | | |
| | 9,746,666 | | | Charles Schwab Corp. | | | 175,732,388 | | | |
| Finance – Other Services – 1.9% | | | | | | |
| | 413,916 | | | CME Group, Inc. | | | 124,816,370 | | | |
| Industrial Automation and Robotics – 2.4% | | | | | | |
| | 1,033,900 | | | Fanuc, Ltd. | | | 156,527,188 | | | |
| Life and Health Insurance – 4.1% | | | | | | |
| | 29,736,600 | | | AIA Group, Ltd.* | | | 91,561,340 | | | |
| | 15,052,901 | | | Prudential PLC | | | 170,583,770 | | | |
| | | | | | | | 262,145,110 | | | |
| Medical – Biomedical and Genetic – 7.2% | | | | | | |
| | 6,330,354 | | | Celgene Corp.* | | | 364,185,265 | | | |
| | 1,999,831 | | | Vertex Pharmaceuticals, Inc.* | | | 95,851,900 | | | |
| | | | | | | | 460,037,165 | | | |
| Medical Instruments – 2.1% | | | | | | |
| | 411,186 | | | Intuitive Surgical, Inc.* | | | 137,114,084 | | | |
| Multimedia – 4.3% | | | | | | |
| | 15,728,655 | | | News Corp. – Class A | | | 276,195,182 | | | |
| Networking Products – 2.5% | | | | | | |
| | 9,238,292 | | | Cisco Systems, Inc. | | | 158,436,708 | | | |
| Oil Companies – Integrated – 2.7% | | | | | | |
| | 3,520,384 | | | BG Group PLC | | | 87,580,450 | | | |
| | 2,155,853 | | | Petroleo Brasileiro S.A. (ADR) | | | 87,161,137 | | | |
| | | | | | | | 174,741,587 | | | |
| Pharmacy Services – 2.8% | | | | | | |
| | 3,155,366 | | | Medco Health Solutions, Inc.* | | | 177,205,355 | | | |
| Real Estate Operating/Development – 0.9% | | | | | | |
| | 12,738,000 | | | Hang Lung Properties, Ltd. | | | 55,761,400 | | | |
| Retail – Apparel and Shoe – 3.2% | | | | | | |
| | 6,238,787 | | | Limited Brands, Inc. | | | 205,131,317 | | | |
| Retail – Jewelry – 2.2% | | | | | | |
| | 2,420,290 | | | Compagnie Financiere Richemont S.A. | | | 139,834,877 | | | |
| Transportation – Services – 6.1% | | | | | | |
| | 1,865,950 | | | C.H. Robinson Worldwide, Inc. | | | 138,322,874 | | | |
| | 3,408,145 | | | United Parcel Service, Inc. – Class B | | | 253,293,336 | | | |
| | | | | | | | 391,616,210 | | | |
| Web Portals/Internet Service Providers – 6.5% | | | | | | |
| | 559,078 | | | Google, Inc. – Class A*,** | | | 327,737,114 | | | |
| | 5,199,870 | | | Yahoo!, Inc.* | | | 86,577,836 | | | |
| | | | | | | | 414,314,950 | | | |
| Wireless Equipment – 2.5% | | | | | | |
| | 3,723,600 | | | Crown Castle International Corp.* | | | 158,439,180 | | | |
| |
| |
| Total Common Stock (cost $4,985,276,187) | | | 6,194,950,097 | | | |
| |
| |
| Preferred Stock – 0.4% | | | | | | |
| Direct Marketing – 0.4% | | | | | | |
| | 973,270 | | | Zynga, Inc. – Private Placement, 8.0000% °° ,§ (cost $27,308,234) | | | 27,308,234 | | | |
| |
| |
| Money Market – 4.0% | | | | | | |
| | 253,226,000 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $253,226,000) | | | 253,226,000 | | | |
| |
| |
| Total Investments (total cost $5,265,810,421) – 101.1% | | | 6,475,484,331 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets**– (1.1)% | | | (68,888,035) | | | |
| |
| |
| Net Assets – 100% | | $ | 6,406,596,296 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Belgium | | $ | 200,656,987 | | | | 3.1% | |
| Brazil | | | 87,161,137 | | | | 1.3% | |
| Hong Kong | | | 147,322,740 | | | | 2.3% | |
| Israel | | | 66,180,026 | | | | 1.0% | |
| Japan | | | 156,527,188 | | | | 2.4% | |
| Switzerland | | | 283,394,255 | | | | 4.4% | |
| United Kingdom | | | 385,404,773 | | | | 6.0% | |
United States†† | | | 5,148,837,225 | | | | 79.5% | |
| |
| |
| Total | | $ | 6,475,484,331 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (75.6% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
54 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| Schedule of Written Options – Puts | | Value | |
| | |
Microsoft Corp.
expires January 2012
30,500 contracts
exercise price $25.00
(premiums received $4,245,600) | | $ | (6,740,317) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 55
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
Janus Fund’s T Shares returned 12.06% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 18.57%, and its secondary benchmark, the S&P 500 Index, returned 17.31% during the period.
Portfolio Manager Comments
After a strong start to the year, U.S. stocks came under pressure as unrest in the Middle East and the natural disaster in Japan raised fears of a global economic slowdown. Stock correlations – which had declined recently – rose as the markets reverted to the “risk-on, risk-off” dynamic that has dominated trading for nearly three years. Stocks eventually rebounded to finish the quarter higher. Nonetheless, macro sentiment dominated much of the period, overwhelming company fundamentals, and the Fund underperformed its primary benchmark.
Although the environment has been challenging, market volatility brought some long-time attractive names into our buying range. We increased our consumer discretionary exposure with International Game Technology, a gaming technology supplier, for example, and we boosted our exposure to energy, adding potentially higher-growth producers, such as Brazilian firm OGX Petroleo e Gas Participacoes and Canadian Natural Resources, an oil and natural gas exploration and production company.
Near-term, concerns about growth in Europe, inflation in emerging markets and higher oil prices may continue to weigh on sentiment. The situation in Japan raises a host of issues and may result in slower Japanese end-market demand and disruption in the global supply chain. Cost input pressures are also building globally, and we worry that companies can’t or won’t pass through price increases. Corporate profit margins have been running near peak levels and margins may compress as input costs rise and companies reinvest some of the excess cash built up on balance sheets (around $1.2 trillion for firms in the S&P 500). Reinvesting can produce long-term growth, but it may also depress free-cash-flow yields and returns on capital. Our caution on margins has kept us wary of many cyclical industrials, which trade at high valuations on high margins, and we have avoided consumer companies unless we believe they are world-class businesses, don’t use a lot of commodity inputs and have pricing power. Margin reversion to the mean is a powerful force in investing, and we are watching for evidence of it closely. Our exposure to agriculture, gold and energy is designed partially to offset these pressures.
U.S. economic indicators have generally strengthened over the past six months, improving our confidence in the recovery. Reports on manufacturing indicate an expansive recovery, with the February Institute for Supply Management Index at 61.4%, its highest level since May 2004. Employment figures have also strengthened, with unemployment declining not because of lower labor-force participation but because of job creation. Monetary stimulus and liquidity in the system, while potentially inflationary long term, have improved confidence and encouraged businesses to hire and spend. Our chief concerns center around weakness in the U.S. housing market and the impact of higher oil prices on input costs and consumer spending. We are also concerned about lack of wage growth and uncertainty around the budget battles in Washington. Overall, however, we think the economy has become more self-sustaining and should continue to support investor sentiment and demand for risk assets.
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. Derivatives added to overall performance. Please see “Notes to Financial Statements”
56 | MARCH 31, 2011
(unaudited)
for information about the hedging techniques used by the Fund.
Performance Overview
Our holdings within industrials, telecommunications and energy were the largest detractors from relative results in the six-month period. In technology, our position in networking equipment company Cisco Systems was a significant detractor; our position in another top technology holding, Microsoft, also fell. On a positive note, our holdings in consumer discretionary contributed to results, aided by significant gains in CBS Corp.
Individual Detractors from Relative Performance
Our top five individual detractors were Cisco Systems, Inc., Microsoft Corp., Newmont Mining Corp., Expedia, Inc., and Crown Castle International Corp. Cisco has reported disappointing gross margins, raising concerns over its competitive position. While we continue to analyze the deterioration in margins, we have maintained a position as we believe the market is pricing in an overly negative scenario for top line growth and margin compression. Microsoft is a recent addition to the Fund. We like the software giant based on its attractive valuation and an improvement in its consumer business, notably the success of its Xbox video game console and Windows 7 based phone software. We are also attracted to the potential downside protection afforded by the company’s historically stable corporate franchises. We liked Newmont for its mining operations and gold exposure as an inflation hedge; however, we sold the position in favor of opportunities that we felt offered more direct inflation protection.
Individual Contributors to Relative Results
Our top five individual contributors were Occidental Petroleum Corp., eBay, Inc., Apple, Inc., CBS Corp. and IBM Corp. We believe Occidental is one of the best capital allocators among exploration-and-production companies. The firm has produced the vast majority of the industry’s free cash flow in certain periods, attesting to its capital allocation in an industry that consistently reinvests for future growth at the expense of shareholders. Shares of Apple continued to perform well. We like the company’s durable franchise, long-term growth prospects and demonstrated ability to win in various economic environments. The company has continued to gain market share in personal computing and remained a dominant player in the smartphone market. We own shares in CBS based on our confidence in management’s ability to execute on several meaningful, high-margin-growth revenue opportunities. We believe the mass-media company also offers good exposure to the ongoing recovery in advertising, which should continue as long as the economy maintains stable growth. We are seeing strong demand for television content in syndication prices, new distribution platforms and global outlets and we think CBS will benefit from secular growth beyond the current ad recovery.
Outlook
Valuations for large- and mega-cap stocks remain attractive on a variety of historical metrics. The P/E spread between growth and value stocks continues to be relatively narrow, and large caps are trading at substantial discounts to small-cap companies, based on historical multiples. We continue to focus on companies paying attractive dividends; we believe that imposes discipline on management teams to return cash to shareholders and may reduce the risk of a high-priced merger or potentially poor capital allocation decision. We remain confident in our holdings, moreover, because we believe many of our top names trade at a discount to the market with the potential to generate faster growth at higher returns. These characteristics create a very attractive risk-reward profile. Given their discounted valuations, we believe our stocks have the potential to appreciate in a variety of macroeconomic climates. Our holdings thus continue to represent what we think are the best risk-reward opportunities in the large-cap growth universe.
Thank you for your investment in Janus Fund.
Janus Growth & Core Funds | 57
Janus Fund (unaudited)
Janus Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Occidental Petroleum Corp. | | | 1.29% | |
| eBay, Inc. | | | 1.08% | |
| Apple, Inc. | | | 1.08% | |
| CBS Corp. – Class B | | | 0.80% | |
| International Business Machines Corp. | | | 0.76% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Cisco Systems, Inc. | | | –0.86% | |
| Microsoft Corp. | | | –0.45% | |
| Newmont Mining Corp. | | | –0.30% | |
| Expedia, Inc. | | | –0.22% | |
| Crown Castle International Corp. | | | –0.18% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Information Technology | | | 3.56% | | | | 29.66% | | | | 31.22% | |
| Energy | | | 3.06% | | | | 10.14% | | | | 10.95% | |
| Industrials | | | 1.74% | | | | 10.23% | | | | 13.24% | |
| Health Care | | | 1.38% | | | | 14.58% | | | | 9.84% | |
| Consumer Discretionary | | | 1.36% | | | | 8.55% | | | | 14.59% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Telecommunication Services | | | –0.18% | | | | 4.06% | | | | 0.84% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
| Materials | | | 0.30% | | | | 4.62% | | | | 5.06% | |
| Financials | | | 0.81% | | | | 7.67% | | | | 4.71% | |
| Consumer Staples | | | 0.98% | | | | 10.49% | | | | 9.47% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
58 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Microsoft Corp.
Applications Software | | | 4.7% | |
eBay, Inc.
E-Commerce/Services | | | 4.2% | |
Apple, Inc.
Computers | | | 3.9% | |
Occidental Petroleum Corp.
Oil Companies – Exploration and Production | | | 3.7% | |
Google, Inc. – Class A
Web Portals/Internet Service Providers | | | 3.3% | |
| | | | | |
| | | | 19.8% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 1.4% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Growth & Core Funds | 59
Janus Fund (unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 12.04% | | 10.88% | | 2.67% | | 1.17% | | 12.43% | | | 1.22% | | 1.05% |
| MOP | | 5.58% | | 4.52% | | 1.46% | | 0.57% | | 12.27% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 11.58% | | 10.05% | | 1.76% | | 0.52% | | 11.82% | | | 1.96% | | 1.80% |
| CDSC | | 10.46% | | 8.95% | | 1.76% | | 0.52% | | 11.82% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Fund – Class D Shares(1) | | 12.16% | | 11.04% | | 2.73% | | 1.23% | | 12.47% | | | 0.93% | | 0.93% |
| | | | | | | | | | | | | | | | |
| Janus Fund – Class I Shares | | 12.18% | | 11.15% | | 2.70% | | 1.21% | | 12.46% | | | 0.86% | | 0.80% |
| | | | | | | | | | | | | | | | |
| Janus Fund – Class R Shares | | 11.80% | | 10.44% | | 2.12% | | 0.76% | | 12.08% | | | 1.47% | | 1.47% |
| | | | | | | | | | | | | | | | |
| Janus Fund – Class S Shares | | 11.94% | | 10.66% | | 2.41% | | 0.97% | | 12.27% | | | 1.25% | | 1.25% |
| | | | | | | | | | | | | | | | |
| Janus Fund – Class T Shares | | 12.06% | | 10.95% | | 2.70% | | 1.21% | | 12.46% | | | 1.00% | | 1.00% |
| | | | | | | | | | | | | | | | |
| Russell 1000® Growth Index | | 18.57% | | 18.26% | | 4.34% | | 2.99% | | N/A** | | | | | |
| | | | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 10.29% | | | | | |
| | | | | | | | | | | | | | | | |
| Core Growth Index | | 17.95% | | 16.95% | | 3.50% | | 3.17% | | N/A** | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 4th | | 3rd | | 4th | | 1st | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Large-Cap Growth Funds | | – | | 733/823 | | 354/631 | | 307/386 | | 3/17 | | | | | |
| | | | | | | | | | | | | | | | |
| 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 | | | | | |
| | | | | | | | | | | | | | | | |
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.
60 | MARCH 31, 2011
(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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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 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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
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.
Janus Growth & Core Funds | 61
Janus 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.”
Effective May 12, 2011, Jonathan D. Coleman and Burton H. Wilson are co-portfolio managers of the Fund.
| | | |
| * | | 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. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,120.80 | | | $ | 5.50 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.75 | | | $ | 5.24 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,116.20 | | | $ | 9.44 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,122.00 | | | $ | 4.39 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,122.20 | | | $ | 4.07 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.09 | | | $ | 3.88 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class R Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,118.50 | | | $ | 7.61 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,119.80 | | | $ | 6.29 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,121.00 | | | $ | 4.97 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.24 | | | $ | 4.73 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.04% for Class A Shares, 1.79% for Class C Shares, 0.83% for Class D Shares, 0.77% for Class I Shares, 1.44% for Class R Shares, 1.19% for Class S Shares and 0.94% 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. |
62 | MARCH 31, 2011
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amount | | Value | | | |
| |
| Common Stock – 97.0% | | | | | | |
| Apparel Manufacturers – 0.8% | | | | | | |
| | 531,850 | | | Polo Ralph Lauren Corp. | | $ | 65,763,252 | | | |
| Applications Software – 4.7% | | | | | | |
| | 15,953,145 | | | Microsoft Corp. | | | 404,571,757 | | | |
| Athletic Footwear – 0.4% | | | | | | |
| | 441,535 | | | NIKE, Inc. – Class B | | | 33,424,199 | | | |
| Beverages – Non-Alcoholic – 0.6% | | | | | | |
| | 1,887,820 | | | Coca-Cola Enterprises, Inc. | | | 51,537,486 | | | |
| Brewery – 3.1% | | | | | | |
| | 3,807,287 | | | Anheuser-Busch InBev N.V.** | | | 216,847,901 | | | |
| | 10,131,582 | | | Anheuser-Busch InBev N.V. – VVPR Strip*,** | | | 71,782 | | | |
| | 1,278,154 | | | SABMiller PLC** | | | 45,257,362 | | | |
| | | | | | | | 262,177,045 | | | |
| Casino Hotels – 0.8% | | | | | | |
| | 8,246,728 | | | Crown, Ltd. | | | 69,503,044 | | | |
| Casino Services – 0.8% | | | | | | |
| | 4,081,385 | | | International Game Technology | | | 66,240,879 | | | |
| Chemicals – Diversified – 2.6% | | | | | | |
| | 1,795,345 | | | E.I. du Pont de Nemours & Co. | | | 98,690,114 | | | |
| | 1,688,539 | | | K+S A.G.** | | | 127,456,318 | | | |
| | | | | | | | 226,146,432 | | | |
| Commercial Banks – 0.7% | | | | | | |
| | 34,218,000 | | | Mizuho Financial Group, Inc. | | | 56,783,117 | | | |
| Commercial Services – Finance – 1.0% | | | | | | |
| | 1,346,695 | | | Verisk Analytics, Inc.* | | | 44,117,728 | | | |
| | 2,103,940 | | | Western Union Co. | | | 43,698,834 | | | |
| | | | | | | | 87,816,562 | | | |
| Computer Services – 2.3% | | | | | | |
| | 1,207,239 | | | International Business Machines Corp.** | | | 196,864,464 | | | |
| Computers – 3.9% | | | | | | |
| | 968,107 | | | Apple, Inc.*,** | | | 337,336,884 | | | |
| Computers – Integrated Systems – 1.1% | | | | | | |
| | 1,894,815 | | | Terdata Corp.* | | | 96,067,120 | | | |
| Cosmetics and Toiletries – 1.0% | | | | | | |
| | 1,087,721 | | | Colgate-Palmolive Co. | | | 87,844,348 | | | |
| Dialysis Centers – 0.7% | | | | | | |
| | 661,835 | | | DaVita, Inc.* | | | 56,593,511 | | | |
| Diversified Banking Institutions – 3.7% | | | | | | |
| | 28,005,580 | | | Citigroup, Inc. | | | 123,784,664 | | | |
| | 2,034,535 | | | JPMorgan Chase & Co. | | | 93,792,063 | | | |
| | 3,713,990 | | | Morgan Stanley | | | 101,466,207 | | | |
| | | | | | | | 319,042,934 | | | |
| Diversified Operations – 0.9% | | | | | | |
| | 1,772,541 | | | Tyco International, Ltd. (U.S. Shares) | | | 79,356,661 | | | |
| E-Commerce/Services – 5.0% | | | | | | |
| | 11,575,562 | | | eBay, Inc.*,** | | | 359,305,445 | | | |
| | 275,895 | | | Netflix, Inc.* | | | 65,478,160 | | | |
| | | | | | | | 424,783,605 | | | |
| Electric Products – Miscellaneous – 0.7% | | | | | | |
| | 1,085,522 | | | Emerson Electric Co. | | | 63,427,050 | | | |
| Electronic Components – Miscellaneous – 1.3% | | | | | | |
| | 3,143,340 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 109,451,099 | | | |
| Electronic Components – Semiconductors – 0.9% | | | | | | |
| | 7,860,552 | | | ON Semiconductor Corp.* | | | 77,583,648 | | | |
| Electronic Connectors – 1.1% | | | | | | |
| | 1,770,279 | | | Amphenol Corp. – Class A | | | 96,285,475 | | | |
| Enterprise Software/Services – 1.7% | | | | | | |
| | 4,265,100 | | | Oracle Corp. | | | 142,326,387 | | | |
| Finance – Investment Bankers/Brokers – 0.6% | | | | | | |
| | 2,751,205 | | | Charles Schwab Corp. | | | 49,604,226 | | | |
| Industrial Automation and Robotics – 0.7% | | | | | | |
| | 370,100 | | | Fanuc, Ltd. | | | 56,031,253 | | | |
| Instruments – Controls – 0.5% | | | | | | |
| | 1,310,575 | | | Sensata Technologies Holding N.V.*,** | | | 45,516,270 | | | |
| Investment Management and Advisory Services – 1.3% | | | | | | |
| | 1,697,006 | | | T. Rowe Price Group, Inc. | | | 112,715,139 | | | |
| Life and Health Insurance – 1.6% | | | | | | |
| | 1,382,855 | | | AFLAC, Inc. | | | 72,987,087 | | | |
| | 5,972,411 | | | Prudential PLC** | | | 67,681,066 | | | |
| | | | | | | | 140,668,153 | | | |
| Medical – Biomedical and Genetic – 3.0% | | | | | | |
| | 3,414,982 | | | Celgene Corp.*,** | | | 196,463,915 | | | |
| | 1,292,966 | | | Vertex Pharmaceuticals, Inc.* | | | 61,971,860 | | | |
| | | | | | | | 258,435,775 | | | |
| Medical – Drugs – 5.0% | | | | | | |
| | 3,372,025 | | | Bristol-Myers Squibb Co. | | | 89,122,621 | | | |
| | 2,590,620 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 98,858,059 | | | |
| | 11,944,695 | | | Pfizer, Inc. | | | 242,596,755 | | | |
| | | | | | | | 430,577,435 | | | |
| Medical – Generic Drugs – 0.8% | | | | | | |
| | 3,021,480 | | | Mylan, Inc.* | | | 68,496,952 | | | |
| Medical – HMO – 1.2% | | | | | | |
| | 2,344,875 | | | UnitedHealth Group, Inc.** | | | 105,988,350 | | | |
| Medical – Wholesale Drug Distributors – 0.8% | | | | | | |
| | 1,784,110 | | | AmerisourceBergen Corp. | | | 70,579,392 | | | |
| Medical Products – 2.3% | | | | | | |
| | 3,801,565 | | | Covidien PLC (U.S. Shares)** | | | 197,453,286 | | | |
| Metal Processors and Fabricators – 1.3% | | | | | | |
| | 752,485 | | | Precision Castparts Corp. | | | 110,750,742 | | | |
| Multimedia – 1.5% | | | | | | |
| | 2,905,490 | | | Walt Disney Co. | | | 125,197,564 | | | |
| Networking Products – 1.9% | | | | | | |
| | 9,610,330 | | | Cisco Systems, Inc.** | | | 164,817,159 | | | |
| Oil – Field Services – 1.6% | | | | | | |
| | 2,667,770 | | | Halliburton Co.** | | | 132,961,657 | | | |
| Oil Companies – Exploration and Production – 7.9% | | | | | | |
| | 795,130 | | | Apache Corp. | | | 104,098,419 | | | |
| | 1,919,930 | | | Canadian Natural Resources, Ltd. | | | 94,902,140 | | | |
| | 963,491 | | | EOG Resources, Inc. | | | 114,183,318 | | | |
| | 3,021,087 | | | Occidental Petroleum Corp. | | | 315,673,381 | | | |
| | 4,223,900 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 50,860,736 | | | |
| | | | | | | | 679,717,994 | | | |
| Oil Companies – Integrated – 1.3% | | | | | | |
| | 1,342,245 | | | Hess Corp. | | | 114,372,696 | | | |
| Pharmacy Services – 2.5% | | | | | | |
| | 3,841,805 | | | Medco Health Solutions, Inc.* | | | 215,755,769 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 63
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Contract Amount | | Value | | | |
| |
| Pipelines – 0.7% | | | | | | |
| | 1,492,669 | | | Enterprise Products Partners L.P. | | $ | 64,274,327 | | | |
| Retail – Apparel and Shoe – 1.1% | | | | | | |
| | 2,879,110 | | | Limited Brands, Inc. | | | 94,665,137 | | | |
| Retail – Drug Store – 1.3% | | | | | | |
| | 2,712,105 | | | Walgreen Co. | | | 108,863,895 | | | |
| Retail – Jewelry – 0.9% | | | | | | |
| | 1,286,628 | | | Compagnie Financiere Richemont S.A. | | | 74,336,327 | | | |
| Retail – Major Department Stores – 0.7% | | | | | | |
| | 1,257,450 | | | Nordstrom, Inc. | | | 56,434,356 | | | |
| Semiconductor Components/Integrated Circuits – 0.8% | | | | | | |
| | 30,099,539 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 72,292,140 | | | |
| Steel – Producers – 1.1% | | | | | | |
| | 2,093,865 | | | Nucor Corp. | | | 96,359,667 | | | |
| Television – 2.2% | | | | | | |
| | 7,441,120 | | | CBS Corp. – Class B | | | 186,325,645 | | | |
| Tobacco – 2.0% | | | | | | |
| | 2,624,050 | | | Philip Morris International, Inc. | | | 172,216,401 | | | |
| Toys – 0.7% | | | | | | |
| | 2,542,160 | | | Mattel, Inc. | | | 63,376,049 | | | |
| Transportation – Railroad – 1.4% | | | | | | |
| | 1,212,820 | | | Union Pacific Corp. | | | 119,256,591 | | | |
| Transportation – Services – 1.9% | | | | | | |
| | 1,158,150 | | | C.H. Robinson Worldwide, Inc. | | | 85,853,659 | | | |
| | 1,470,911 | | | Expeditors International of Washington, Inc. | | | 73,751,478 | | | |
| | | | | | | | 159,605,137 | | | |
| Web Portals/Internet Service Providers – 3.3% | | | | | | |
| | 489,490 | | | Google, Inc. – Class A* | | | 286,943,933 | | | |
| Wireless Equipment – 3.3% | | | | | | |
| | 6,581,547 | | | Crown Castle International Corp.*,** | | | 280,044,825 | | | |
| |
| |
| Total Common Stock (cost $6,553,482,415) | | | 8,325,561,201 | | | |
| |
| |
| Exchange – Traded Fund – 0.6% | | | | | | |
| Commodity – 0.6% | | | | | | |
| | 369,100 | | | SPDR Gold Trust (ETF)* (cost $51,322,259) | | | 51,607,562 | | | |
| |
| |
| Preferred Stock – 0.4% | | | | | | |
| Direct Marketing – 0.4% | | | | | | |
| | 1,246,460 | | | Zynga, Inc. – Private Placement, 8.0000% ,§ (cost $34,973,461) | | | 34,973,461 | | | |
| |
| |
| Purchased Option – Call – 0.1% | | | | | | |
| | 30,720 | | | Microsoft Corp.
expires January 2012
exercise price $27.50
(premiums paid $8,878,080) | | | 3,539,227 | | | |
| |
| |
| Money Market – 1.8% | | | | | | |
| | 158,053,438 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $158,053,438) | | | 158,053,438 | | | |
| |
| |
| Total Investments (total cost $6,806,709,653) – 99.9% | | | 8,573,734,889 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities**– 0.1% | | | 9,004,742 | | | |
| |
| |
| Net Assets – 100% | | $ | 8,582,739,631 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 69,503,044 | | | | 0.8% | |
| Belgium | | | 216,919,683 | | | | 2.5% | |
| Brazil | | | 50,860,736 | | | | 0.6% | |
| Canada | | | 94,902,140 | | | | 1.1% | |
| Germany | | | 127,456,318 | | | | 1.5% | |
| Ireland | | | 197,453,286 | | | | 2.3% | |
| Japan | | | 112,814,370 | | | | 1.3% | |
| Netherlands | | | 45,516,270 | | | | 0.5% | |
| Switzerland | | | 263,144,087 | | | | 3.1% | |
| Taiwan | | | 72,292,140 | | | | 0.9% | |
| United Kingdom | | | 112,938,428 | | | | 1.3% | |
United States†† | | | 7,209,934,387 | | | | 84.1% | |
| |
| |
| Total | | $ | 8,573,734,889 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (82.2% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| British Pound 5/6/11 | | | 18,260,000 | | | $ | 29,277,237 | | | $ | 331,536 | |
| Euro 5/6/11 | | | 105,140,000 | | | | 148,885,124 | | | | (3,514,354) | |
| |
| |
| | | | | | | | 178,162,361 | | | | (3,182,818) | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| British Pound 5/12/11 | | | 6,259,000 | | | | 10,034,358 | | | | 130,758 | |
| Euro 5/12/11 | | | 41,560,000 | | | | 58,843,926 | | | | (40,058) | |
| |
| |
| | | | | | | | 68,878,284 | | | | 90,700 | |
| |
| |
| JPMorgan Chase & Co.: | | | | | | | | | | | | |
| British Pound 4/28/11 | | | 10,400,000 | | | | 16,676,822 | | | | 90,562 | |
| Euro 4/28/11 | | | 39,700,000 | | | | 56,227,291 | | | | (1,847,086) | |
| |
| |
| | | | | | | | 72,904,113 | | | | (1,756,524) | |
| |
| |
| Total | | | | | | $ | 319,944,758 | | | $ | (4,848,642) | |
| | | | | |
| Schedule of Written Options – Calls | | Value | |
| | |
Apple, Inc.
expires April 2011
1,172 contracts
exercise price $375.00 | | $ | (48,767) | |
Celgene Corp.
expires April 2011
3,800 contracts
exercise price $57.50 | | | (428,895) | |
Halliburton Co.
expires July 2011
4,400 contracts
exercise price $50.00 | | | (1,638,698) | |
UnitedHealth Group, Inc.
expires June 2011
4,950 contracts
exercise price $45.00 | | | (1,049,643) | |
| |
| |
Total Written Options – Calls
(premiums received $2,594,916 ) | | $ | (3,166,003) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
64 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| Schedule of Written Options – Puts | | Value | |
| | |
Microsoft Corp.
expires January 2012
30,720 contracts
exercise price $25.00 | | $ | (6,788,935) | |
Research In Motion, Ltd.
expires June 2011
8,470 contracts
exercise price $50.00 | | | (1,182,175) | |
Urban Outfitters, Inc.
expires June 2011
12,500 contracts
exercise price $35.00 | | | (6,835,279) | |
| |
| |
Total Written Options – Puts
(premiums received $12,632,200 ) | | $ | (14,806,389) | |
| |
| |
Dividend Swap outstanding at March 31, 2011
| | | | | | | | | | | | | | | | |
| | | Notional
| | | Return Paid
| | Return Received
| | | | Unrealized
|
| Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | Appreciation |
| |
| Goldman Sachs International | | | 101,697,840 EUR | | | | 927,900 EUR for every 1
dividend Dow Jones
Euro STOXX 50 Index
point decrease in the
actual dividends from
the Fixed Strike | | | 927,900 EUR for every 1
dividend Dow Jones
Euro STOXX 50 Index
point increase in the
actual dividends from
the Fixed Strike | | 12/28/12 | | $ | 15,777,929 |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 65
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 |
Performance
Janus Growth and Income Fund’s Class T Shares returned 14.25% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the S&P 500 Index, returned 17.31%, and its secondary benchmark, the Russell 1000 Growth Index, returned 18.57% during the period.
Portfolio Manager Comments
Equity markets turned in strong performances during the six-month period despite unrest in the Middle East and North Africa and the tragic earthquake and tsunami in Japan, which weighed on indices late. Earlier in the period, improving economic data in the U.S., a second round of quantitative easing from the U.S. Federal Reserve and hope of a more business friendly tone from Washington, D.C., following the mid-term elections set the tone for strong gains. However, higher oil prices, ongoing geopolitical conflicts, worries over reduced demand from Japan and disruption in supply chains for auto makers and technology companies were immediate concerns and contributed to significant market uncertainty near period end. While we are still monitoring global events, we continue positioning the Fund to benefit from what we believe will be an incrementally improving economic environment. The Federal Reserve will likely maintain low interest rates, which should offset a still-weak housing market and soft employment numbers. The biggest risk we see to our constructive economic view would be another sharp decline in the housing market, caused by more foreclosed houses hitting the market than is currently anticipated, thereby stifling demand for new homes.
In keeping with our positive outlook, we have been modestly adding consumer discretionary names and some industrials while reducing our health care and consumer staples holdings. These changes are at the margin, however, and we continue to hold many of our key names from last year.
Among the new holdings are companies in which we can justify valuations relative to improving prospects based on upward sloping business trends, or positive management changes among others. During the latter half of the period, we added Coach, a luxury goods maker that has shown strong sales growth outside of the U.S., and U.S. Bancorp, a multistate financial services holding company that we view as well-managed with a historical ability to generate high returns on equity. CIT Group, a commercial and consumer finance company, was also added to the Fund based on its low valuation relative to its book value and potential for earnings improvement. The company is in the process of refinancing high-cost debt, which should improve its net interest margin and earnings.
Similar to previous periods, we remain attracted to multinationals that have good exposure to emerging markets given our bullish view on these regions. One way we have played this view is through owning consumer product companies that have a strong presence in these regions.
Detractors
Delta Air lines, which was negatively impacted by rising fuel prices, was our largest individual detractor. With a strong route network across the U.S., Europe and Asia, we think Delta has one of the better balance sheets in the industry and like that management is continuing to pay down debt. The company should also benefit from ongoing consolidation within the industry, which has improved pricing.
Online travel company Expedia also weighed on performance. We like Expedia for its hotel booking business globally, particularly in Europe, and the increasing use of third-party agents like Expedia for hotel reservations. The stock remained attractively valued in our opinion.
Finally, CIT Group traded lower after we purchased it during the period. As mentioned previously, the commercial and consumer finance company, which came out of bankruptcy in 2009, should benefit as it refinances
66 | MARCH 31, 2011
(unaudited)
its high-cost debt. We also think CIT should grow its loan business.
Contributors
Mass media holding CBS benefited from continued improvement in the advertising market and its ownership of the top-rated network. We like the company’s role as a provider of content, which we think will be highly valued going forward. We also appreciate the additional revenue the company is generating by re-transmitting its network to cable and satellite providers.
Energy company Hess Corp. received a boost from spiking energy prices late in the period. We think Hess remains an attractive holding given its meaningful exposure to a Brazilian offshore well it jointly owns with two other companies. We continue to see the company’s properties off the coast of Brazil offering substantial reserve potential.
Philip Morris International, a maker of tobacco products, was also a key contributor. We like the tobacco company for its pure international exposure, stable markets, minimal litigation risk and ability to implement price increases. Its cash generative business has historically also led to high dividend payouts and share repurchases.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion regarding the use of forward currency contracts by the Fund.
Outlook
We remain optimistic on the U.S. economy overall but are cognizant of valuations. While we consider them to be more demanding, we do not see valuations as unreasonable and continue to find what we consider to be attractive opportunities in the U.S. We are seeing improvements in both the business and consumer sectors, something we could not say a year ago. We think this will continue and that businesses will start to make use of the record levels of cash sitting on their balance sheets. The large amounts of cash plus strong corporate profitability provide a favorable backdrop for U.S. equity markets, in our view, as it suggests the potential for more shareholder friendly activities – dividends, share repurchases and/or mergers and acquisitions. We remain committed to finding companies with strong free cash flows, improving margins and leaner capital structures. We like companies that run more efficiently because of the potential for them to generate higher free cash flows and earn greater returns on the capital deployed. We think this combination provides firms with the flexibility to return cash to shareholders, perhaps in the form of dividends, without sacrificing their growth prospects.
Thank you for your investment in Janus Growth and Income Fund.
Janus Growth & Core Funds | 67
Janus Growth and Income Fund (unaudited)
Janus Growth and Income Fund At A Glance
5 Top Performers – Equity Holdings
| | | | | |
| | | Contribution |
| |
| CBS Corp. – Class B | | | 1.33% | |
| Hess Corp. | | | 1.04% | |
| Philip Morris International, Inc. | | | 0.92% | |
| Oracle Corp. | | | 0.84% | |
| Occidental Petroleum Corp. | | | 0.82% | |
5 Bottom Performers – Equity Holdings
| | | | | |
| | | Contribution |
| |
| Delta Air Lines, Inc. | | | –0.27% | |
| Expedia, Inc. | | | –0.23% | |
| CIT Group, Inc. | | | –0.18% | |
| Ford Motor Co. | | | –0.16% | |
| Citigroup, Inc. | | | –0.15% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Information Technology | | | 4.00% | | | | 22.80% | | | | 18.85% | |
| Energy | | | 3.36% | | | | 12.51% | | | | 12.08% | |
| Consumer Discretionary | | | 1.94% | | | | 16.77% | | | | 10.57% | |
| Materials | | | 1.40% | | | | 5.47% | | | | 3.64% | |
| Industrials | | | 1.27% | | | | 10.00% | | | | 10.96% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | S&P 500®
|
| | | Fund Contribution | | (Average % of Equity) | | Index Weighting |
| |
| Utilities | | | 0.00% | | | | 0.00% | | | | 3.34% | |
| Telecommunication Services | | | 0.00% | | | | 0.45% | | | | 3.02% | |
| Financials | | | 1.06% | | | | 11.17% | | | | 15.86% | |
| Health Care | | | 1.15% | | | | 11.04% | | | | 11.06% | |
| Consumer Staples | | | 1.23% | | | | 9.79% | | | | 10.62% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
68 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Philip Morris International, Inc.
Tobacco | | | 4.6% | |
Oracle Corp.
Enterprise Software/Services | | | 3.4% | |
CBS Corp. – Class B
Television | | | 3.0% | |
Morgan Stanley
Diversified Banking Institutions | | | 2.8% | |
Hess Corp.
Oil Companies – Integrated | | | 2.5% | |
| | | | | |
| | | | 16.3% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 1.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Growth & Core Funds | 69
Janus Growth and Income Fund (unaudited)
| | | | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 14.26% | | 11.11% | | 0.33% | | 2.50% | | 10.21% | | | 1.02% | | 0.95% |
| MOP | | 7.69% | | 4.72% | | –0.86% | | 1.89% | | 9.88% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund – Class C Shares | | | | | | | | | | | | | | | |
| NAV | | 13.80% | | 10.30% | | –0.48% | | 1.73% | | 9.48% | | | 1.80% | | 1.70% |
| CDSC | | 12.66% | | 9.20% | | –0.48% | | 1.73% | | 9.48% | | | | | |
| | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund – Class D Shares(1) | | 14.34% | | 11.29% | | 0.43% | | 2.59% | | 10.27% | | | 0.81% | | 0.81% |
| | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund – Class I Shares | | 14.37% | | 11.41% | | 0.41% | | 2.58% | | 10.26% | | | 0.70% | | 0.70% |
| | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund – Class R Shares | | 13.97% | | 10.61% | | –0.15% | | 2.04% | | 9.80% | | | 1.42% | | 1.42% |
| | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund – Class S Shares | | 14.15% | | 10.90% | | 0.11% | | 2.29% | | 10.04% | | | 1.16% | | 1.16% |
| | | | | | | | | | | | | | | | |
| Janus Growth and Income Fund – Class T Shares | | 14.25% | | 11.16% | | 0.41% | | 2.58% | | 10.26% | | | 0.93% | | 0.93% |
| | | | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 8.85% | | | | | |
| | | | | | | | | | | | | | | | |
| Russell 1000® Growth Index | | 18.57% | | 18.26% | | 4.34% | | 2.99% | | 7.89% | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 4th | | 4th | | 3rd | | 1st | | | | | |
| | | | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Large-Cap Core Funds | | – | | 868/1,079 | | 688/800 | | 311/492 | | 10/90 | | | | | |
| | | | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
70 | MARCH 31, 2011
(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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 general and 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 invests 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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
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.
There is no assurance that the investment process will consistently lead to successful investing.
Janus Growth & Core Funds | 71
Janus Growth and Income Fund (unaudited)
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. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,142.60 | | | $ | 5.18 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,138.00 | | | $ | 9.22 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.31 | | | $ | 8.70 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,143.40 | | | $ | 4.49 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.74 | | | $ | 4.23 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,143.70 | | | $ | 3.74 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,139.70 | | | $ | 7.52 | | | |
| |
| |
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 S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,141.10 | | | $ | 6.25 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,142.50 | | | $ | 4.91 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.34 | | | $ | 4.63 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 0.97% for Class A Shares, 1.73% for Class C Shares, 0.84% for Class D Shares, 0.70% for Class I Shares, 1.41% for Class R Shares, 1.17% for Class S Shares and 0.92% 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. |
72 | MARCH 31, 2011
Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Common Stock – 94.5% | | | | | | |
| Aerospace and Defense – 2.0% | | | | | | |
| | 1,115,965 | | | Boeing Co. | | $ | 82,503,292 | | | |
| Agricultural Chemicals – 1.1% | | | | | | |
| | 723,690 | | | Syngenta A.G. (ADR)** | | | 47,162,877 | | | |
| Airlines – 0.8% | | | | | | |
| | 3,250,000 | | | Delta Air Lines, Inc.* | | | 31,850,000 | | | |
| Apparel Manufacturers – 2.4% | | | | | | |
| | 723,393 | | | Coach, Inc. | | | 37,645,372 | | | |
| | 500,971 | | | Polo Ralph Lauren Corp. | | | 61,945,064 | | | |
| | | | | | | | 99,590,436 | | | |
| Athletic Footwear – 2.0% | | | | | | |
| | 1,112,268 | | | NIKE, Inc. – Class B | | | 84,198,688 | | | |
| Automotive – Cars and Light Trucks – 2.0% | | | | | | |
| | 492,600 | | | Daimler A.G. | | | 34,871,154 | | | |
| | 3,406,313 | | | Ford Motor Co.* | | | 50,788,127 | | | |
| | | | | | | | 85,659,281 | | | |
| Broadcast Services and Programming – 0.6% | | | | | | |
| | 500,000 | | | Scripps Networks Interactive, Inc. – Class A | | | 25,045,000 | | | |
| Cable Television – 2.3% | | | | | | |
| | 922,415 | | | DIRECTV – Class A* | | | 43,169,022 | | | |
| | 750,000 | | | Time Warner Cable, Inc. – Class A | | | 53,505,000 | | | |
| | | | | | | | 96,674,022 | | | |
| Casino Hotels – 0.7% | | | | | | |
| | 650,000 | | | Las Vegas Sands Corp.* | | | 27,443,000 | | | |
| Chemicals – Diversified – 2.8% | | | | | | |
| | 1,800,000 | | | E.I. du Pont de Nemours & Co. | | | 98,946,000 | | | |
| | 500,000 | | | LyondellBasell Industries N.V.* | | | 19,775,000 | | | |
| | | | | | | | 118,721,000 | | | |
| Commercial Banks – 4.0% | | | | | | |
| | 1,800,000 | | | CIT Group, Inc.* | | | 76,590,000 | | | |
| | 500,000 | | | ICICI Bank, Ltd. (ADR) | | | 24,915,000 | | | |
| | 1,000,000 | | | Itau Unibanco Holding S.A. (ADR) | | | 24,050,000 | | | |
| | 1,704,238 | | | Standard Chartered PLC** | | | 44,202,375 | | | |
| | | | | | | | 169,757,375 | | | |
| Commercial Services – Finance – 2.0% | | | | | | |
| | 175,000 | | | MasterCard, Inc. – Class A | | | 44,051,000 | | | |
| | 1,866,895 | | | Western Union Co. | | | 38,775,409 | | | |
| | | | | | | | 82,826,409 | | | |
| Computer Services – 1.6% | | | | | | |
| | 412,155 | | | International Business Machines Corp. | | | 67,210,116 | | | |
| Computers – 2.9% | | | | | | |
| | 264,956 | | | Apple, Inc.* | | | 92,323,918 | | | |
| | 536,075 | | | Research In Motion, Ltd. (U.S. Shares)* | | | 30,325,763 | | | |
| | | | | | | | 122,649,681 | | | |
| Computers – Integrated Systems – 1.2% | | | | | | |
| | 1,000,000 | | | Terdata Corp.* | | | 50,700,000 | | | |
| Cosmetics and Toiletries – 1.8% | | | | | | |
| | 757,056 | | | Colgate-Palmolive Co. | | | 61,139,843 | | | |
| | 150,000 | | | Estee Lauder Cos., Inc. – Class A | | | 14,454,000 | | | |
| | | | | | | | 75,593,843 | | | |
| Diversified Banking Institutions – 4.5% | | | | | | |
| | 9,050,000 | | | Citigroup, Inc. | | | 40,001,000 | | | |
| | 667,535 | | | Credit Suisse Group A.G. (ADR)** | | | 28,423,640 | | | |
| | 4,339,706 | | | Morgan Stanley | | | 118,560,768 | | | |
| | | | | | | | 186,985,408 | | | |
| E-Commerce/Services – 3.5% | | | | | | |
| | 3,272,065 | | | eBay, Inc.* | | | 101,564,898 | | | |
| | 200,000 | | | Netflix, Inc.* | | | 47,466,000 | | | |
| | | | | | | | 149,030,898 | | | |
| Electric Products – Miscellaneous – 1.0% | | | | | | |
| | 750,000 | | | Emerson Electric Co. | | | 43,822,500 | | | |
| Electronic Components – Miscellaneous – 0.6% | | | | | | |
| | 769,731 | | | TE Connectivity, Ltd. (U.S. Shares)** | | | 26,802,033 | | | |
| Electronic Components – Semiconductors – 1.6% | | | | | | |
| | 420,920 | | | Broadcom Corp. – Class A | | | 16,575,829 | | | |
| | 723,875 | | | Microchip Technology, Inc. | | | 27,514,489 | | | |
| | 2,352,817 | | | ON Semiconductor Corp.* | | | 23,222,304 | | | |
| | | | | | | | 67,312,622 | | | |
| Electronic Connectors – 1.0% | | | | | | |
| | 787,284 | | | Amphenol Corp. – Class A | | | 42,820,377 | | | |
| Electronic Forms – 1.0% | | | | | | |
| | 1,300,000 | | | Adobe Systems, Inc.* | | | 43,108,000 | | | |
| Enterprise Software/Services – 3.4% | | | | | | |
| | 4,340,604 | | | Oracle Corp. | | | 144,845,955 | | | |
| Finance – Other Services – 1.8% | | | | | | |
| | 2,101,789 | | | NYSE Euronext | | | 73,919,919 | | | |
| Hotels and Motels – 1.5% | | | | | | |
| | 1,750,000 | | | Marriott International, Inc. – Class A | | | 62,265,000 | | | |
| Investment Management and Advisory Services – 1.3% | | | | | | |
| | 3,050,000 | | | Blackstone Group L.P. | | | 54,534,000 | | | |
| Life and Health Insurance – 0.7% | | | | | | |
| | 497,603 | | | AFLAC, Inc. | | | 26,263,486 | | | |
| | 333,623 | | | Prudential PLC** | | | 3,780,711 | | | |
| | | | | | | | 30,044,197 | | | |
| Medical – Biomedical and Genetic – 2.6% | | | | | | |
| | 811,020 | | | Celgene Corp.* | | | 46,657,981 | | | |
| | 1,473,705 | | | Gilead Sciences, Inc.* | | | 62,544,040 | | | |
| | | | | | | | 109,202,021 | | | |
| Medical – Drugs – 4.3% | | | | | | |
| | 2,893,307 | | | Bristol-Myers Squibb Co. | | | 76,470,104 | | | |
| | 750,000 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 28,620,000 | | | |
| | 2,000,000 | | | Pfizer, Inc. | | | 40,620,000 | | | |
| | 400,000 | | | Shire PLC (ADR)** | | | 34,840,000 | | | |
| | | | | | | | 180,550,104 | | | |
| Medical – Generic Drugs – 0.9% | | | | | | |
| | 1,750,000 | | | Mylan, Inc.* | | | 39,672,500 | | | |
| Medical – HMO – 1.2% | | | | | | |
| | 750,000 | | | Humana, Inc.* | | | 52,455,000 | | | |
| Metal – Copper – 1.2% | | | | | | |
| | 939,062 | | | Freeport-McMoRan Copper & Gold, Inc. – Class B | | | 52,164,894 | | | |
| Metal Processors and Fabricators – 1.1% | | | | | | |
| | 321,095 | | | Precision Castparts Corp. | | | 47,258,762 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 73
Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Non-Hazardous Waste Disposal – 0.7% | | | | | | |
| | 750,000 | | | Waste Management, Inc. | | $ | 28,005,000 | | | |
| Oil – Field Services – 1.3% | | | | | | |
| | 1,054,475 | | | Halliburton Co. | | | 52,555,034 | | | |
| Oil Companies – Exploration and Production – 5.2% | | | | | | |
| | 1,650,000 | | | Canadian Natural Resources, Ltd. | | | 81,559,500 | | | |
| | 378,535 | | | EOG Resources, Inc. | | | 44,860,183 | | | |
| | 888,461 | | | Occidental Petroleum Corp. | | | 92,835,290 | | | |
| | | | | | | | 219,254,973 | | | |
| Oil Companies – Integrated – 4.4% | | | | | | |
| | 750,000 | | | Chevron Corp. | | | 80,572,500 | | | |
| | 1,211,417 | | | Hess Corp. | | | 103,224,843 | | | |
| | | | | | | | 183,797,343 | | | |
| Oil Refining and Marketing – 0.3% | | | | | | |
| | 434,147 | | | Valero Energy Corp. | | | 12,946,263 | | | |
| Pharmacy Services – 1.8% | | | | | | |
| | 1,328,256 | | | Express Scripts, Inc. – Class A* | | | 73,864,316 | | | |
| Pipelines – 1.3% | | | | | | |
| | 1,250,000 | | | Enterprise Products Partners L.P. | | | 53,825,000 | | | |
| | 2,140 | | | Kinder Morgan Management LLC* | | | 140,363 | | | |
| | | | | | | | 53,965,363 | | | |
| Retail – Building Products – 1.1% | | | | | | |
| | 1,223,856 | | | Home Depot, Inc. | | | 45,356,103 | | | |
| Retail – Major Department Stores – 0.1% | | | | | | |
| | 81,514 | | | Nordstrom, Inc. | | | 3,658,348 | | | |
| Retail – Regional Department Stores – 0.9% | | | | | | |
| | 1,550,000 | | | Macy’s, Inc. | | | 37,603,000 | | | |
| Super-Regional Banks – 0.6% | | | | | | |
| | 950,000 | | | U.S. Bancorp. | | | 25,108,500 | | | |
| Telecommunication Equipment – Fiber Optics – 0.8% | | | | | | |
| | 1,629,030 | | | Corning, Inc. | | | 33,606,889 | | | |
| Telephone – Integrated – 0.5% | | | | | | |
| | 3,000,000 | | | Qwest Communications International, Inc. | | | 20,490,000 | | | |
| Television – 3.0% | | | | | | |
| | 5,000,768 | | | CBS Corp. – Class B | | | 125,219,231 | | | |
| Tobacco – 5.6% | | | | | | |
| | 1,719,730 | | | Altria Group, Inc. | | | 44,764,572 | | | |
| | 2,920,248 | | | Philip Morris International, Inc. | | | 191,655,876 | | | |
| | | | | | | | 236,420,448 | | | |
| Toys – 1.1% | | | | | | |
| | 1,791,535 | | | Mattel, Inc. | | | 44,662,968 | | | |
| Transportation – Railroad – 1.8% | | | | | | |
| | 767,590 | | | Union Pacific Corp. | | | 75,477,125 | | | |
| Transportation – Services – 0.6% | | | | | | |
| | 500,000 | | | Expeditors International of Washington, Inc. | | | 25,070,000 | | | |
| |
| |
| Total Common Stock (cost $3,103,557,116) | | | 3,971,440,114 | | | |
| |
| |
| Corporate Bonds – 3.4% | | | | | | |
| Building – Residential and Commercial – 0.1% | | | | | | |
| | $6,467,000 | | | Meritage Homes Corp.
6.2500%, 3/15/15 | | | 6,515,503 | | | |
| Casino Hotels – 0.4% | | | | | | |
| | 2,498,000 | | | MGM Mirage
4.2500%, 4/15/15 (144A) | | | 2,638,512 | | | |
| | 15,000,000 | | | MGM Resorts International
7.6250%, 1/15/17 | | | 14,156,250 | | | |
| | | | | | | | 16,794,762 | | | |
| Hotels and Motels – 0.3% | | | | | | |
| | 9,990,000 | | | Starwood Hotels & Resorts Worldwide, Inc.
6.7500%, 5/15/18 | | | 10,851,637 | | | |
| Medical – Biomedical and Genetic – 0.7% | | | | | | |
| | 25,000,000 | | | Vertex Pharmaceuticals, Inc.
3.3500%, 10/1/15 | | | 30,375,000 | | | |
| Medical – Hospitals – 0.2% | | | | | | |
| | 9,990,000 | | | HCA, Inc.
7.2500%, 9/15/20 | | | 10,689,300 | | | |
| Power Converters and Power Supply Equipment – 1.1% | | | | | | |
| | 24,957,000 | | | JA Solar Holdings Co., Ltd.
4.5000%, 5/15/13 | | | 23,927,524 | | | |
| | 24,090,000 | | | Suntech Power Holdings Co., Ltd.
3.0000%, 3/15/13 (144A) | | | 22,132,687 | | | |
| | | | | | | | 46,060,211 | | | |
| REIT – Mortgage – 0.3% | | | | | | |
| | 10,000,000 | | | Annaly Capital Management, Inc.
4.0000%, 2/15/15 | | | 11,612,500 | | | |
| REIT – Warehouse and Industrial – 0.3% | | | | | | |
| | 9,985,000 | | | ProLogis
3.2500%, 3/15/15 | | | 11,719,894 | | | |
| |
| |
| Total Corporate Bonds (cost $133,915,223) | | | 144,618,807 | | | |
| |
| |
| U.S. Treasury Notes/Bonds – 0.9% | | | | | | |
| | | | | U.S. Treasury Notes/Bonds: | | | | | | |
| | 19,282,000 | | | 4.8750%, 7/31/11 | | | 19,586,289 | | | |
| | 19,282,000 | | | 3.3750%, 7/31/13 | | | 20,372,629 | | | |
| |
| |
| Total U.S. Treasury Notes/Bonds (cost $38,861,634) | | | 39,958,918 | | | |
| |
| |
| Money Market – 0.1% | | | | | | |
| | 2,410,000 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $2,410,000) | | | 2,410,000 | | | |
| |
| |
| Total Investments (total cost $3,278,743,973) – 98.9% | | | 4,158,427,839 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities – 1.1% | | | 45,258,053 | | | |
| |
| |
| Net Assets – 100% | | $ | 4,203,685,892 | | | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
74 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Brazil | | $ | 24,050,000 | | | | 0.6% | |
| Canada | | | 111,885,263 | | | | 2.7% | |
| Cayman Islands | | | 46,060,211 | | | | 1.1% | |
| Germany | | | 34,871,154 | | | | 0.8% | |
| India | | | 24,915,000 | | | | 0.6% | |
| Jersey | | | 34,840,000 | | | | 0.8% | |
| Netherlands | | | 19,775,000 | | | | 0.5% | |
| Switzerland | | | 102,388,550 | | | | 2.5% | |
| United Kingdom | | | 47,983,086 | | | | 1.1% | |
United States†† | | | 3,711,659,575 | | | | 89.3% | |
| |
| |
| Total | | $ | 4,158,427,839 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (89.2% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| British Pound 5/6/11 | | | 2,600,000 | | | $ | 4,168,719 | | | $ | 47,207 | |
| Swiss Franc 5/6/11 | | | 7,110,000 | | | | 7,745,293 | | | | (80,599) | |
| |
| |
| | | | | | | | 11,914,012 | | | | (33,392) | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| British Pound 5/12/11 | | | 7,790,000 | | | | 12,488,841 | | | | 162,743 | |
| Swiss Franc 5/12/11 | | | 9,971,000 | | | | 10,862,517 | | | | 156,989 | |
| |
| |
| | | | | | | | 23,351,358 | | | | 319,732 | |
| |
| |
JPMorgan Chase & Co.:
British Pound 4/28/11 | | | 14,027,000 | | | | 22,492,864 | | | | 338,096 | |
| |
| |
| Total | | | | | | $ | 57,758,234 | | | $ | 624,436 | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 75
Janus Research Fund (unaudited)
| | | | | | | |
Fund Snapshot
We strive to deliver the best investment results in the business, built on the foundation of superior research. The Fund leverages our strong research team and differentiated investment process. It is a best ideas Fund, driven by the analysts, capturing the value of Janus’ research while managing risk.
| | | | | | Team Based Approach
Led by Jim Goff
Director of Research |
Performance
Janus Research Fund’s Class T Shares returned 16.89% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 18.57%, and its secondary benchmark, the S&P 500 Index, returned 17.31% during the period.
Economic Overview
While we retain our faith in the value of long-term thinking, the latter half of the period underscored the folly of short-term predictions. Anybody who claims to have considered oil spiking on Middle East unrest, a nuclear power scare in Japan and additional sovereign issues in Europe is lying, deluded or (worse) applying for a job as an investment strategist.
We don’t see these crises as derailing the global economic recovery or our ability to find attractive stocks. Of the three issues, the Middle East is the biggest in terms of economic and investment implications. If it leads to a sustained oil supply shock, it will pressure the recovery. We don’t see that scenario, however. Whoever rules will want to sell oil. Our energy team remains bullish on oil and on natural gas longer term. Higher oil and related commodities, including food prices, mean cost pressure. A company’s ability to preserve margins and maintain pricing power are key criteria for our consumer and industrial teams, for example.
The disaster in Japan, a horrific human tragedy, does not meaningfully change our global view. The stricken area is lightly industrialized. Power rationing and supply chain disruptions are problematic short term, but not enough to deflate stocks long term in our opinion. Portugal reminded us that the sovereign risk in Southern Europe never went away. The country declared it does not need a bailout – just as Ireland claimed right before its bailout last year. Portugal, Greece and Ireland are small economies but their problems hurt sentiment. Nevertheless, we don’t see significant long term impacts on most stocks.
It is sentiment that can temporarily undermine the success of fundamental investing. So far, we think markets are doing a nice job of looking through these crises. The U.S. has held up relatively well, compared to the volatility of prior years. Emerging markets, most susceptible to the corrosive power of inflation, have traded off and valuations seem more reasonable.
Together, our teams are finding investment opportunities. Health care and industrials face the toughest short-term challenges, perhaps, while conditions are improving for financials and in technology large caps generally look mispriced. Our consumer team also remains bullish. For more details on our sector views and our long term perspective, please read on.
Sector Views
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.
In health care, companies face challenges but may be putting their problems behind them. In the near term, health care reform in the U.S. and austerity measures in Europe have weighed on the sector. The economic slowdown and a shift of some costs to patients are lowering utilization of the health care system. Consequentially, 2011 might show even slower earnings growth than expected. In 2012, the well-documented patent cliff will peak, as some of the largest-volume branded drugs go generic.
Turmoil in the Middle East dominates the energy sector. We had been bullish on oil before the uprisings because we saw a long-term supply crunch. The threat to supply out of Libya and perhaps elsewhere increases that imbalance. While Saudi Arabia can cover the shortfall out of Asia, it is not a simple switch as the quality of crude differs. The natural disaster in Japan may intensify the price pressure: with its nuclear options disabled and liquefied natural gas supplies tight in Asia, Japan may need to import oil to generate power. Still, the risk of a demand shock remains, should the price soar too high. The last time oil hit $150, the unemployment rate was lower and demand suffered.
76 | MARCH 31, 2011
(unaudited)
While the financial sector remains under pressure, some of the uncertainty is lifting. The new regulatory framework may turn out better than expected as more details emerge on how the Dodd-Frank law will be implemented. For example, definitions of proprietary trading, rules on derivatives and debit card interchange fees may be more favorable than the market anticipates. Relief from another burden – low interest rates – is tougher to time, although a steeper yield curve (the difference in yields between 2-year and 10-year Treasuries) helps improve net interest margins and the yield on the investment portfolio for insurance companies. Should the market begin to price in higher rates, the stocks should respond before rates actually rise. The downside of higher rates is lower mortgage refinance business.
We are watching key macro factors that relate to the consumer sector. Personal income grew 3-4% in the second half of 2010, providing a more solid footing for spending. The high-end consumer worldwide has continued to drive sales, and strong equity market returns bode well for confidence among higher-income consumers. For the mass market, however, the stock market’s wealth effect may not offset factors such as stubbornly high unemployment rates, flat to declining house prices and inflation in energy, health care and food prices.
With low multiples in technology stocks, we believe there is more upside than downside from here, assuming reasonable levels of global economic growth. This opportunity looks especially attractive in large cap tech stocks. In the last four years, the average price-to-earnings multiple has dropped from 18.8 to 12.5. Yet many large tech companies showed good earnings growth and stable returns during this period, according to our research. Technology also traded at a significant premium to the S&P 500 Index (a market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance) in 2007 and trades at a discount today.
Revenues for industrial companies have come in ahead of expectations and data points continue to indicate an ongoing global recovery. Order books are expanding, transport volumes are accelerating and lead times are extending. Industrial companies face a number of challenges, however. Higher oil prices and volatility in the Middle East may slow end-market demand. Margin pressures continue to build, as we warned previously. Commodity cost inflation and the need to ramp up production are eroding incremental margins. We expect margins to decline from here. Earnings growth will be lower as well, and multiples will fall as we progress through the economic cycle.
In communications, the advertising rebound continued its momentum into 2011 and all signs suggest this should be another good year of growth, particularly in the U.S. and developing markets. Budgets are planned to increase for 2011 and inventory is now tight in the most desired categories. We are not yet back to peak spending levels, but it appears that media inflation has returned. Ad buyers are showing a willingness to follow eyeballs from traditional TV to other screens, as long as they can measure returns and get scale. Areas showing the greatest price inflation include online search and premium content video.
Holdings Overview
Our relative underperformance during the period was driven largely by our industrial and consumer holdings. These were somewhat offset by the strong relative performance of our technology and communication holdings.
Within industrials, Newmont Mining and Delta Air Lines were the largest detractors for the sector and the second and third largest, respectively, for the Fund overall. We like Newmont’s exposure to gold, which lagged most commodities’ price gains. We feel gold hedges a variety of risks, such as oil-price shocks, a weakening dollar and geopolitical instability. Rising energy prices weighed on the Delta’s shares; we decided to sell the name to invest in better risk-reward opportunities.
Cisco Systems was our largest individual detractor. The networking giant has gone through a period of sluggish financial performance relative to expectations, but we continue to like the company’s multiyear outlook based on its broad market line and high market share.
Individual contributors included semiconductor manufacturer Atmel, whose shares rose over 71%. We remain attracted to the chip maker given its potential to generate high returns on capital and accelerating free cash flows. We think the company’s microcontroller products can continue to take market share.
Refiner Valero Energy also returned over 71% for the six-month period. We believe the U.S. refiner continues to offer an attractive valuation and the current economic recovery will increase refinery utilizations and allow for better margins.
Finally, oil-field service company Halliburton performed strongly. While we feel Halliburton will continue to benefit
Janus Growth & Core Funds | 77
Janus Research Fund (unaudited)
from attractive trends on the industry, we viewed other names as more attractive on a risk-reward basis.
(Please see “Notes to Financial Statements” for information about the hedging techniques 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 a portion of our personal assets 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 strong 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.
78 | MARCH 31, 2011
(unaudited)
Janus Research Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Atmel Corp. | | | 1.38% | |
| Valero Energy Corp. | | | 1.06% | |
| Halliburton Co. | | | 0.72% | |
| Apple, Inc. | | | 0.69% | |
| ARM Holdings PLC | | | 0.62% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Cisco Systems, Inc. | | | –0.61% | |
| Newmont Mining Corp. | | | –0.18% | |
| Delta Air Lines, Inc. | | | –0.18% | |
| Microsoft Corp. | | | –0.17% | |
| Tellabs, Inc. | | | –0.15% | |
4 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Technology | | | 5.57% | | | | 27.41% | | | | 27.22% | |
| Energy | | | 3.96% | | | | 10.96% | | | | 11.05% | |
| Industrials | | | 2.98% | | | | 19.76% | | | | 20.07% | |
| Consumer | | | 1.76% | | | | 18.62% | | | | 18.44% | |
3 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Financials | | | 0.89% | | | | 5.87% | | | | 5.85% | |
| Communications | | | 1.19% | | | | 7.04% | | | | 6.93% | |
| Health Care | | | 1.52% | | | | 10.34% | | | | 10.44% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Growth & Core Funds | 79
Janus Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Apple, Inc.
Computers | | | 2.6% | |
TE Connectivity, Ltd. (U.S. Shares)
Electronic Components – Miscellaneous | | | 2.4% | |
Baker Hughes, Inc.
Oil – Field Services | | | 2.4% | |
Microsoft Corp.
Applications Software | | | 2.3% | |
Valero Energy Corp.
Oil Refining and Marketing | | | 2.1% | |
| | | | | |
| | | | 11.8% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 3.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
80 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 16.88% | | 18.77% | | 5.30% | | 3.19% | | 10.46% | | | 1.06% |
| MOP | | 10.18% | | 11.94% | | 4.06% | | 2.58% | | 10.10% | | | |
| | | | | | | | | | | | | | |
Janus Research Fund –
Class C Shares | | | | | | | | | | | | | |
| NAV | | 16.39% | | 17.88% | | 4.48% | | 2.52% | | 9.71% | | | 1.81% |
| CDSC | | 15.23% | | 16.71% | | 4.48% | | 2.52% | | 9.71% | | | |
| | | | | | | | | | | | | | |
Janus Research Fund –
Class D Shares(1) | | 16.98% | | 19.01% | | 5.52% | | 3.41% | | 10.70% | | | 0.90% |
| | | | | | | | | | | | | | |
Janus Research Fund –
Class I Shares | | 16.97% | | 19.10% | | 5.50% | | 3.40% | | 10.69% | | | 0.79% |
| | | | | | | | | | | | | | |
Janus Research Fund –
Class S Shares | | 16.76% | | 18.52% | | 5.10% | | 3.03% | | 10.31% | | | 1.25% |
| | | | | | | | | | | | | | |
Janus Research Fund –
Class T Shares | | 16.89% | | 18.87% | | 5.50% | | 3.40% | | 10.69% | | | 1.08% |
| | | | | | | | | | | | | | |
| Russell 1000® Growth Index | | 18.57% | | 18.26% | | 4.34% | | 2.99% | | 7.56% | | | |
| | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 8.40% | | | |
| | | | | | | | | | | | | | |
Lipper Quartile –
Class T Shares | | – | | 3rd | | 1st | | 3rd | | 1st | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Multi-Cap Growth Funds | | – | | 284/451 | | 61/317 | | 144/221 | | 9/45 | | | |
| | | | | | | | | | | | | | |
| 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.
See important disclosures on the next page.
Janus Growth & Core Funds | 81
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 general and 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 invests 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 from 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, 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
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.”
| | | |
| * | | The Fund’s inception date – May 3, 1993 |
| (1) | | Closed to new investors. |
82 | MARCH 31, 2011
(unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,168.80 | | | $ | 5.30 | | | |
| |
| |
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 C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,164.40 | | | $ | 9.28 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.36 | | | $ | 8.65 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,169.80 | | | $ | 4.27 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,169.70 | | | $ | 3.79 | | | |
| |
| |
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 S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,167.60 | | | $ | 6.16 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.25 | | | $ | 5.74 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,169.70 | | | $ | 4.81 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.49 | | | $ | 4.48 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 0.98% for Class A Shares, 1.72% for Class C Shares, 0.79% for Class D Shares, 0.70% for Class I Shares, 1.14% for Class S Shares and 0.89% 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 Growth & Core Funds | 83
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 98.1% | | | | | | |
| Aerospace and Defense – Equipment – 1.0% | | | | | | |
| | 419,198 | | | United Technologies Corp. | | $ | 35,485,111 | | | |
| Apparel Manufacturers – 1.8% | | | | | | |
| | 658,712 | | | Coach, Inc. | | | 34,279,372 | | | |
| | 248,518 | | | Polo Ralph Lauren Corp. | | | 30,729,251 | | | |
| | | | | | | | 65,008,623 | | | |
| Applications Software – 2.3% | | | | | | |
| | 3,257,867 | | | Microsoft Corp. | | | 82,619,507 | | | |
| Athletic Footwear – 0.8% | | | | | | |
| | 405,369 | | | NIKE, Inc. – Class B | | | 30,686,433 | | | |
| Automotive – Cars and Light Trucks – 2.3% | | | | | | |
| | 4,498,531 | | | Ford Motor Co.* | | | 67,073,097 | | | |
| | 4,110,000 | | | Isuzu Motors, Ltd.** | | | 16,260,101 | | | |
| | | | | | | | 83,333,198 | | | |
| Beverages – Non-Alcoholic – 1.0% | | | | | | |
| | 577,362 | | | PepsiCo, Inc. | | | 37,187,886 | | | |
| Beverages – Wine and Spirits – 0.7% | | | | | | |
| | 1,309,762 | | | Diageo PLC** | | | 24,895,226 | | | |
| Brewery – 0.5% | | | | | | |
| | 302,330 | | | Anheuser-Busch InBev N.V.** | | | 17,219,512 | | | |
| Building – Residential and Commercial – 1.2% | | | | | | |
| | 59,585 | | | NVR, Inc.* | | | 45,046,260 | | | |
| Casino Hotels – 0.3% | | | | | | |
| | 1,202,928 | | | Crown, Ltd. | | | 10,138,222 | | | |
| Casino Services – 0.9% | | | | | | |
| | 2,036,124 | | | International Game Technology | | | 33,046,293 | | | |
| Cellular Telecommunications – 0.6% | | | | | | |
| | 351,188 | | | America Movil S.A.B. de C.V. – Series L (ADR) | | | 20,404,023 | | | |
| Chemicals – Diversified – 1.0% | | | | | | |
| | 459,486 | | | K+S A.G.** | | | 34,683,471 | | | |
| Computer Services – 1.5% | | | | | | |
| | 327,734 | | | International Business Machines Corp. | | | 53,443,583 | | | |
| Computers – 3.6% | | | | | | |
| | 269,278 | | | Apple, Inc.* | | | 93,829,919 | | | |
| | 614,938 | | | Research In Motion, Ltd. (U.S. Shares)* | | | 34,787,043 | | | |
| | | | | | | | 128,616,962 | | | |
| Computers – Memory Devices – 1.2% | | | | | | |
| | 1,598,324 | | | EMC Corp.* | | | 42,435,502 | | | |
| Consulting Services – 1.0% | | | | | | |
| | 882,371 | | | Gartner, Inc.* | | | 36,768,400 | | | |
| Containers – Metal and Glass – 0.9% | | | | | | |
| | 867,742 | | | Crown Holdings, Inc.* | | | 33,477,486 | | | |
| Cosmetics and Toiletries – 1.4% | | | | | | |
| | 622,247 | | | Colgate-Palmolive Co. | | | 50,252,668 | | | |
| Decision Support Software – 0.2% | | | | | | |
| | 201,288 | | | MSCI, Inc.* | | | 7,411,424 | | | |
| Dialysis Centers – 0.7% | | | | | | |
| | 286,781 | | | DaVita, Inc.* | | | 24,522,643 | | | |
| Distribution/Wholesale – 2.1% | | | | | | |
| | 1,779,515 | | | Adani Enterprises, Ltd. | | | 26,600,936 | | | |
| | 455,955 | | | Fastenal Co. | | | 29,559,563 | | | |
| | 3,756,000 | | | Li & Fung, Ltd. | | | 19,242,842 | | | |
| | | | | | | | 75,403,341 | | | |
| Diversified Banking Institutions – 1.6% | | | | | | |
| | 1,051,364 | | | Bank of America Corp. | | | 14,014,682 | | | |
| | 180,820 | | | Deutsche Bank A.G.** | | | 10,629,311 | | | |
| | 348,243 | | | JPMorgan Chase & Co. | | | 16,054,002 | | | |
| | 601,314 | | | Morgan Stanley | | | 16,427,899 | | | |
| | | | | | | | 57,125,894 | | | |
| Diversified Operations – 3.6% | | | | | | |
| | 1,348,246 | | | Danaher Corp. | | | 69,973,967 | | | |
| | 1,100,641 | | | Illinois Tool Works, Inc. | | | 59,126,435 | | | |
| | | | | | | | 129,100,402 | | | |
| E-Commerce/Services – 1.1% | | | | | | |
| | 972,628 | | | eBay, Inc.* | | | 30,190,373 | | | |
| | 46,730 | | | Netflix, Inc.* | | | 11,090,431 | | | |
| | | | | | | | 41,280,804 | | | |
| Electronic Components – Miscellaneous – 2.4% | | | | | | |
| | 2,530,044 | | | TE Connectivity, Ltd. (U.S. Shares)** | | | 88,096,132 | | | |
| Electronic Components – Semiconductors – 2.7% | | | | | | |
| | 5,273,666 | | | ARM Holdings PLC** | | | 48,639,131 | | | |
| | 556,332 | | | International Rectifier Corp.* | | | 18,392,336 | | | |
| | 2,998,675 | | | ON Semiconductor Corp.* | | | 29,596,922 | | | |
| | | | | | | | 96,628,389 | | | |
| Electronic Connectors – 1.1% | | | | | | |
| | 765,968 | | | Amphenol Corp. – Class A | | | 41,661,000 | | | |
| Enterprise Software/Services – 2.9% | | | | | | |
| | 1,590,409 | | | Autonomy Corp. PLC*,** | | | 40,535,735 | | | |
| | 1,897,997 | | | Oracle Corp. | | | 63,336,160 | | | |
| | | | | | | | 103,871,895 | | | |
| Finance – Credit Card – 0.2% | | | | | | |
| | 292,227 | | | Discover Financial Services | | | 7,048,515 | | | |
| Finance – Investment Bankers/Brokers – 0.5% | | | | | | |
| | 980,543 | | | Charles Schwab Corp. | | | 17,679,190 | | | |
| Finance – Other Services – 0.4% | | | | | | |
| | 54,535 | | | CME Group, Inc. | | | 16,445,029 | | | |
| Food – Miscellaneous/Diversified – 0.4% | | | | | | |
| | 233,119 | | | Groupe Danone** | | | 15,226,464 | | | |
| Gold Mining – 0.7% | | | | | | |
| | 461,267 | | | Newmont Mining Corp. | | | 25,175,953 | | | |
| Hotels and Motels – 0.7% | | | | | | |
| | 682,525 | | | Marriott International, Inc. – Class A | | | 24,284,240 | | | |
| Independent Power Producer – 0.8% | | | | | | |
| | 1,337,738 | | | NRG Energy, Inc.* | | | 28,814,877 | | | |
| Industrial Automation and Robotics – 0.8% | | | | | | |
| | 194,400 | | | Fanuc, Ltd.** | | | 29,431,169 | | | |
| Instruments – Scientific – 0.7% | | | | | | |
| | 474,661 | | | Thermo Fisher Scientific, Inc.* | | | 26,367,419 | | | |
| Investment Management and Advisory Services – 0.4% | | | | | | |
| | 193,992 | | | T. Rowe Price Group, Inc. | | | 12,884,949 | | | |
See Notes to Schedules of Investments and Financial Statements.
84 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Life and Health Insurance – 1.4% | | | | | | |
| | 253,968 | | | AFLAC, Inc. | | $ | 13,404,431 | | | |
| | 4,043,200 | | | AIA Group, Ltd.* | | | 12,449,332 | | | |
| | 185,822 | | | Prudential Financial, Inc. | | | 11,442,919 | | | |
| | 1,084,759 | | | Prudential PLC** | | | 12,292,798 | | | |
| | | | | | | | 49,589,480 | | | |
| Machinery – General Industrial – 1.0% | | | | | | |
| | 405,924 | | | Roper Industries, Inc. | | | 35,096,189 | | | |
| Medical – Biomedical and Genetic – 3.6% | | | | | | |
| | 271,495 | | | Alexion Pharmaceuticals, Inc.* | | | 26,791,127 | | | |
| | 850,478 | | | Celgene Corp.* | | | 48,927,999 | | | |
| | 490,741 | | | Gilead Sciences, Inc.* | | | 20,827,048 | | | |
| | 729,480 | | | Vertex Pharmaceuticals, Inc.* | | | 34,963,976 | | | |
| | | | | | | | 131,510,150 | | | |
| Medical – Drugs – 2.3% | | | | | | |
| | 781,986 | | | Bristol-Myers Squibb Co. | | | 20,667,890 | | | |
| | 485,153 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 18,513,438 | | | |
| | 1,334,399 | | | GlaxoSmithKline PLC** | | | 25,459,830 | | | |
| | 312,078 | | | Novartis A.G.** | | | 16,961,439 | | | |
| | | | | | | | 81,602,597 | | | |
| Medical Instruments – 0.8% | | | | | | |
| | 539,101 | | | St. Jude Medical, Inc. | | | 27,634,317 | | | |
| Medical Products – 0.6% | | | | | | |
| | 427,001 | | | Covidien PLC (U.S. Shares)** | | | 22,178,432 | | | |
| Metal – Copper – 0.3% | | | | | | |
| | 73,411 | | | First Quantum Minerals, Ltd. | | | 9,499,802 | | | |
| Metal – Diversified – 0.9% | | | | | | |
| | 1,200,768 | | | Ivanhoe Mines, Ltd.* | | | 32,943,068 | | | |
| Multimedia – 1.2% | | | | | | |
| | 1,699,314 | | | News Corp. – Class A | | | 29,839,954 | | | |
| | 332,666 | | | Walt Disney Co. | | | 14,334,578 | | | |
| | | | | | | | 44,174,532 | | | |
| Networking Products – 1.9% | | | | | | |
| | 4,006,295 | | | Cisco Systems, Inc. | | | 68,707,959 | | | |
| Oil – Field Services – 2.4% | | | | | | |
| | 1,197,468 | | | Baker Hughes, Inc. | | | 87,930,075 | | | |
| Oil Companies – Exploration and Production – 5.5% | | | | | | |
| | 503,529 | | | Devon Energy Corp. | | | 46,208,856 | | | |
| | 380,251 | | | EOG Resources, Inc. | | | 45,063,546 | | | |
| | 524,106 | | | Occidental Petroleum Corp. | | | 54,763,836 | | | |
| | 746,754 | | | PetroHawk Energy Corp.* | | | 18,325,343 | | | |
| | 1,448,749 | | | Tullow Oil PLC** | | | 33,648,604 | | | |
| | | | | | | | 198,010,185 | | | |
| Oil Companies – Integrated – 0.5% | | | | | | |
| | 433,483 | | | Petroleo Brasileiro S.A. (ADR) | | | 17,525,718 | | | |
| Oil Refining and Marketing – 2.6% | | | | | | |
| | 859,006 | | | Reliance Industries, Ltd. | | | 20,210,433 | | | |
| | 2,519,830 | | | Valero Energy Corp. | | | 75,141,330 | | | |
| | | | | | | | 95,351,763 | | | |
| Pharmacy Services – 1.4% | | | | | | |
| | 438,216 | | | Express Scripts, Inc. – Class A* | | | 24,369,192 | | | |
| | 487,345 | | | Medco Health Solutions, Inc.* | | | 27,369,295 | | | |
| | | | | | | | 51,738,487 | | | |
| Real Estate Management/Services – 0.7% | | | | | | |
| | 176,628 | | | Jones Lang LaSalle, Inc. | | | 17,616,877 | | | |
| | 399,000 | | | Mitsubishi Estate Co., Ltd.** | | | 6,750,757 | | | |
| | | | | | | | 24,367,634 | | | |
| Real Estate Operating/Development – 0.2% | | | | | | |
| | 2,084,000 | | | Hang Lung Properties, Ltd. | | | 9,122,842 | | | |
| Retail – Apparel and Shoe – 1.5% | | | | | | |
| | 1,125,623 | | | Limited Brands, Inc. | | | 37,010,484 | | | |
| | 546,094 | | | Urban Outfitters, Inc.* | | | 16,289,984 | | | |
| | | | | | | | 53,300,468 | | | |
| Retail – Bedding – 0.9% | | | | | | |
| | 675,051 | | | Bed Bath & Beyond, Inc.* | | | 32,584,712 | | | |
| Retail – Discount – 1.9% | | | | | | |
| | 521,591 | | | Costco Wholesale Corp. | | | 38,243,052 | | | |
| | 632,288 | | | Target Corp. | | | 31,620,723 | | | |
| | | | | | | | 69,863,775 | | | |
| Retail – Major Department Stores – 0.9% | | | | | | |
| | 728,770 | | | Nordstrom, Inc. | | | 32,707,198 | | | |
| Semiconductor Components/Integrated Circuits – 2.8% | | | | | | |
| | 4,844,335 | | | Atmel Corp.* | | | 66,028,286 | | | |
| | 14,862,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 35,695,091 | | | |
| | | | | | | | 101,723,377 | | | |
| Semiconductor Equipment – 1.5% | | | | | | |
| | 1,247,669 | | | ASML Holdings N.V. (U.S. Shares)** | | | 55,521,270 | | | |
| Soap and Cleaning Preparations – 0.6% | | | | | | |
| | 410,251 | | | Reckitt Benckiser Group PLC** | | | 21,070,571 | | | |
| Telecommunication Equipment – 0.3% | | | | | | |
| | 1,906,253 | | | Tellabs, Inc. | | | 9,988,766 | | | |
| Telecommunication Services – 1.1% | | | | | | |
| | 1,398,164 | | | Amdocs, Ltd. (U.S. Shares)*,** | | | 40,337,031 | | | |
| Television – 0.9% | | | | | | |
| | 1,295,375 | | | CBS Corp. – Class B | | | 32,436,190 | | | |
| Tobacco – 2.1% | | | | | | |
| | 5,679 | | | Japan Tobacco, Inc.** | | | 20,521,158 | | | |
| | 839,498 | | | Philip Morris International, Inc. | | | 55,096,254 | | | |
| | | | | | | | 75,617,412 | | | |
| Toys – 0.9% | | | | | | |
| | 1,245,192 | | | Mattel, Inc. | | | 31,042,637 | | | |
| Transportation – Railroad – 1.2% | | | | | | |
| | 437,755 | | | Union Pacific Corp. | | | 43,044,449 | | | |
| Transportation – Services – 3.4% | | | | | | |
| | 839,670 | | | C.H. Robinson Worldwide, Inc. | | | 62,244,737 | | | |
| | 830,457 | | | United Parcel Service, Inc. – Class B | | | 61,719,564 | | | |
| | | | | | | | 123,964,301 | | | |
| Web Portals/Internet Service Providers – 2.0% | | | | | | |
| | 123,147 | | | Google, Inc. – Class A* | | | 72,190,003 | | | |
| Wireless Equipment – 0.8% | | | | | | |
| | 708,081 | | | Crown Castle International Corp.* | | | 30,128,847 | | | |
| |
| |
| Total Common Stock (cost $2,811,687,214) | | | 3,545,712,332 | | | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 85
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Money Market – 2.4% | | | | | | |
| | 84,950,756 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $84,950,756) | | $ | 84,950,756 | | | |
| |
| |
| Total Investments (total cost $2,896,637,970) – 100.5% | | | 3,630,663,088 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.5)% | | | (18,501,120) | | | |
| |
| |
| Net Assets – 100% | | $ | 3,612,161,968 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Australia | | $ | 10,138,222 | | | | 0.3% | |
| Belgium | | | 17,219,512 | | | | 0.5% | |
| Bermuda | | | 19,242,842 | | | | 0.5% | |
| Brazil | | | 17,525,718 | | | | 0.5% | |
| Canada | | | 77,229,913 | | | | 2.1% | |
| France | | | 15,226,464 | | | | 0.4% | |
| Germany | | | 45,312,782 | | | | 1.2% | |
| Guernsey | | | 40,337,031 | | | | 1.1% | |
| Hong Kong | | | 21,572,174 | | | | 0.6% | |
| India | | | 46,811,369 | | | | 1.3% | |
| Ireland | | | 22,178,432 | | | | 0.6% | |
| Japan | | | 72,963,185 | | | | 2.0% | |
| Mexico | | | 20,404,023 | | | | 0.6% | |
| Netherlands | | | 55,521,270 | | | | 1.5% | |
| Switzerland | | | 105,057,571 | | | | 2.9% | |
| Taiwan | | | 35,695,091 | | | | 1.0% | |
| United Kingdom | | | 206,541,895 | | | | 5.7% | |
United States†† | | | 2,801,685,594 | | | | 77.2% | |
| |
| |
| Total | | $ | 3,630,663,088 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (74.8% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
| Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
| British Pound 5/6/11 | | | 23,000,000 | | | $ | 36,877,133 | | | $ | 335,568 | |
| Euro 5/6/11 | | | 12,900,000 | | | | 18,267,245 | | | | (329,009) | |
| Japanese Yen 5/6/11 | | | 951,500,000 | | | | 11,444,125 | | | | 183,214 | |
| Swiss Franc 5/6/11 | | | 6,100,000 | | | | 6,645,047 | | | | (69,150) | |
| |
| |
| | | | | | | | 73,233,550 | | | | 120,623 | |
| |
| |
| HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
| British Pound 5/12/11 | | | 18,000,000 | | | | 28,857,398 | | | | 376,042 | |
| Euro 5/12/11 | | | 17,000,000 | | | | 24,069,941 | | | | (16,386) | |
| Japanese Yen 5/12/11 | | | 1,315,000,000 | | | | 15,816,790 | | | | 385,061 | |
| |
| |
| | | | | | | | 68,744,129 | | | | 744,717 | |
| |
| |
JP Morgan Chase & Co.:
Swiss Franc 4/28/11 | | | 1,700,000 | | | | 1,851,777 | | | | (63,150) | |
| |
| |
| JPMorgan Chase & Co.: | | | | | | | | | | | | |
| British Pound 4/28/11 | | | 22,800,000 | | | | 36,560,726 | | | | 419,962 | |
| Euro 4/28/11 | | | 17,000,000 | | | | 24,077,177 | | | | (800,787) | |
| Japanese Yen 4/28/11 | | | 809,000,000 | | | | 9,729,689 | | | | (13,663) | |
| |
| |
| | | | | | | | 70,367,592 | | | | (394,488) | |
| |
| |
| Total | | | | | | $ | 214,197,048 | | | $ | 407,702 | |
See Notes to Schedules of Investments and Financial Statements.
86 | MARCH 31, 2011
Janus Triton Fund (unaudited)
| | | | | | | |
Fund Snapshot
We believe an in-depth, research-driven investment process focused on identifying smaller cap companies with differentiated business models and sustainable competitive advantages will drive outperformance versus our benchmark and peers over time. Less rigid market cap constraints provide us the flexibility to invest in high quality, small-cap companies and capture a longer period of growth as these companies mature. We believe this feature is instrumental in delivering attractive long-term risk adjusted returns while minimizing portfolio turnover.
| | | | 
Chad Meade
co-portfolio manager | | 
Brian Schaub
co-portfolio manager |
Performance
Janus Triton Fund’s Class T Shares returned 24.08% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the Russell 2500 Growth Index, returned 27.41% during the period. The Fund’s secondary benchmark, the Russell 2000 Growth Index, returned 27.93%.
Economic Overview
Small- and mid-cap stocks posted strong gains in the period, overcoming heightened macro uncertainty due to the natural disaster in Japan and rising oil prices stemming from unrest in the Middle East. From an economic standpoint, data continued to improve with positive reports on manufacturing and construction spending generally outweighing ongoing weakness in housing and concerns about building inflationary pressures.
Asset Class Overview
The Russell 2500 Growth Index posted strong gains during the period, outpacing most other equity indices. Small-caps outperformed mid-cap stocks, while small- and mid-cap indices outperformed large caps, continuing a trend off the market lows reached in March of 2009. Within our benchmark, the Russell 2500 Growth Index, the more volatile, lower quality stocks continued to outperform many of the Fund’s companies, which we think offer higher quality growth. The best performing sectors within the index were energy, consumer staples and information technology, while laggards included utilities, telecommunications and health care.
Strategy Overview
With investor sentiment generally favoring the more volatile, higher-risk stocks, we would expect some modest relative underperformance. Our strategy, however, has not changed. We continue to focus on identifying companies early in their growth cycle that have differentiated business models, sustainable competitive advantages, large addressable markets, and recurring revenue streams. We think these attributes drive our portfolio composition far more than a geopolitical crisis or the latest readings on Gross Domestic Product (GDP).
For example, we have been overweight energy, but not because we like exploration-and-production (E&P) companies or take a bullish view on the price of oil or natural gas. In our market-cap universe, most E&P companies lack the scale to be low-cost producers and often find themselves beholden to the price of volatile commodities. Additionally, theses companies typically need substantial capital to grow, which results in highly leveraged balance sheets. Instead, our energy holdings are in companies such as midstream master limited partnerships, which we like for their historical recurring revenue streams and consistent dividend policies. These companies tend to generate attractive returns on capital, have more defensible business models and invest with greater discipline than traditional E&P firms.
Similarly, we have been overweight financials, but our holdings are not concentrated in traditional lenders. Barriers to entry are low for commercial and consumer lenders in our market-cap space, and most lenders have highly leveraged balance sheets. Even the use of high leverage doesn’t enable these companies to generate returns on equity that we find appealing. Instead, we have focused on asset managers with high returns on capital and services firms with recurring revenue streams. The select group of lenders that we do own have differentiated business models, high returns on assets and low leverage.
Our holdings in information technology, telecommunications and consumer discretionary were among the largest detractors from relative results during the period. Among individual detractors, shares of Horizon Lines came under pressure following resolution of the
Janus Growth & Core Funds | 87
Janus Triton Fund (unaudited)
Department of Justice’s (DOJ) investigation into the company’s pricing practices in the Puerto Rico trade lane. The DOJ imposed a $45 million penalty, payable over five years, which triggered a technical default on the company’s outstanding convertible notes. As a result, the company now faces a critical refinancing deadline at the end of May, 2011. We continue to hold a small position, given the company’s competitive position and cash flow generation, but recognize the terms and conditions of the debt refinancing will play a significant role in the value of the company.
NetSpend Holdings, a recent addition to the Fund, was another poor performer. NetSpend is one of the largest providers of prepaid debit cards, which represent a compelling, potentially lower cost alternative for individuals without a bank account. Given NetSpend’s scale position, distribution network and differentiated service offering, we believe the company is well positioned to capitalize on the market opportunity.
Equinix, a provider of Internet exchange services, also declined during the period. Equinix was forced to lower its profit outlook as a result of a more balanced supply and demand picture, in addition to poor execution on the integration of Switch and Data, an acquisition completed in May, 2010. Given a more modest outlook for pricing, we decided to exit our position.
Our holdings in health care and industrials contributed to relative performance. Individual contributors included semiconductor maker Atmel. The firm recently completed a restructuring of its manufacturing facilities, bolstering its financial position and enhancing the company’s ability to generate high returns on capital, in our opinion. The core micro-controller business has continued to capture market share, and new touch-enabled products found in Android powered mobile devices and tablet PCs have increased the company’s addressable market.
Another top performer was World Fuel Services. This fuel broker began as a value-added service provider in the marine market but has expanded into the aviation and land businesses. World Fuel enjoys a strong and unique competitive position owing to its global procurement and distribution platform, strong balance sheet and vigilant credit monitoring. As a result, the company has been successful in expanding its market share at high margins and returns on capital. World Fuel has also proven adept at acquiring and integrating smaller fuel brokers that can then benefit from the company’s larger procurement platform.
Within energy, shares of Dresser-Rand Group rose as well. This supplier of highly engineered, mission critical rotating equipment to the energy industry began to see a rebound in its end markets as order growth for new units accelerated. We remain attracted to the company’s flexible and resilient business model, which derives a vast majority of its profits from more recurring parts and service businesses. In addition, we believe the company still has significant opportunities to increase its market share as it develops new products and adds more service infrastructure in the Middle East, South America and Asia-Pacific region.
Outlook
As stewards of your capital, our goal is to invest in high quality small-cap growth companies that can deliver superior results in a variety of market conditions. Our in-depth, bottoms-up research process continues to uncover dynamic small-cap growth companies that we think are well-positioned to deliver long duration growth and attractive returns on capital. As a result, we have confidence in our ability to generate strong risk-adjusted returns over the long term. However, our enthusiasm is somewhat tempered by the recent rally in equity markets, particularly small-cap companies. Fundamentals have certainly improved and the overall macro outlook is more favorable; however, valuations today increasingly reflect the improved economic and corporate prospects.
While the valuation discrepancy between small- and large-cap companies is at record levels, we believe small-cap companies deserve to trade at premium valuations due to several factors. First, we believe many small-cap companies have the opportunity to grow faster than large-cap companies because they do not rely solely on a macro-economic recovery to deliver strong financial results. The high quality, small-cap companies that we invest in typically control small market share positions today; however, new product launches, geographic expansion and investments in sales forces create a situation for exciting growth in market share over time. A small-cap company in the process of growing its market share from 5% to 20% is likely to generate more rapid growth than a maturing large-cap company fighting to take market share from 80% to 90%. Secondly, small-cap companies often have more opportunities to drive bottom-line growth through margin expansion when compared to large-cap companies. This is predominately a function of the relative maturity of small-cap companies compared to large-caps. As small-cap companies grow and gain scale, we often see margins expand to more closely mirror those of their larger cap counterparts, creating an even more attractive growth profile at the bottom line. In conclusion, we are firm believers in the saying “you get what you pay
88 | MARCH 31, 2011
(unaudited)
for” and believe in many cases it makes sense that high quality small-cap growth companies should trade at valuation premiums to large-caps.
We continue to believe U.S. economic growth will be weaker than in past cyclical rebounds as the deleveraging hangover acts as an impediment to sustained economic growth. In the near-term, the stimulus effects of the Federal Reserve’s quantitative easing program are likely to taper off, which could potentially slow overall economic activity. The U.S. consumer remains overleveraged in general and the unwinding of debt levels will create headwinds for consumer spending. In short, we think the economy faces long-term structural challenges that will not be resolved soon.
Against this backdrop, we believe individual stock picking will play a more pivotal role in overall investment returns. As such, we believe our investment team, philosophy and process put us in an excellent position to capitalize on market inefficiencies within the small- and mid-cap sector and to generate attractive risk-adjusted returns.
Thank you for your investment in Janus Triton Fund.
Janus Growth & Core Funds | 89
Janus Triton Fund (unaudited)
Janus Triton Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Atmel Corp. | | | 1.29% | |
| World Fuel Services Corp. | | | 1.07% | |
| Dresser-Rand Group, Inc. | | | 0.99% | |
| Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 0.78% | |
| CEVA, Inc. | | | 0.77% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Equinix, Inc. | | | –0.45% | |
| Horizon Lines, Inc. – Class A | | | –0.21% | |
| NetSpend Holdings, Inc. | | | –0.14% | |
| BJ’s Restaurants, Inc. | | | –0.09% | |
| Rodobens Negocios Imobiliarios S.A. | | | –0.07% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 2500tm
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Industrials | | | 8.12% | | | | 25.77% | | | | 17.80% | |
| Information Technology | | | 5.79% | | | | 20.74% | | | | 24.13% | |
| Health Care | | | 3.83% | | | | 14.44% | | | | 15.66% | |
| Energy | | | 3.31% | | | | 9.33% | | | | 5.23% | |
| Financials | | | 2.95% | | | | 13.22% | | | | 6.92% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 2500tm
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Telecommunication Services | | | –0.05% | | | | 2.50% | | | | 1.65% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 0.29% | |
| Consumer Staples | | | 0.04% | | | | 0.03% | | | | 2.83% | |
| Materials | | | 0.34% | | | | 1.10% | | | | 6.40% | |
| Consumer Discretionary | | | 2.73% | | | | 12.87% | | | | 19.09% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
90 | MARCH 31, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
VistaPrint N.V. (U.S. Shares)
Printing – Commercial | | | 2.1% | |
Ritchie Bros. Auctioneers, Inc. (U.S. Shares)
Auction House – Art Dealer | | | 2.1% | |
SBA Communications Corp. – Class A
Wireless Equipment | | | 2.1% | |
Dresser-Rand Group, Inc.
Oil Field Machinery and Equipment | | | 2.0% | |
World Fuel Services Corp.
Retail – Petroleum Products | | | 1.9% | |
| | | | | |
| | | | 10.2% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 0.1% of total net assets.
* Includes Securities Sold Short of (0.3)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Growth & Core Funds | 91
Janus Triton Fund (unaudited)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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 | | 24.09% | | 34.15% | | 8.88% | | 12.88% | | | 1.07% | | 1.07% |
| MOP | | 17.00% | | 26.42% | | 7.60% | | 11.78% | | | | | |
| | | | | | | | | | | | | | |
| Janus Triton Fund – Class C Shares | | | | | | | | | | | | | |
| NAV | | 23.59% | | 33.17% | | 8.10% | | 12.07% | | | 1.79% | | 1.79% |
| CDSC | | 22.38% | | 31.86% | | 8.10% | | 12.07% | | | | | |
| | | | | | | | | | | | | | |
| Janus Triton Fund – Class D Shares(1) | | 24.20% | | 34.45% | | 9.07% | | 13.06% | | | 0.83% | | 0.83% |
| | | | | | | | | | | | | | |
| Janus Triton Fund – Class I Shares | | 24.29% | | 34.62% | | 9.03% | | 13.03% | | | 0.71% | | 0.71% |
| | | | | | | | | | | | | | |
| Janus Triton Fund – Class R Shares | | 23.80% | | 33.63% | | 8.49% | | 12.46% | | | 1.46% | | 1.46% |
| | | | | | | | | | | | | | |
| Janus Triton Fund – Class S Shares | | 23.99% | | 33.96% | | 8.69% | | 12.68% | | | 1.23% | | 1.23% |
| | | | | | | | | | | | | | |
| Janus Triton Fund – Class T Shares | | 24.08% | | 34.23% | | 9.03% | | 13.03% | | | 1.00% | | 1.00% |
| | | | | | | | | | | | | | |
| Russell 2500tm Growth Index | | 27.41% | | 30.08% | | 5.25% | | 7.78% | | | | | |
| | | | | | | | | | | | | | |
| Russell 2000® Growth Index | | 27.93% | | 31.04% | | 4.34% | | 7.02% | | | | | |
| | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 2nd | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Small-Cap Growth Funds | | – | | 139/507 | | 7/392 | | 2/356 | | | | | |
| | | | | | | | | | | | | | |
| 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.
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.
92 | MARCH 31, 2011
(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 services 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 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Returns shown include fee waivers, if any, and without such waivers, returns would have been lower.
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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), derivatives, short sales, 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 from 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 R 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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for the periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
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. |
Janus Growth & Core Funds | 93
Janus Triton Fund (unaudited)
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,240.90 | | | $ | 5.87 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,235.90 | | | $ | 9.98 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,242.00 | | | $ | 4.70 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.74 | | | $ | 4.23 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,242.90 | | | $ | 4.36 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,238.00 | | | $ | 8.09 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.70 | | | $ | 7.29 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,239.90 | | | $ | 6.70 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.95 | | | $ | 6.04 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,240.80 | | | $ | 5.25 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.24 | | | $ | 4.73 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.05% for Class A Shares, 1.79% for Class C Shares, 0.84% for Class D Shares, 0.78% for Class I Shares, 1.45% for Class R Shares, 1.20% for Class S Shares and 0.94% 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. |
94 | MARCH 31, 2011
Janus Triton Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 91.8% | | | | | | |
| Advertising Sales – 0.5% | | | | | | |
| | 257,748 | | | Lamar Advertising Co. – Class A* | | $ | 9,521,211 | | | |
| Aerospace and Defense – 1.6% | | | | | | |
| | 376,440 | | | TransDigm Group, Inc.* | | | 31,556,965 | | | |
| Aerospace and Defense – Equipment – 0.6% | | | | | | |
| | 273,532 | | | HEICO Corp. | | | 12,303,469 | | | |
| Apparel Manufacturers – 2.9% | | | | | | |
| | 618,700 | | | Carter’s, Inc.* | | | 17,713,381 | | | |
| | 997,499 | | | Maidenform Brands, Inc.* | | | 28,498,546 | | | |
| | 150,310 | | | Under Armour, Inc. – Class A* | | | 10,228,596 | | | |
| | | | | | | | 56,440,523 | | | |
| Auction House – Art Dealer – 2.1% | | | | | | |
| | 1,422,855 | | | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 40,053,368 | | | |
| Audio and Video Products – 1.1% | | | | | | |
| | 454,894 | | | DTS, Inc.* | | | 21,211,707 | | | |
| Commercial Banks – 1.3% | | | | | | |
| | 1,219,865 | | | CapitalSource, Inc. | | | 8,587,850 | | | |
| | 290,765 | | | SVB Financial Group* | | | 16,553,251 | | | |
| | | | | | | | 25,141,101 | | | |
| Commercial Services – 3.3% | | | | | | |
| | 450,075 | | | CoStar Group, Inc.* | | | 28,210,701 | | | |
| | 752,340 | | | Iron Mountain, Inc. | | | 23,495,579 | | | |
| | 693,820 | | | Standard Parking Corp.* | | | 12,322,243 | | | |
| | | | | | | | 64,028,523 | | | |
| Commercial Services – Finance – 2.8% | | | | | | |
| | 1,271,496 | | | Euronet Worldwide, Inc.* | | | 24,578,018 | | | |
| | 609,485 | | | Global Payments, Inc. | | | 29,816,006 | | | |
| | | | | | | | 54,394,024 | | | |
| Computer Services – 1.0% | | | | | | |
| | 219,445 | | | IHS, Inc. – Class A* | | | 19,475,744 | | | |
| Computer Software – 1.4% | | | | | | |
| | 516,996 | | | Convio, Inc.* | | | 6,002,324 | | | |
| | 996,575 | | | SS&C Technologies Holdings, Inc.* | | | 20,350,061 | | | |
| | | | | | | | 26,352,385 | | | |
| Consulting Services – 1.1% | | | | | | |
| | 529,908 | | | Gartner, Inc.* | | | 22,081,266 | | | |
| Decision Support Software – 1.9% | | | | | | |
| | 985,257 | | | MSCI, Inc.* | | | 36,277,163 | | | |
| Diagnostic Equipment – 1.5% | | | | | | |
| | 431,155 | | | Gen-Probe, Inc.* | | | 28,607,134 | | | |
| Diagnostic Kits – 0.5% | | | | | | |
| | 133,750 | | | Idexx Laboratories, Inc.* | | | 10,328,175 | | | |
| Distribution/Wholesale – 2.2% | | | | | | |
| | 132,540 | | | Fastenal Co. | | | 8,592,568 | | | |
| | 126,676 | | | MWI Veterinary Supply, Inc.* | | | 10,220,220 | | | |
| | 372,735 | | | Wesco International, Inc.* | | | 23,295,937 | | | |
| | | | | | | | 42,108,725 | | | |
| Educational Software – 1.3% | | | | | | |
| | 691,460 | | | Blackboard, Inc.* | | | 25,058,510 | | | |
| Electronic Components – Semiconductors – 1.9% | | | | | | |
| | 645,875 | | | CEVA, Inc.* | | | 17,264,239 | | | |
| | 1,862,618 | | | ON Semiconductor Corp.* | | | 18,384,040 | | | |
| | | | | | | | 35,648,279 | | | |
| Electronic Connectors – 0.7% | | | | | | |
| | 258,280 | | | Amphenol Corp. – Class A | | | 14,047,849 | | | |
| Electronic Measuring Instruments – 1.6% | | | | | | |
| | 281,377 | | | Measurement Specialties, Inc.* | | | 9,583,700 | | | |
| | 417,079 | | | Trimble Navigation, Ltd.* | | | 21,079,173 | | | |
| | | | | | | | 30,662,873 | | | |
| Electronics – Military – 0.8% | | | | | | |
| | 585,315 | | | Ultra Electronics Holdings PLC | | | 16,166,952 | | | |
| Finance – Auto Loans – 1.1% | | | | | | |
| | 286,843 | | | Credit Acceptance Corp.* | | | 20,354,379 | | | |
| Finance – Consumer Loans – 0.4% | | | | | | |
| | 521,582 | | | Cash Store Financial Services, Inc. | | | 7,557,723 | | | |
| Finance – Investment Bankers/Brokers – 1.2% | | | | | | |
| | 657,310 | | | LPL Investment Holdings, Inc.* | | | 23,538,271 | | | |
| Finance – Other Services – 2.1% | | | | | | |
| | 1,306,352 | | | MarketAxess Holdings, Inc. | | | 31,613,718 | | | |
| | 750,155 | | | NetSpend Holdings, Inc.* | | | 7,891,631 | | | |
| | | | | | | | 39,505,349 | | | |
| Footwear and Related Apparel – 2.3% | | | | | | |
| | 673,780 | | | Iconix Brand Group, Inc.* | | | 14,472,794 | | | |
| | 775,360 | | | Wolverine World Wide, Inc. | | | 28,905,421 | | | |
| | | | | | | | 43,378,215 | | | |
| Hazardous Waste Disposal – 1.6% | | | | | | |
| | 218,765 | | | Clean Harbors, Inc.* | | | 21,583,355 | | | |
| | 109,755 | | | Stericycle, Inc.* | | | 9,731,976 | | | |
| | | | | | | | 31,315,331 | | | |
| Heart Monitors – 0.4% | | | | | | |
| | 101,336 | | | HeartWare International, Inc.* | | | 8,667,268 | | | |
| Home Furnishings – 1.0% | | | | | | |
| | 379,580 | | | Tempur-Pedic International, Inc.* | | | 19,229,523 | | | |
| Human Resources – 1.0% | | | | | | |
| | 982,480 | | | Resources Connection, Inc. | | | 19,050,287 | | | |
| Instruments – Controls – 1.3% | | | | | | |
| | 744,288 | | | Sensata Technologies Holding N.V.* | | | 25,849,122 | | | |
| Investment Management and Advisory Services – 3.1% | | | | | | |
| | 563,558 | | | Eaton Vance Corp. | | | 18,169,110 | | | |
| | 951,347 | | | Epoch Holding Corp. | | | 15,012,255 | | | |
| | 386,073 | | | Financial Engines, Inc.* | | | 10,640,172 | | | |
| | 704,450 | | | Gluskin Sheff + Associates, Inc. | | | 15,917,721 | | | |
| | | | | | | | 59,739,258 | | | |
| Machinery – General Industrial – 2.3% | | | | | | |
| | 277,120 | | | Roper Industries, Inc. | | | 23,959,795 | | | |
| | 309,700 | | | Wabtec Corp. | | | 21,006,951 | | | |
| | | | | | | | 44,966,746 | | | |
| Medical – Biomedical and Genetic – 1.4% | | | | | | |
| | 81,780 | | | Alexion Pharmaceuticals, Inc.* | | | 8,070,051 | | | |
| | 563,880 | | | Incyte Corp., Ltd.* | | | 8,937,498 | | | |
| | 586,660 | | | Seattle Genetics, Inc.* | | | 9,134,296 | | | |
| | | | | | | | 26,141,845 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 95
Janus Triton Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Medical – Drugs – 0.5% | | | | | | |
| | 1,268,678 | | | Achillion Pharmaceuticals, Inc.* | | $ | 9,071,048 | | | |
| Medical Information Systems – 1.0% | | | | | | |
| | 406,140 | | | athenahealth, Inc.* | | | 18,329,098 | | | |
| Medical Instruments – 1.9% | | | | | | |
| | 1,083,655 | | | Conceptus, Inc.* | | | 15,658,815 | | | |
| | 288,880 | | | Techne Corp. | | | 20,683,808 | | | |
| | | | | | | | 36,342,623 | | | |
| Medical Products – 3.8% | | | | | | |
| | 346,615 | | | Haemonetics Corp.* | | | 22,717,147 | | | |
| | 1,021,275 | | | PSS World Medical, Inc.* | | | 27,727,616 | | | |
| | 326,670 | | | Varian Medical Systems, Inc.* | | | 22,095,959 | | | |
| | | | | | | | 72,540,722 | | | |
| Miscellaneous Manufacturing – 0.8% | | | | | | |
| | 474,510 | | | FreightCar America, Inc.* | | | 15,426,320 | | | |
| Multimedia – 0.5% | | | | | | |
| | 93,250 | | | FactSet Research Systems, Inc. | | | 9,766,073 | | | |
| Oil – Field Services – 3.3% | | | | | | |
| | 207,335 | | | Core Laboratories N.V. | | | 21,183,417 | | | |
| | 721,255 | | | PAA Natural Gas Storage L.P. | | | 16,978,343 | | | |
| | 677,529 | | | Targa Resources Corp. | | | 24,553,651 | | | |
| | | | | | | | 62,715,411 | | | |
| Oil Companies – Exploration and Production – 0.9% | | | | | | |
| | 363,455 | | | Ultra Petroleum Corp. (U.S. Shares)* | | | 17,900,159 | | | |
| Oil Field Machinery and Equipment – 2.0% | | | | | | |
| | 719,690 | | | Dresser-Rand Group, Inc.*,** | | | 38,589,778 | | | |
| Patient Monitoring Equipment – 1.6% | | | | | | |
| | 901,739 | | | Masimo Corp.* | | | 29,847,561 | | | |
| Pharmacy Services – 0.8% | | | | | | |
| | 520,880 | | | Omnicare, Inc. | | | 15,621,191 | | | |
| Pipelines – 1.6% | | | | | | |
| | 428,529 | | | Copano Energy LLC | | | 15,255,632 | | | |
| | 377,130 | | | DCP Midstream Partners L.P. | | | 15,273,765 | | | |
| | | | | | | | 30,529,397 | | | |
| Printing – Commercial – 2.1% | | | | | | |
| | 786,708 | | | VistaPrint N.V. (U.S. Shares)* | | | 40,830,145 | | | |
| Quarrying – 1.0% | | | | | | |
| | 199,830 | | | Compass Minerals International, Inc. | | | 18,690,100 | | | |
| Real Estate Management/Services – 0.6% | | | | | | |
| | 109,105 | | | Jones Lang LaSalle, Inc. | | | 10,882,133 | | | |
| Real Estate Operating/Development – 0.1% | | | | | | |
| | 220,400 | | | Rodobens Negocios Imobiliarios S.A. | | | 1,688,216 | | | |
| Recreational Vehicles – 1.6% | | | | | | |
| | 361,965 | | | Polaris Industries, Inc. | | | 31,498,194 | | | |
| Retail – Automobile – 2.0% | | | | | | |
| | 659,560 | | | Copart, Inc.* | | | 28,578,735 | | | |
| | 589,091 | | | Rush Enterprises, Inc.*,£ | | | 10,244,292 | | | |
| | | | | | | | 38,823,027 | | | |
| Retail – Catalog Shopping – 1.8% | | | | | | |
| | 499,100 | | | MSC Industrial Direct Co. – Class A | | | 34,173,377 | | | |
| Retail – Convenience Stores – 0.8% | | | | | | |
| | 378,475 | | | Casey’s General Stores, Inc. | | | 14,760,525 | | | |
| Retail – Gardening Products – 1.2% | | | | | | |
| | 377,900 | | | Tractor Supply Co. | | | 22,621,094 | | | |
| Retail – Petroleum Products – 1.9% | | | | | | |
| | 909,256 | | | World Fuel Services Corp. | | | 36,924,886 | | | |
| Semiconductor Components/Integrated Circuits – 1.4% | | | | | | |
| | 1,919,750 | | | Atmel Corp.* | | | 26,166,193 | | | |
| Theaters – 1.5% | | | | | | |
| | 1,501,721 | | | National CineMedia, Inc. | | | 28,037,131 | | | |
| Transactional Software – 0.7% | | | | | | |
| | 258,725 | | | Solera Holdings, Inc. | | | 13,220,848 | | | |
| Transportation – Marine – 0% | | | | | | |
| | 925,334 | | | Horizon Lines, Inc. – Class A* | | | 786,534 | | | |
| Transportation – Truck – 3.0% | | | | | | |
| | 676,240 | | | Landstar System, Inc. | | | 30,890,643 | | | |
| | 767,992 | | | Old Dominion Freight Line, Inc.* | | | 26,948,840 | | | |
| | | | | | | | 57,839,483 | | | |
| Wireless Equipment – 2.1% | | | | | | |
| | 1,008,925 | | | SBA Communications Corp. – Class A* | | | 40,034,144 | | | |
| |
| |
| Total Common Stock (cost $1,426,830,169) | | | 1,764,414,674 | | | |
| |
| |
| Money Market – 9.4% | | | | | | |
| | 181,552,296 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $181,552,296) | | | 181,552,296 | | | |
| |
| |
| Total Investments (total cost $1,608,382,465) – 101.2% | | | 1,945,966,970 | | | |
| |
| |
| Securities Sold Short – (0.3)% | | | | | | |
| Common Stocks Sold Short – (0.3)% | | | | | | |
| Commercial Services – Finance – (0.2)% | | | | | | |
| | 77,335 | | | Green Dot Corp.* | | | (3,318,445) | | | |
| Retail – Restaurants – (0.1)% | | | | | | |
| | 72,645 | | | BJ’s Restaurants, Inc.* | | | (2,857,128) | | | |
| |
| |
| Total Securities Sold Short (proceeds $5,354,781 ) | | | (6,175,573) | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.9)% | | | (18,140,953) | | | |
| |
| |
| Net Assets – 100% | | $ | 1,921,650,444 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Brazil | | $ | 1,688,216 | | | | 0.1% | |
| Canada | | | 81,428,971 | | | | 4.2% | |
| Netherlands | | | 87,862,684 | | | | 4.5% | |
| United Kingdom | | | 16,166,952 | | | | 0.8% | |
United States†† | | | 1,758,820,147 | | | | 90.4% | |
| |
| |
| Total | | $ | 1,945,966,970 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (81.1% excluding Cash Equivalents). |
Summary of Investments by Country – (Short Positions)
| | | | | | | | | |
| | | | | | % of Securities
| |
| | | Value | | | Sold Short | |
| |
| |
| United States | | $ | (6,175,573) | | | | 100.0% | |
| |
| |
| Total | | $ | (6,175,573) | | | | 100.0% | |
See Notes to Schedules of Investments and Financial Statements.
96 | MARCH 31, 2011
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 we believe have 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 |
Performance Overview
For the 6-month period ended March 31, 2011, Janus Twenty Fund’s Class T Shares returned 10.42% versus a return of 18.57% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 17.31% for the period.
Overview
U.S. equities continued to rally in the first quarter, overcoming heightened uncertainty and rising oil prices to finish the six-month period near the highest levels since June 2008. Economic data was modestly improved with positive reports on manufacturing and construction spending generally outweighing ongoing weakness in housing. The labor market strengthened, with unemployment declining to 8.8% in March, the lowest level in two years. Core inflation appears to be tame, although price pressures have been building.
Despite the heightened uncertainty, the Fund’s positioning remains largely unchanged. We continue to invest where we have a differentiated view of company fundamentals and see multi-year growth opportunities. Our underweight in energy hurt performance, for example, as energy prices climbed. We are analyzing energy companies with attractive growth prospects, and we may increase exposure as opportunities arise. However, we are not swayed by short-term changes in the price of the commodity. Higher crude prices do impact our holdings, but we have limited exposure to businesses that are sensitive to energy prices.
We have been overweight in financials and the results have been disappointing. Lending in the U.S. has not increased substantially and needs to pick up for a stronger recovery in bank profits. On the plus side, a steeper yield curve and higher interest rates should help improve net interest margins, and we are seeing improvements in credit availability and loan losses. Moreover, most of our financial holdings have significant growth opportunities in non-U.S. markets. We believe these factors aren’t yet reflected in valuations for our companies.
Thematically, we are emphasizing “faster-growth” companies, which have been driving up the portfolio’s average earnings growth rate. For example, we added to a position in Fanuc, a Japanese firm that makes industrial robots and automation equipment. We think the company should benefit from growth in China and emerging Asian markets, where wage inflation is resulting in more factory automation. The disaster in Japan has not materially impacted its business. Similarly, we bought shares in logistics company C.H. Robinson because we like its business model as a middle-man between truckers and shippers. The company has attractive multi-year growth opportunities, in our view, and can pass on higher energy costs to customers. It is not under attack from emerging market competitors and has been growing at above-average rates.
Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.
Detractors
Cisco Systems was the largest individual detractor during the period. Shares of the networking equipment company have been weak amid continued concerns over sluggish financial performance relative to expectations. The company has cited a variety of issues, including tight public spending on information technology, falling cable set-top box sales and retrenchment following strong “catch-up” sales in earlier quarters. While the company may be well positioned to benefit from increasing data usage and Internet traffic, we are evaluating the position.
Microsoft also fell. The software company is a top holding and recent addition to the portfolio, trading at a very compelling valuation, in our view. We like Microsoft’s position in cloud-based computing, improved competitive position in search and online services, and software renewal cycles. These are multi-year growth opportunities
Janus Growth & Core Funds | 97
Janus Twenty Fund (unaudited)(closed to new investors)
that we feel the market has not fully recognized in the stock’s valuation.
General Motors (GM) was another weak performer. We bought shares in the U.S. automaker because we like its leaner business model. GM has reduced U.S. labor costs and debt, and cut the level of U.S. auto sales at which it can break even. We believe GM’s product momentum should pick up in 2012 as the company introduces higher margin products and free cash flow should continue to improve the balance sheet.
Contributors
Apple remains a top position and continued to perform well. We like the company’s durable franchise, long-term growth prospects and demonstrated ability to win in various economic environments. We think the company’s integration of software and hardware across its product line is a key competitive advantage, and we believe the company’s success and market share gains in the U.S. can be replicated globally.
Shares of media company News Corp. also rose. We believe the company owns outstanding franchises (cable networks, Sky Italia, Fox Studios) that have generated strong cash flows and typically offset its cyclical assets. The company’s balance sheet and cash-flow generation remained robust and the firm continued to benefit from an improving TV-advertising spending environment, rising affiliate fees and new distribution buyers for its content.
eBay was another strong performer. While eBay’s core auction business continued to grow, we think the more attractive growth engine is its PayPal business, which we believe is an undervalued asset. PayPal has continued to expand internationally and more than 50% of revenues now come from external eBay sources. We added to our position during the period.
Outlook
While the markets have moved higher over the past six months, valuations for large- and mega-cap companies remain extremely attractive based on our evaluation of the fundamentals. There continues to be a wide gap in multiples between large and smaller companies, with the largest companies trading at the greatest disparity. Our focus on mega-cap companies has been a drag on performance; where fundamentals have improved, the market has not rewarded these firms with higher stock prices. We continue to believe our companies are undervalued, however, and that their global franchises and competitive moats are key advantages in a period of heightened economic challenges.
Globally, we expect emerging markets to continue growing in excess of developed markets. Near term, we remain concerned about inflationary pressures, rising interest rates (especially in China) and the impact of higher energy prices. Longer term, we believe emerging markets have the capital, natural resources and structural frameworks in place to fuel investment and growth. These foundations should drive higher returns for companies that can capitalize on rising domestic consumption and export growth. That theme underlies many of our holdings, including recent additions such as NIKE, which has a strong global franchise and opportunities for expansion in emerging Asia and Latin America.
Overall, we remain sanguine on growth prospects in the U.S. and global markets. The crisis in Japan and higher oil stemming from unrest in the Middle East raise the risk of slower growth and we are watching developments closely to assess their impact on our holdings. However, we believe the pieces are in place for a sustained global recovery. We are excited about the risk-reward profile of positions we have added to the portfolio and of the companies we continue to hold.
Thank you for your investment in Janus Twenty Fund.
98 | MARCH 31, 2011
(unaudited)(closed to new investors)
Janus Twenty Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Apple, Inc. | | | 2.31% | |
| News Corp. – Class A | | | 1.23% | |
| eBay, Inc. | | | 1.23% | |
| Oracle Corp. | | | 1.13% | |
| Limited Brands, Inc. | | | 0.91% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Cisco Systems, Inc. | | | –1.03% | |
| Microsoft Corp. | | | –0.66% | |
| General Motors Co. | | | –0.20% | |
| Anheuser-Busch InBev N.V. | | | –0.18% | |
| Medco Health Solutions, Inc. | | | –0.18% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Information Technology | | | 4.80% | | | | 38.72% | | | | 31.22% | |
| Consumer Discretionary | | | 2.36% | | | | 11.67% | | | | 14.60% | |
| Financials | | | 2.14% | | | | 17.56% | | | | 4.71% | |
| Energy | | | 0.85% | | | | 2.92% | | | | 10.95% | |
| Industrials | | | 0.64% | | | | 6.91% | | | | 13.24% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 1000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Consumer Staples | | | –0.18% | | | | 6.34% | | | | 9.47% | |
| Telecommunication Services | | | –0.04% | | | | 3.24% | | | | 0.84% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
| Health Care | | | 0.16% | | | | 10.26% | | | | 9.83% | |
| Materials | | | 0.49% | | | | 2.38% | | | | 5.06% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Growth & Core Funds | 99
Janus Twenty Fund (unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Apple, Inc.
Computers | | | 7.5% | |
Celgene Corp.
Medical – Biomedical and Genetic | | | 6.2% | |
eBay, Inc.
E-Commerce/Services | | | 5.8% | |
Google, Inc. – Class A
Web Portals/Internet Service Providers | | | 5.1% | |
Microsoft Corp.
Applications Software | | | 4.7% | |
| | | | | |
| | | | 29.3% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 3.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
100 | MARCH 31, 2011
(unaudited)(closed to new investors)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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) | | 10.47% | | 4.25% | | 5.94% | | 5.23% | | 11.97% | | | 0.87% |
| | | | | | | | | | | | | | |
| Janus Twenty Fund – Class T Shares(1) | | 10.42% | | 4.15% | | 5.92% | | 5.22% | | 11.97% | | | 0.97% |
| | | | | | | | | | | | | | |
| Russell 1000® Growth Index | | 18.57% | | 18.26% | | 4.34% | | 2.99% | | 9.99% | | | |
| | | | | | | | | | | | | | |
| S&P 500® Index | | 17.31% | | 15.65% | | 2.62% | | 3.29% | | 10.62% | | | |
| | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 4th | | 1st | | 1st | | 1st | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Large-Cap Growth Funds | | – | | 816/823 | | 38/631 | | 13/386 | | 2/33 | | | |
| | | | | | | | | | | | | | |
| 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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), 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.
See important disclosures on the next page.
Janus Growth & Core Funds | 101
Janus Twenty Fund (unaudited)(closed to new investors)
The Fund invests 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 from 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 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable 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.
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. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,104.70 | | | $ | 4.46 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.69 | | | $ | 4.28 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,104.20 | | | $ | 4.93 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.24 | | | $ | 4.73 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 0.85% for Class D Shares and 0.94% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
102 | MARCH 31, 2011
Janus Twenty Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 96.2% | | | | | | |
| Applications Software – 4.7% | | | | | | |
| | 16,730,895 | | | Microsoft Corp. | | $ | 424,295,497 | | | |
| Athletic Footwear – 1.2% | | | | | | |
| | 1,416,110 | | | NIKE, Inc. – Class B | | | 107,199,527 | | | |
| Automotive – Cars and Light Trucks – 4.6% | | | | | | |
| | 17,839,440 | | | Ford Motor Co.* | | | 265,986,050 | | | |
| | 4,656,660 | | | General Motors Co.* | | | 144,496,160 | | | |
| | | | | | | | 410,482,210 | | | |
| Brewery – 3.6% | | | | | | |
| | 5,638,026 | | | Anheuser-Busch InBev N.V. | | | 321,119,502 | | | |
| | 2,849,864 | | | Anheuser-Busch InBev N.V. – VVPR Strip* | | | 20,191 | | | |
| | | | | | | | 321,139,693 | | | |
| Chemicals – Diversified – 1.0% | | | | | | |
| | 5,641,049 | | | Israel Chemicals, Ltd. | | | 92,922,842 | | | |
| Commercial Banks – 2.0% | | | | | | |
| | 6,830,371 | | | Standard Chartered PLC | | | 177,157,544 | | | |
| Computers – 7.5% | | | | | | |
| | 1,947,109 | | | Apple, Inc.* | | | 678,470,131 | | | |
| Diversified Banking Institutions – 4.3% | | | | | | |
| | 29,003,665 | | | Bank of America Corp. | | | 386,618,854 | | | |
| E-Commerce/Services – 5.8% | | | | | | |
| | 16,974,865 | | | eBay, Inc.* | | | 526,899,810 | | | |
| Electronic Components – Miscellaneous – 2.2% | | | | | | |
| | 5,826,395 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 202,875,074 | | | |
| Electronic Connectors – 1.3% | | | | | | |
| | 2,188,770 | | | Amphenol Corp. – Class A | | | 119,047,200 | | | |
| Electronic Forms – 1.5% | | | | | | |
| | 4,204,980 | | | Adobe Systems, Inc.* | | | 139,437,137 | | | |
| Enterprise Software/Services – 2.9% | | | | | | |
| | 7,740,872 | | | Oracle Corp. | | | 258,312,899 | | | |
| Finance – Investment Bankers/Brokers – 2.7% | | | | | | |
| | 13,268,269 | | | Charles Schwab Corp. | | | 239,226,890 | | | |
| Finance – Other Services – 1.9% | | | | | | |
| | 578,120 | | | CME Group, Inc. | | | 174,332,086 | | | |
| Industrial Automation and Robotics – 2.3% | | | | | | |
| | 1,400,100 | | | Fanuc, Ltd. | | | 211,968,001 | | | |
| Life and Health Insurance – 4.0% | | | | | | |
| | 40,750,800 | | | AIA Group, Ltd.* | | | 125,474,932 | | | |
| | 21,020,513 | | | Prudential PLC | | | 238,210,452 | | | |
| | | | | | | | 363,685,384 | | | |
| Medical – Biomedical and Genetic – 7.5% | | | | | | |
| | 9,626,633 | | | Celgene Corp.* | | | 553,820,196 | | | |
| | 2,487,332 | | | Vertex Pharmaceuticals, Inc.* | | | 119,217,823 | | | |
| | | | | | | | 673,038,019 | | | |
| Multimedia – 4.3% | | | | | | |
| | 21,907,460 | | | News Corp. – Class A | | | 384,694,998 | | | |
| Networking Products – 2.2% | | | | | | |
| | 11,781,645 | | | Cisco Systems, Inc. | | | 202,055,212 | | | |
| Oil Companies – Exploration and Production – 2.4% | | | | | | |
| | 18,198,200 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 219,127,784 | | | |
| Oil Companies – Integrated – 2.7% | | | | | | |
| | 5,052,393 | | | BG Group PLC | | | 125,693,917 | | | |
| | 2,907,472 | | | Petroleo Brasileiro S.A. (ADR) | | | 117,549,093 | | | |
| | | | | | | | 243,243,010 | | | |
| Pharmacy Services – 2.7% | | | | | | |
| | 4,410,931 | | | Medco Health Solutions, Inc.* | | | 247,717,885 | | | |
| Real Estate Operating/Development – 0.9% | | | | | | |
| | 17,771,000 | | | Hang Lung Properties, Ltd. | | | 77,793,676 | | | |
| Retail – Apparel and Shoe – 2.9% | | | | | | |
| | 7,915,160 | | | Limited Brands, Inc. | | | 260,250,461 | | | |
| Retail – Jewelry – 2.2% | | | | | | |
| | 3,398,149 | | | Compagnie Financiere Richemont S.A. | | | 196,331,741 | | | |
| Transportation – Services – 5.9% | | | | | | |
| | 2,633,265 | | | C.H. Robinson Worldwide, Inc. | | | 195,203,934 | | | |
| | 4,507,525 | | | United Parcel Service, Inc. – Class B | | | 334,999,258 | | | |
| | | | | | | | 530,203,192 | | | |
| Web Portals/Internet Service Providers – 6.4% | | | | | | |
| | 782,686 | | | Google, Inc. – Class A*,** | | | 458,818,360 | | | |
| | 6,953,832 | | | Yahoo!, Inc.* | | | 115,781,303 | | | |
| | | | | | | | 574,599,663 | | | |
| Wireless Equipment – 2.6% | | | | | | |
| | 5,439,000 | | | Crown Castle International Corp.* | | | 231,429,450 | | | |
| |
| |
| Total Common Stock (cost $6,524,859,692) | | | 8,674,555,870 | | | |
| |
| |
| Preferred Stock – 0.4% | | | | | | |
| Direct Marketing – 0.4% | | | | | | |
| | 1,344,285 | | | Zynga, Inc. – Private Placement, 8.0000% °° ,§ (cost $37,718,257) | | | 37,718,257 | | | |
| |
| |
| Money Market – 3.7% | | | | | | |
| | 331,896,620 | | | Janus Cash Liquidity Fund LLC, 0%
(cost $331,896,620) | | | 331,896,620 | | | |
| |
| |
| Total Investments (total cost $6,894,474,569) – 100.3% | | | 9,044,170,747 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets**– (0.3)% | | | (26,846,386) | | | |
| |
| |
| Net Assets – 100% | | $ | 9,017,324,361 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Belgium | | $ | 321,139,693 | | | | 3.6% | |
| Brazil | | | 336,676,877 | | | | 3.7% | |
| Hong Kong | | | 203,268,608 | | | | 2.3% | |
| Israel | | | 92,922,842 | | | | 1.0% | |
| Japan | | | 211,968,001 | | | | 2.3% | |
| Switzerland | | | 399,206,815 | | | | 4.4% | |
| United Kingdom | | | 541,061,913 | | | | 6.0% | |
United States†† | | | 6,937,925,998 | | | | 76.7% | |
| |
| |
| Total | | $ | 9,044,170,747 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (73.0% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 103
Janus Twenty Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | |
| Schedule of Written Options – Puts | | Value | |
| | |
Microsoft Corp.
expires January 2012
41,900 contracts
exercise price $25.00
(premiums received $5,832,480) | | $ | (9,259,649) | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
104 | MARCH 31, 2011
Janus Venture Fund (unaudited)(closed to new investors)
| | | | | | | |
Fund Snapshot
We believe that a research-driven investment process focused on identifying quality small-cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. We take a moderate approach, seeking to identify companies with large addressable markets that are poised for growth over a multi-year period.
| | | |
Chad Meade
co-portfolio manager | |
Brian Schaub
co-portfolio manager |
Performance
Janus Venture Fund’s Class T Shares returned 27.38% over the six-month period ended March 31, 2011. The Fund’s primary benchmark, the Russell 2000 Growth Index, returned 27.93%, and its secondary benchmark, the Russell 2000 Index, returned 25.48% during the period.
Economic Overview
Small-cap stocks posted strong gains in the period, overcoming heightened macro uncertainty due to the natural disaster in Japan and rising oil prices stemming from unrest in the Middle East. From an economic standpoint, data continued to improve with positive reports on manufacturing and construction spending generally outweighing ongoing weakness in housing and concerns about building inflationary pressures.
Asset Class Overview
The Russell 2000 Growth Index posted strong gains during the period, outpacing most other equity indices. Small-caps outperformed mid-cap stocks, while small- and mid-cap indices outperformed large caps, continuing a trend off the market lows reached in March of 2009. Within our benchmark, the Russell 2000 Growth Index, the traditionally more volatile, lower quality stocks continued to outperform many of the Fund’s higher quality growth companies. The best performing sectors within the index were energy, information technology and materials, while laggards included utilities, consumer-related stocks and health care.
Strategy Overview
We continue to focus on identifying companies early in their growth cycle that have differentiated business models, sustainable competitive advantages, large addressable markets and recurring revenue streams. We think these attributes drive our portfolio composition far more than a geopolitical crisis or the latest readings on Gross Domestic Product (GDP).
For example, we have been overweight energy, but not because we like exploration-and-production (E&P) companies or take a bullish view on the price of oil or natural gas. In our market-cap universe, most E&P companies lack the scale to be low-cost producers and often find themselves beholden to the price of volatile commodities. Additionally, theses companies typically need substantial capital to grow, which results in highly leveraged balance sheets. Instead, our energy holdings are in companies such as midstream master limited partnerships, which we like for their recurring revenue streams and consistent dividend policies. These companies tend to generate attractive returns on capital, have more defensible business models and invest with greater discipline than traditional E&P firms, in our view.
Similarly, we have been overweight financials, but our holdings are not concentrated in traditional lenders. Barriers to entry are low for commercial and consumer lenders in our market-cap space, and most lenders have highly leveraged balance sheets. Even the use of high leverage doesn’t enable these companies to generate returns on equity that we find appealing. Instead, we have focused on asset managers with high returns on capital and services firms with recurring revenue streams. The select group of lenders that we do own have differentiated business models, high returns on assets and low leverage.
Our holdings in energy, telecommunications and materials rose during the period, but they underperformed their respective sector returns. Among individual detractors, shares of Horizon Lines came under pressure following resolution of the Department of Justice’s (DOJ) investigation into the company’s pricing practices in the Puerto Rico trade lane. The DOJ imposed a $45 million penalty, payable over five years, which triggered a technical default on the company’s outstanding convertible notes. As a result, the company now faces a critical refinancing deadline at the end of May, 2011. We continue to hold a small position, given the company’s competitive position and cash flow generation, but recognize the terms and conditions of the debt refinancing will play a significant role in the value of the company.
Janus Growth & Core Funds | 105
Janus Venture Fund (unaudited)(closed to new investors)
NetSpend Holdings, a recent addition to the Fund, was another poor performer. NetSpend is one of the largest providers of prepaid debit cards, which represent a compelling, potentially lower cost alternative for individuals without a bank account. Given NetSpend’s scale position, distribution network and differentiated service offering, we believe the company is well-positioned to capitalize on the market opportunity.
In health care, shares of NuVasive were weak due to an industry-wide slowdown of procedure volumes. We like this medical device company for its leading position in minimally invasive surgical products for spinal fusion, and we believe the company is well-positioned to capitalize on the trend from open, invasive procedures to more minimally invasive techniques. NuVasive’s proprietary nerve monitoring system, coupled with its unique and differentiated hardware, should enable the company to outpace overall market growth. We added to our position during the period.
Stock selection in consumer discretionary, information technology, and health care contributed to relative results during the period. World Fuel Services was among our top performers. This fuel broker began as a value-added service provider in the marine market but has begun to expand into the aviation and land businesses. World Fuel enjoys a strong and unique competitive position, owing to its global procurement and distribution platform, strong balance sheet and vigilant credit monitoring. As a result, the company has been successful in building market share at strong margins and returns. World Fuel has also proven adept at acquiring and integrating smaller fuel brokers that benefit from the company’s larger procurement platform.
Within energy, shares of Dresser-Rand Group rose as well. This supplier of highly engineered, mission critical rotating equipment to the energy industry has begun to see a rebound in its end markets as order growth for new units has accelerated. We remain attracted to the company’s flexible and resilient business model, which derives a vast majority of its profits from the more recurring parts and service businesses. In addition, we believe the company still has significant opportunities to increase its market share as it develops new products and adds more service infrastructure in the Middle East, South America and Asia-Pacific region.
In technology, CEVA was a top contributor. We like the business model and competitive positioning of this firm following the exit of a large technology company from its digital signal processor (DSP) licensing business. We expect CEVA to capture a significant share of this business. The company receives up-front licensing fees and ongoing royalties on each device (mobile phones typically) that includes its DSP technology.
Outlook
As stewards of your capital, our goal is to invest in high quality small-cap growth companies that can deliver superior results in a variety of market conditions. Our in-depth, bottoms-up research process continues to uncover dynamic small-cap growth companies that we think are well-positioned to deliver long duration growth and attractive returns on capital. As a result, we have confidence in our ability to generate strong risk-adjusted returns over the long-term. However, our enthusiasm is somewhat tempered by the recent rally in equity markets, particularly small-cap companies. Fundamentals have certainly improved and the overall macro outlook is more favorable; however, valuations today increasingly reflect the improved economic and corporate prospects.
While the valuation discrepancy between small- and large cap companies is at record levels, we believe small-cap companies deserve to trade at premium valuations due to several factors. First, we believe many small-cap companies have the opportunity to grow faster than large cap-companies because they are not solely reliant upon a macro-economic recovery to deliver strong financial results. The high quality small-cap companies that we invest in typically control small market share positions today; however, new product launches, geographic expansion and investments in sales forces create a situation for exciting growth in market share over time. A small-cap company in the process of growing its market share from 5% to 20% is likely to generate more rapid growth than a maturing, large-cap company fighting to take market share from 80% to 90%. Secondly, small-cap companies often have more opportunities to drive bottom-line growth through margin expansion when compared to large-cap companies. This is predominately a function of the relative maturity of small-cap companies compared to large-caps. As small-cap companies grow and gain scale, we often see margins expand to more closely mirror those of their larger cap counterparts, creating an even more attractive growth profile at the bottom line. In conclusion, we are firm believers in the saying “you get what you pay for” and believe in many cases it makes sense that high quality, small-cap growth companies should trade at valuation premiums to large-caps.
We continue to believe U.S. economic growth will be weaker than in past cyclical rebounds as the deleveraging hangover acts as an impediment to sustained economic growth. In the near-term, the stimulus effects of the
106 | MARCH 31, 2011
(unaudited)(closed to new investors)
Federal Reserve’s quantitative easing program are likely to taper off, which could potentially slow overall economic activity. The U.S. consumer remains overleveraged in general and the unwinding of debt levels will create headwinds for consumer spending. In short, we think the economy faces long-term structural challenges that will not be resolved soon.
Against this backdrop, we believe individual stock picking will play a more pivotal role in overall investment returns. As such, we believe our investment team, philosophy, and process put us in an excellent position to capitalize on market inefficiencies within the small-cap sector and to generate attractive risk-adjusted returns.
Thank you for your investment in Janus Venture Fund.
Janus Growth & Core Funds | 107
Janus Venture Fund (unaudited)(closed to new investors)
Janus Venture Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| World Fuel Services Corp. | | | 1.12% | |
| CEVA, Inc. | | | 1.09% | |
| Dresser-Rand Group, Inc. | | | 1.01% | |
| Ritchie Bros. Auctioneers, Inc. | | | 0.86% | |
| Wesco International, Inc. | | | 0.84% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Horizon Lines, Inc. – Class A | | | –0.47% | |
| NuVasive, Inc. | | | –0.25% | |
| Genius Products, Inc. | | | –0.20% | |
| Acorda Therapeutics, Inc. | | | –0.19% | |
| NetSpend Holdings, Inc. | | | –0.16% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 2000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Information Technology | | | 9.45% | | | | 26.01% | | | | 28.03% | |
| Industrials | | | 4.96% | | | | 17.86% | | | | 16.96% | |
| Health Care | | | 4.44% | | | | 18.25% | | | | 18.81% | |
| Consumer Discretionary | | | 3.64% | | | | 15.36% | | | | 17.18% | |
| Energy | | | 3.23% | | | | 8.99% | | | | 4.93% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Russell 2000®
|
| | | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
| |
| Consumer Staples | | | 0.00% | | | | 0.63% | | | | 2.91% | |
| Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
| Telecommunication Services | | | 0.11% | | | | 1.64% | | | | 1.27% | |
| Materials | | | 0.51% | | | | 2.50% | | | | 5.00% | |
| Financials | | | 2.36% | | | | 8.76% | | | | 4.83% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
108 | MARCH 31, 2011
(unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
VistaPrint N.V. (U.S. Shares)
Printing – Commercial | | | 2.2% | |
Ritchie Bros. Auctioneers, Inc. (U.S. Shares)
Auction House – Art Dealer | | | 2.2% | |
Dresser-Rand Group, Inc.
Oil Field Machinery and Equipment | | | 2.0% | |
World Fuel Services Corp.
Retail – Petroleum Products | | | 1.9% | |
CoStar Group, Inc.
Commercial Services | | | 1.9% | |
| | | | | |
| | | | 10.2% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 1.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
Janus Growth & Core Funds | 109
Janus Venture Fund (unaudited)(closed to new investors)
| | | | | | | | | | | | | | |
| | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | per the January 28, 2011 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) | | 27.42% | | 28.04% | | 5.12% | | 8.69% | | 12.17% | | | 0.87% |
| | | | | | | | | | | | | | |
Janus Venture Fund –
Class T Shares(1) | | 27.38% | | 27.90% | | 5.10% | | 8.68% | | 12.16% | | | 1.01% |
| | | | | | | | | | | | | | |
| Russell 2000® Growth Index | | 27.93% | | 31.04% | | 4.34% | | 6.44% | | 7.67% | | | |
| | | | | | | | | | | | | | |
| Russell 2000® Index | | 25.48% | | 25.79% | | 3.35% | | 7.87% | | 9.73% | | | |
| | | | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 3rd | | 2nd | | 1st | | 1st | | | |
| | | | | | | | | | | | | | |
| Lipper Ranking – based on total return for Small-Cap Growth Funds | | – | | 331/507 | | 107/392 | | 36/245 | | 1/9 | | | |
| | | | | | | | | | | | | | |
| 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.
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.
See important disclosures on the next page.
110 | MARCH 31, 2011
(unaudited)(closed to new investors)
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), derivatives, short sales, 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 invests 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 from 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 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable 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.
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. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,274.20 | | | $ | 4.88 | | | |
| |
| |
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 T Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,273.80 | | | $ | 5.50 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.09 | | | $ | 4.89 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 0.86% for Class D Shares and 0.97% for Class T Shares multiplied by the average account value over the period multiplied by 182/365 (to reflect the one-half year period). |
Janus Growth & Core Funds | 111
Janus Venture Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Common Stock – 97.0% | | | | | | |
| Aerospace and Defense – 1.1% | | | | | | |
| | 174,725 | | | TransDigm Group, Inc.* | | $ | 14,647,197 | | | |
| Aerospace and Defense – Equipment – 0.6% | | | | | | |
| | 182,766 | | | HEICO Corp. | | | 8,220,815 | | | |
| Agricultural Chemicals – 1.3% | | | | | | |
| | 463,585 | | | Intrepid Potash, Inc.* | | | 16,142,030 | | | |
| Apparel Manufacturers – 4.0% | | | | | | |
| | 574,540 | | | Carter’s, Inc.* | | | 16,449,080 | | | |
| | 684,065 | | | Maidenform Brands, Inc.* | | | 19,543,737 | | | |
| | 1,799,262 | | | Quiksilver, Inc.* | | | 7,952,738 | | | |
| | 101,071 | | | Under Armour, Inc. – Class A* | | | 6,877,882 | | | |
| | | | | | | | 50,823,437 | | | |
| Applications Software – 0.4% | | | | | | |
| | 197,205 | | | RealPage, Inc.* | | | 5,468,495 | | | |
| Auction House – Art Dealer – 2.2% | | | | | | |
| | 985,446 | | | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 27,740,305 | | | |
| Audio and Video Products – 1.2% | | | | | | |
| | 325,530 | | | DTS, Inc.* | | | 15,179,464 | | | |
| Beverages – Non-Alcoholic – 0.7% | | | | | | |
| | 777,445 | | | Primo Water Corp.* | | | 9,523,701 | | | |
| Broadcast Services and Programming – 0.9% | | | | | | |
| | 376,354 | | | DG FastChannel, Inc.* | | | 12,126,127 | | | |
| | 758,477 | | | Genius Products, Inc.*,°° ,§,£ | | | 0 | | | |
| | | | | | | | 12,126,127 | | | |
| Coffee – 0.6% | | | | | | |
| | 154,970 | | | Peet’s Coffee & Tea, Inc.* | | | 7,452,507 | | | |
| Commercial Services – 4.2% | | | | | | |
| | 181,745 | | | Acacia Research – Acacia Technologies* | | | 6,219,314 | | | |
| | 379,075 | | | CoStar Group, Inc.* | | | 23,760,421 | | | |
| | 93,150 | | | HMS Holdings Corp.* | | | 7,624,327 | | | |
| | 943,371 | | | Standard Parking Corp.*,£ | | | 16,754,269 | | | |
| | | | | | | | 54,358,331 | | | |
| Commercial Services – Finance – 2.6% | | | | | | |
| | 705,125 | | | Cardtronics, Inc.* | | | 14,349,294 | | | |
| | 997,568 | | | Euronet Worldwide, Inc.* | | | 19,282,989 | | | |
| | | | | | | | 33,632,283 | | | |
| Computer Services – 1.3% | | | | | | |
| | 1,177,491 | | | LivePerson, Inc.* | | | 14,883,486 | | | |
| | 120,995 | | | ServiceSource International LLC* | | | 1,473,719 | | | |
| | | | | | | | 16,357,205 | | | |
| Computer Software – 2.9% | | | | | | |
| | 1,083,073 | | | Convio, Inc.*,£ | | | 12,574,478 | | | |
| | 164,225 | | | Cornerstone OnDemand, Inc.* | | | 2,993,822 | | | |
| | 418,476 | | | Envestnet, Inc.* | | | 5,624,317 | | | |
| | 780,914 | | | SS&C Technologies Holdings, Inc.* | | | 15,946,264 | | | |
| | | | | | | | 37,138,881 | | | |
| Computers – Integrated Systems – 0.6% | | | | | | |
| | 162,410 | | | Micros Systems, Inc.* | | | 8,027,926 | | | |
| Consulting Services – 1.2% | | | | | | |
| | 367,553 | | | Gartner, Inc.* | | | 15,315,934 | | | |
| Consumer Products – Miscellaneous – 1.7% | | | | | | |
| | 382,388 | | | Jarden Corp. | | | 13,601,541 | | | |
| | 189,720 | | | SodaStream International, Ltd.* | | | 8,311,633 | | | |
| | | | | | | | 21,913,174 | | | |
| Decision Support Software – 0.9% | | | | | | |
| | 306,760 | | | MSCI, Inc.* | | | 11,294,903 | | | |
| Diagnostic Equipment – 1.5% | | | | | | |
| | 298,926 | | | Gen-Probe, Inc.* | | | 19,833,740 | | | |
| Diagnostic Kits – 0.6% | | | | | | |
| | 609,107 | | | Quidel Corp.* | | | 7,284,920 | | | |
| Distribution/Wholesale – 3.0% | | | | | | |
| | 194,296 | | | MWI Veterinary Supply, Inc.* | | | 15,675,801 | | | |
| | 357,726 | | | Wesco International, Inc.* | | | 22,357,875 | | | |
| | | | | | | | 38,033,676 | | | |
| Diversified Operations – 1.2% | | | | | | |
| | 651,670 | | | Barnes Group, Inc. | | | 13,606,869 | | | |
| | 867,990 | | | Digital Domain – Private Placement*,°° ,§ | | | 1,510,303 | | | |
| | | | | | | | 15,117,172 | | | |
| Educational Software – 1.6% | | | | | | |
| | 574,519 | | | Blackboard, Inc.* | | | 20,820,569 | | | |
| Electronic Components – Semiconductors – 1.8% | | | | | | |
| | 637,875 | | | CEVA, Inc.* | | | 17,050,399 | | | |
| | 202,235 | | | International Rectifier Corp.* | | | 6,685,889 | | | |
| | | | | | | | 23,736,288 | | | |
| Electronic Measuring Instruments – 1.0% | | | | | | |
| | 390,572 | | | Measurement Specialties, Inc.* | | | 13,302,882 | | | |
| Enterprise Software/Services – 2.2% | | | | | | |
| | 415,693 | | | Omnicell, Inc.* | | | 6,335,161 | | | |
| | 549,390 | | | Tyler Technologies, Inc.* | | | 13,026,037 | | | |
| | 146,388 | | | Ultimate Software Group, Inc.* | | | 8,600,295 | | | |
| | | | | | | | 27,961,493 | | | |
| Finance – Auto Loans – 1.0% | | | | | | |
| | 187,516 | | | Credit Acceptance Corp.* | | | 13,306,135 | | | |
| Finance – Consumer Loans – 0.8% | | | | | | |
| | 672,745 | | | Cash Store Financial Services, Inc. | | | 9,748,075 | | | |
| Finance – Other Services – 2.5% | | | | | | |
| | 432,860 | | | Higher One Holdings, Inc.* | | | 6,254,827 | | | |
| | 821,445 | | | MarketAxess Holdings, Inc. | | | 19,878,969 | | | |
| | 563,755 | | | NetSpend Holdings, Inc.* | | | 5,930,703 | | | |
| | | | | | | | 32,064,499 | | | |
| Footwear and Related Apparel – 1.7% | | | | | | |
| | 598,794 | | | Wolverine World Wide, Inc. | | | 22,323,040 | | | |
| Hazardous Waste Disposal – 1.2% | | | | | | |
| | 158,150 | | | Clean Harbors, Inc.* | | | 15,603,079 | | | |
| Health Care Cost Containment – 0.6% | | | | | | |
| | 331,690 | | | ExamWorks Group, Inc.* | | | 7,373,469 | | | |
| Heart Monitors – 0.5% | | | | | | |
| | 68,420 | | | HeartWare International, Inc.* | | | 5,851,963 | | | |
| Human Resources – 1.3% | | | | | | |
| | 852,650 | | | Resources Connection, Inc. | | | 16,532,883 | | | |
| Industrial Audio and Video Products – 1.0% | | | | | | |
| | 412,712 | | | Imax Corp. (U.S. Shares)* | | | 13,198,530 | | | |
See Notes to Schedules of Investments and Financial Statements.
112 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares | | Value | | | |
| |
| Internet Applications Software – 1.9% | | | | | | |
| | 279,695 | | | IntraLinks Holdings, Inc.* | | $ | 7,479,044 | | | |
| | 638,082 | | | Vocus, Inc.* | | | 16,500,801 | | | |
| | | | | | | | 23,979,845 | | | |
| Investment Management and Advisory Services – 2.2% | | | | | | |
| | 608,012 | | | Epoch Holding Corp. | | | 9,594,429 | | | |
| | 258,525 | | | Financial Engines, Inc.* | | | 7,124,949 | | | |
| | 491,400 | | | Gluskin Sheff + Associates, Inc. | | | 11,103,653 | | | |
| | | | | | | | 27,823,031 | | | |
| Machinery – General Industrial – 1.2% | | | | | | |
| | 217,706 | | | Wabtec Corp. | | | 14,766,998 | | | |
| Medical – Biomedical and Genetic – 1.1% | | | | | | |
| | 498,150 | | | Incyte Corp., Ltd.* | | | 7,895,677 | | | |
| | 400,270 | | | Seattle Genetics, Inc.* | | | 6,232,204 | | | |
| | | | | | | | 14,127,881 | | | |
| Medical – Drugs – 0.5% | | | | | | |
| | 883,573 | | | Achillion Pharmaceuticals, Inc.* | | | 6,317,547 | | | |
| Medical Information Systems – 1.4% | | | | | | |
| | 356,065 | | | athenahealth, Inc.* | | | 16,069,213 | | | |
| | 64,900 | | | ePocrates, Inc.* | | | 1,285,020 | | | |
| | | | | | | | 17,354,233 | | | |
| Medical Instruments – 3.5% | | | | | | |
| | 749,885 | | | Conceptus, Inc.* | | | 10,835,838 | | | |
| | 433,660 | | | NuVasive, Inc.* | | | 10,980,271 | | | |
| | 238,405 | | | Techne Corp. | | | 17,069,798 | | | |
| | 235,185 | | | Volcano Corp.* | | | 6,020,736 | | | |
| | | | | | | | 44,906,643 | | | |
| Medical Labs and Testing Services – 0.8% | | | | | | |
| | 439,416 | | | Bio-Reference Labs, Inc.* | | | 9,860,495 | | | |
| Medical Products – 1.7% | | | | | | |
| | 817,140 | | | PSS World Medical, Inc.* | | | 22,185,351 | | | |
| Oil – Field Services – 2.4% | | | | | | |
| | 616,689 | | | PAA Natural Gas Storage L.P. | | | 14,516,859 | | | |
| | 463,290 | | | Targa Resources Corp. | | | 16,789,630 | | | |
| | | | | | | | 31,306,489 | | | |
| Oil Field Machinery and Equipment – 3.1% | | | | | | |
| | 490,270 | | | Dresser-Rand Group, Inc.* | | | 26,288,277 | | | |
| | 168,550 | | | Dril-Quip, Inc.* | | | 13,320,507 | | | |
| | | | | | | | 39,608,784 | | | |
| Patient Monitoring Equipment – 1.4% | | | | | | |
| | 531,645 | | | Masimo Corp.* | | | 17,597,449 | | | |
| Pharmacy Services – 2.5% | | | | | | |
| | 295,645 | | | Catalyst Health Solutions, Inc.* | | | 16,535,425 | | | |
| | 287,195 | | | SXC Health Solutions Corp. (U.S. Shares)* | | | 15,738,286 | | | |
| | | | | | | | 32,273,711 | | | |
| Pipelines – 2.1% | | | | | | |
| | 385,265 | | | Copano Energy LLC | | | 13,715,434 | | | |
| | 339,820 | | | DCP Midstream Partners L.P. | | | 13,762,710 | | | |
| | | | | | | | 27,478,144 | | | |
| Printing – Commercial – 2.2% | | | | | | |
| | 544,963 | | | VistaPrint N.V. (U.S. Shares)* | | | 28,283,580 | | | |
| Real Estate Management/Services – 1.0% | | | | | | |
| | 568,477 | | | LPS Brasil Consultoria de Imoveis S.A. | | | 13,341,914 | | | |
| Recreational Vehicles – 1.4% | | | | | | |
| | 209,948 | | | Polaris Industries, Inc. | | | 18,269,675 | | | |
| Retail – Automobile – 0.4% | | | | | | |
| | 276,522 | | | Rush Enterprises, Inc.* | | | 4,808,718 | | | |
| Retail – Building Products – 0.8% | | | | | | |
| | 421,530 | | | Lumber Liquidators Holdings, Inc.* | | | 10,534,035 | | | |
| Retail – Convenience Stores – 0.8% | | | | | | |
| | 255,195 | | | Casey’s General Stores, Inc. | | | 9,952,605 | | | |
| Retail – Discount – 0.7% | | | | | | |
| | 487,873 | | | Gordmans Stores, Inc.* | | | 8,649,988 | | | |
| Retail – Petroleum Products – 1.9% | | | | | | |
| | 614,325 | | | World Fuel Services Corp. | | | 24,947,738 | | | |
| Retail – Sporting Goods – 0.9% | | | | | | |
| | 330,065 | | | Hibbett Sports, Inc.* | | | 11,819,628 | | | |
| Theaters – 1.5% | | | | | | |
| | 1,025,642 | | | National CineMedia, Inc. | | | 19,148,736 | | | |
| Transportation – Marine – 0.1% | | | | | | |
| | 1,368,193 | | | Horizon Lines, Inc. – Class A*,£ | | | 1,162,964 | | | |
| Transportation – Services – 1.0% | | | | | | |
| | 352,270 | | | HUB Group, Inc.* | | | 12,748,651 | | | |
| Transportation – Truck – 2.5% | | | | | | |
| | 299,158 | | | Landstar System, Inc. | | | 13,665,537 | | | |
| | 518,885 | | | Old Dominion Freight Line, Inc.* | | | 18,207,675 | | | |
| | | | | | | | 31,873,212 | | | |
| Virtual Reality Products – 1.0% | | | | | | |
| | 473,371 | | | RealD, Inc.* | | | 12,951,431 | | | |
| Water Treatment Systems – 0.9% | | | | | | |
| | 432,790 | | | Nalco Holding Co. | | | 11,819,495 | | | |
| Web Hosting/Design – 0.7% | | | | | | |
| | 700,530 | | | NIC, Inc.* | | | 8,728,604 | | | |
| Wireless Equipment – 1.5% | | | | | | |
| | 487,690 | | | SBA Communications Corp. – Class A* | | | 19,351,539 | | | |
| |
| |
| Total Common Stock (cost $882,018,168) | | | 1,245,434,242 | | | |
| |
| |
| Warrant – 0% | | | | | | |
| Automotive – Truck Parts and Equipment – Replacement – 0% | | | | | | |
| | 88,303 | | | Motorcar Parts of America, Inc. – Private Placement – expires 5/17/12*,°° ,§ (cost $198,682) | | | 132,454 | | | |
| |
| |
| Money Market – 3.3% | | | | | | |
| | 41,990,589 | | | Janus Cash Liquidity Fund LLC, 0% (cost $41,990,589) | | | 41,990,589 | | | |
| |
| |
| Total Investments (total cost $924,207,439) – 100.3% | | | 1,287,557,285 | | | |
| |
| |
| Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | | | (4,171,473) | | | |
| |
| |
| Net Assets – 100% | | $ | 1,283,385,812 | | | |
| |
| |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 113
Janus Venture Fund
Schedule of Investments (unaudited)
As of March 31, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Brazil | | $ | 13,341,914 | | | | 1.0% | |
| Canada | | | 77,528,849 | | | | 6.0% | |
| Netherlands | | | 28,283,580 | | | | 2.2% | |
United States†† | | | 1,168,402,942 | | | | 90.8% | |
| |
| |
| Total | | $ | 1,287,557,285 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (87.5% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
114 | MARCH 31, 2011
[This page intentionally left blank.]
Janus Growth & Core Funds | 115
Statements of Assets and Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Janus
| | Janus
| | Janus
| | | | | | Janus Growth
| | Janus
| | | | Janus
| | Janus
|
As of March 31, 2011 (unaudited)
| | Balanced
| | Contrarian
| | Enterprise
| | Janus
| | Janus
| | and Income
| | Research
| | Janus Triton
| | Twenty
| | Venture
|
| (all numbers in thousands except net asset value per share) | | Fund | | Fund | | Fund | | Forty Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
|
| |
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments at cost | | $ | 5,811,197 | | | $ | 3,720,921 | | | $ | 2,004,752 | | | $ | 5,265,810 | | | $ | 6,806,710 | | | $ | 3,278,744 | | | $ | 2,896,638 | | | $ | 1,608,382 | | | $ | 6,894,475 | | | $ | 924,207 | |
| Unaffiliated investments at value | | $ | 6,610,785 | | | $ | 3,636,656 | | | $ | 2,723,563 | | | $ | 6,222,258 | | | $ | 8,415,681 | | | $ | 4,156,018 | | | $ | 3,545,712 | | | $ | 1,754,170 | | | $ | 8,712,274 | | | $ | 1,216,238 | |
| Affiliated investments at value | | | 38,386 | | | | 337,133 | | | | 136,932 | | | | 253,226 | | | | 158,053 | | | | 2,410 | | | | 84,951 | | | | 191,797 | | | | 331,897 | | | | 71,319 | |
| Cash | | | – | | | | 790 | | | | 251 | | | | 683 | | | | 7,172 | | | | 187 | | | | 53 | | | | 646 | | | | 516 | | | | – | |
| Cash denominated in foreign currency(1) | | | – | | | | 1,924 | | | | – | | | | – | | | | – | | | | – | | | | 1,239 | | | | – | | | | – | | | | – | |
| Restricted cash (Note 1) | | | – | | | | 28,640 | | | | – | | | | 6,977 | | | | 10,359 | | | | – | | | | – | | | | – | | | | 9,138 | | | | – | |
| Deposits with broker for short sales | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 5,355 | | | | – | | | | – | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments sold | | | 117,526 | | | | 63,663 | | | | 3,549 | | | | 11,777 | | | | 19 | | | | 64,964 | | | | 42,514 | | | | 456 | | | | 15,749 | | | | – | |
| Fund shares sold | | | 11,506 | | | | 580 | | | | 3,111 | | | | 13,595 | | | | 8,116 | | | | 1,312 | | | | 1,309 | | | | 11,594 | | | | 1,620 | | | | 218 | |
| Dividends | | | 6,784 | | | | 2,930 | | | | 895 | | | | 10,499 | | | | 14,203 | | | | 6,290 | | | | 5,441 | | | | 292 | | | | 14,509 | | | | 154 | |
| Foreign dividend tax reclaim | | | 1,889 | | | | 882 | | | | – | | | | 1,537 | | | | 2,463 | | | | 3,115 | | | | 1,077 | | | | 1 | | | | 2,492 | | | | – | |
| Interest | | | 31,518 | | | | – | | | | – | | | | – | | | | – | | | | 1,807 | | | | – | | | | – | | | | – | | | | 148 | |
| Outstanding swap contracts at value | | | – | | | | 3,286 | | | | – | | | | – | | | | 15,778 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Dividends and interest on swap contracts | | | – | | | | 14 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Non-interested Trustees’ deferred compensation | | | 165 | | | | 99 | | | | 71 | | | | 159 | | | | 212 | | | | 122 | | | | 89 | | | | 47 | | | | 223 | | | | 32 | |
| Other assets | | | 513 | | | | 89 | | | | 307 | | | | 161 | | | | 460 | | | | 486 | | | | 142 | | | | 2 | | | | 264 | | | | 5 | |
| Forward currency contracts | | | 881 | | | | 357 | | | | – | | | | – | | | | 553 | | | | 705 | | | | 1,700 | | | | – | | | | – | | | | – | |
| Total Assets | | | 6,819,953 | | | | 4,077,043 | | | | 2,868,679 | | | | 6,520,872 | | | | 8,633,069 | | | | 4,237,416 | | | | 3,684,227 | | | | 1,964,360 | | | | 9,088,682 | | | | 1,288,114 | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short sales, at value(2) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 6,176 | | | | – | | | | – | |
| Options written, at value(3) | | | – | | | | 35,309 | | | | – | | | | 6,740 | | | | 17,972 | | | | – | | | | – | | | | – | | | | 9,260 | | | | – | |
| Due to custodian | | | 9,447 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Investments purchased | | | 92,844 | | | | 40,995 | | | | – | | | | 34,350 | | | | 11,518 | | | | 24,656 | | | | 63,860 | | | | 33,473 | | | | 46,310 | | | | 2,684 | |
| Fund shares repurchased | | | 9,388 | | | | 5,405 | | | | 2,322 | | | | 66,190 | | | | 6,231 | | | | 4,338 | | | | 3,606 | | | | 1,534 | | | | 5,932 | | | | 848 | |
| Dividends | | | 1,970 | | | | 14 | | | | 5 | | | | – | | | | – | | | | 185 | | | | – | | | | – | | | | – | | | | – | |
| Outstanding swap contracts at value | | | – | | | | 652 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Dividends and interest on swap contracts | | | – | | | | 14 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Advisory fees | | | 3,087 | | | | 1,627 | | | | 1,521 | | | | 3,427 | | | | 4,327 | | | | 2,081 | | | | 1,670 | | | | 966 | | | | 4,893 | | | | 671 | |
| Administrative services fees | | | 971 | | | | 566 | | | | 363 | | | | 696 | | | | 1,078 | | | | 621 | | | | 523 | | | | 247 | | | | 1,346 | | | | 152 | |
| Distribution fees and shareholder servicing fees | | | 732 | | | | 68 | | | | 114 | | | | 1,405 | | | | 155 | | | | 33 | | | | 2 | | | | 79 | | | | – | | | | – | |
| Administrative, networking and omnibus fees | | | 128 | | | | 97 | | | | 264 | | | | 623 | | | | – | | | | 21 | | | | 2 | | | | 12 | | | | – | | | | – | |
| Non-interested Trustees’ fees and expenses | | | 13 | | | | 20 | | | | 17 | | | | 20 | | | | 39 | | | | 19 | | | | 14 | | | | 6 | | | | 47 | | | | 4 | |
| Non-interested Trustees’ deferred compensation fees | | | 165 | | | | 99 | | | | 71 | | | | 159 | | | | 212 | | | | 122 | | | | 89 | | | | 47 | | | | 223 | | | | 32 | |
| Accrued expenses and other payables | | | 745 | | | | 1,062 | | | | 905 | | | | 666 | | | | 3,396 | | | | 1,573 | | | | 1,007 | | | | 170 | | | | 3,347 | | | | 337 | |
| Forward currency contracts | | | 268 | | | | – | | | | 1,021 | | | | – | | | | 5,401 | | | | 81 | | | | 1,292 | | | | – | | | | – | | | | – | |
| Total Liabilities | | | 119,758 | | | | 85,928 | | | | 6,603 | | | | 114,276 | | | | 50,329 | | | | 33,730 | | | | 72,065 | | | | 42,710 | | | | 71,358 | | | | 4,728 | |
| Net Assets | | $ | 6,700,195 | | | $ | 3,991,115 | | | $ | 2,862,076 | | | $ | 6,406,596 | | | $ | 8,582,740 | | | $ | 4,203,686 | | | $ | 3,612,162 | | | $ | 1,921,650 | | | $ | 9,017,324 | | | $ | 1,283,386 | |
See Notes to Financial Statements.
See footnotes at the end of the Statements.
116 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
117
Statements of Assets and Liabilities (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Janus
| | Janus
| | Janus
| | | | | | Janus Growth
| | Janus
| | | | Janus
| | Janus
|
As of March 31, 2011 (unaudited)
| | Balanced
| | Contrarian
| | Enterprise
| | Janus
| | Janus
| | and Income
| | Research
| | Janus Triton
| | Twenty
| | Venture
|
| (all numbers in thousands except net asset value per share) | | Fund | | Fund | | Fund | | Forty Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
|
| |
| Net Assets Consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital (par value and paid-in surplus)* | | $ | 5,776,611 | | | $ | 4,304,535 | | | $ | 2,296,158 | | | $ | 5,850,487 | | | $ | 8,352,815 | | | $ | 4,109,471 | | | $ | 3,496,212 | | | $ | 1,545,009 | | | $ | 6,050,628 | | | $ | 939,863 | |
| Undistributed net investment income/(loss)* | | | 8,286 | | | | (50) | | | | (4,807) | | | | 10,810 | | | | 21,394 | | | | 1,538 | | | | 9,035 | | | | (858) | | | | (3,743) | | | | (1,494) | |
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | | | 76,351 | | | | (576,783) | | | | (284,000) | | | | (662,003) | | | | (1,567,086) | | | | (788,096) | | | | (627,646) | | | | 40,733 | | | | 823,959 | | | | (18,334) | |
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation(4) | | | 838,947 | | | | 263,413 | | | | 854,725 | | | | 1,207,302 | | | | 1,775,617 | | | | 880,773 | | | | 734,561 | | | | 336,766 | | | | 2,146,480 | | | | 363,351 | |
| Total Net Assets | | $ | 6,700,195 | | | $ | 3,991,115 | | | $ | 2,862,076 | | | $ | 6,406,596 | | | $ | 8,582,740 | | | $ | 4,203,686 | | | $ | 3,612,162 | | | $ | 1,921,650 | | | $ | 9,017,324 | | | $ | 1,283,386 | |
| Net Assets - Class A Shares | | $ | 582,471 | | | $ | 70,468 | | | $ | 81,719 | | | $ | 774,988 | | | $ | 661,027 | | | $ | 24,498 | | | $ | 6,011 | | | $ | 141,181 | | | | N/A | | | | N/A | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 22,438 | | | | 4,750 | | | | 1,304 | | | | 22,682 | | | | 22,099 | | | | 756 | | | | 197 | | | | 7,901 | | | | N/A | | | | N/A | |
| Net Asset Value Per Share(5) | | $ | 25.96 | | | $ | 14.83 | | | $ | 62.65 | | | $ | 34.17 | | | $ | 29.91 | | | $ | 32.41 | | | $ | 30.56 | | | $ | 17.87 | | | | N/A | | | | N/A | |
| Maximum Offering Price Per Share(6) | | $ | 27.54 | | | $ | 15.73 | | | $ | 66.47 | | | $ | 36.25 | | | $ | 31.73 | | | $ | 34.39 | | | $ | 32.42 | | | $ | 18.96 | | | | N/A | | | | N/A | |
| Net Assets - Class C Shares | | $ | 479,828 | | | $ | 57,628 | | | $ | 27,133 | | | $ | 572,150 | | | $ | 6,184 | | | $ | 12,953 | | | $ | 848 | | | $ | 58,734 | | | | N/A | | | | N/A | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 18,499 | | | | 3,933 | | | | 439 | | | | 17,550 | | | | 208 | | | | 401 | | | | 28 | | | | 3,316 | | | | N/A | | | | N/A | |
| Net Asset Value Per Share(5) | | $ | 25.94 | | | $ | 14.65 | | | $ | 61.83 | | | $ | 32.60 | | | $ | 29.68 | | | $ | 32.31 | | | $ | 30.25 | | | $ | 17.71 | | | | N/A | | | | N/A | |
| Net Assets - Class D Shares | | $ | 1,062,163 | | | $ | 2,115,480 | | | $ | 972,304 | | | | N/A | | | $ | 5,049,386 | | | $ | 2,239,848 | | | $ | 1,975,538 | | | $ | 480,293 | | | $ | 5,137,415 | | | $ | 1,031,171 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 40,905 | | | | 142,340 | | | | 15,445 | | | | N/A | | | | 168,353 | | | | 69,119 | | | | 64,407 | | | | 26,824 | | | | 77,297 | | | | 17,173 | |
| Net Asset Value Per Share | | $ | 25.97 | | | $ | 14.86 | | | $ | 62.95 | | | | N/A | | | $ | 29.99 | | | $ | 32.41 | | | $ | 30.67 | | | $ | 17.91 | | | $ | 66.46 | | | $ | 60.04 | |
| Net Assets - Class I Shares | | $ | 451,580 | | | $ | 128,084 | | | $ | 502,344 | | | $ | 1,819,883 | | | $ | 167,794 | | | $ | 55,567 | | | $ | 92,590 | | | $ | 221,907 | | | | N/A | | | | N/A | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 17,395 | | | | 8,619 | | | | 7,963 | | | | 52,864 | | | | 5,593 | | | | 1,715 | | | | 3,020 | | | | 12,359 | | | | N/A | | | | N/A | |
| Net Asset Value Per Share | | $ | 25.96 | | | $ | 14.86 | | | $ | 63.08 | | | $ | 34.43 | | | $ | 30.00 | | | $ | 32.40 | | | $ | 30.66 | | | $ | 17.96 | | | | N/A | | | | N/A | |
| Net Assets - Class R Shares | | $ | 156,535 | | | $ | 3,942 | | | $ | 64,573 | | | $ | 257,188 | | | $ | 1,653 | | | $ | 2,974 | | | | N/A | | | $ | 16,638 | | | | N/A | | | | N/A | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,036 | | | | 267 | | | | 1,036 | | | | 7,765 | | | | 55 | | | | 92 | | | | N/A | | | | 932 | | | | N/A | | | | N/A | |
| Net Asset Value Per Share | | $ | 25.93 | | | $ | 14.76 | | | $ | 62.30 | | | $ | 33.12 | | | $ | 29.84 | | | $ | 32.37 | | | | N/A | | | $ | 17.84 | | | | N/A | | | | N/A | |
| Net Assets - Class S Shares | | $ | 677,217 | | | $ | 6,020 | | | $ | 232,464 | | | $ | 2,945,558 | | | $ | 79,020 | | | $ | 71,999 | | | $ | 18 | | | $ | 22,851 | | | | N/A | | | | N/A | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 26,078 | | | | 406 | | | | 3,715 | | | | 87,393 | | | | 2,637 | | | | 2,222 | | | | 1 | | | | 1,282 | | | | N/A | | | | N/A | |
| Net Asset Value Per Share | | $ | 25.97 | | | $ | 14.83 | | | $ | 62.57 | | | $ | 33.70 | | | $ | 29.96 | | | $ | 32.41 | | | $ | 30.55 | | | $ | 17.83 | | | | N/A | | | | N/A | |
| Net Assets - Class T Shares | | $ | 3,290,401 | | | $ | 1,609,493 | | | $ | 981,539 | | | $ | 36,829 | | | $ | 2,617,676 | | | $ | 1,795,847 | | | $ | 1,537,157 | | | $ | 980,046 | | | $ | 3,879,909 | | | $ | 252,215 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 126,745 | | | | 108,335 | | | | 15,609 | | | | 1,088 | | | | 87,249 | | | | 55,422 | | | | 50,143 | | | | 54,798 | | | | 58,380 | | | | 4,206 | |
| Net Asset Value Per Share | | $ | 25.96 | | | $ | 14.86 | | | $ | 62.88 | | | $ | 33.84 | | | $ | 30.00 | | | $ | 32.40 | | | $ | 30.66 | | | $ | 17.88 | | | $ | 66.46 | | | $ | 59.97 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Includes cost of $1,923,592 and $1,238,956 for Janus Contrarian Fund and Janus Research Fund, respectively. |
| (2) | | Includes proceeds of $5,354,781 on short sales for Janus Triton Fund. |
| (3) | | Includes premiums of $42,794,398, $4,245,600, $15,227,116 and $5,832,480 on written options for Janus Contrarian Fund, Janus Forty Fund, Janus Fund and Janus Twenty Fund, respectively. |
| (4) | | Net of foreign tax on investments of $198 for Janus Contrarian Fund. |
| (5) | | Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
| (6) | | Maximum offering price is computed at 100/94.25 of net asset value. |
| | | |
| | | |
See Notes to Financial Statements.
118 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
119
Statements of Operations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Janus
| | Janus
| | Janus
| | | | | | Janus
| | Janus
| | Janus
| | Janus
| | Janus
|
For the six-month period ended March 31, 2011 (unaudited)
| | Balanced
| | Contrarian
| | Enterprise
| | Janus
| | Janus
| | Growth and
| | Research
| | Triton
| | Twenty
| | Venture
|
| (all numbers in thousands) | | Fund | | Fund | | Fund | | Forty Fund | | Fund | | Income Fund | | Fund | | Fund | | Fund | | Fund |
|
| |
| Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | $ | 59,949 | | | $ | (319) | | | $ | – | | | $ | 3 | | | $ | – | | | $ | 4,540 | | | $ | – | | | $ | – | | | $ | 3 | | | $ | – | |
| Interest proceeds from short sales | | | – | | | | 271 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 17 | | | | – | | | | 82 | |
| Dividends | | | 33,685 | | | | 17,511 | | | | 7,714 | | | | 47,950 | | | | 58,876 | | | | 32,454 | | | | 23,712 | | | | 5,163 | | | | 62,503 | | | | 3,515 | |
| Dividends from affiliates | | | 151 | | | | 3,243 | | | | 134 | | | | 154 | | | | 123 | | | | 64 | | | | 23 | | | | 146 | | | | 237 | | | | 159 | |
| Fee income | | | 71 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Foreign tax withheld | | | (456) | | | | (196) | | | | (236) | | | | (323) | | | | (369) | | | | (300) | | | | (304) | | | | (78) | | | | (434) | | | | (63) | |
| Total Investment Income | | | 93,400 | | | | 20,510 | | | | 7,612 | | | | 47,784 | | | | 58,630 | | | | 36,758 | | | | 23,431 | | | | 5,248 | | | | 62,309 | | | | 3,693 | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Advisory fees | | | 17,338 | | | | 10,191 | | | | 8,532 | | | | 21,506 | | | | 26,981 | | | | 11,681 | | | | 10,164 | | | | 4,202 | | | | 29,306 | | | | 3,751 | |
| Shareholder reports expense | | | 479 | | | | 484 | | | | 355 | | | | 430 | | | | 972 | | | | 732 | | | | 580 | | | | 104 | | | | 1,163 | | | | 151 | |
| Transfer agent fees and expenses | | | 194 | | | | 313 | | | | 254 | | | | 41 | | | | 740 | | | | 539 | | | | 405 | | | | 56 | | | | 807 | | | | 123 | |
| Registration fees | | | 137 | | | | 77 | | | | 117 | | | | 116 | | | | 90 | | | | 85 | | | | 69 | | | | 83 | | | | 32 | | | | 26 | |
| Custodian fees | | | 51 | | | | 291 | | | | 31 | | | | 92 | | | | 124 | | | | 53 | | | | 64 | | | | 18 | | | | 139 | | | | 46 | |
| Professional fees | | | 49 | | | | 36 | | | | 28 | | | | 50 | | | | 56 | | | | 34 | | | | 32 | | | | 22 | | | | 60 | | | | 23 | |
| Non-interested Trustees’ fees and expenses | | | 121 | | | | 81 | | | | 51 | | | | 130 | | | | 162 | | | | 73 | | | | 67 | | | | 27 | | | | 177 | | | | 22 | |
| Short sales interest expense | | | – | | | | 89 | | | | – | | | | – | | | | 2 | | | | – | | | | – | | | | 3 | | | | – | | | | 8 | |
| Stock loan fees | | | – | | | | 686 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 23 | | | | – | | | | 125 | |
| Administrative services fees - Class D Shares | | | 612 | | | | 1,300 | | | | 539 | | | | N/A | | | | 2,983 | | | | 1,180 | | | | 1,142 | | | | 204 | | | | 3,102 | | | | 565 | |
| Administrative services fees - Class R Shares | | | 171 | | | | 5 | | | | 73 | | | | 324 | | | | 2 | | | | 3 | | | | N/A | | | | 11 | | | | N/A | | | | N/A | |
| Administrative services fees - Class S Shares | | | 816 | | | | 8 | | | | 292 | | | | 3,877 | | | | 100 | | | | 80 | | | | – | | | | 15 | | | | N/A | | | | N/A | |
| Administrative services fees - Class T Shares | | | 3,886 | | | | 2,146 | | | | 1,135 | | | | 47 | | | | 3,390 | | | | 2,109 | | | | 1,852 | | | | 864 | | | | 4,985 | | | | 288 | |
| Distribution fees and shareholder servicing fees - Class A Shares | | | 686 | | | | 93 | | | | 100 | | | | 1,056 | | | | 631 | | | | 26 | | | | 4 | | | | 101 | | | | N/A | | | | N/A | |
| Distribution fees and shareholder servicing fees - Class C Shares | | | 2,169 | | | | 310 | | | | 128 | | | | 2,991 | | | | 29 | | | | 38 | | | | 2 | | | | 150 | | | | N/A | | | | N/A | |
| Distribution fees and shareholder servicing fees - Class R Shares | | | 342 | | | | 10 | | | | 147 | | | | 649 | | | | 4 | | | | 6 | | | | N/A | | | | 22 | | | | N/A | | | | N/A | |
| Distribution fees and shareholder servicing fees - Class S Shares | | | 816 | | | | 9 | | | | 292 | | | | 3,716 | | | | 100 | | | | 80 | | | | – | | | | 15 | | | | N/A | | | | N/A | |
| Administrative, networking and omnibus fees - Class A Shares | | | 310 | | | | 46 | | | | 82 | | | | 472 | | | | 547 | | | | 11 | | | | 1 | | | | 43 | | | | N/A | | | | N/A | |
| Administrative, networking and omnibus fees - Class C Shares | | | 194 | | | | 40 | | | | 23 | | | | 392 | | | | 5 | | | | 3 | | | | – | | | | 16 | | | | N/A | | | | N/A | |
| Administrative, networking and omnibus fees - Class I Shares | | | 100 | | | | 22 | | | | 103 | | | | 528 | | | | 65 | | | | 17 | | | | 24 | | | | 65 | | | | N/A | | | | N/A | |
| Other expenses | | | 198 | | | | 116 | | | | 79 | | | | 318 | | | | 328 | | | | 95 | | | | 92 | | | | 40 | | | | 944 | | | | 30 | |
| Non-recurring costs (Note 4) | | | 1 | | | | N/A | | | | N/A | | | | N/A | | | | 3 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | – | |
| Costs assumed by Janus Capital Management LLC (Note 4) | | | (1) | | | | N/A | | | | N/A | | | | N/A | | | | (3) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | – | |
| Total Expenses | | | 28,669 | | | | 16,353 | | | | 12,361 | | | | 36,735 | | | | 37,311 | | | | 16,845 | | | | 14,498 | | | | 6,084 | | | | 40,715 | | | | 5,158 | |
| Expense and Fee Offset | | | (1) | | | | (1) | | | | (1) | | | | (5) | | | | (16) | | | | – | | | | (1) | | | | (1) | | | | (7) | | | | – | |
| Net Expenses | | | 28,668 | | | | 16,352 | | | | 12,360 | | | | 36,730 | | | | 37,295 | | | | 16,845 | | | | 14,497 | | | | 6,083 | | | | 40,708 | | | | 5,158 | |
| Less: Excess Expense Reimbursement | | | – | | | | – | | | | – | | | | (85) | | | | (279) | | | | (46) | | | | N/A | | | | – | | | | N/A | | | | N/A | |
| Net Expenses after Expense Reimbursement | | | 28,668 | | | | 16,352 | | | | 12,360 | | | | 36,645 | | | | 37,016 | | | | 16,799 | | | | 14,497 | | | | 6,083 | | | | 40,708 | | | | 5,158 | |
| Net Investment Income/(Loss) | | | 64,732 | | | | 4,158 | | | | (4,748) | | | | 11,139 | | | | 21,614 | | | | 19,959 | | | | 8,934 | | | | (835) | | | | 21,601 | | | | (1,465) | |
| Net Realized and Unrealized Gain/(Loss) on Investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized gain from investment and foreign currency transactions | | | 83,453 | | | | 348,419 | | | | 148,705 | | | | 518,960 | | | | 782,306 | | | | 100,157 | | | | 309,602 | | | | 56,173 | | | | 1,019,850 | | | | 128,108 | |
| Net realized gain/(loss) from short sales | | | – | | | | 34,668 | | | | – | | | | – | | | | (6,963) | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from swap contracts | | | – | | | | (31,750) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from written options contracts | | | – | | | | (23,968) | | | | – | | | | 8,953 | | | | 30,150 | | | | – | | | | – | | | | – | | | | 12,526 | | | | – | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(1) | | | 319,284 | | | | (70,080) | | | | 342,696 | | | | 125,706 | | | | 134,858 | | | | 491,601 | | | | 214,172 | | | | 221,919 | | | | (150,173) | | | | 155,400 | |
| Net Gain on Investments | | | 402,737 | | | | 257,289 | | | | 491,401 | | | | 653,619 | | | | 940,351 | | | | 591,758 | | | | 523,774 | | | | 278,092 | | | | 882,203 | | | | 283,508 | |
| Net Increase in Net Assets Resulting from Operations | | $ | 467,469 | | | $ | 261,447 | | | $ | 486,653 | | | $ | 664,758 | | | $ | 961,965 | | | $ | 611,717 | | | $ | 532,708 | | | $ | 277,257 | | | $ | 903,804 | | | $ | 282,043 | |
| | | |
| (1) | | Net of foreign tax on investments of $198 for Janus Contrarian Fund. |
| | | |
| | | |
See Notes to Financial Statements.
120 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
121
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(unaudited), the eleven-month fiscal period or fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
year ended September 30, 2010 and the fiscal
| | Janus
| | Janus
| | Janus
| | Janus
| | | | | | | | Janus Growth and
|
year ended October 31, 2009
| | Balanced Fund | | Contrarian Fund | | Enterprise Fund | | Forty Fund | | Janus Fund | | Income Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(3) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) |
|
| |
| Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | $ | 64,732 | | | $ | 119,375 | | | $ | 82,015 | | | $ | 4,158 | | | $ | 10,400 | | | $ | 304 | | | $ | (4,748) | | | $ | (4,469) | | | $ | (1,440) | | | $ | 11,139 | | | $ | (22,087) | | | $ | 21,614 | | | $ | 29,112 | | | $ | 36,057 | | | $ | 19,959 | | | $ | 38,155 | | | $ | 39,564 | |
| Net realized gain/(loss) from investment and foreign currency transactions | | | 83,453 | | | | 291,800 | | | | (66,509) | | | | 348,419 | | | | 306,637 | | | | (970,261) | | | | 148,705 | | | | 126,663 | | | | (248,916) | | | | 518,960 | | | | 10,749 | | | | 782,306 | | | | 316,096 | | | | (1,697,312) | | | | 100,157 | | | | 291,633 | | | | (627,685) | |
| Net realized gain/(loss) from futures contracts | | | – | | | | (1,698) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from short sales | | | – | | | | – | | | | – | | | | 34,668 | | | | 20,478 | | | | (5,566) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (6,963) | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from swap contracts | | | – | | | | – | | | | – | | | | (31,750) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from written options contracts | | | – | | | | – | | | | – | | | | (23,968) | | | | (17,157) | | | | (239,677) | | | | – | | | | – | | | | – | | | | 8,953 | | | | (5,440) | | | | 30,150 | | | | 10,659 | | | | 30,877 | | | | – | | | | – | | | | (59,830) | |
Change in unrealized net appreciation/(depreciation) of
investments, foreign currency translations and non-
interested Trustees’ deferred compensation | | | 319,284 | | | | 47,278 | | | | 656,231 | | | | (70,080) | | | | 408,217 | | | | 1,525,672 | | | | 342,696 | | | | 370,273 | | | | 538,854 | | | | 125,706 | | | | 81,689 | | | | 134,858 | | | | 606,467 | | | | 2,960,657 | | | | 491,601 | | | | (16,797) | | | | 1,310,185 | |
| Net Increase in Net Assets Resulting from Operations | | | 467,469 | | | | 456,755 | | | | 671,737 | | | | 261,447 | | | | 728,575 | | | | 310,472 | | | | 486,653 | | | | 492,467 | | | | 288,498 | | | | 664,758 | | | | 64,911 | | | | 961,965 | | | | 962,334 | | | | 1,330,279 | | | | 611,717 | | | | 312,991 | | | | 662,234 | |
| Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (5,471) | | | | (9,123) | | | | (1,386) | | | | (83) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (2,258) | | | | (45) | | | | – | | | | (101) | | | | (172) | | | | (21) | |
| Class C Shares | | | (3,054) | | | | (4,858) | | | | (685) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (12) | | | | (17) | | | | – | |
| Class D Shares | | | (10,995) | | | | (16,749) | | | | N/A | | | | (6,519) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | (19,068) | | | | – | | | | N/A | | | | (10,725) | | | | (16,011) | | | | N/A | |
| Class I Shares | | | (4,673) | | | | (5,405) | | | | (278) | | | | (543) | | | | (83) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (772) | | | | (43) | | | | – | | | | (394) | | | | (589) | | | | (3) | |
| Class R Shares | | | (1,158) | | | | (1,514) | | | | (152) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (7) | | | | (11) | | | | – | |
| Class S Shares | | | (6,009) | | | | (10,615) | | | | (1,946) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (44) | | | | – | | | | – | | | | (236) | | | | (413) | | | | (49) | |
| Class T Shares | | | (32,354) | | | | (62,732) | | | | (87,861) | | | | (3,768) | | | | (1,643) | | | | (18,634) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (5,959) | | | | (5,694) | | | | (96,855) | | | | (8,403) | | | | (20,758) | | | | (37,774) | |
| Net Realized Gain/(Loss) from Investment Transactions* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (16,369) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class C Shares | | | (13,293) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class D Shares | | | (30,405) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | (11,791) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class R Shares | | | (3,899) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class S Shares | | | (19,506) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Class T Shares | | | (92,149) | | | | – | | | | (68,357) | | | | – | | | | – | | | | (127,435) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Return of Capital | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | N/A | | | | N/A | | | | (11) | | | | 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 | |
| Class C Shares | | | N/A | | | | N/A | | | | (6) | | | | 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 | |
| Class I Shares | | | N/A | | | | N/A | | | | (2) | | | | 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 | |
| Class R Shares | | | N/A | | | | N/A | | | | (1) | | | | 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 | |
| Class S Shares | | | N/A | | | | N/A | | | | (16) | | | | 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 | |
| Class T Shares | | | N/A | | | | N/A | | | | (407) | | | | N/A | | | | N/A | | | | (1,859) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Net Decrease from Dividends and Distributions | | | (251,126) | | | | (110,996) | | | | (161,108) | | | | (10,913) | | | | (1,726) | | | | (147,928) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (28,101) | | | | (5,782) | | | | (96,855) | | | | (19,878) | | | | (37,971) | | | | (37,847) | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
122 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
123
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 (unaudited), the eleven-month fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
period or fiscal year ended September 30, 2010
| | Janus
| | Janus
| | Janus
| | Janus
| | | | | | | | Janus Growth and
|
and the fiscal year ended October 31, 2009
| | Balanced Fund | | Contrarian Fund | | Enterprise Fund | | Forty Fund | | Janus Fund | | Income Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(3) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) |
|
| |
| Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 118,606 | | | | 257,304 | | | | 94,630 | | | | 9,822 | | | | 16,278 | | | | 5,459 | | | | 14,222 | | | | 18,198 | | | | 9,110 | | | | 116,824 | | | | 409,241 | | | | 276,528 | | | | 400,646 | | | | 1,978 | | | | 1,331 | | | | 4,343 | | | | 1,116 | |
| Class C Shares | | | 85,841 | | | | 197,765 | | | | 80,039 | | | | 3,694 | | | | 6,850 | | | | 2,844 | | | | 3,084 | | | | 3,454 | | | | 2,479 | | | | 48,293 | | | | 229,061 | | | | 763 | | | | 1,967 | | | | 494 | | | | 1,099 | | | | 657 | | | | 491 | |
| Class D Shares | | | 70,038 | | | | 64,129 | | | | N/A | | | | 46,353 | | | | 66,604 | | | | N/A | | | | 50,257 | | | | 21,305 | | | | N/A | | | | N/A | | | | N/A | | | | 58,268 | | | | 62,096 | | | | N/A | | | | 38,414 | | | | 40,699 | | | | N/A | |
| Class I Shares | | | 180,688 | | | | 304,591 | | | | 62,887 | | | | 26,818 | | | | 81,291 | | | | 43,446 | | | | 67,152 | | | | 164,617 | | | | 72,432 | | | | 478,709 | | | | 1,622,173 | | | | 31,160 | | | | 126,435 | | | | 14,638 | | | | 8,691 | | | | 88,553 | | | | 5,901 | |
| Class R Shares | | | 51,686 | | | | 89,362 | | | | 29,554 | | | | 524 | | | | 1,605 | | | | 196 | | | | 10,536 | | | | 11,607 | | | | 7,905 | | | | 39,442 | | | | 128,881 | | | | 481 | | | | 696 | | | | 293 | | | | 670 | | | | 587 | | | | 215 | |
| Class S Shares | | | 121,807 | | | | 224,905 | | | | 67,087 | | | | 779 | | | | 4,985 | | | | 1,786 | | | | 34,063 | | | | 35,464 | | | | 21,057 | | | | 317,755 | | | | 971,601 | | | | 7,301 | | | | 17,862 | | | | 5,527 | | | | 5,303 | | | | 9,574 | | | | 3,369 | |
| Class T Shares | | | 471,657 | | | | 935,393 | | | | 1,099,177 | | | | 155,575 | | | | 242,574 | | | | 350,283 | | | | 109,815 | | | | 109,718 | | | | 229,687 | | | | 15,838 | | | | 32,420 | | | | 133,830 | | | | 598,238 | | | | 1,032,025 | | | | 59,261 | | | | 178,733 | | | | 245,940 | |
| Shares Issued in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class D Shares | | | N/A | | | | 936,232 | | | | N/A | | | | N/A | | | | 2,080,949 | | | | N/A | | | | N/A | | | | 750,188 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 4,642,645 | | | | N/A | | | | N/A | | | | 1,816,551 | | | | N/A | |
| Shares Issued in Connection with Acquisition (Note 10) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | N/A | | | | N/A | | | | 230,834 | | | | N/A | | | | N/A | | | | 90,442 | | | | N/A | | | | N/A | | | | 81,741 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 6,877 | | | | 8,348 | | | | N/A | | | | 33,776 | |
| Class C Shares | | | N/A | | | | N/A | | | | 157,683 | | | | N/A | | | | N/A | | | | 76,851 | | | | N/A | | | | N/A | | | | 21,758 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 4,751 | | | | 5,460 | | | | N/A | | | | 3,384 | |
| Class D 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 | | | | 272,792 | | | | N/A | | | | N/A | |
| Class I Shares | | | N/A | | | | N/A | | | | 46,096 | | | | N/A | | | | N/A | | | | 16,860 | | | | N/A | | | | N/A | | | | 365,389 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 18,670 | | | | 3,995 | | | | N/A | | | | 1,370 | |
| Class R Shares | | | N/A | | | | N/A | | | | 25,133 | | | | N/A | | | | N/A | | | | 2,074 | | | | N/A | | | | N/A | | | | 33,459 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 590 | | | | 526 | | | | N/A | | | | 2,645 | |
| Class S Shares | | | N/A | | | | N/A | | | | 409,342 | | | | N/A | | | | N/A | | | | 4,907 | | | | N/A | | | | N/A | | | | 190,930 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 74,574 | | | | 9,635 | | | | N/A | | | | 48,609 | |
| Class T 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 | | | | 153,539 | | | | N/A | | | | N/A | |
| Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 18,354 | | | | 7,638 | | | | 1,129 | | | | 77 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 2,255 | | | | 44 | | | | – | | | | 98 | | | | 166 | | | | 20 | |
| Class C Shares | | | 11,692 | | | | 3,465 | | | | 499 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 10 | | | | 14 | | | | – | |
| Class D Shares | | | 40,493 | | | | 16,329 | | | | N/A | | | | 6,395 | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | 18,418 | | | | – | | | | N/A | | | | 10,447 | | | | 15,591 | | | | N/A | |
| Class I Shares | | | 12,310 | | | | 3,547 | | | | 260 | | | | 419 | | | | 41 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 740 | | | | 35 | | | | – | | | | 362 | | | | 527 | | | | 3 | |
| Class R Shares | | | 4,426 | | | | 1,286 | | | | 120 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 7 | | | | 11 | | | | – | |
| Class S Shares | | | 25,419 | | | | 10,556 | | | | 1,944 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 44 | | | | – | | | | – | | | | 231 | | | | 406 | | | | 48 | |
| Class T Shares | | | 122,894 | | | | 61,893 | | | | 153,711 | | | | 3,691 | | | | 1,609 | | | | 143,558 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 5,821 | | | | 5,562 | | | | 94,594 | | | | 8,191 | | | | 20,329 | | | | 36,921 | |
| Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (86,590) | | | | (92,815) | | | | (38,326) | | | | (16,968) | | | | (24,064) | | | | (17,010) | | | | (23,190) | | | | (32,499) | | | | (15,927) | | | | (281,200) | | | | (1,019,197) | | | | (49,992) | | | | (35,565) | | | | (2,632) | | | | (2,901) | | | | (6,296) | | | | (2,625) | |
| Class C Shares | | | (45,206) | | | | (57,435) | | | | (9,932) | | | | (12,935) | | | | (18,835) | | | | (7,338) | | | | (3,963) | | | | (6,170) | | | | (2,119) | | | | (147,625) | | | | (158,562) | | | | (909) | | | | (2,319) | | | | (343) | | | | (1,265) | | | | (951) | | | | (408) | |
| Class D Shares | | | (67,502) | | | | (71,904) | | | | N/A | | | | (200,357) | | | | (176,029) | | | | N/A | | | | (56,482) | | | | (58,771) | | | | N/A | | | | N/A | | | | N/A | | | | (280,995) | | | | (284,060) | | | | N/A | | | | (147,855) | | | | (162,170) | | | | N/A | |
| Class I Shares | | | (57,986) | | | | (116,688) | | | | (7,118) | | | | (32,992) | | | | (28,142) | | | | (2,630) | | | | (67,633) | | | | (253,546) | | | | (39,192) | | | | (744,051) | | | | (508,466) | | | | (16,308) | | | | (23,961) | | | | (1,314) | | | | (31,289) | | | | (31,861) | | | | (165) | |
| Class R Shares | | | (24,926) | | | | (24,987) | | | | (8,626) | | | | (726) | | | | (717) | | | | (241) | | | | (8,503) | | | | (13,036) | | | | (3,932) | | | | (48,073) | | | | (47,197) | | | | (290) | | | | (290) | | | | (102) | | | | (708) | | | | (523) | | | | (358) | |
| Class S Shares | | | (110,942) | | | | (157,862) | | | | (42,738) | | | | (2,196) | | | | (3,500) | | | | (2,864) | | | | (58,105) | | | | (84,325) | | | | (19,809) | | | | (667,215) | | | | (890,309) | | | | (13,242) | | | | (35,616) | | | | (15,612) | | | | (17,002) | | | | (22,676) | | | | (7,540) | |
| Class T Shares | | | (369,436) | | | | (749,804) | | | | (567,449) | | | | (356,110) | | | | (640,761) | | | | (947,072) | | | | (109,035) | | | | (291,695) | | | | (344,565) | | | | (11,612) | | | | (3,619) | | | | (634,489) | | | | (1,899,856) | | | | (1,775,700) | | | | (323,289) | | | | (584,663) | | | | (621,124) | |
| Shares Reorganized in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class T Shares | | | N/A | | | | (936,232) | | | | N/A | | | | N/A | | | | (2,080,949) | | | | N/A | | | | N/A | | | | (750,188) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (4,642,645) | | | | N/A | | | | N/A | | | | (1,816,551) | | | | N/A | |
| Net Increase/(Decrease) from Capital Share Transactions | | | 573,323 | | | | 906,668 | | | | 1,785,936 | | | | (368,137) | | | | (470,211) | | | | (238,449) | | | | (37,782) | | | | (375,679) | | | | 610,403 | | | | (882,915) | | | | 766,027 | | | | (460,616) | | | | (1,068,086) | | | | (540,692) | | | | 64,101 | | | | (448,950) | | | | (248,412) | |
| Net Increase/(Decrease) in Net Assets | | | 789,666 | | | | 1,252,427 | | | | 2,296,565 | | | | (117,603) | | | | 256,638 | | | | (75,905) | | | | 448,871 | | | | 116,788 | | | | 898,901 | | | | (218,157) | | | | 830,938 | | | | 473,248 | | | | (111,534) | | | | 692,732 | | | | 655,940 | | | | (173,930) | | | | 375,975 | |
| Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | | 5,910,529 | | | | 4,658,102 | | | | 2,361,537 | | | | 4,108,718 | | | | 3,852,080 | | | | 3,927,985 | | | | 2,413,205 | | | | 2,296,417 | | | | 1,397,516 | | | | 6,624,753 | | | | 5,793,815 | | | | 8,109,492 | | | | 8,221,026 | | | | 7,528,294 | | | | 3,547,746 | | | | 3,721,676 | | | | 3,345,701 | |
| End of period | | $ | 6,700,195 | | | $ | 5,910,529 | | | $ | 4,658,102 | | | $ | 3,991,115 | | | $ | 4,108,718 | | | $ | 3,852,080 | | | $ | 2,862,076 | | | $ | 2,413,205 | | | $ | 2,296,417 | | | $ | 6,406,596 | | | $ | 6,624,753 | | | $ | 8,582,740 | | | $ | 8,109,492 | | | $ | 8,221,026 | | | $ | 4,203,686 | | | $ | 3,547,746 | | | $ | 3,721,676 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Undistributed Net Investment Income/(Loss) | | $ | 8,286 | | | $ | 7,267 | | | $ | (233) | | | $ | (50) | | | $ | 6,705 | | | $ | (3,167) | | | $ | (4,807) | | | $ | (59) | | | $ | (56) | | | $ | 10,810 | | | $ | (329) | | | $ | 21,394 | | | $ | 27,881 | | | $ | 5,582 | | | $ | 1,538 | | | $ | 1,456 | | | $ | 2,054 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Period from November 1, 2009 through September 30, 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 October 1, 2009 through September 30, 2010. |
| | | |
| | | |
See Notes to Financial Statements.
124 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
125
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | |
(unaudited), the eleven-month fiscal period ended
| | | | | | | | | | | | | | | | | | | | | | | | |
September 30, 2010 and the fiscal year ended
| | Janus Research
| | Janus Triton
| | Janus Twenty
| | Janus Venture
|
October 31, 2009
| | Fund | | Fund | | Fund | | Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) |
|
| |
| Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | $ | 8,934 | | | $ | 16,640 | | | $ | 14,867 | | | $ | (835) | | | $ | (846) | | | $ | 169 | | | $ | 21,601 | | | $ | 2,054 | | | $ | (7,985) | | | $ | (1,465) | | | $ | (3,973) | | | $ | (3,689) | |
| Net realized gain/(loss) from investment and foreign currency transactions | | | 309,602 | | | | 161,966 | | | | (648,661) | | | | 56,173 | | | | 32,996 | | | | (15,104) | | | | 1,019,850 | | | | 600,964 | | | | 7,848 | | | | 128,108 | | | | 28,776 | | | | (156,432) | |
| Net realized gain/(loss) from futures contracts | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (31,492) | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from short sales | | | – | | | | – | | | | – | | | | – | | | | (522) | | | | 561 | | | | – | | | | – | | | | – | | | | – | | | | (2,436) | | | | 90 | |
| Net realized gain from swap contracts | | | – | | | | – | | | | 2,642 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net realized gain/(loss) from written options contracts | | | – | | | | – | | | | 596 | | | | – | | | | – | | | | 77 | | | | 12,526 | | | | (7,779) | | | | 831 | | | | – | | | | 944 | | | | (235) | |
Change in unrealized net appreciation/(depreciation) of
investments, foreign currency translations and non-interested
Trustees’ deferred compensation | | | 214,172 | | | | 310,979 | | | | 1,180,316 | | | | 221,919 | | | | 88,544 | | | | 72,013 | | | | (150,173) | | | | (77,690) | | | | 1,724,202 | | | | 155,400 | | | | 172,854 | | | | 371,760 | |
| Net Increase in Net Assets Resulting from Operations | | | 532,708 | | | | 489,585 | | | | 549,760 | | | | 277,257 | | | | 120,172 | | | | 57,716 | | | | 903,804 | | | | 517,549 | | | | 1,693,404 | | | | 282,043 | | | | 196,165 | | | | 211,494 | |
| Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (13) | | | | (1) | | | | – | | | | – | | | | (23) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | (2) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class D Shares | | | (9,612) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | (18,037) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | (541) | | | | (50) | | | | – | | | | – | | | | (14) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | – | | | | – | | | | – | | | | (6) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class T Shares | | | (6,716) | | | | (7,477) | | | | (20,900) | | | | – | | | | (548) | | | | (60) | | | | (9,454) | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net Realized Gain/(Loss) from Investment Transactions* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | – | | | | – | | | | – | | | | (1,268) | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | – | | | | – | | | | – | | | | (511) | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class D Shares | | | – | | | | – | | | | N/A | | | | (6,052) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | – | | | | (2,730) | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | (116) | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | – | | | | – | | | | (211) | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class T Shares | | | – | | | | – | | | | – | | | | (12,330) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Return of Capital | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class T Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (1,411) | | | | N/A | | | | N/A | | | | N/A | |
| Net Decrease from Dividends and Distributions | | | (16,884) | | | | (7,528) | | | | (20,900) | | | | (23,218) | | | | (591) | | | | (60) | | | | (27,491) | | | | – | | | | (1,411) | | | | – | | | | – | | | | – | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
126 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
127
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | |
(unaudited), the eleven-month fiscal period ended
| | | | | | | | | | | | | | | | | | | | | | | | |
September 30, 2010 and the fiscal year ended
| | Janus Research
| | Janus Triton
| | Janus Twenty
| | Janus Venture
|
October 31, 2009
| | Fund | | Fund | | Fund | | Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) |
|
| |
| Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 4,267 | | | | 2,312 | | | | 89 | | | | 94,080 | | | | 29,337 | | | | 11,395 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | 644 | | | | 118 | | | | 69 | | | | 39,584 | | | | 9,846 | | | | 2,774 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class D Shares | | | 41,075 | | | | 34,246 | | | | – | | | | 218,918 | | | | 62,817 | | | | N/A | | | | 60,847 | | | | 76,832 | | | | N/A | | | | 11,284 | | | | 10,454 | | | | N/A | |
| Class I Shares | | | 18,915 | | | | 64,350 | | | | 7,266 | | | | 139,914 | | | | 72,638 | | | | 3,786 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 11,384 | | | | 3,522 | | | | 407 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | 2 | | | | 41 | | | | 11 | | | | 16,665 | | | | 6,657 | | | | 3,011 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class T Shares | | | 115,786 | | | | 165,088 | | | | 220,437 | | | | 499,762 | | | | 303,834 | | | | 197,026 | | | | 145,530 | | | | 321,540 | | | | 468,313 | | | | 12,945 | | | | 18,669 | | | | 19,837 | |
| Shares Issued in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class D Shares | | | N/A | | | | 1,672,245 | | | | N/A | | | | N/A | | | | 161,950 | | | | N/A | | | | N/A | | | | 4,995,894 | | | | N/A | | | | N/A | | | | 780,583 | | | | N/A | |
| Shares Issued in Connection with Acquisition (Note 10) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 5,739 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 3,039 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class I Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 774 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 910 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 815 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | 13 | | | | 1 | | | | N/A | | | | 1,140 | | | | 23 | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | 2 | | | | – | | | | N/A | | | | 375 | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class D Shares | | | 9,449 | | | | – | | | | N/A | | | | 5,985 | | | | – | | | | N/A | | | | 17,523 | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
| Class I Shares | | | 486 | | | | 26 | | | | N/A | | | | 1,834 | | | | 6 | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 90 | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | – | | | | N/A | | | | 210 | | | | 6 | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class T Shares | | | 6,627 | | | | 7,368 | | | | 20,515 | | | | 12,249 | | | | 543 | | | | 60 | | | | 9,309 | | | | – | | | | 1,381 | | | | – | | | | – | | | | – | |
| Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | (424) | | | | (731) | | | | – | | | | (10,039) | | | | (8,146) | | | | (4,824) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class C Shares | | | (27) | | | | (26) | | | | – | | | | (2,967) | | | | (2,274) | | | | (321) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class D Shares | | | (112,301) | | | | (130,052) | | | | N/A | | | | (37,403) | | | | (29,852) | | | | N/A | | | | (336,535) | | | | (278,180) | | | | N/A | | | | (49,221) | | | | (49,802) | | | | N/A | |
| Class I Shares | | | (11,145) | | | | (6,423) | | | | (92) | | | | (23,575) | | | | (9,095) | | | | (28) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | (915) | | | | (879) | | | | (114) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class S Shares | | | – | | | | (39) | | | | – | | | | (2,830) | | | | (5,249) | | | | (128) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Class T Shares | | | (159,832) | | | | (332,602) | | | | (470,609) | | | | (96,632) | | | | (97,900) | | | | (60,462) | | | | (511,022) | | | | (898,639) | | | | (816,669) | | | | (22,810) | | | | (47,725) | | | | (70,827) | |
| Shares Reorganized in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class T Shares | | | N/A | | | | (1,672,245) | | | | N/A | | | | N/A | | | | (161,950) | | | | N/A | | | | N/A | | | | (4,995,894) | | | | N/A | | | | N/A | | | | (780,583) | | | | N/A | |
| Net Increase/(Decrease) from Capital Share Transactions | | | (86,463) | | | | (196,323) | | | | (222,314) | | | | 867,829 | | | | 335,834 | | | | 163,859 | | | | (614,348) | | | | (778,447) | | | | (346,975) | | | | (47,802) | | | | (68,404) | | | | (50,990) | |
| Net Increase/(Decrease) in Net Assets | | | 429,361 | | | | 285,734 | | | | 306,546 | | | | 1,121,868 | | | | 455,415 | | | | 221,515 | | | | 261,965 | | | | (260,898) | | | | 1,345,018 | | | | 234,241 | | | | 127,761 | | | | 160,504 | |
| Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | | 3,182,801 | | | | 2,897,067 | | | | 2,590,521 | | | | 799,782 | | | | 344,367 | | | | 122,852 | | | | 8,755,359 | | | | 9,016,257 | | | | 7,671,239 | | | | 1,049,145 | | | | 921,384 | | | | 760,880 | |
| End of period | | $ | 3,612,162 | | | $ | 3,182,801 | | | $ | 2,897,067 | | | $ | 1,921,650 | | | $ | 799,782 | | | $ | 344,367 | | | $ | 9,017,324 | | | $ | 8,755,359 | | | $ | 9,016,257 | | | $ | 1,283,386 | | | $ | 1,049,145 | | | $ | 921,384 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Undistributed Net Investment Income/(Loss) | | $ | 9,035 | | | $ | 16,985 | | | $ | 7,529 | | | $ | (858) | | | $ | (23) | | | $ | 92 | | | $ | (3,743) | | | $ | 2,147 | | | $ | (219) | | | $ | (1,494) | | | $ | (28) | | | $ | (22) | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (2) | | Period from November 1, 2008 through October 31, 2009. |
| | | |
| | | |
See Notes to Financial Statements.
128 | MARCH 31, 2011
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
129
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
| ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $25.10 | | | | $23.43 | | | | $21.31 | | | | $13.97 | | | | $11.68 | | | | $10.42 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .26 | | | | .56 | | | | (.05) | | | | – | | | | .01 | | | | (.02) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.63 | | | | 1.60 | | | | 2.28 | | | | .88 | | | | 2.28 | | | | 1.28 | | | |
| Total from Investment Operations | | | 1.89 | | | | 2.16 | | | | 2.23 | | | | .88 | | | | 2.29 | | | | 1.26 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.25) | | | | (.49) | | | | (.11) | | | | (.02) | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (1.03) | | | | (.49) | | | | (.11) | | | | (.02) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $25.96 | | | | $25.10 | | | | $23.43 | | | | $14.83 | | | | $13.97 | | | | $11.68 | | | |
| Total Return** | | | 7.70% | | | | 9.30% | | | | 10.43% | | | | 6.27% | | | | 19.61% | | | | 12.09% | | | |
| Net Assets, End of Period (in thousands) | | | $582,471 | | | | $513,494 | | | | $314,935 | | | | $70,468 | | | | $73,013 | | | | $68,166 | | | |
| Average Net Assets for the Period (in thousands) | | | $549,867 | | | | $436,234 | | | | $288,992 | | | | $74,863 | | | | $72,658 | | | | $76,549 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.95% | | | | 0.93% | | | | 0.89% | | | | 0.96% | | | | 1.06% | | | | 1.36% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.95% | | | | 0.93% | | | | 0.89% | | | | 0.96% | | | | 1.06% | | | | 1.34% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.02% | | | | 2.37% | | | | 2.35% | | | | 0.02% | | | | 0.11% | | | | (0.36)% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 158% | | | | 126% | | | | 104% | | | | 80% | | | |
Class A Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Enterprise Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $52.14 | | | | $42.46 | | | | $36.63 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.19) | | | | (.11) | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | 10.70 | | | | 9.79 | | | | 5.83 | | | |
| Total from Investment Operations | | | 10.51 | | | | 9.68 | | | | 5.83 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $62.65 | | | | $52.14 | | | | $42.46 | | | |
| Total Return** | | | 20.16% | | | | 22.80% | | | | 15.92% | | | |
| Net Assets, End of Period (in thousands) | | | $81,719 | | | | $75,980 | | | | $74,709 | | | |
| Average Net Assets for the Period (in thousands) | | | $80,160 | | | | $76,703 | | | | $79,792 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.16% | | | | 1.15% | | | | 1.20% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.16% | | | | 1.15% | | | | 1.19% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.58)% | | | | (0.41)% | | | | (0.23)% | | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
130 | MARCH 31, 2011
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the fiscal year
| | | | | | | | | | | | | | | | |
ended September 30, 2010, the two-month fiscal
| | | | | | | | | | | | | | | | |
period ended September 30, 2009 and each fiscal
| | Janus Forty Fund |
| year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | 2006 | | |
| |
| Net Asset Value, Beginning of Period | | | $31.00 | | | | $30.52 | | | | $29.27 | | | | $39.79 | | | | $34.52 | | | | $28.44 | | | | $27.41 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .12 | | | | .12 | | | | .01 | | | | .03 | | | | .03 | | | | .04 | | | | .06 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.05 | | | | .36 | | | | 1.24 | | | | (9.30) | | | | 5.32 | | | | 7.11 | | | | .97 | | | |
| Total from Investment Operations | | | 3.17 | | | | .48 | | | | 1.25 | | | | (9.27) | | | | 5.35 | | | | 7.15 | | | | 1.03 | | | |
| 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 | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.08) | | | | (1.07) | | | | – | | | |
| Net Asset Value, End of Period | | | $34.17 | | | | $31.00 | | | | $30.52 | | | | $29.27 | | | | $39.79 | | | | $34.52 | | | | $28.44 | | | |
| Total Return** | | | 10.23% | | | | 1.57% | | | | 4.27% | | | | (22.29)% | | | | 15.49% | | | | 25.58% | | | | 3.76% | | | |
| Net Assets, End of Period (in thousands) | | | $774,988 | | | | $854,798 | | | | $1,440,986 | | | | $1,328,541 | | | | $1,639,379 | | | | $654,807 | | | | $285,721 | | | |
| Average Net Assets for the Period (in thousands) | | | $847,103 | | | | $956,800 | | | | $1,373,788 | | | | $1,060,695 | | | | $1,152,690 | | | | $377,917 | | | | $216,262 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.03% | | | | 1.03% | | | | 0.97% | | | | 0.93% | | | | 0.92% | | | | 0.95%(5) | | | | 0.93%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.03% | | | | 1.03% | | | | 0.97% | | | | 0.93% | | | | 0.92% | | | | 0.94%(5) | | | | 0.93%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.39% | | | | (0.17)% | | | | (0.61)% | | | | (0.11)%(6) | | | | (0.02)%(6) | | | | 0.33% | | | | 0.39% | | | |
| Portfolio Turnover Rate*** | | | 49% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | | 55% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | Janus Growth and
| | |
ended September 30, 2010 and the fiscal period ended
| | Janus Fund | | Income Fund(7) | | |
| October 31, 2009 | | 2011 | | 2010(8) | | 2009(9) | | 2011 | | 2010(8) | | 2009(9) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.81 | | | | $23.96 | | | | $20.86 | | | | $28.50 | | | | $26.47 | | | | $23.24 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .06 | | | | .05 | | | | .01 | | | | .15 | | | | .25 | | | | .03 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.18 | | | | 2.83 | | | | 3.09 | | | | 3.91 | | | | 2.03 | | | | 3.23 | | | |
| Total from Investment Operations | | | 3.24 | | | | 2.88 | | | | 3.10 | | | | 4.06 | | | | 2.28 | | | | 3.26 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.14) | | | | (.03) | | | | – | | | | (.15) | | | | (.25) | | | | (.03) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.14) | | | | (.03) | | | | – | | | | (.15) | | | | (.25) | | | | (.03) | | | |
| Net Asset Value, End of Period | | | $29.91 | | | | $26.81 | | | | $23.96 | | | | $32.41 | | | | $28.50 | | | | $26.47 | | | |
| Total Return** | | | 12.08% | | | | 12.03% | | | | 14.86% | | | | 14.26% | | | | 8.68% | | | | 14.02% | | | |
| Net Assets, End of Period (in thousands) | | | $661,027 | | | | $383,332 | | | | $4,237 | | | | $24,498 | | | | $18,894 | | | | $19,157 | | | |
| Average Net Assets for the Period (in thousands) | | | $506,272 | | | | $159,151 | | | | $5,256 | | | | $21,228 | | | | $18,803 | | | | $19,612 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.04% | | | | 1.06% | | | | 1.04% | | | | 0.97% | | | | 1.00% | | | | 0.99% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.04% | | | | 1.06% | | | | 1.03% | | | | 0.97% | | | | 1.00% | | | | 0.98% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.38% | | | | 0.42% | | | | 0.09% | | | | 0.96% | | | | 0.99% | | | | 0.31% | | | |
| Portfolio Turnover Rate*** | | | 98% | | | | 44% | | | | 60% | | | | 77% | | | | 47% | | | | 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 August 1, 2008 through July 31, 2009. |
| (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 include 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 the total net assets of the class. |
| (7) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
| (8) | | Period from November 1, 2009 through September 30, 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. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 131
Financial Highlights (continued)
Class A Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the eleven-
| | Janus Research Fund | | |
| month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.30 | | | | $22.49 | | | | $19.41 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .12 | | | | .09 | | | | .02 | | | |
| Net gain on investments (both realized and unrealized) | | | 4.31 | | | | 3.80 | | | | 3.06 | | | |
| Total from Investment Operations | | | 4.43 | | | | 3.89 | | | | 3.08 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.17) | | | | (.08) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.17) | | | | (.08) | | | | – | | | |
| Net Asset Value, End of Period | | | $30.56 | | | | $26.30 | | | | $22.49 | | | |
| Total Return** | | | 16.88% | | | | 17.31% | | | | 15.87% | | | |
| Net Assets, End of Period (in thousands) | | | $6,011 | | | | $1,805 | | | | $88 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,240 | | | | $700 | | | | $24 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.98% | | | | 1.06% | | | | 1.24% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.98% | | | | 1.06% | | | | 1.17% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.44% | | | | 0.35% | | | | 0.02% | | | |
| Portfolio Turnover Rate*** | | | 82% | | | | 75% | | | | 83% | | | |
Class A Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Triton Fund | | |
| eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.67 | | | | $11.60 | | | | $10.26 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.01) | | | | (.01) | | | | .03 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.52 | | | | 3.10 | | | | 1.31 | | | |
| Total from Investment Operations | | | 3.51 | | | | 3.09 | | | | 1.34 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | |
| Total Distributions | | | (.31) | | | | (.02) | | | | – | | | |
| Net Asset Value, End of Period | | | $17.87 | | | | $14.67 | | | | $11.60 | | | |
| Total Return** | | | 24.09% | | | | 26.64% | | | | 13.06% | | | |
| Net Assets, End of Period (in thousands) | | | $141,181 | | | | $40,333 | | | | $13,610 | | | |
| Average Net Assets for the Period (in thousands) | | | $80,592 | | | | $23,711 | | | | $11,470 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.05%(4) | | | | 1.07%(4) | | | | 1.34%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.05%(4) | | | | 1.07%(4) | | | | 1.33%(4) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.28)% | | | | (0.32)% | | | | 0.99% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 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 September 30, 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.05% and 1.05%, respectively, in 2011, 1.07% and 1.07%, respectively, in 2010 and 1.34% and 1.33%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
132 | MARCH 31, 2011
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period ended
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $25.08 | | | | $23.40 | | | | $21.31 | | | | $13.84 | | | | $11.65 | | | | $10.42 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .18 | | | | .39 | | | | (.09) | | | | (.08) | | | | (.10) | | | | (.05) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.63 | | | | 1.61 | | | | 2.25 | | | | .89 | | | | 2.29 | | | | 1.28 | | | |
| Total from Investment Operations | | | 1.81 | | | | 2.00 | | | | 2.16 | | | | .81 | | | | 2.19 | | | | 1.23 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.17) | | | | (.32) | | | | (.07) | | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.95) | | | | (.32) | | | | (.07) | | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $25.94 | | | | $25.08 | | | | $23.40 | | | | $14.65 | | | | $13.84 | | | | $11.65 | | | |
| Total Return** | | | 7.37% | | | | 8.58% | | | | 10.13% | | | | 5.85% | | | | 18.80% | | | | 11.80% | | | |
| Net Assets, End of Period (in thousands) | | | $479,828 | | | | $412,414 | | | | $248,071 | | | | $57,628 | | | | $63,203 | | | | $64,036 | | | |
| Average Net Assets for the Period (in thousands) | | | $446,997 | | | | $343,327 | | | | $208,912 | | | | $62,300 | | | | $65,635 | | | | $67,507 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.64% | | | | 1.64% | | | | 1.70% | | | | 1.71% | | | | 1.85% | | | | 2.11% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.64% | | | | 1.63% | | | | 1.69% | | | | 1.71% | | | | 1.85% | | | | 2.09% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.32% | | | | 1.66% | | | | 1.54% | | | | (0.73)% | | | | (0.69)% | | | | (1.12)% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 158% | | | | 126% | | | | 104% | | | | 80% | | | |
Class C Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Enterprise Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $51.65 | | | | $42.36 | | | | $36.63 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.40) | | | | (.48) | | | | (.10) | | | |
| Net gain on investments (both realized and unrealized) | | | 10.58 | | | | 9.77 | | | | 5.83 | | | |
| Total from Investment Operations | | | 10.18 | | | | 9.29 | | | | 5.73 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $61.83 | | | | $51.65 | | | | $42.36 | | | |
| Total Return** | | | 19.71% | | | | 21.93% | | | | 15.64% | | | |
| Net Assets, End of Period (in thousands) | | | $27,133 | | | | $23,449 | | | | $21,706 | | | |
| Average Net Assets for the Period (in thousands) | | | $25,731 | | | | $22,965 | | | | $21,146 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.88% | | | | 1.93% | | | | 1.96% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.88% | | | | 1.93% | | | | 1.94% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.31)% | | | | (1.18)% | | | | (0.98)% | | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 133
Financial Highlights (continued)
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Forty Fund |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | 2006 | | |
| |
| Net Asset Value, Beginning of Period | | | $29.69 | | | | $29.44 | | | | $28.27 | | | | $38.78 | | | | $33.83 | | | | $28.07 | | | | $27.25 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.14) | | | | (.16) | | | | (.01) | | | | (.10) | | | | (.01) | | | | .04 | | | | .06 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.05 | | | | .41 | | | | 1.18 | | | | (9.16) | | | | 4.97 | | | | 6.76 | | | | .76 | | | |
| Total from Investment Operations | | | 2.91 | | | | .25 | | | | 1.17 | | | | (9.26) | | | | 4.96 | | | | 6.80 | | | | .82 | | | |
| 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 | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.01) | | | | (1.04) | | | | – | | | |
| Net Asset Value, End of Period | | | $32.60 | | | | $29.69 | | | | $29.44 | | | | $28.27 | | | | $38.78 | | | | $33.83 | | | | $28.07 | | | |
| Total Return** | | | 9.80% | | | | 0.85% | | | | 4.14% | | | | (22.87)% | | | | 14.65% | | | | 24.62% | | | | 3.01% | | | |
| Net Assets, End of Period (in thousands) | | | $572,150 | | | | $612,674 | | | | $542,666 | | | | $488,278 | | | | $537,822 | | | | $139,470 | | | | $51,976 | | | |
| Average Net Assets for the Period (in thousands) | | | $617,670 | | | | $613,080 | | | | $512,462 | | | | $386,072 | | | | $320,123 | | | | $81,438 | | | | $39,687 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.75% | | | | 1.78% | | | | 1.75% | | | | 1.68% | | | | 1.67% | | | | 1.70%(5) | | | | 1.68%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.75% | | | | 1.78% | | | | 1.75% | | | | 1.68% | | | | 1.67% | | | | 1.70%(5) | | | | 1.68%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.33)% | | | | (1.00)% | | | | (1.40)% | | | | (0.87)%(6) | | | | (0.80)%(6) | | | | (0.42)% | | | | (0.40)% | | | |
| Portfolio Turnover Rate*** | | | 49% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | | 55% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period ended
| | | | | | | | Janus Growth and
| | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Fund | | Income Fund(7) | | |
| 2009 | | 2011 | | 2010(8) | | 2009(9) | | 2011 | | 2010(8) | | 2009(9) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.59 | | | | $23.90 | | | | $20.86 | | | | $28.43 | | | | $26.42 | | | | $23.24 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.06) | | | | (.13) | | | | (.05) | | | | .03 | | | | .06 | | | | (.03) | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.15 | | | | 2.82 | | | | 3.09 | | | | 3.89 | | | | 2.05 | | | | 3.21 | | | |
| Total from Investment Operations | | | 3.09 | | | | 2.69 | | | | 3.04 | | | | 3.92 | | | | 2.11 | | | | 3.18 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | (.04) | | | | (.10) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | | (.04) | | | | (.10) | | | | – | | | |
| Net Asset Value, End of Period | | | $29.68 | | | | $26.59 | | | | $23.90 | | | | $32.31 | | | | $28.43 | | | | $26.42 | | | |
| Total Return** | | | 11.62% | | | | 11.26% | | | | 14.57% | | | | 13.80% | | | | 8.00% | | | | 13.68% | | | |
| Net Assets, End of Period (in thousands) | | | $6,184 | | | | $5,687 | | | | $5,443 | | | | $12,953 | | | | $4,824 | | | | $4,760 | | | |
| Average Net Assets for the Period (in thousands) | | | $5,842 | | | | $5,919 | | | | $5,221 | | | | $7,578 | | | | $4,999 | | | | $4,673 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.79% | | | | 1.78% | | | | 1.79% | | | | 1.73% | | | | 1.74% | | | | 1.74% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.79% | | | | 1.78% | | | | 1.78% | | | | 1.73% | | | | 1.74% | | | | 1.73% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.39)% | | | | (0.48)% | | | | (0.69)% | | | | 0.28% | | | | 0.28% | | | | (0.43)% | | | |
| Portfolio Turnover Rate*** | | | 98% | | | | 44% | | | | 60% | | | | 77% | | | | 47% | | | | 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 August 1, 2008 through July 31, 2009. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. 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 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 0.14% in 2008. The adjustment had no impact on the total net assets of the class. |
| (7) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
| (8) | | Period from November 1, 2009 through September 30, 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. |
See Notes to Financial Statements.
134 | MARCH 31, 2011
Class C Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the eleven-
| | Janus Research Fund | | |
| month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.08 | | | | $22.44 | | | | $19.41 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .08 | | | | (.03) | | | | .01 | | | |
| Net gain on investments (both realized and unrealized) | | | 4.20 | | | | 3.73 | | | | 3.02 | | | |
| Total from Investment Operations | | | 4.28 | | | | 3.70 | | | | 3.03 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.11) | | | | (.06) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.11) | | | | (.06) | | | | – | | | |
| Net Asset Value, End of Period | | | $30.25 | | | | $26.08 | | | | $22.44 | | | |
| Total Return** | | | 16.44% | | | | 16.50% | | | | 15.61% | | | |
| Net Assets, End of Period (in thousands) | | | $848 | | | | $176 | | | | $69 | | | |
| Average Net Assets for the Period (in thousands) | | | $460 | | | | $133 | | | | $25 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.72% | | | | 1.81% | | | | 1.94% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.72% | | | | 1.81% | | | | 1.89% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.30)% | | | | (0.26)% | | | | (0.47)% | | | |
| Portfolio Turnover Rate*** | | | 82% | | | | 75% | | | | 83% | | | |
Class C Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Triton Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.60 | | | | $11.60 | | | | $10.26 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.06) | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | 3.42 | | | | 3.06 | | | | 1.34 | | | |
| Total from Investment Operations | | | 3.42 | | | | 3.00 | | | | 1.34 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | |
| Total Distributions | | | (.31) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $17.71 | | | | $14.60 | | | | $11.60 | | | |
| Total Return** | | | 23.59% | | | | 25.86% | | | | 13.06% | | | |
| Net Assets, End of Period (in thousands) | | | $58,734 | | | | $15,778 | | | | $6,018 | | | |
| Average Net Assets for the Period (in thousands) | | | $30,553 | | | | $9,957 | | | | $4,585 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.79%(4) | | | | 1.79%(4) | | | | 2.09%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.79%(4) | | | | 1.79%(4) | | | | 2.07%(4) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.01)% | | | | (1.03)% | | | | (0.02)% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 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 September 30, 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.79% and 1.79%, respectively, in 2011, 1.78% and 1.78%, respectively, in 2010 and 2.09% and 2.07%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 135
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(1) | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $25.10 | | | | $24.09 | | | | $14.01 | | | | $12.96 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .28 | | | | .41 | | | | .02 | | | | .05 | | | |
| Net gain on investments (both realized and unrealized) | | | 1.65 | | | | 1.03 | | | | .87 | | | | 1.00 | | | |
| Total from Investment Operations | | | 1.93 | | | | 1.44 | | | | .89 | | | | 1.05 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.28) | | | | (.43) | | | | (.04) | | | | – | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (1.06) | | | | (.43) | | | | (.04) | | | | – | | | |
| Net Asset Value, End of Period | | | $25.97 | | | | $25.10 | | | | $14.86 | | | | $14.01 | | | |
| Total Return** | | | 7.83% | | | | 6.04% | | | | 6.39% | | | | 8.10% | | | |
| Net Assets, End of Period (in thousands) | | | $1,062,163 | | | | $983,757 | | | | $2,115,480 | | | | $2,134,011 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,023,000 | | | | $960,754 | | | | $2,172,872 | | | | $2,113,716 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.74% | | | | 0.73% | | | | 0.72% | | | | 0.80% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.74% | | | | 0.73% | | | | 0.72% | | | | 0.80% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.22% | | | | 2.72% | | | | 0.27% | | | | 0.52% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 126% | | | | 104% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | Janus Enterprise Fund | | Janus Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(1) | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $52.30 | | | | $45.90 | | | | $26.83 | | | | $25.24 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.08) | | | | .06 | | | | .09 | | | | .10 | | | |
| Net gain on investments (both realized and unrealized) | | | 10.73 | | | | 6.34 | | | | 3.18 | | | | 1.49 | | | |
| Total from Investment Operations | | | 10.65 | | | | 6.40 | | | | 3.27 | | | | 1.59 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | (.11) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | (.11) | | | | – | | | |
| Net Asset Value, End of Period | | | $62.95 | | | | $52.30 | | | | $29.99 | | | | $26.83 | | | |
| Total Return** | | | 20.36% | | | | 13.94% | | | | 12.20% | | | | 6.30% | | | |
| Net Assets, End of Period (in thousands) | | | $972,304 | | | | $814,176 | | | | $5,049,386 | | | | $4,706,894 | | | |
| Average Net Assets for the Period (in thousands) | | | $900,415 | | | | $774,796 | | | | $4,985,504 | | | | $4,678,358 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.84% | | | | 0.88% | | | | 0.83% | | | | 0.93% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.84% | | | | 0.88% | | | | 0.83% | | | | 0.93% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.27)% | | | | (0.08)% | | | | 0.57% | | | | 0.61% | | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 98% | | | | 44% | | | |
| | | |
| * | | 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 September 30, 2010. |
| (2) | | See Note 6 in Notes to Financial Statements. |
See Notes to Financial Statements.
136 | MARCH 31, 2011
Class D Shares
| | | | | | | | | | | | | | | | | | | |
| | | Janus Growth and
| | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | Income Fund(1) | | Janus Research Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(2) | | 2011 | | 2010(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $28.50 | | | | $27.37 | | | | $26.35 | | | | $23.74 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .17 | | | | .27 | | | | .08 | | | | .13 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.91 | | | | 1.11 | | | | 4.39 | | | | 2.48 | | | |
| Total from Investment Operations | | | 4.08 | | | | 1.38 | | | | 4.47 | | | | 2.61 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.17) | | | | (.25) | | | | (.15) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.17) | | | | (.25) | | | | (.15) | | | | – | | | |
| Net Asset Value, End of Period | | | $32.41 | | | | $28.50 | | | | $30.67 | | | | $26.35 | | | |
| Total Return** | | | 14.34% | | | | 5.09% | | | | 16.98% | | | | 10.99% | | | |
| Net Assets, End of Period (in thousands) | | | $2,239,848 | | | | $1,783,138 | | | | $1,975,538 | | | | $1,753,887 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,972,269 | | | | $1,787,046 | | | | $1,908,581 | | | | $1,700,352 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.84% | | | | 0.83% | | | | 0.79% | | | | 0.90% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.84% | | | | 0.83% | | | | 0.79% | | | | 0.89% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.09% | | | | 1.56% | | | | 0.55% | | | | 0.83% | | | |
| Portfolio Turnover Rate*** | | | 77% | | | | 47% | | | | 82% | | | | 75% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011
| | Janus Triton Fund | | Janus Twenty Fund | | |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(2) | | 2011 | | 2010(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.69 | | | | $12.38 | | | | $60.37 | | | | $59.05 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.01) | | | | .01 | | | | .17 | | | | .12 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.54 | | | | 2.30 | | | | 6.15 | | | | 1.20 | | | |
| Total from Investment Operations | | | 3.53 | | | | 2.31 | | | | 6.32 | | | | 1.32 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | (.23) | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.31) | | | | – | | | | (.23) | | | | – | | | |
| Net Asset Value, End of Period | | | $17.91 | | | | $14.69 | | | | $66.46 | | | | $60.37 | | | |
| Total Return** | | | 24.20% | | | | 18.66% | | | | 10.47% | | | | 2.24% | | | |
| Net Assets, End of Period (in thousands) | | | $480,293 | | | | $226,862 | | | | $5,137,415 | | | | $4,904,660 | | | |
| Average Net Assets for the Period (in thousands) | | | $341,294 | | | | $192,780 | | | | $5,184,339 | | | | $4,970,013 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.84%(4) | | | | 0.83%(4) | | | | 0.85% | | | | 0.87% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.84%(4) | | | | 0.83%(4) | | | | 0.85% | | | | 0.86% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.03)% | | | | (0.19)% | | | | 0.51% | | | | 0.31% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 53% | | | | 39% | | | |
| | | |
| * | | 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) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
| (2) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.83% and 0.83%, respectively, in 2011 and 0.83% and 0.83%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 137
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited) and the fiscal
| | Janus Venture Fund | | |
| period ended September 30, 2010 | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $47.12 | | | | $41.61 | | | |
| Income from Investment Operations: | | | | | | | | | | |
| Net investment income/(loss) | | | (.06) | | | | .03 | | | |
| Net gain on investments (both realized and unrealized) | | | 12.98 | | | | 5.48 | | | |
| Total from Investment Operations | | | 12.92 | | | | 5.51 | | | |
| Less Distributions: | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $60.04 | | | | $47.12 | | | |
| Total Return** | | | 27.42% | | | | 13.24% | | | |
| Net Assets, End of Period (in thousands) | | | $1,031,171 | | | | $842,433 | | | |
| Average Net Assets for the Period (in thousands) | | | $943,980 | | | | $823,838 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.86%(3) | | | | 0.87%(3) | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.86%(3) | | | | 0.87%(3) | | | |
| Ratio of Net Investment Loss to Average Net Assets*** | | | (0.23)% | | | | (0.39)% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 64% | | | |
| | | |
| * | | 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 September 30, 2010. |
| (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 include 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 2011 and 0.85% and 0.85%, respectively, in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
138 | MARCH 31, 2011
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
| ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $25.09 | | | | $23.43 | | | | $21.31 | | | | $14.01 | | | | $11.70 | | | | $10.42 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .29 | | | | .62 | | | | .04 | | | | .03 | | | | .05 | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | 1.65 | | | | 1.60 | | | | 2.20 | | | | .88 | | | | 2.28 | | | | 1.28 | | | |
| Total from Investment Operations | | | 1.94 | | | | 2.22 | | | | 2.24 | | | | .91 | | | | 2.33 | | | | 1.28 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.29) | | | | (.56) | | | | (.12) | | | | (.06) | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (1.07) | | | | (.56) | | | | (.12) | | | | (.06) | | | | (.02) | | | | – | | | |
| Net Asset Value, End of Period | | | $25.96 | | | | $25.09 | | | | $23.43 | | | | $14.86 | | | | $14.01 | | | | $11.70 | | | |
| Total Return** | | | 7.89% | | | | 9.57% | | | | 10.50% | | | | 6.49% | | | | 19.90% | | | | 12.28% | | | |
| Net Assets, End of Period (in thousands) | | | $451,580 | | | | $304,168 | | | | $104,063 | | | | $128,084 | | | | $126,187 | | | | $57,734 | | | |
| Average Net Assets for the Period (in thousands) | | | $392,973 | | | | $223,843 | | | | $56,942 | | | | $134,684 | | | | $94,317 | | | | $27,329 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.63% | | | | 0.65% | | | | 0.63% | | | | 0.62% | | | | 0.74% | | | | 0.94% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.63% | | | | 0.65% | | | | 0.62% | | | | 0.62% | | | | 0.74% | | | | 0.90% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.34% | | | | 2.67% | | | | 2.57% | | | | 0.36% | | | | 0.42% | | | | (0.13)% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 158% | | | | 126% | | | | 104% | | | | 80% | | | |
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Enterprise Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $52.39 | | | | $42.51 | | | | $36.63 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.05) | | | | .11 | | | | .05 | | | |
| Net gain on investments (both realized and unrealized) | | | 10.74 | | | | 9.77 | | | | 5.83 | | | |
| Total from Investment Operations | | | 10.69 | | | | 9.88 | | | | 5.88 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $63.08 | | | | $52.39 | | | | $42.51 | | | |
| Total Return** | | | 20.40% | | | | 23.24% | | | | 16.05% | | | |
| Net Assets, End of Period (in thousands) | | | $502,344 | | | | $417,965 | | | | $416,272 | | | |
| Average Net Assets for the Period (in thousands) | | | $463,382 | | | | $487,246 | | | | $395,409 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.75% | | | | 0.74% | | | | 0.82% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.75% | | | | 0.74% | | | | 0.81% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.18)% | | | | (0.01)% | | | | 0.16% | �� | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 139
Financial Highlights (continued)
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the fiscal year
| | | | | | | | | | | | | | | | |
ended September 30, 2010, the two-month fiscal
| | | | | | | | | | | | | | | | |
period ended September 30, 2009 and each fiscal
| | Janus Forty Fund |
| year or period ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | 2006(3)(4) | | |
| |
| Net Asset Value, Beginning of Period | | | $31.19 | | | | $30.61 | | | | $29.34 | | | | $39.79 | | | | $34.48 | | | | $28.40 | | | | $28.80 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .14 | | | | – | | | | .02 | | | | .09 | | | | .12 | | | | .07 | | | | .09 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.10 | | | | .58 | | | | 1.25 | | | | (9.29) | | | | 5.35 | | | | 7.15 | | | | (.49) | | | |
| Total from Investment Operations | | | 3.24 | | | | .58 | | | | 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 | | | | N/A | | | | –(5) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.16) | | | | (1.14) | | | | – | | | |
| Net Asset Value, End of Period | | | $34.43 | | | | $31.19 | | | | $30.61 | | | | $29.34 | | | | $39.79 | | | | $34.48 | | | | $28.40 | | | |
| Total Return** | | | 10.39% | | | | 1.89% | | | | 4.33% | | | | (22.11)% | | | | 15.84% | | | | 25.86% | | | | (1.39)% | | | |
| Net Assets, End of Period (in thousands) | | | $1,819,883 | | | | $1,891,800 | | | | $771,852 | | | | $688,074 | | | | $783,030 | | | | $97,395 | | | | $8,532 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,867,102 | | | | $1,607,834 | | | | $723,953 | | | | $512,019 | | | | $364,025 | | | | $39,961 | | | | $5,846 | | | |
Ratio of Gross Expenses to Average Net Assets***(6) | | | 0.73% | | | | 0.77% | | | | 0.67% | | | | 0.67% | | | | 0.65% | | | | 0.68%(7) | | | | 0.69%(7) | | | |
Ratio of Net Expenses to Average Net Assets***(6) | | | 0.73% | | | | 0.77% | | | | 0.67% | | | | 0.67% | | | | 0.65% | | | | 0.68%(7) | | | | 0.69%(7) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.68% | | | | (0.03)% | | | | (0.31)% | | | | 0.15%(8) | | | | 0.22%(8) | | | | 0.60% | | | | 0.72% | | | |
| Portfolio Turnover Rate*** | | | 49% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | | 55% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | Janus Growth and
| | |
ended September 30, 2010 and the fiscal period ended
| | Janus Fund | | Income Fund(9) | | |
| October 31, 2009 | | 2011 | | 2010(10) | | 2009(11) | | 2011 | | 2010(10) | | 2009(11) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.87 | | | | $23.96 | | | | $20.86 | | | | $28.50 | | | | $26.48 | | | | $23.24 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .09 | | | | .12 | | | | .02 | | | | .19 | | | | .36 | | | | .04 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.19 | | | | 2.82 | | | | 3.08 | | | | 3.90 | | | | 2.01 | | | | 3.24 | | | |
| Total from Investment Operations | | | 3.28 | | | | 2.94 | | | | 3.10 | | | | 4.09 | | | | 2.37 | | | | 3.28 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.15) | | | | (.03) | | | | – | | | | (.19) | | | | (.35) | | | | (.04) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.15) | | | | (.03) | | | | – | | | | (.19) | | | | (.35) | | | | (.04) | | | |
| Net Asset Value, End of Period | | | $30.00 | | | | $26.87 | | | | $23.96 | | | | $32.40 | | | | $28.50 | | | | $26.48 | | | |
| Total Return** | | | 12.22% | | | | 12.28% | | | | 14.86% | | | | 14.37% | | | | 9.00% | | | | 14.12% | | | |
| Net Assets, End of Period (in thousands) | | | $167,794 | | | | $135,877 | | | | $25,857 | | | | $55,567 | | | | $65,031 | | | | $6,761 | | | |
| Average Net Assets for the Period (in thousands) | | | $156,285 | | | | $93,710 | | | | $18,996 | | | | $64,363 | | | | $44,786 | | | | $2,059 | | | |
Ratio of Gross Expenses to Average Net Assets***(6) | | | 0.77% | | | | 0.80% | | | | 0.73% | | | | 0.70% | | | | 0.72% | | | | 0.72% | | | |
Ratio of Net Expenses to Average Net Assets***(6) | | | 0.77% | | | | 0.80% | | | | 0.71% | | | | 0.70% | | | | 0.72% | | | | 0.67% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.63% | | | | 0.67% | | | | 0.31% | | | | 1.24% | | | | 1.49% | | | | 0.42% | | | |
| Portfolio Turnover Rate*** | | | 98% | | | | 44% | | | | 60% | | | | 77% | | | | 47% | | | | 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 August 1, 2008 through July 31, 2009. |
| (3) | | Period from November 28, 2005 (inception date) through July 31, 2006. |
| (4) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
| (5) | | Return of capital aggregated less than $.01 on a per share basis. |
| (6) | | See Note 6 in Notes to Financial Statements. |
| (7) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include 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, in 2007 and 0.68% and 0.68%. respectively, in 2006 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (8) | | 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 the total net assets of the class. |
| (9) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
| (10) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (11) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
140 | MARCH 31, 2011
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Research Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.38 | | | | $22.50 | | | | $19.41 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income | | | .09 | | | | .18 | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | 4.38 | | | | 3.78 | | | | 3.09 | | | |
| Total from Investment Operations | | | 4.47 | | | | 3.96 | | | | 3.09 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.19) | | | | (.08) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.19) | | | | (.08) | | | | – | | | |
| Net Asset Value, End of Period | | | $30.66 | | | | $26.38 | | | | $22.50 | | | |
| Total Return** | | | 16.97% | | | | 17.63% | | | | 15.92% | | | |
| Net Assets, End of Period (in thousands) | | | $92,590 | | | | $72,225 | | | | $6,821 | | | |
| Average Net Assets for the Period (in thousands) | | | $83,863 | | | | $42,421 | | | | $794 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.70% | | | | 0.79% | | | | 1.02% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.70% | | | | 0.78% | | | | 0.85% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.66% | | | | 0.86% | | | | (0.57)% | | | |
| Portfolio Turnover Rate*** | | | 82% | | | | 75% | | | | 83% | | | |
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Triton Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.72 | | | | $11.63 | | | | $10.26 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income | | | – | | | | .04 | | | | .01 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.55 | | | | 3.09 | | | | 1.36 | | | |
| Total from Investment Operations | | | 3.55 | | | | 3.13 | | | | 1.37 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.04) | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | |
| Total Distributions | | | (.31) | | | | (.04) | | | | – | | | |
| Net Asset Value, End of Period | | | $17.96 | | | | $14.72 | | | | $11.63 | | | |
| Total Return** | | | 24.29% | | | | 26.96% | | | | 13.35% | | | |
| Net Assets, End of Period (in thousands) | | | $221,907 | | | | $74,640 | | | | $4,377 | | | |
| Average Net Assets for the Period (in thousands) | | | $150,405 | | | | $23,645 | | | | $1,277 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.78%(4) | | | | 0.71%(4) | | | | 1.01%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.78%(4) | | | | 0.71%(4) | | | | 0.97%(4) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.03% | | | | 0.01% | | | | 0.73% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 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 September 30, 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.77% and 0.77%, respectively, in 2011, 0.71% and 0.71%, respectively, in 2010 and 1.01% and 0.97%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 141
Financial Highlights (continued)
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period ended
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $25.08 | | | | $23.41 | | | | $21.31 | | | | $13.91 | | | | $11.67 | | | | $10.42 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .22 | | | | .47 | | | | (.06) | | | | (.03) | | | | (.02) | | | | (.03) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.62 | | | | 1.60 | | | | 2.24 | | | | .88 | | | | 2.26 | | | | 1.28 | | | |
| Total from Investment Operations | | | 1.84 | | | | 2.07 | | | | 2.18 | | | | .85 | | | | 2.24 | | | | 1.25 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.21) | | | | (.40) | | | | (.08) | | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.99) | | | | (.40) | | | | (.08) | | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $25.93 | | | | $25.08 | | | | $23.41 | | | | $14.76 | | | | $13.91 | | | | $11.67 | | | |
| Total Return** | | | 7.48% | | | | 8.90% | | | | 10.25% | | | | 6.11% | | | | 19.19% | | | | 12.00% | | | |
| Net Assets, End of Period (in thousands) | | | $156,535 | | | | $120,585 | | | | $49,678 | | | | $3,942 | | | | $3,905 | | | | $2,549 | | | |
| Average Net Assets for the Period (in thousands) | | | $137,319 | | | | $83,466 | | | | $39,380 | | | | $4,033 | | | | $3,256 | | | | $2,682 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.33% | | | | 1.34% | | | | 1.35% | | | | 1.34% | | | | 1.43% | | | | 1.67% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.33% | | | | 1.34% | | | | 1.34% | | | | 1.34% | | | | 1.43% | | | | 1.65% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.64% | | | | 1.96% | | | | 1.88% | | | | (0.35)% | | | | (0.30)% | | | | (0.68)% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 158% | | | | 126% | | | | 104% | | | | 80% | | | |
Class R Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Enterprise Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $51.93 | | | | $42.41 | | | | $36.63 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.24) | | | | (.24) | | | | (.05) | | | |
| Net gain on investments (both realized and unrealized) | | | 10.61 | | | | 9.76 | | | | 5.83 | | | |
| Total from Investment Operations | | | 10.37 | | | | 9.52 | | | | 5.78 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $62.30 | | | | $51.93 | | | | $42.41 | | | |
| Total Return** | | | 19.97% | | | | 22.45% | | | | 15.78% | | | |
| Net Assets, End of Period (in thousands) | | | $64,573 | | | | $51,998 | | | | $43,798 | | | |
| Average Net Assets for the Period (in thousands) | | | $58,823 | | | | $48,548 | | | | $41,524 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.45% | | | | 1.47% | | | | 1.57% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.45% | | | | 1.47% | | | | 1.55% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.88)% | | | | (0.72)% | | | | (0.58)% | | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
142 | MARCH 31, 2011
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the fiscal year ended
| | | | | | | | | | | | | | | | |
September 30, 2010, the two-month fiscal period ended
| | Janus Forty Fund |
| September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | 2006 | | |
| |
| Net Asset Value, Beginning of Period | | | $30.11 | | | | $29.76 | | | | $28.56 | | | | $39.07 | | | | $33.99 | | | | $28.18 | | | | $27.28 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.04) | | | | – | | | | (.02) | | | | (.02) | | | | – | | | | .05 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.01 | | | | .39 | | | | 1.20 | | | | (9.24) | | | | 5.11 | | | | 6.90 | | | | .85 | | | |
| Total from Investment Operations | | | 3.01 | | | | .35 | | | | 1.20 | | | | (9.26) | | | | 5.09 | | | | 6.90 | | | | .90 | | | |
| 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 | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.01) | | | | (1.09) | | | | – | | | |
| Net Asset Value, End of Period | | | $33.12 | | | | $30.11 | | | | $29.76 | | | | $28.56 | | | | $39.07 | | | | $33.99 | | | | $28.18 | | | |
| Total Return** | | | 10.00% | | | | 1.18% | | | | 4.20% | | | | (22.69)% | | | | 14.96% | | | | 24.92% | | | | 3.30% | | | |
| Net Assets, End of Period (in thousands) | | | $257,188 | | | | $241,690 | | | | $159,146 | | | | $144,400 | | | | $101,590 | | | | $21,923 | | | | $6,849 | | | |
| Average Net Assets for the Period (in thousands) | | | $260,218 | | | | $203,710 | | | | $151,006 | | | | $98,570 | | | | $53,811 | | | | $12,731 | | | | $2,130 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.43% | | | | 1.46% | | | | 1.41% | | | | 1.41% | | | | 1.40% | | | | 1.43%(5) | | | | 1.45%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.42% | | | | 1.46% | | | | 1.41% | | | | 1.41% | | | | 1.39% | | | | 1.43%(5) | | | | 1.44%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.01% | | | | (0.66)% | | | | (1.05)% | | | | (0.58)%(6) | | | | (0.53)%(6) | | | | (0.15)% | | | | 0.05% | | | |
| Portfolio Turnover Rate*** | | | 49% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | | 55% | | | |
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period ended
| | | | | | | | Janus Growth and
| | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Fund | | Income Fund(7) | | |
| 2009 | | 2011 | | 2010(8) | | 2009(9) | | 2011 | | 2010(8) | | 2009(9) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.68 | | | | $23.91 | | | | $20.86 | | | | $28.48 | | | | $26.45 | | | | $23.24 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.02) | | | | (.02) | | | | .08 | | | | .15 | | | | (.01) | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.16 | | | | 2.79 | | | | 3.07 | | | | 3.90 | | | | 2.03 | | | | 3.23 | | | |
| Total from Investment Operations | | | 3.16 | | | | 2.77 | | | | 3.05 | | | | 3.98 | | | | 2.18 | | | | 3.22 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | (.09) | | | | (.15) | | | | (.01) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | | (.09) | | | | (.15) | | | | (.01) | | | |
| Net Asset Value, End of Period | | | $29.84 | | | | $26.68 | | | | $23.91 | | | | $32.37 | | | | $28.48 | | | | $26.45 | | | |
| Total Return** | | | 11.85% | | | | 11.59% | | | | 14.62% | | | | 13.97% | | | | 8.27% | | | | 13.83% | | | |
| Net Assets, End of Period (in thousands) | | | $1,653 | | | | $1,299 | | | | $781 | | | | $2,974 | | | | $2,000 | | | | $1,789 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,484 | | | | $1,097 | | | | $776 | | | | $2,558 | | | | $2,026 | | | | $1,853 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.44% | | | | 1.47% | | | | 1.45% | | | | 1.41% | | | | 1.44% | | | | 1.45% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.44% | | | | 1.47% | | | | 1.44% | | | | 1.41% | | | | 1.43% | | | | 1.44% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.04)% | | | | (0.10)% | | | | (0.34)% | | | | 0.51% | | | | 0.58% | | | | (0.14)% | | | |
| Portfolio Turnover Rate*** | | | 98% | | | | 44% | | | | 60% | | | | 77% | | | | 47% | | | | 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 August 1, 2008 through July 31, 2009. |
| (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 include 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 fiscal year ended July 31, 2009 and 0.15% in 2008. The adjustment had no impact on the total net assets of the class. |
| (7) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
| (8) | | Period from November 1, 2009 through September 30, 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. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 143
Financial Highlights (continued)
Class R Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | | | | | | | |
eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31,
| | Janus Triton Fund | | |
| 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.68 | | | | $11.64 | | | | $10.26 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.01) | | | | (.04) | | | | .01 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.48 | | | | 3.08 | | | | 1.37 | | | |
| Total from Investment Operations | | | 3.47 | | | | 3.04 | | | | 1.38 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | |
| Total Distributions | | | (.31) | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $17.84 | | | | $14.68 | | | | $11.64 | | | |
| Total Return** | | | 23.80% | | | | 26.12% | | | | 13.45% | | | |
| Net Assets, End of Period (in thousands) | | | $16,638 | | | | $4,373 | | | | $1,167 | | | |
| Average Net Assets for the Period (in thousands) | | | $8,822 | | | | $2,304 | | | | $983 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.45%(4) | | | | 1.46%(4) | | | | 1.81%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.45%(4) | | | | 1.45%(4) | | | | 1.80%(4) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.69)% | | | | (0.72)% | | | | 0.21% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 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 September 30, 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.44% and 1.44%, respectively, in 2011, 1.45% and 1.45%, respectively, in 2010 and 1.81% and 1.80%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
144 | MARCH 31, 2011
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period ended
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
| October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $25.11 | | | | $23.42 | | | | $21.31 | | | | $13.96 | | | | $11.68 | | | | $10.42 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .25 | | | | .51 | | | | (.06) | | | | (.01) | | | | .01 | | | | (.02) | | | |
| Net gain on investments (both realized and unrealized) | | | 1.63 | | | | 1.62 | | | | 2.26 | | | | .88 | | | | 2.27 | | | | 1.28 | | | |
| Total from Investment Operations | | | 1.88 | | | | 2.13 | | | | 2.20 | | | | .87 | | | | 2.28 | | | | 1.26 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.24) | | | | (.44) | | | | (.09) | | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (1.02) | | | | (.44) | | | | (.09) | | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $25.97 | | | | $25.11 | | | | $23.42 | | | | $14.83 | | | | $13.96 | | | | $11.68 | | | |
| Total Return** | | | 7.62% | | | | 9.17% | | | | 10.33% | | | | 6.23% | | | | 19.52% | | | | 12.09% | | | |
| Net Assets, End of Period (in thousands) | | | $677,217 | | | | $618,469 | | | | $502,602 | | | | $6,020 | | | | $7,021 | | | | $4,493 | | | |
| Average Net Assets for the Period (in thousands) | | | $654,693 | | | | $583,340 | | | | $480,565 | | | | $6,865 | | | | $7,644 | | | | $4,551 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.08% | | | | 1.09% | | | | 1.10% | | | | 1.09% | | | | 1.18% | | | | 1.42% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.08% | | | | 1.09% | | | | 1.09% | | | | 1.09% | | | | 1.18% | | | | 1.40% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.88% | | | | 2.20% | | | | 2.15% | | | | (0.10)% | | | | (0.02)% | | | | (0.46)% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 158% | | | | 126% | | | | 104% | | | | 80% | | | |
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Enterprise Fund | | |
| eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $52.09 | | | | $42.45 | | | | $36.63 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.22) | | | | (.15) | | | | .02 | | | |
| Net gain on investments (both realized and unrealized) | | | 10.70 | | | | 9.79 | | | | 5.84 | | | |
| Total from Investment Operations | | | 10.48 | | | | 9.64 | | | | 5.82 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $62.57 | | | | $52.09 | | | | $42.45 | | | |
| Total Return** | | | 20.12% | | | | 22.71% | | | | 15.89% | | | |
| Net Assets, End of Period (in thousands) | | | $232,464 | | | | $213,550 | | | | $218,354 | | | |
| Average Net Assets for the Period (in thousands) | | | $234,098 | | | | $213,868 | | | | $215,750 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.20% | | | | 1.22% | | | | 1.31% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.20% | | | | 1.22% | | | | 1.30% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.63)% | | | | (0.48)% | | | | (0.34)% | | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 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 September 30, 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. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 145
Financial Highlights (continued)
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
fiscal year ended September 30, 2010, the
| | | | | | | | | | | | | | | | |
two-month fiscal period ended September 30,
| | Janus Forty Fund |
| 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | 2006 | | |
| |
| Net Asset Value, Beginning of Period | | | $30.60 | | | | $30.17 | | | | $28.94 | | | | $39.47 | | | | $34.27 | | | | $28.30 | | | | $27.34 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .04 | | | | (.02) | | | | – | | | | (.01) | | | | (.01) | | | | .03 | | | | .02 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.06 | | | | .45 | | | | 1.23 | | | | (9.27) | | | | 5.24 | | | | 7.00 | | | | .94 | | | |
| Total from Investment Operations | | | 3.10 | | | | .43 | | | | 1.23 | | | | (9.28) | | | | 5.23 | | | | 7.03 | | | | .96 | | | |
| 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 | | | | N/A | | | | –(3) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.03) | | | | (1.06) | | | | – | | | |
| Net Asset Value, End of Period | | | $33.70 | | | | $30.60 | | | | $30.17 | | | | $28.94 | | | | $39.47 | | | | $34.27 | | | | $28.30 | | | |
| Total Return** | | | 10.13% | | | | 1.43% | | | | 4.25% | | | | (22.51)% | | | | 15.24% | | | | 25.27% | | | | 3.51% | | | |
| Net Assets, End of Period (in thousands) | | | $2,945,558 | | | | $2,994,743 | | | | $2,878,790 | | | | $2,821,241 | | | | $3,910,499 | | | | $2,671,702 | | | | $1,440,502 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,109,791 | | | | $2,964,526 | | | | $2,835,097 | | | | $2,383,060 | | | | $3,535,839 | | | | $1,966,832 | | | | $1,326,557 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.16% | | | | 1.20% | | | | 1.16% | | | | 1.15% | | | | 1.14% | | | | 1.18%(5) | | | | 1.18%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.16% | | | | 1.20% | | | | 1.16% | | | | 1.15% | | | | 1.14% | | | | 1.18%(5) | | | | 1.18%(5) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.26% | | | | (0.42)% | | | | (0.80)% | | | | (0.34)%(6) | | | | (0.21)%(6) | | | | 0.09% | | | | 0.08% | | | |
| Portfolio Turnover Rate*** | | | 49% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | | 55% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended
| | | | | | | | | | | | | | |
March 31, 2011 (unaudited), the eleven-month fiscal period
| | | | | | | | Janus Growth and
| | |
ended September 30, 2010 and the fiscal period ended
| | Janus Fund | | Income Fund(7) | | |
| October 31, 2009 | | 2011 | | 2010(8) | | 2009(9) | | 2011 | | 2010(8) | | 2009(9) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.77 | | | | $23.95 | | | | $20.86 | | | | $28.51 | | | | $26.46 | | | | $23.24 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .03 | | | | .01 | | | | – | | | | .13 | | | | .22 | | | | .01 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.18 | | | | 2.81 | | | | 3.09 | | | | 3.89 | | | | 2.03 | | | | 3.23 | | | |
| Total from Investment Operations | | | 3.21 | | | | 2.82 | | | | 3.09 | | | | 4.02 | | | | 2.25 | | | | 3.24 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.02) | | | | – | | | | – | | | | (.12) | | | | (.20) | | | | (.02) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.02) | | | | – | | | | – | | | | (.12) | | | | (.20) | | | | (.02) | | | |
| Net Asset Value, End of Period | | | $29.96 | | | | $26.77 | | | | $23.95 | | | | $32.41 | | | | $28.51 | | | | $26.46 | | | |
| Total Return** | | | 11.98% | | | | 11.77% | | | | 14.81% | | | | 14.11% | | | | 8.52% | | | | 13.94% | | | |
| Net Assets, End of Period (in thousands) | | | $79,020 | | | | $76,034 | | | | $84,350 | | | | $71,999 | | | | $58,402 | | | | $66,211 | | | |
| Average Net Assets for the Period (in thousands) | | | $79,983 | | | | $79,758 | | | | $85,637 | | | | $63,821 | | | | $63,457 | | | | $66,895 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.19% | | | | 1.25% | | | | 1.20% | | | | 1.17% | | | | 1.18% | | | | 1.20% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.19% | | | | 1.25% | | | | 1.19% | | | | 1.17% | | | | 1.18% | | | | 1.19% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.20% | | | | 0.04% | | | | (0.08)% | | | | 0.77% | | | | 0.81% | | | | 0.10% | | | |
| Portfolio Turnover Rate*** | | | 98% | | | | 44% | | | | 60% | | | | 77% | | | | 47% | | | | 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 August 1, 2008 through July 31, 2009. |
| (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 include 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. |
| (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 0.10% in 2008. The adjustment had no impact on the total net assets of the class. |
| (7) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
| (8) | | Period from November 1, 2009 through September 30, 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. |
See Notes to Financial Statements.
146 | MARCH 31, 2011
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the eleven-
| | Janus Research Fund | | |
| month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $26.21 | | | | $22.46 | | | | $19.41 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .02 | | | | .13 | | | | – | | | |
| Net gain on investments (both realized and unrealized) | | | 4.37 | | | | 3.70 | | | | 3.05 | | | |
| Total from Investment Operations | | | 4.39 | | | | 3.83 | | | | 3.05 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.05) | | | | (.08) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.05) | | | | (.08) | | | | – | | | |
| Net Asset Value, End of Period | | | $30.55 | | | | $26.21 | | | | $22.46 | | | |
| Total Return** | | | 16.76% | | | | 17.06% | | | | 15.71% | | | |
| Net Assets, End of Period (in thousands) | | | $18 | | | | $13 | | | | $11 | | | |
| Average Net Assets for the Period (in thousands) | | | $17 | | | | $17 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.14% | | | | 1.25% | | | | 1.66% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.14% | | | | 1.25% | | | | 1.47% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.23% | | | | 0.38% | | | | (0.24)% | | | |
| Portfolio Turnover Rate*** | | | 82% | | | | 75% | | | | 83% | | | |
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited), the
| | Janus Triton Fund | | |
| eleven-month fiscal period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.65 | | | | $11.60 | | | | $10.26 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | – | | | | (.03) | | | | .01 | | | |
| Net gain on investments (both realized and unrealized) | | | 3.49 | | | | 3.10 | | | | 1.33 | | | |
| Total from Investment Operations | | | 3.49 | | | | 3.07 | | | | 1.34 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | |
| Total Distributions | | | (.31) | | | | (.02) | | | | – | | | |
| Net Asset Value, End of Period | | | $17.83 | | | | $14.65 | | | | $11.60 | | | |
| Total Return** | | | 23.99% | | | | 26.45% | | | | 13.06% | | | |
| Net Assets, End of Period (in thousands) | | | $22,851 | | | | $6,444 | | | | $3,845 | | | |
| Average Net Assets for the Period (in thousands) | | | $12,322 | | | | $5,740 | | | | $2,245 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.20%(4) | | | | 1.23%(4) | | | | 1.59%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.20%(4) | | | | 1.23%(4) | | | | 1.57%(4) | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.42)% | | | | (0.48)% | | | | 0.70% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 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 September 30, 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 1.19% and 1.19%, respectively, in 2011, 1.23% and 1.23%, respectively, in 2010 and 1.59% and 1.57%, respectively, in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 147
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended
| | | | | | | | | | | | | | | | |
September 30, 2010 and each fiscal year
| | Janus Balanced Fund |
| ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $25.10 | | | | $23.42 | | | | $20.58 | | | | $27.00 | | | | $24.07 | | | | $21.62 | | | | $20.33 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .26 | | | | .58 | | | | .36 | | | | .59 | | | | .59 | | | | .43 | | | | .42 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 1.64 | | | | 1.61 | | | | 3.80 | | | | (5.58) | | | | 2.91 | | | | 2.45 | | | | 1.28 | | | |
| Total from Investment Operations | | | 1.90 | | | | 2.19 | | | | 4.16 | | | | (4.99) | | | | 3.50 | | | | 2.88 | | | | 1.70 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.26) | | | | (.51) | | | | (.74) | | | | (.59) | | | | (.57) | | | | (.43) | | | | (.41) | | | |
| Distributions (from capital gains)* | | | (.78) | | | | – | | | | (.58) | | | | (.84) | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | –(2) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (1.04) | | | | (.51) | | | | (1.32) | | | | (1.43) | | | | (.57) | | | | (.43) | | | | (.41) | | | |
| Net Asset Value, End of Period | | | $25.96 | | | | $25.10 | | | | $23.42 | | | | $20.58 | | | | $27.00 | | | | $24.07 | | | | $21.62 | | | |
| Total Return** | | | 7.75% | | | | 9.43% | | | | 21.56% | | | | (19.34)% | | | | 14.73% | | | | 13.41% | | | | 8.43% | | | |
| Net Assets, End of Period (in thousands) | | | $3,290,401 | | | | $2,957,642 | | | | $3,438,753 | | | | $2,361,537 | | | | $2,786,455 | | | | $2,478,237 | | | | $2,507,307 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,117,188 | | | | $3,136,111 | | | | $2,749,762 | | | | $2,733,572 | | | | $2,593,935 | | | | $2,499,295 | | | | $2,720,829 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.83% | | | | 0.82% | | | | 0.82% | | | | 0.79% | | | | 0.79% | | | | 0.82% | | | | 0.80% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.83% | | | | 0.82% | | | | 0.82% | | | | 0.79% | | | | 0.79% | | | | 0.81% | | | | 0.79% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 2.13% | | | | 2.43% | | | | 2.72% | | | | 2.42% | | | | 2.34% | | | | 1.85% | | | | 1.93% | | | |
| Portfolio Turnover Rate*** | | | 100% | | | | 83% | | | | 158% | | | | 109% | | | | 60% | | | | 50% | | | | 47% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended
| | | | | | | | | | | | | | | | |
September 30, 2010 and each fiscal year
| | Janus Contrarian Fund |
| ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $14.00 | | | | $11.69 | | | | $10.90 | | | | $21.19 | | | | $17.44 | | | | $14.20 | | | | $11.74 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .01 | | | | – | | | | – | | | | .07 | | | | .06 | | | | .21 | | | | .05 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | .88 | | | | 2.32 | | | | 1.22 | | | | (9.40) | | | | 5.71 | | | | 3.25 | | | | 2.44 | | | |
| Total from Investment Operations | | | .89 | | | | 2.32 | | | | 1.22 | | | | (9.33) | | | | 5.77 | | | | 3.46 | | | | 2.49 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.03) | | | | (.01) | | | | (.05) | | | | (.08) | | | | (.21) | | | | (.04) | | | | (.03) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | (.37) | | | | (.88) | | | | (1.81) | | | | (.18) | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | (.01) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.03) | | | | (.01) | | | | (.43) | | | | (.96) | | | | (2.02) | | | | (.22) | | | | (.03) | | | |
| Net Asset Value, End of Period | | | $14.86 | | | | $14.00 | | | | $11.69 | | | | $10.90 | | | | $21.19 | | | | $17.44 | | | | $14.20 | | | |
| Total Return** | | | 6.37% | | | | 19.81% | | | | 12.35% | | | | (46.02)% | | | | 36.17% | | | | 24.60% | | | | 21.19% | | | |
| Net Assets, End of Period (in thousands) | | | $1,609,493 | | | | $1,701,378 | | | | $3,655,102 | | | | $3,927,985 | | | | $8,452,208 | | | | $4,002,929 | | | | $2,906,324 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,721,880 | | | | $2,454,799 | | | | $3,398,196 | | | | $7,251,667 | | | | $6,378,807 | | | | $3,511,568 | | | | $2,716,329 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.84% | | | | 0.91% | | | | 1.01%(4) | | | | 1.01% | | | | 0.97% | | | | 0.95% | | | | 0.93% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.84% | | | | 0.91% | | | | 1.00%(4) | | | | 1.00% | | | | 0.96% | | | | 0.94% | | | | 0.93% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 0.14% | | | | 0.16% | | | | 0.02% | | | | 0.43% | | | | 0.38% | | | | 1.41% | | | | 0.45% | | | |
| Portfolio Turnover Rate*** | | | 126% | | | | 104% | | | | 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) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 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 include 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. |
See Notes to Financial Statements.
148 | MARCH 31, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended September 30,
| | Janus Enterprise Fund |
| 2010 and each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $52.27 | | | | $42.50 | | | | $35.71 | | | | $59.39 | | | | $45.65 | | | | $39.48 | | | | $33.73 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.11) | | | | (.04) | | | | (.01) | | | | .05 | | | | (.01) | | | | (.04) | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 10.72 | | | | 9.81 | | | | 6.80 | | | | (23.73) | | | | 13.75 | | | | 6.21 | | | | 5.75 | | | |
| Total from Investment Operations | | | 10.61 | | | | 9.77 | | | | 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 | | | $62.88 | | | | $52.27 | | | | $42.50 | | | | $35.71 | | | | $59.39 | | | | $45.65 | | | | $39.48 | | | |
| Total Return** | | | 20.30% | | | | 22.99% | | | | 19.01% | | | | (39.87)% | | | | 30.10% | | | | 15.63% | | | | 17.05% | | | |
| Net Assets, End of Period (in thousands) | | | $981,539 | | | | $816,087 | | | | $1,521,578 | | | | $1,397,516 | | | | $2,233,224 | | | | $1,743,616 | | | | $1,703,542 | | | |
| Average Net Assets for the Period (in thousands) | | | $910,822 | | | | $1,074,011 | | | | $1,335,838 | | | | $2,025,505 | | | | $1,926,163 | | | | $1,778,532 | | | | $1,728,579 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.95% | | | | 0.95% | | | | 0.99% | | | | 0.92% | | | | 0.94% | | | | 1.00% | | | | 0.96% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.95% | | | | 0.95% | | | | 0.98% | | | | 0.92% | | | | 0.93% | | | | 0.99% | | | | 0.95% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.38)% | | | | (0.23)% | | | | (0.09)% | | | | 0.04% | | | | (0.04)% | | | | (0.24)% | | | | (0.30)% | | | |
| Portfolio Turnover Rate*** | | | 23% | | | | 24% | | | | 41% | | | | 69% | | | | 32% | | | | 40% | | | | 28% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | | | |
the fiscal year ended September 30, 2010, the two-month fiscal period ended
| | Janus Forty Fund | | |
| September 30, 2009 and the fiscal period ended July 31, 2009 | | 2011 | | 2010 | | 2009(3) | | 2009(4) | | |
| |
| Net Asset Value, Beginning of Period | | | $30.69 | | | | $30.18 | | | | $28.95 | | | | $25.87 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .08 | | | | .02 | | | | (.09) | | | | .09 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.07 | | | | .49 | | | | 1.32 | | | | 2.99 | | | |
| Total from Investment Operations | | | 3.15 | | | | .51 | | | | 1.23 | | | | 3.08 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | – | | | | – | | | | – | | | | – | | | |
| Net Asset Value, End of Period | | | $33.84 | | | | $30.69 | | | | $30.18 | | | | $28.95 | | | |
| Total Return** | | | 10.26% | | | | 1.69% | | | | 4.25% | | | | 11.91% | | | |
| Net Assets, End of Period (in thousands) | | | $36,829 | | | | $29,048 | | | | $375 | | | | $1 | | | |
| Average Net Assets for the Period (in thousands) | | | $37,277 | | | | $10,232 | | | | $76 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.92% | | | | 1.02% | | | | 0.95% | | | | 1.03% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.92% | | | | 1.02% | | | | 0.95% | | | | 1.03% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.51% | | | | (0.11)% | | | | (0.80)% | | | | 1.38%(5) | | | |
| Portfolio Turnover Rate*** | | | 49% | | | | 40% | | | | 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) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (2) | | See Note 6 in Notes to Financial Statements. |
| (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 July 6, 2009 (inception date) through July 31, 2009. |
| (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 0.21% for the fiscal period ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 149
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended September 30,
| | Janus Fund |
| 2010 and each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $26.82 | | | | $23.95 | | | | $20.35 | | | | $33.66 | | | | $27.43 | | | | $24.44 | | | | $22.69 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .08 | | | | .09 | | | | .11 | | | | .18 | | | | .16 | | | | .09 | | | | .02 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.16 | | | | 2.80 | | | | 3.76 | | | | (13.33) | | | | 6.17 | | | | 2.92 | | | | 1.73 | | | |
| Total from Investment Operations | | | 3.24 | | | | 2.89 | | | | 3.87 | | | | (13.15) | | | | 6.33 | | | | 3.01 | | | | 1.75 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.06) | | | | (.02) | | | | (.27) | | | | (.16) | | | | (.10) | | | | (.02) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.06) | | | | (.02) | | | | (.27) | | | | (.16) | | | | (.10) | | | | (.02) | | | | – | | | |
| Net Asset Value, End of Period | | | $30.00 | | | | $26.82 | | | | $23.95 | | | | $20.35 | | | | $33.66 | | | | $27.43 | | | | $24.44 | | | |
| Total Return** | | | 12.10% | | | | 12.06% | | | | 19.35% | | | | (39.24)% | | | | 23.12% | | | | 12.31% | | | | 7.71% | | | |
| Net Assets, End of Period (in thousands) | | | $2,617,676 | | | | $2,800,369 | | | | $8,100,358 | | | | $7,528,294 | | | | $13,038,747 | | | | $11,208,629 | | | | $11,142,921 | | | |
| Average Net Assets for the Period (in thousands) | | | $2,719,277 | | | | $5,138,181 | | | | $7,312,389 | | | | $10,973,577 | | | | $11,816,878 | | | | $11,232,055 | | | | $12,310,464 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.94% | | | | 0.94% | | | | 0.89% | | | | 0.88% | | | | 0.88% | | | | 0.90% | | | | 0.88% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.94% | | | | 0.94% | | | | 0.88% | | | | 0.87% | | | | 0.87% | | | | 0.90% | | | | 0.87% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 0.44% | | | | 0.21% | | | | 0.49% | | | | 0.60% | | | | 0.52% | | | | 0.34% | | | | 0.07% | | | |
| Portfolio Turnover Rate*** | | | 98% | | | | 44% | | | | 60% | | | | 95% | | | | 32% | | | | 69% | | | | 78% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended
| | Janus Growth and
|
September 30, 2010 and each fiscal year
| | Income Fund(3) |
| ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $28.50 | | | | $26.47 | | | | $21.90 | | | | $44.20 | | | | $37.36 | | | | $33.97 | | | | $29.29 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .16 | | | | .28 | | | | .28 | | | | .38 | | | | .63 | | | | .61 | | | | .24 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.90 | | | | 2.03 | | | | 4.56 | | | | (17.92) | | | | 6.86 | | | | 3.30 | | | | 4.66 | | | |
| Total from Investment Operations | | | 4.06 | | | | 2.31 | | | | 4.84 | | | | (17.54) | | | | 7.49 | | | | 3.91 | | | | 4.90 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.16) | | | | (.28) | | | | (.27) | | | | (.49) | | | | (.65) | | | | (.52) | | | | (.22) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (4.27) | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.16) | | | | (.28) | | | | (.27) | | | | (4.76) | | | | (.65) | | | | (.52) | | | | (.22) | | | |
| Net Asset Value, End of Period | | | $32.40 | | | | $28.50 | | | | $26.47 | | | | $21.90 | | | | $44.20 | | | | $37.36 | | | | $33.97 | | | |
| Total Return** | | | 14.25% | | | | 8.79% | | | | 22.32% | | | | (43.79)% | | | | 20.22% | | | | 11.56% | | | | 16.79% | | | |
| Net Assets, End of Period (in thousands) | | | $1,795,847 | | | | $1,615,457 | | | | $3,622,998 | | | | $3,345,701 | | | | $7,107,894 | | | | $6,780,817 | | | | $5,734,941 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,691,537 | | | | $2,383,198 | | | | $3,231,514 | | | | $5,463,501 | | | | $6,783,311 | | | | $6,677,364 | | | | $5,454,668 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.92% | | | | 0.90% | | | | 0.90% | | | | 0.87% | | | | 0.87% | | | | 0.89% | | | | 0.88% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.92% | | | | 0.90% | | | | 0.89% | | | | 0.86% | | | | 0.86% | | | | 0.88% | | | | 0.87% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 1.00% | | | | 0.90% | | | | 1.22% | | | | 1.17% | | | | 1.98% | | | | 1.90% | | | | 0.68% | | | |
| Portfolio Turnover Rate*** | | | 77% | | | | 47% | | | | 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) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (2) | | See Note 6 in Notes to Financial Statements. |
| (3) | | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. See Note 10 in Notes to Financial Statements. |
See Notes to Financial Statements.
150 | MARCH 31, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended
| | | | | | | | | | | | | | | | |
September 30, 2010 and each fiscal year
| | Janus Research Fund |
| ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $26.33 | | | | $22.49 | | | | $18.25 | | | | $32.09 | | | | $24.19 | | | | $22.05 | | | | $19.48 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .07 | | | | .15 | | | | .17 | | | | .05 | | | | .03 | | | | .02 | | | | .09 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 4.39 | | | | 3.75 | | | | 4.23 | | | | (13.86) | | | | 7.89 | | | | 2.18 | | | | 2.51 | | | |
| Total from Investment Operations | | | 4.46 | | | | 3.90 | | | | 4.40 | | | | (13.81) | | | | 7.92 | | | | 2.20 | | | | 2.60 | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.13) | | | | (.06) | | | | (.16) | | | | (.03) | | | | (.02) | | | | (.06) | | | | (.03) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.13) | | | | (.06) | | | | (.16) | | | | (.03) | | | | (.02) | | | | (.06) | | | | (.03) | | | |
| Net Asset Value, End of Period | | | $30.66 | | | | $26.33 | | | | $22.49 | | | | $18.25 | | | | $32.09 | | | | $24.19 | | | | $22.05 | | | |
| Total Return** | | | 16.97% | | | | 17.36% | | | | 24.29% | | | | (43.08)% | | | | 32.76% | | | | 10.00% | | | | 13.35% | | | |
| Net Assets, End of Period (in thousands) | | | $1,537,157 | | | | $1,354,695 | | | | $2,890,078 | | | | $2,590,521 | | | | $5,006,239 | | | | $3,876,997 | | | | $4,473,431 | | | |
| Average Net Assets for the Period (in thousands) | | | $1,485,474 | | | | $1,881,088 | | | | $2,505,457 | | | | $4,097,719 | | | | $4,266,701 | | | | $4,052,013 | | | | $4,447,616 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.89% | | | | 1.02% | | | | 1.02% | | | | 1.06% | | | | 1.01% | | | | 0.98% | | | | 0.93% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.89% | | | | 1.02% | | | | 1.01% | | | | 1.05% | | | | 1.00% | | | | 0.97% | | | | 0.92% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.46% | | | | 0.44% | | | | 0.59% | | | | 0.24% | | | | 0.11% | | | | 0.11% | | | | 0.42% | | | |
| Portfolio Turnover Rate*** | | | 82% | | | | 75% | | | | 83% | | | | 102% | | | | 72% | | | | 147% | | | | 38% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month period
| | | | | | | | | | | | | | | | |
ended March 31, 2011 (unaudited), the eleven-month
| | | | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and each fiscal
| | Janus Triton Fund |
| year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005(3) | | |
| |
| Net Asset Value, Beginning of Period | | | $14.68 | | | | $11.60 | | | | $8.89 | | | | $17.13 | | | | $13.09 | | | | $10.86 | | | | $10.00 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.01) | | | | .01 | | | | .01 | | | | .02 | | | | – | | | | .01 | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 3.52 | | | | 3.09 | | | | 2.70 | | | | (6.36) | | | | 4.22 | | | | 2.27 | | | | .86 | | | |
| Total from Investment Operations | | | 3.51 | | | | 3.10 | | | | 2.71 | | | | (6.34) | | | | 4.22 | | | | 2.28 | | | | .86 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | – | | | | (.02) | | | | –(4) | | | | – | | | | – | | | | (.03) | | | | – | | | |
| Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | (1.90) | | | | (.18) | | | | (.02) | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | N/A | | | | –(5) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.31) | | | | (.02) | | | | – | | | | (1.90) | | | | (.18) | | | | (.05) | | | | – | | | |
| Net Asset Value, End of Period | | | $17.88 | | | | $14.68 | | | | $11.60 | | | | $8.89 | | | | $17.13 | | | | $13.09 | | | | $10.86 | | | |
| Total Return** | | | 24.08% | | | | 26.74% | | | | 30.55% | | | | (41.05)% | | | | 32.57% | | | | 21.06% | | | | 8.60% | | | |
| Net Assets, End of Period (in thousands) | | | $980,046 | | | | $431,352 | | | | $315,350 | | | | $122,852 | | | | $151,888 | | | | $111,993 | | | | $37,695 | | | |
| Average Net Assets for the Period (in thousands) | | | $692,866 | | | | $313,740 | | | | $193,298 | | | | $143,209 | | | | $120,057 | | | | $105,268 | | | | $25,904 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.94%(6) | | | | 0.96%(6) | | | | 1.18%(6) | | | | 1.20%(6) | | | | 1.13% | | | | 1.11% | | | | 1.27% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.94%(6) | | | | 0.96%(6) | | | | 1.17%(6) | | | | 1.20%(6) | | | | 1.11% | | | | 1.09% | | | | 1.25% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.14)% | | | | (0.14)% | | | | 0.06% | | | | (0.23)% | | | | (0.28)% | | | | 0.12% | | | | (0.24)% | | | |
| Portfolio Turnover Rate*** | | | 43% | | | | 35% | | | | 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) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (2) | | See Note 6 in Notes to Financial Statements. |
| (3) | | Period from February 25, 2005 (inception date) through October 31, 2005. |
| (4) | | Dividends (from net investment income) aggregated less than $.01 on a per share basis. |
| (5) | | Return of capital 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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.94% and 0.94%, respectively, in 2011, 0.96% and 0.96%, 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. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 151
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | |
the eleven-month fiscal period
| | | | | | | | | | | | | | | | |
ended September 30, 2010 and each
| | Janus Twenty Fund |
| fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $60.33 | | | | $57.00 | | | | $46.29 | | | | $74.70 | | | | $52.93 | | | | $47.63 | | | | $39.60 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | .12 | | | | (.12) | | | | .06 | | | | .01 | | | | .15 | | | | .32 | | | | .10 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 6.16 | | | | 3.45 | | | | 10.66 | | | | (28.27) | | | | 21.94 | | | | 5.08 | | | | 7.94 | | | |
| Total from Investment Operations | | | 6.28 | | | | 3.33 | | | | 10.72 | | | | (28.26) | | | | 22.09 | | | | 5.40 | | | | 8.04 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.15) | | | | – | | | | – | | | | (.15) | | | | (.32) | | | | (.10) | | | | (.01) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Return of capital | | | N/A | | | | N/A | | | | (.01) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | (.15) | | | | – | | | | (.01) | | | | (.15) | | | | (.32) | | | | (.10) | | | | (.01) | | | |
| Net Asset Value, End of Period | | | $66.46 | | | | $60.33 | | | | $57.00 | | | | $46.29 | | | | $74.70 | | | | $52.93 | | | | $47.63 | | | |
| Total Return** | | | 10.42% | | | | 5.84% | | | | 23.16% | | | | (37.91)% | | | | 41.95% | | | | 11.35% | | | | 20.31% | | | |
| Net Assets, End of Period (in thousands) | | | $3,879,909 | | | | $3,850,699 | | | | $9,016,257 | | | | $7,671,239 | | | | $12,769,465 | | | | $9,582,463 | | | | $9,612,503 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,998,937 | | | | $5,792,097 | | | | $7,846,950 | | | | $11,801,120 | | | | $10,355,207 | | | | $9,511,589 | | | | $9,458,921 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.94% | | | | 0.91% | | | | 0.86% | | | | 0.85% | | | | 0.88%(3) | | | | 0.88%(3) | | | | 0.86% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.94% | | | | 0.91% | | | | 0.86% | | | | 0.84% | | | | 0.88%(3) | | | | 0.87%(3) | | | | 0.86% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.42% | | | | (0.14)% | | | | (0.10)% | | | | (0.07)%(4) | | | | 0.22% | | | | 0.60% | | | | 0.21% | | | |
| Portfolio Turnover Rate*** | | | 53% | | | | 39% | | | | 32% | | | | 42% | | | | 20% | | | | 41% | | | | 44% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the six-month
| | | | | | | | | | | | | | | | |
period ended March 31, 2011 (unaudited), the
| | | | | | | | | | | | | | | | |
eleven-month fiscal period ended September 30,
| | Janus Venture Fund |
| 2010 and each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $47.08 | | | | $38.68 | | | | $29.82 | | | | $79.09 | | | | $65.75 | | | | $56.82 | | | | $51.57 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income/(loss) | | | (.10) | | | | (.13) | | | | – | | | | .07 | | | | (.02) | | | | (.06) | | | | – | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 12.99 | | | | 8.53 | | | | 8.86 | | | | (34.87) | | | | 20.85 | | | | 11.92 | | | | 5.25 | | | |
| Total from Investment Operations | | | 12.89 | | | | 8.40 | | | | 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 | | | | N/A | | | | –(5) | | | | N/A | | | | N/A | | | | N/A | | | |
| Total Distributions and Other | | | – | | | | – | | | | – | | | | (14.47) | | | | (7.49) | | | | (2.93) | | | | – | | | |
| Net Asset Value, End of Period | | | $59.97 | | | | $47.08 | | | | $38.68 | | | | $29.82 | | | | $79.09 | | | | $65.75 | | | | $56.82 | | | |
| Total Return** | | | 27.38% | | | | 21.72% | | | | 29.71% | | | | (52.62)% | | | | 34.68% | | | | 21.69% | | | | 10.18% | | | |
| Net Assets, End of Period (in thousands) | | | $252,215 | | | | $206,712 | | | | $921,384 | | | | $760,880 | | | | $1,764,166 | | | | $1,398,455 | | | | $1,293,150 | | | |
| Average Net Assets for the Period (in thousands) | | | $231,319 | | | | $458,457 | | | | $776,334 | | | | $1,268,992 | | | | $1,549,495 | | | | $1,353,079 | | | | $1,367,775 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.97%(6) | | | | 0.92%(6) | | | | 0.93%(6) | | | | 0.90%(6) | | | | 0.88% | | | | 0.91% | | | | 0.87% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.97%(6) | | | | 0.92%(6) | | | | 0.93%(6) | | | | 0.90%(6) | | | | 0.87% | | | | 0.91% | | | | 0.87% | | | |
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.34)% | | | | (0.47)% | | | | (0.48)% | | | | (0.46)% | | | | (0.49)% | | | | (0.55)% | | | | (0.64)% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 64% | | | | 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) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (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 include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.86% and 0.86%, respectively, in 2007 and 0.87% and 0.87%, respectively, in 2006 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
| (4) | | 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%. The adjustment had no impact on total net assets or total return of the class. |
| (5) | | Return of capital 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 include dividends and interest on short positions and may include stock loan fees. The ratio would be 0.95% and 0.95%, respectively, in 2011, 0.90% and 0.90%, respectively, in 2010, 0.91% and 0.91%, respectively, in 2009 and 0.89% and 0.89%, respectively, in 2008 without the inclusion of dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
152 | MARCH 31, 2011
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. Aggregate 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. |
| |
| 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 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. |
Janus Growth & Core Funds | 153
Notes to Schedules of Investments (unaudited) (continued)
| | |
| 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 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 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. |
| |
| ADR | | American Depositary Receipt |
| |
| ETF | | Exchange-Traded Fund |
| |
| LIBOR | | London Interbank Offered Rate |
| |
| 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. |
| ÇÇ | | Security is a U.S. Treasury Inflation-Protected Security (TIPS). |
∞ Schedule of Fair Valued Securities (as of March 31, 2011)
| | | | | | | | |
| | | | | Value as a %
| | |
| | | Value | | of Net Assets | | |
| |
| |
Janus Forty Fund | | | | | | | |
| Zynga, Inc. – Private Placement, 8.0000% | | $ | 27,308,234 | | 0.4% | | |
| |
| |
Janus Fund | | | | | | | |
| Zynga, Inc. – Private Placement, 8.0000% | | $ | 34,973,461 | | 0.4% | | |
| |
| |
Janus Twenty Fund | | | | | | | |
| Zynga, Inc. – Private Placement, 8.0000% | | $ | 37,718,257 | | 0.4% | | |
| |
| |
Janus Venture Fund | | | | | | | |
| Digital Domain – Private Placement | | $ | 1,510,303 | | 0.1% | | |
| Genius Products, Inc. | | | – | | 0.0% | | |
| Motorcar Parts of America, Inc. – Private Placement – expires 5/17/12 | | | 132,454 | | 0.0% | | |
| |
| |
| | | $ | 1,642,757 | | 0.1% | | |
| |
| |
154 | MARCH 31, 2011
Securities are valued at “fair value” pursuant to procedures adopted by the Fund’s 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, 2011)
| | | | | | | | | | | | | |
| | | Acquisition
| | Acquisition
| | | | Value as a
| | |
| | | Date | | Cost | | Value | | % of Net Assets | | |
| |
| |
Janus Balanced Fund | | | | | | | | | | | | |
| Asciano Finance, Ltd., 5.0000%, 4/7/18 | | 3/31/11 | | $ | 15,107,670 | | $ | 15,107,670 | | 0.2% | | |
| |
| |
Janus Forty Fund | | | | | | | | | | | | |
| Zynga, Inc. – Private Placement, 8.0000% | | 2/17/11 | | $ | 27,308,234 | | $ | 27,308,234 | | 0.4% | | |
| |
| |
Janus Fund | | | | | | | | | | | | |
| Zynga, Inc. – Private Placement, 8.0000% | | 2/17/11 | | $ | 34,973,461 | | $ | 34,973,461 | | 0.4% | | |
| |
| |
Janus Twenty Fund | | | | | | | | | | | | |
| Zynga, Inc. – Private Placement, 8.0000% | | 2/17/11 | | $ | 37,718,257 | | $ | 37,718,257 | | 0.4% | | |
| |
| |
Janus Venture Fund | | | | | | | | | | | | |
| Digital Domain – Private Placement | | 7/26/07 | | $ | 7,291,119 | | $ | 1,510,303 | | 0.1% | | |
| Genius Products, Inc. | | 5/1/09 – 3/30/11 | | | 37,439 | | | – | | 0.0% | | |
| Motorcar Parts of America, Inc. – Private Placement – expires 5/17/12 | | 5/17/07 | | | 198,682 | | | 132,454 | | 0.0% | | |
| |
| |
| | | | | $ | 7,527,240 | | $ | 1,642,757 | | 0.1% | | |
| |
| |
The Funds have registration rights for certain restricted securities held as of March 31, 2011. The issuer incurs all registration costs.
| |
| 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. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2011 is indicated in the table below: |
| | | | | | | | | | | |
| | | | | | Value as a %
| | | |
| Fund | | Value | | | of Net Assets | | | |
| |
| Janus Balanced Fund | | $ | 327,891,173 | | | | 4.9 | % | | |
| Janus Contrarian Fund | | | 88,638,941 | | | | 2.2 | % | | |
| Janus Growth and Income Fund | | | 24,771,199 | | | | 0.6 | % | | |
| |
| |
| |
| £ | 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, 2011. |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Contrarian Fund | | | | | | | | | | | | | | | | | | | | | |
| Boise, Inc.* | | 1,067,375 | | $ | 7,720,843 | | – | | $ | – | | $ | – | | $ | 3,237,118 | | $ | 74,130,002 | | |
| St. Joe Co.* | | – | | | – | | 1,742,811 | | | 101,333,844 | | | (56,995,605) | | | – | | | 160,226,030 | | |
| Vail Resorts, Inc.* | | – | | | – | | 862,517 | | | 44,139,012 | | | (30,243) | | | – | | | 102,777,449 | | |
| |
| |
| | | | | $ | 7,720,843 | | | | $ | 145,472,856 | | $ | (57,025,848) | | $ | 3,237,118 | | $ | 337,133,481 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Triton Fund | | | | | | | | | | | | | | | | | | | | | |
| Rush Enterprises, Inc.* | | 117,110 | | $ | 1,814,272 | | 21,603 | | $ | 261,495 | | $ | 121,682 | | $ | – | | $ | 10,244,292 | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 3/31/11 | | |
| |
Janus Venture Fund | | | | | | | | | | | | | | | | | | | | | |
| Convio, Inc.* | | 107,710 | | $ | 972,342 | | – | | $ | – | | $ | – | | $ | – | | $ | 12,574,478 | | |
Genius Products, Inc.*,§ | | 9,700 | | | – | | – | | | – | | | – | | | – | | | – | | |
| Health Grades, Inc.* | | – | | | – | | 1,646,555 | | | 7,787,569 | | | 5,714,182 | | | – | | | – | | |
Horizon Lines, Inc. – Class A*(1) | | – | | | – | | 309,330 | | | 5,930,597 | | | (4,638,758) | | | 83,876 | | | N/A | | |
| Standard Parking Corp.* | | 65,115 | | | 1,274,648 | | – | | | – | | | – | | | – | | | 16,754,269 | | |
| |
| |
| | | | | $ | 2,246,990 | | | | $ | 13,718,166 | | $ | 1,075,424 | | $ | 83,876 | | $ | 29,328,747 | | |
| |
| |
| | |
| (1) | | Company was no longer an affiliate as of March 31, 2011. |
Janus Growth & Core Funds | 155
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, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2011)
| | | | | | | | | | | | | | | |
| | | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Balanced Fund | | | | | | | | | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | | $ | – | | $ | 50,602,644 | | $ | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Bank Loans | | | – | | | 51,914,518 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Agricultural Chemicals | | | – | | | 64,932,195 | | | – | | | | | |
| Cellular Telecommunications | | | – | | | 28,817,074 | | | – | | | | | |
| Commercial Banks | | | 119,133,246 | | | 79,062,661 | | | – | | | | | |
| Diversified Banking Institutions | | | 156,652,747 | | | 66,812,363 | | | – | | | | | |
| Medical – Drugs | | | 159,526,857 | | | 33,440,303 | | | – | | | | | |
| Oil Companies – Integrated | | | 156,681,050 | | | 59,374,901 | | | – | | | | | |
| All Other | | | 3,094,282,753 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Corporate Bonds | | | – | | | 2,094,176,019 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred Stock | | | – | | | 11,622,910 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
U.S. Treasury Notes/Bonds | | | – | | | 383,753,038 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 38,385,929 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 3,686,276,653 | | $ | 2,962,894,555 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Contrarian Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Oil – Field Services | | $ | 57,184,173 | | $ | 93,101,860 | | $ | – | | | | | |
| All Other | | | 3,804,435,159 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 3,861,619,332 | | $ | 93,101,860 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Enterprise Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Airlines | | $ | – | | $ | 31,448,083 | | $ | – | | | | | |
| All Other | | | 2,692,115,211 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 136,931,644 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 2,692,115,211 | | $ | 168,379,727 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Forty Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Oil Companies – Integrated | | $ | 87,580,450 | | $ | 87,161,137 | | $ | – | | | | | |
| All Other | | | 6,020,208,510 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 27,308,234 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 253,226,000 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 6,107,788,960 | | $ | 340,387,137 | | $ | 27,308,234 | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Fund | | | | | | | | | | | | | | |
Common Stock | | $ | 8,325,561,201 | | $ | – | | $ | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Exchange – Traded Fund | | | 51,607,562 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 34,973,461 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 158,053,438 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 8,377,168,763 | | $ | 158,053,438 | | $ | 34,973,461 | | | | | |
| |
| |
156 | MARCH 31, 2011
| | | | | | | | | | | | | | | |
| | | | | 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 | | | | | | | | | | | | | | |
| Agricultural Chemicals | | $ | – | | $ | 47,162,877 | | $ | – | | | | | |
| Commercial Banks | | | 120,792,375 | | | 48,965,000 | | | – | | | | | |
| Diversified Banking Institutions | | | 158,561,768 | | | 28,423,640 | | | – | | | | | |
| Medical – Drugs | | | 145,710,104 | | | 34,840,000 | | | – | | | | | |
| All Other | | | 3,386,984,350 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Corporate Bonds | | | – | | | 144,618,807 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
U.S. Treasury Notes/Bonds | | | – | | | 39,958,918 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 2,410,000 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 3,812,048,597 | | $ | 346,379,242 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Research Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Cellular Telecommunications | | $ | – | | $ | 20,404,023 | | $ | – | | | | | |
| Medical – Drugs | | | 64,641,158 | | | 16,961,439 | | | – | | | | | |
| Oil Companies – Integrated | | | – | | | 17,525,718 | | | – | | | | | |
| All Other | | | 3,426,179,994 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 84,950,756 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 3,490,821,152 | | $ | 139,841,936 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Triton Fund | | | | | | | | | | | | | | |
Common Stock | | $ | 1,764,414,674 | | $ | – | | $ | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 181,552,296 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 1,764,414,674 | | $ | 181,552,296 | | $ | – | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Twenty Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Oil Companies – Integrated | | $ | 125,693,917 | | $ | 117,549,093 | | $ | – | | | | | |
| All Other | | | 8,431,312,860 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 37,718,257 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 331,896,620 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 8,557,006,777 | | $ | 449,445,713 | | $ | 37,718,257 | | | | | |
| |
| |
Investments in Securities: | | | | | | | | | | | | | | |
| Janus Venture Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
| Broadcast Services and Programming | | $ | 12,126,127 | | $ | – | | $ | – | | | | | |
| Diversified Operations | | | 13,606,869 | | | – | | | 1,510,303 | | | | | |
| All Other | | | 1,218,190,943 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Warrant | | | – | | | 132,454 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Money Market | | | – | | | 41,990,589 | | | – | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 1,243,923,939 | | $ | 42,123,043 | | $ | 1,510,303 | | | | | |
| |
| |
Investments in Purchased Options: | | | | | | | | | | | | | | |
| Janus Contrarian Fund | | $ | – | | $ | 19,068,059 | | $ | – | | | | | |
| Janus Fund | | | – | | | 3,539,227 | | | – | | | | | |
| |
| |
Investments in Securities Sold Short: | | | | | | | | | | | | | | |
| Janus Triton Fund | | $ | (6,175,573) | | $ | – | | $ | – | | | | | |
| |
| |
Janus Growth & Core Funds | 157
Notes to Schedules of Investments (unaudited) (continued)
| | | | | | | | | | | | | | | |
| | | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
| |
Other Financial Instruments(b): | | | | | | | | | | | | | | |
| Janus Balanced Fund | | $ | – | | $ | 613,440 | | $ | – | | | | | |
| Janus Contrarian Fund | | | – | | | (32,317,265) | | | – | | | | | |
| Janus Enterprise Fund | | | – | | | (1,020,698) | | | – | | | | | |
| Janus Forty Fund | | | – | | | (6,740,317) | | | – | | | | | |
| Janus Fund | | | – | | | (7,043,105) | | | – | | | | | |
| Janus Growth and Income Fund | | | – | | | 624,436 | | | – | | | | | |
| Janus Research Fund | | | – | | | 407,702 | | | – | | | | | |
| Janus Twenty Fund | | | – | | | (9,259,649) | | | – | | | | | |
| |
| |
| | | |
| (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 fiscal period ended March 31, 2011)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Change in
| | | | | | | | | | |
| | | Balance
| | Realized
| | Unrealized
| | | | | | Transfers In
| | Balance
| | |
| | | as of
| | Gain/
| | Appreciation/
| | | | | | and/or
| | as of
| | |
| | | September 30, 2010 | | (Loss)(a) | | (Depreciation)(b) | | Gross Purchases | | Gross Sales | | Out of Level 3 | | March 31, 2011 | | |
| |
Investments in Securities: | | | | | | | | | | | | | | | | | | | | | | | |
| Janus Forty Fund | | | | | | | | | | | | | | | | | | | | | | | |
Preferred Stock | | $ | – | | $ | – | | $ | – | | $ | 27,308,234 | | $ | – | | $ | – | | $ | 27,308,234 | | |
| Janus Fund | | | | | | | | | | | | | | | | | | | | | | | |
Preferred Stock | | $ | – | | $ | – | | $ | – | | $ | 34,973,461 | | $ | – | | $ | – | | $ | 34,973,461 | | |
| Janus Twenty Fund | | | | | | | | | | | | | | | | | | | | | | | |
Preferred Stock | | $ | – | | $ | – | | $ | – | | $ | 37,718,257 | | $ | – | | $ | – | | $ | 37,718,257 | | |
| Janus Venture Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
| Broadcast Services and Programming | | $ | 771,240 | | $ | – | | $ | (771,240) | | $ | – | | $ | – | | $ | – | | $ | – | | |
| Diversified Operations | | | 3,037,965 | | | – | | | (1,527,662) | | | – | | | – | | | – | | | 1,510,303 | | |
Promissory Note | | | | | | | | | | | | | | | | | | | | | | | |
Broadcast Services and Programming(c) | | | 500,000 | | | (2,000,000) | | | 1,500,000 | | | – | | | – | | | – | | | – | | |
| |
| |
| | | |
| (a) | | Included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statements of Operations. |
| (b) | | Included in “Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Operations. |
| (c) | | The security expired during the period. |
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, 2011 is noted below.
| | | | | | |
| Fund | | Aggregate Value | | |
| |
| |
| Janus Balanced Fund | | $ | 404,424,278 | | |
| Janus Contrarian Fund | | | 955,751,268 | | |
| Janus Enterprise Fund | | | 172,421,693 | | |
| Janus Forty Fund | | | 94,908,585 | | |
| Janus Fund | | | 1,213,990,003 | | |
| Janus Growth and Income Fund | | | 185,211,637 | | |
| Janus Research Fund | | | 580,358,145 | | |
| Janus Triton Fund | | | 16,300,480 | | |
| Janus Twenty Fund | | | 126,380,488 | | |
| |
| |
158 | MARCH 31, 2011
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 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. The financial statements include information for the six-month period ended March 31, 2011. On January 28, 2011, Janus Research Core Fund reorganized with and into Janus Growth and Income Fund. The Trust offers thirty-nine 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 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. The Shares are available only to investors who hold accounts directly with the Janus funds 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, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the 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 (“OTC”) 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
Janus Growth & Core Funds | 159
Notes to Financial Statements (unaudited) (continued)
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 nonsignificant 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 equity 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 REITs’ 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
160 | MARCH 31, 2011
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 period ended March 31, 2011, 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, 2011, Janus Contrarian Fund, Janus Forty Fund, Janus Fund, and Janus Twenty Fund had restricted cash in the amounts of $28,639,805, $6,977,085, $10,359,179 and $9,138,488, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at March 31, 2011. The restricted cash is held at the Funds’ 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” 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.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC 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 and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that are categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), warrants, swaps, investments in mutual funds, OTC options, and forward contracts. 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. These are generally categorized as Level 2 in the hierarchy.
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.
Janus Growth & Core Funds | 161
Notes to Financial Statements (unaudited) (continued)
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.
For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under the FASB Guidance. These are categorized as Level 3 in the hierarchy.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
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, 2011 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.
The Funds adopted FASB Accounting Standards Update “Fair Value Measurements and Disclosures” (the “Update”). This Update applies to a Fund’s disclosures about transfers in and out of Level 1 and Level 2 of the fair value hierarchy and the reasons for the transfers. Disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy are summarized under the Level 2 and Level 3 categories listed above.
The following table shows transfers between Level 1 and Level 2 of the fair value hierarchy during the period ended March 31, 2011.
| | | | | | | | | | | |
| | | Transfers In
| | | Transfers Out
| | | |
| | | Level 1 to
| | | Level 2
| | | |
| Fund | | Level 2 | | | to Level 1 | | | |
| |
| |
| Janus Balanced Fund | | $ | – | | | $ | 63,370,388 | | | |
| Janus Contrarian Fund | | | – | | | | 970,167,910 | | | |
| Janus Enterprise Fund | | | – | | | | 69,725,749 | | | |
| Janus Forty Fund | | | – | | | | 836,514,533 | | | |
| Janus Fund | | | – | | | | 762,625,555 | | | |
| |
| |
Financial assets were transferred from Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the beginning of the fiscal year and no factor was applied at the end of the period.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
| |
| 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. Each derivative instrument that was held by one or more Funds during the period ended March 31, 2011 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
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 equity 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
162 | MARCH 31, 2011
losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk.
Derivatives may generally be traded 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 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.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| | |
| | • | Counterparty Risk – Counterparty risk is the risk that the counterparty or a third party will not fulfill its obligation to a Fund. |
| |
| | • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. |
| |
| | • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. |
| |
| | • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. |
| |
| | • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. |
| |
| | • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. |
| |
| | • | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested. |
| |
| | • | Liquidity Risk – Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth. |
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 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 Growth & Core Funds | 163
Notes to Financial Statements (unaudited) (continued)
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, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use options 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 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 OTC 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 OTC 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 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 period ended March 31, 2011 is indicated in the tables below:
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Contrarian Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 29,517 | | $ | 1,744,037 | | |
| Options written | | | 145,057 | | | 21,208,503 | | |
| Options closed | | | (98,014) | | | (16,312,456) | | |
| Options expired | | | (27,332) | | | (1,837,440) | | |
| Options exercised | | | (4,343) | | | (373,344) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 44,885 | | $ | 4,429,300 | | |
| |
| |
164 | MARCH 31, 2011
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Contrarian Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 152,319 | | $ | 14,990,770 | | |
| Options written | | | 906,349 | | | 82,143,651 | | |
| Options closed | | | (518,576) | | | (41,369,245) | | |
| Options expired | | | (181,916) | | | (12,787,919) | | |
| Options exercised | | | (73,755) | | | (4,612,159) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 284,421 | | $ | 38,365,098 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Forty Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 23,236 | | $ | 7,315,156 | | |
| Options written | | | – | | | – | | |
| Options closed | | | – | | | – | | |
| Options expired | | | (20,696) | | | (3,285,954) | | |
| Options exercised | | | (2,540) | | | (4,029,202) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | – | | $ | – | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Forty Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 23,236 | | $ | 5,667,298 | | |
| Options written | | | 30,500 | | | 4,245,600 | | |
| Options closed | | | – | | | – | | |
| Options expired | | | (23,236) | | | (5,667,298) | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 30,500 | | $ | 4,245,600 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 73,421 | | $ | 10,526,119 | | |
| Options written | | | 104,642 | | | 7,967,679 | | |
| Options closed | | | (124,033) | | | (9,983,485) | | |
| Options expired | | | – | | | – | | |
| Options exercised | | | (39,708) | | | (5,915,397) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 14,322 | | $ | 2,594,916 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 173,175 | | $ | 26,298,028 | | |
| Options written | | | 77,085 | | | 17,356,366 | | |
| Options closed | | | (196,720) | | | (30,218,218) | | |
| Options expired | | | (1,850) | | | (803,976) | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 51,690 | | $ | 12,632,200 | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Call Options | | Contracts | | Received | | |
| |
| |
Janus Twenty Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 31,937 | | $ | 10,315,504 | | |
| Options written | | | – | | | – | | |
| Options closed | | | (28,278) | | | (4,511,232) | | |
| Options expired | | | – | | | – | | |
| Options exercised | | | (3,659) | | | (5,804,272) | | |
| |
| |
| Options outstanding at March 31, 2011 | | | – | | $ | – | | |
| |
| |
| | | | | | | | | |
| | | Number of
| | Premiums
| | |
| Put Options | | Contracts | | Received | | |
| |
| |
Janus Twenty Fund | | | | | | | | |
| Options outstanding at September 30, 2010 | | | 31,937 | | $ | 8,014,361 | | |
| Options written | | | 41,900 | | | 5,832,480 | | |
| Options closed | | | (31,937) | | | (8,014,361) | | |
| Options expired | | | – | | | – | | |
| Options exercised | | | – | | | – | | |
| |
| |
| Options outstanding at March 31, 2011 | | | 41,900 | | $ | 5,832,480 | | |
| |
| |
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 equity 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).
Dividend swap agreements involve an exchange by the parties of their respective commitments to pay or right to receive the changes in a dividend index point. The Funds gain exposure by either paying or receiving an amount in respect of an increase or decrease in the change of the relevant dividend index point based on a notional amount. For example, if a Fund took a long position on a dividend index swap, the Fund would receive payments if the relevant index point increased in value and would be obligated to pay if that index point decreased in value.
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 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
Janus Growth & Core Funds | 165
Notes to Financial Statements (unaudited) (continued)
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.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2011.
Fair Value of Derivative Instruments as of March 31, 2011
| | | | | | | | | | | | | |
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 | | $ | 880,970 | | | Forward currency contracts | | $ | 267,530 | |
| |
| |
| Total | | | | $ | 880,970 | | | | | $ | 267,530 | |
| |
| |
| | | | | | | | | | | | | |
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 | | $ | 19,068,059 | | | Options written, at value | | $ | 35,308,986 | |
| Equity Contracts | | Swap contracts | | | 3,286,494 | | | Swap contracts | | | 652,025 | |
| Foreign Exchange Contracts | | Forward currency contracts | | | 357,252 | | | | | | | |
| |
| |
| Total | | | | $ | 22,711,805 | | | | | $ | 35,961,011 | |
| |
| |
| | | | | | | | | | | | | |
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 | | $ | 1,020,698 | |
| |
| |
| Total | | | | | | | | | | $ | 1,020,698 | |
| |
| |
| | | | | | | | | | | | | |
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 | | | | | | | | Options written, at value | | $ | 6,740,317 | |
| |
| |
| Total | | | | | | | | | | $ | 6,740,317 | |
| |
| |
| | | | | | | | | | | | | |
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 Fund | | | | | | | | | | | | |
| Equity Contracts | | Unaffiliated investments at value | | $ | 3,539,227 | | | Options written, at value | | $ | 17,972,392 | |
| Equity Contracts | | Swap contracts | | | 15,777,929 | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | | 552,856 | | | Forward currency contracts | | | 5,401,498 | |
| |
| |
| Total | | | | $ | 19,870,012 | | | | | $ | 23,373,890 | |
| |
| |
| | | | | | | | | | | | | |
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 Growth and Income Fund | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | $ | 705,035 | | | Forward currency contracts | | $ | 80,599 | |
| |
| |
| Total | | | | $ | 705,035 | | | | | $ | 80,599 | |
| |
| |
| | | | | | | | | | | | | |
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 Research Fund | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | $ | 1,699,847 | | | Forward currency contracts | | $ | 1,292,145 | |
| |
| |
| Total | | | | $ | 1,699,847 | | | | | $ | 1,292,145 | |
| |
| |
166 | MARCH 31, 2011
| | | | | | | | | | | | | |
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 | | | | | | | | Options written, at value | | $ | 9,259,649 | |
| |
| |
| Total | | | | | | | | | | $ | 9,259,649 | |
| |
| |
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2011.
The effect of Derivative Instruments on the Statements of Operations for the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | (6,214,329 | ) | | $ | (6,214,329 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (6,214,329 | ) | | $ | (6,214,329 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | 2,190,806 | | | $ | 2,190,806 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | 2,190,806 | | | $ | 2,190,806 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | (31,750,220 | ) | | $ | 11,253,831 | | | $ | – | | | $ | (20,496,389 | ) |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (1,802,702 | ) | | | (1,802,702 | ) |
| |
| |
| Total | | $ | – | | | $ | (31,750,220 | ) | | $ | 11,253,831 | | | $ | (1,802,702 | ) | | $ | (22,299,091 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | 8,592,012 | | | $ | (30,088,230 | ) | | $ | – | | | $ | (21,496,218 | ) |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 225,054 | | | | 225,054 | |
| |
| |
| Total | | $ | – | | | $ | 8,592,012 | | | $ | (30,088,230 | ) | | $ | 225,054 | | | $ | (21,271,164 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | (1,444,849 | ) | | $ | (1,444,849 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (1,444,849 | ) | | $ | (1,444,849 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | (240,757 | ) | | $ | (240,757 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (240,757 | ) | | $ | (240,757 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 Forty Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | – | | | $ | 8,953,252 | | | $ | – | | | $ | 8,953,252 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 8,953,252 | | | $ | – | | | $ | 8,953,252 | |
| |
| |
Janus Growth & Core Funds | 167
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 Forty Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | – | | | $ | (8,619,798 | ) | | $ | – | | | $ | (8,619,798 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | (8,619,798 | ) | | $ | – | | | $ | (8,619,798 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | 30,149,693 | | | $ | – | | | $ | 30,149,693 | |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (13,787,691 | ) | | | (13,787,691 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 30,149,693 | | | $ | (13,787,691 | ) | | $ | 16,362,002 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | 16,283,858 | | | $ | (14,569,035 | ) | | $ | – | | | $ | 1,714,824 | |
| |
| |
| Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (2,156,152 | ) | | | (2,156,152 | ) |
| |
| |
| Total | | $ | – | | | $ | 16,283,858 | | | $ | (14,569,035 | ) | | $ | (2,156,152 | ) | | $ | (441,328 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | (4,085,852 | ) | | $ | (4,085,852 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (4,085,852 | ) | | $ | (4,085,852 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | 1,919,835 | | | $ | 1,919,835 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | 1,919,835 | | | $ | 1,919,835 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | (6,511,091 | ) | | $ | (6,511,091 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (6,511,091 | ) | | $ | (6,511,091 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | – | | | $ | 1,327,607 | | | $ | 1,327,607 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | 1,327,607 | | | $ | 1,327,607 | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| 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 Twenty Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Equity Contracts | | $ | – | | | $ | – | | | $ | 12,525,593 | | | $ | – | | | $ | 12,525,593 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | 12,525,593 | | | $ | – | | | $ | 12,525,593 | |
| |
| |
168 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | |
| 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 | | $ | – | | | $ | – | | | $ | (11,996,907 | ) | | $ | – | | | $ | (11,996,907 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | (11,996,907 | ) | | $ | – | | | $ | (11,996,907 | ) |
| |
| |
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 both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. 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 NAV, 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.
Further, the instability experienced in the financial markets has resulted in the U.S. Government and various other governmental and regulatory entities taking actions to address the financial crisis. These actions include, but are not limited to, the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in July 2010 which is expected to dramatically change the way in which the U.S. financial system is supervised and regulated. More specifically, the Dodd-Frank Act provides for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, over-the-counter derivatives, investment advisers, credit rating agencies, and mortgage lending, which expands federal oversight in the financial sector and may affect the investment management industry as a whole. Given the broad scope, sweeping nature, and the fact that many provisions of the Dodd-Frank Act must be implemented through future rulemaking, the ultimate impact of the Dodd-Frank Act, and any resulting regulation, is not yet certain. As a result, there can be no assurance that these measures will not have an adverse effect on the value or marketability of securities held by a Fund, including potentially limiting or completely restricting the ability of the Fund to use a particular investment instrument as part of its investment strategy, increasing the costs of using these instruments, or possibly making them less effective in general. Furthermore, no assurance can be made that the U.S. Government or any U.S. regulatory entity (or other authority or regulatory entity) will not continue to take further legislative or regulatory action in response to the economic crisis or otherwise, and the effect of such actions, if taken, cannot be known.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornados, mudslides or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds’ investment portfolio and, in the longer term, could impair the ability of issuers in which the Funds invest to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
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
Janus Growth & Core Funds | 169
Notes to Financial Statements (unaudited) (continued)
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 period ended March 31, 2011 is indicated in the table below:
| | | | | | | | | |
| | | Average Monthly
| | | | |
| Fund | | Value | | Rates | | |
| |
| |
| Janus Balanced Fund | | $ | 46,683,724 | | | 3.0100% - 6.7500% | | |
| |
| |
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 balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. 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.
Emerging Market Investing
Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices, stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. In addition, the Funds’ investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Funds’ investments. To the extent that a Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on a Fund’s performance.
Exchange-Traded Funds
The Funds may invest in exchange-traded funds (“ETFs”), 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
170 | MARCH 31, 2011
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 a Fund’s total return. 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 Funds may not experience similar performance as their 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. Historically, Fannie Mae and Freddie Mac securities were not backed by the full faith and credit of the U.S. Government, and may not be in the future. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship to provide stability in the financial markets, mortgage availability and taxpayer protection by preserving Fannie Mae’s and Freddie Mac’s assets, and placing them in a sound and solvent condition. Under the conservatorship, the management of Fannie Mae and Freddie Mac was replaced. The effect that the FHFA’s conservatorship will have on Fannie Mae’s and Freddie Mac’s debt and equities is unclear. 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
Janus Growth & Core Funds | 171
Notes to Financial Statements (unaudited) (continued)
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 Funds’ 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 through lending their securities to certain qualified broker-dealers and institutions on a short-term or long-term basis. The Funds may lend portfolio securities on a short-term or long-term basis, in an amount equal to up to 1/3 of their total assets as determined at the time of the loan origination. When the Funds lend their securities, they receive collateral (including cash collateral), at least equal to the value of securities loaned. The Funds may earn income by investing this collateral in one or more affiliated or non-affiliated cash management vehicles. It is also possible that, due to a decline in the value of a cash management vehicle, the Funds may lose money. There is also the risk that when portfolio securities are lent, the securities may not be returned on a timely basis, and the Funds may experience delays and costs in recovering the security or gaining access to the collateral provided to the Funds to collateralize the loan. If the Funds are unable to recover a security on loan, the Funds may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Funds. Janus Capital intends to manage the cash collateral in an affiliated cash management vehicle and will receive an investment advisory fee for managing such assets.
The borrower pays fees at the Funds’ direction to Deutsche Bank AG (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 Funds did not have any securities on loan during the period.
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 positions (through short sales of stocks, structured products, futures, swaps, 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
172 | MARCH 31, 2011
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 restricted cash or 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 options 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 | | | N/A | | | 0.64 | | |
| Janus Fund | | | N/A | | | 0.64 | | |
Janus Growth and Income Fund(1) | | | All Asset Levels | | | 0.60 | | |
| Janus Research Fund | | | N/A | | | 0.64 | | |
| Janus Triton Fund | | | All Asset Levels | | | 0.64 | | |
| Janus Twenty Fund | | | N/A | | | 0.64 | | |
| Janus Venture Fund | | | All Asset Levels | | | 0.64 | | |
| |
| |
| | | |
| (1) | | Effective January 28, 2011, Janus Research Fund merged into Janus Growth and Income Fund. The advisory fee prior to the merger was 0.62%. |
For Janus Contrarian Fund, Janus Forty Fund, Janus Fund, Janus Research Fund, and Janus Twenty 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 Forty Fund | | | Russell 1000® Growth Index | | |
| Janus Fund | | | Core Growth Index | | |
| Janus Research Fund | | | Russell 1000® Growth Index | | |
| Janus Twenty Fund | | | Russell 1000® Growth Index | | |
| |
| |
Only the base fee rate applied until February 2007 for each of Janus Contrarian Fund and Janus Research Fund and will apply until July 2011 for Janus Fund and January 2012 for each of Janus Forty Fund and Janus Twenty Fund. 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 (18 months for
Janus Growth & Core Funds | 173
Notes to Financial Statements (unaudited) (continued)
each of Janus Forty Fund and Janus Twenty Fund). When a Fund’s performance-based fee structure has been in effect for at least 12 months (18 months for each of Janus Forty Fund and Janus Twenty Fund), but less than 36 months, the performance measurement period will be 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 and will begin July 2011 for Janus Fund and January 2012 for each of Janus Forty Fund and Janus Twenty Fund.
No Performance Adjustment is applied unless the difference between a 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 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 (with the exception of Janus Twenty Fund) 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 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. 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 a Fund’s load-waived Class A Shares. 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, as applicable.
Because Janus Twenty Fund does not offer Class A Shares, the investment performance of the Fund’s Class T Shares (formerly named Class J Shares) will be used for purposes of calculating the Fund’s Performance Adjustment. After Janus Capital determines whether Janus Twenty Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s Class T Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital will apply the same Performance Adjustment (positive or negative) across any other class of shares of Janus Twenty Fund.
174 | MARCH 31, 2011
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 statement 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, if applicable.
During the period ended March 31, 2011, the following Funds recorded a Performance Adjustment as indicated in the table below:
| | | | | | |
| | | Performance
| | |
| Fund | | Adjustment | | |
| |
| |
| Janus Contrarian Fund | | $ | (3,140,773) | | |
| Janus Research Fund | | | (946,360) | | |
| |
| |
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Class D Shares of the Funds pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by the Shares of each Fund for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class R Shares, Class S Shares and Class T Shares of the Funds for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares and Class T Shares of each Fund.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A, Class C, 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. Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus.
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 are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in the “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse certain Funds until at least February 1, 2012 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 services 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.
Janus Growth & Core Funds | 175
Notes to Financial Statements (unaudited) (continued)
| | | | | | |
| | | 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 | | | 0.70 | | |
| 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, 2011 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 period ended March 31, 2011 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 period ended March 31, 2011.
For the period ended March 31, 2011, Janus Capital assumed $18,217 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 $285,682 was paid by the Trust during the period ended March 31, 2011. 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 of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2011, Janus Distributors retained the following upfront sales charges:
| | | | | | |
| | | Upfront
| | |
| Fund (Class A Shares) | | Sales Charge | | |
| |
| |
| Janus Balanced Fund | | $ | 180,377 | | |
| Janus Contrarian Fund | | | 3,108 | | |
| Janus Enterprise Fund | | | 3,414 | | |
| Janus Forty Fund | | | 42,596 | | |
| Janus Fund | | | 3,443 | | |
| Janus Growth and Income Fund | | | 2,659 | | |
| Janus Research Fund | | | 967 | | |
| Janus Triton Fund | | | 81,902 | | |
| |
| |
A contingent deferred sales charge of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2011, redeeming shareholders of Class A Shares paid the following contingent deferred sales charges:
| | | | | | |
| | | Contingent Deferred
| | |
| Fund (Class A Shares) | | Sales Charge | | |
| |
| |
| Janus Balanced Fund | | $ | 400 | | |
| Janus Forty Fund | | | 4,249 | | |
| |
| |
Class C Shares include a 1.00% contingent deferred sales charge paid by redeeming shareholders 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 period ended March 31, 2011,
176 | MARCH 31, 2011
redeeming shareholders of Class C Shares paid the following contingent deferred sales charges:
| | | | | | |
| | | Contingent Deferred
| | |
| Fund (Class C Shares) | | Sales Charge | | |
| |
| |
| Janus Balanced Fund | | $ | 9,279 | | |
| Janus Contrarian Fund | | | 311 | | |
| Janus Enterprise Fund | | | 189 | | |
| Janus Forty Fund | | | 19,504 | | |
| Janus Growth and Income Fund | | | 15 | | |
| Janus Research Fund | | | 20 | | |
| Janus Triton Fund | | | 657 | | |
| |
| |
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 currently 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 period ended March 31, 2011, 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 3/31/11 | | |
| |
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
| Janus Balanced Fund | | $ | 1,085,990,090 | | $ | (1,088,687,000) | | $ | 151,420 | | $ | 38,385,929 | | |
| Janus Contrarian Fund | | | 333,918,000 | | | (333,918,000) | | | 5,645 | | | – | | |
| Janus Enterprise Fund | | | 324,881,644 | | | (217,361,000) | | | 133,723 | | | 136,931,644 | | |
| Janus Forty Fund | | | 1,180,404,288 | | | (1,446,158,335) | | | 154,190 | | | 253,226,000 | | |
| Janus Fund | | | 1,207,951,838 | | | (1,164,818,000) | | | 123,300 | | | 158,053,438 | | |
| Janus Growth and Income Fund | | | 478,106,300 | | | (593,858,081) | | | 63,960 | | | 2,410,000 | | |
| Janus Research Fund | | | 526,589,650 | | | (441,638,894) | | | 22,767 | | | 84,950,756 | | |
| Janus Triton Fund | | | 596,614,940 | | | (500,588,000) | | | 146,084 | | | 181,552,296 | | |
| Janus Twenty Fund | | | 1,759,481,620 | | | (1,725,108,000) | | | 236,615 | | | 331,896,620 | | |
| Janus Venture Fund | | | 191,607,720 | | | (210,187,000) | | | 75,613 | | | 41,990,589 | | |
| |
| |
| | | $ | 7,685,546,090 | | $ | (7,722,322,310) | | $ | 1,113,317 | | $ | 1,229,397,272 | | |
| |
| |
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended March 31, 2011, as indicated in the following table.
| | | | | | | | | | | | | | | | | | | | | |
| | | Seed Capital
| | | | | | | | | | | | |
| | | at
| | | | Date of
| | | | Date of
| | Seed Capital
| | |
| Fund | | 9/30/10 | | Purchases | | Purchases | | Redemptions | | Redemptions | | at 3/31/11 | | |
| |
| |
| 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 | | |
| |
| |
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.
Janus Growth & Core Funds | 177
Notes to Financial Statements (unaudited) (continued)
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, 2011 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.
| | | | | | | | | | | | | | | |
| | | Federal Tax
| | Unrealized
| | Unrealized
| | Net Tax
| | |
| Fund | | Cost | | Appreciation | | (Depreciation) | | Appreciation | | |
| |
| |
| Janus Balanced Fund | | $ | 5,816,960,128 | | $ | 886,808,106 | | $ | (54,597,026) | | $ | 832,211,080 | | |
| Janus Contrarian Fund | | | 3,740,279,724 | | | 546,317,788 | | | (312,808,261) | | | 233,509,527 | | |
| Janus Enterprise Fund | | | 2,005,389,045 | | | 878,558,769 | | | (23,452,876) | | | 855,105,893 | | |
| Janus Forty Fund | | | 5,281,441,973 | | | 1,359,745,083 | | | (165,702,725) | | | 1,194,042,358 | | |
| Janus Fund | | | 6,896,980,557 | | | 1,838,694,319 | | | (161,939,987) | | | 1,676,754,332 | | |
| Janus Growth and Income Fund | | | 3,279,077,512 | | | 911,805,371 | | | (32,455,044) | | | 879,350,327 | | |
| Janus Research Fund | | | 2,908,915,550 | | | 776,359,167 | | | (54,611,629) | | | 721,747,538 | | |
| Janus Triton Fund | | | 1,611,555,443 | | | 347,449,239 | | | (13,037,712) | | | 334,411,527 | | |
| Janus Twenty Fund | | | 6,907,006,955 | | | 2,397,112,450 | | | (259,948,658) | | | 2,137,163,792 | | |
| Janus Venture Fund | | | 929,184,431 | | | 389,711,272 | | | (31,338,418) | | | 358,372,854 | | |
| |
| |
Information on the tax components of securities sold short as of March 31, 2011 is as follows:
| | | | | | | | | | | | | | | |
| | | Federal Tax
| | Unrealized
| | Unrealized
| | Net Tax
| | |
| Fund | | Cost | | (Appreciation) | | Depreciation | | (Appreciation) | | |
| |
| |
| Janus Triton Fund | | $ | (5,354,781) | | $ | (1,692,285) | | $ | 871,493 | | $ | (820,792) | | |
| |
| |
Net capital loss carryovers as of September 30, 2010 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 eleven-month fiscal period or
fiscal year ended September 30, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Accumulated
| | |
| | | September 30,
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | Capital
| | |
| Fund | | 2011 | | 2012 | | 2013 | | 2015 | | 2016 | | 2017 | | 2018 | | Losses | | |
| |
| |
| Janus Balanced Fund | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | |
Janus Contrarian Fund(1) | | | (15,382,906) | | | (36,447,237) | | | (22,132,836) | | | (1,936,896) | | | (50,171,746) | | | (746,315,278) | | | (5,483,044) | | | (877,869,943) | | |
Janus Enterprise Fund(1) | | | (35,756,979) | | | – | | | – | | | – | | | (138,714,921) | | | (256,368,816) | | | – | | | (430,840,716) | | |
| Janus Forty Fund | | | – | | | – | | | – | | | – | | | (458,510,468) | | | (623,548,714) | | | – | | | (1,082,059,182) | | |
Janus Fund(1) | | | (574,244,031) | | | – | | | – | | | – | | | (23,612,026) | | | (1,652,519,511) | | | – | | | (2,250,375,568) | | |
Janus Growth and Income Fund(1) | | | – | | | – | | | – | | | – | | | (187,872,450) | | | (701,342,952) | | | – | | | (889,215,402) | | |
| Janus Research Fund | | | (222,598,721) | | | – | | | – | | | – | | | (40,293,996) | | | (653,685,189) | | | – | | | (916,577,906) | | |
Janus Triton Fund(1) | | | – | | | – | | | – | | | – | | | (559,809) | | | – | | | – | | | (559,809) | | |
| Janus Twenty Fund | | | (172,815,589) | | | – | | | – | | | – | | | – | | | (13,642,585) | | | – | | | (186,458,174) | | |
| Janus Venture Fund | | | – | | | – | | | – | | | – | | | – | | | (141,742,334) | | | – | | | (141,742,334) | | |
| |
| |
| | | |
| (1) | | Capital loss carryovers subject to annual limitations. |
Capital losses may be used to offset future taxable capital gains until expiration. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment
178 | MARCH 31, 2011
taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
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, 2011 (unaudited),
the eleven-month fiscal period or fiscal year ended
September 30, 2010, 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
|
| | | Balanced
| | Contrarian
| | Enterprise
| | Forty
| | Janus
| | and Income
| | Triton
|
| | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
| |
| |
| Class A Shares |
| 2011 | | | 0.95% | | | | 0.96% | | | | 1.16% | | | | 1.04% | | | | 1.15% | | | | 1.02% | | | | 1.05% | |
2010(1) | | | 0.93% | | | | 1.06% | | | | 1.15% | | | | N/A | | | | 1.22% | | | | 1.04% | | | | 1.07% | |
2010(2) | | | N/A | | | | N/A | | | | N/A | | | | 1.09% | | | | N/A | | | | N/A | | | | N/A | |
2009(3) | | | N/A | | | | N/A | | | | N/A | | | | 0.97% | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | 0.89% | | | | 1.43% | | | | 1.21% | | | | N/A | | | | 1.07% | | | | 1.16% | | | | 1.43% | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | 1.03% | | | | N/A | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 0.97% | | | | N/A | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.05% | | | | N/A | | | | N/A | | | | N/A | |
| 2006 | | | N/A | | | | N/A | | | | N/A | | | | 1.06% | | | | N/A | | | | N/A | | | | N/A | |
| |
| |
| Class C Shares |
| 2011 | | | 1.64% | | | | 1.71% | | | | 1.88% | | | | 1.77% | | | | 1.88% | | | | 1.75% | | | | 1.79% | |
2010(1) | | | 1.64% | | | | 1.85% | | | | 1.96% | | | | N/A | | | | 1.96% | | | | 1.82% | | | | 1.79% | |
2010(2) | | | N/A | | | | N/A | | | | N/A | | | | 1.85% | | | | N/A | | | | N/A | | | | N/A | |
2009(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.75% | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | 1.70% | | | | 2.37% | | | | 2.39% | | | | N/A | | | | 1.89% | | | | 2.08% | | | | 2.19% | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | 1.81% | | | | N/A | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.73% | | | | N/A | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.73% | | | | N/A | | | | N/A | | | | N/A | |
| 2006 | | | N/A | | | | N/A | | | | N/A | | | | 1.70% | | | | N/A | | | | N/A | | | | N/A | |
| |
| |
| Class D Shares |
| 2011 | | | 0.74% | | | | 0.72% | | | | 0.84% | | | | N/A | | | | 0.83% | | | | 0.85% | | | | 0.84% | |
2010(6) | | | 0.73% | | | | 0.80% | | | | 0.88% | | | | N/A | | | | 0.93% | | | | 0.83% | | | | 0.83% | |
| |
| |
| Class I Shares |
| 2011 | | | 0.63% | | | | 0.62% | | | | 0.75% | | | | 0.73% | | | | 0.77% | | | | 0.72% | | | | 0.78% | |
2010(1) | | | 0.65% | | | | 0.74% | | | | 0.81% | | | | N/A | | | | 0.86% | | | | 0.72% | | | | 0.71% | |
2010(2) | | | N/A | | | | N/A | | | | N/A | | | | 0.77% | | | | N/A | | | | N/A | | | | N/A | |
2009(3) | | | N/A | | | | N/A | | | | N/A | | | | 0.67% | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | 0.63% | | | | 0.94% | | | | 0.82% | | | | N/A | | | | 0.73% | | | | 0.73% | | | | 1.01% | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | 0.67% | | | | N/A | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 0.65% | | | | N/A | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 0.68% | | | | N/A | | | | N/A | | | | N/A | |
| 2006 | | | N/A | | | | N/A | | | | N/A | | | | 0.70%(7) | | | | N/A | | | | N/A | | | | N/A | |
| |
| |
| Class R Shares |
| 2011 | | | 1.33% | | | | 1.34% | | | | 1.45% | | | | 1.43% | | | | 1.44% | | | | 1.41% | | | | 1.45% | |
2010(1) | | | 1.34% | | | | 1.43% | | | | 1.47% | | | | N/A | | | | 1.47% | | | | 1.44% | | | | 1.46% | |
2010(2) | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | | | | N/A | |
2009(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.41% | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | 1.35% | | | | 1.67% | | | | 1.57% | | | | N/A | | | | 1.45% | | | | 1.45% | | | | 1.81% | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | 1.41% | | | | N/A | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.40% | | | | N/A | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.43% | | | | N/A | | | | N/A | | | | N/A | |
| 2006 | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | | | | N/A | |
Janus Growth & Core Funds | 179
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Janus
| | |
| | | Janus
| | Janus
| | Janus
| | Janus
| | | | Growth
| | Janus
|
| | | Balanced
| | Contrarian
| | Enterprise
| | Forty
| | Janus
| | and Income
| | Triton
|
| | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
| |
| |
| Class S Shares |
| 2011 | | | 1.08% | | | | 1.09% | | | | 1.20% | | | | 1.16% | | | | 1.19% | | | | 1.17% | | | | 1.20% | |
2010(1) | | | 1.09% | | | | 1.18% | | | | 1.22% | | | | N/A | | | | 1.25% | | | | 1.18% | | | | 1.23% | |
2010(2) | | | N/A | | | | N/A | | | | N/A | | | | 1.20% | | | | N/A | | | | N/A | | | | N/A | |
2009(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.16% | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | 1.10% | | | | 1.42% | | | | 1.31% | | | | N/A | | | | 1.20% | | | | 1.20% | | | | 1.61% | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | 1.15% | | | | N/A | | | | N/A | | | | N/A | |
| 2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.14% | | | | N/A | | | | N/A | | | | N/A | |
| 2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.18% | | | | N/A | | | | N/A | | | | N/A | |
| 2006 | | | N/A | | | | N/A | | | | N/A | | | | 1.18% | | | | N/A | | | | N/A | | | | N/A | |
| |
| |
| Class T Shares |
| 2011 | | | 0.83% | | | | 0.84% | | | | 0.95% | | | | 0.92% | | | | 0.94% | | | | 0.92% | | | | 0.94% | |
2010(1) | | | 0.82% | | | | 0.91% | | | | 0.95% | | | | N/A | | | | 0.94% | | | | 0.90% | | | | 0.96% | |
2010(2) | | | N/A | | | | N/A | | | | N/A | | | | 1.02% | | | | N/A | | | | N/A | | | | N/A | |
2009(3) | | | N/A | | | | N/A | | | | N/A | | | | 0.95% | | | | N/A | | | | N/A | | | | N/A | |
2009(8) | | | 0.82% | | | | 1.01% | | | | 0.99% | | | | N/A | | | | 0.89% | | | | 0.90% | | | | 1.18% | |
2009(9) | | | N/A | | | | N/A | | | | N/A | | | | 1.09% | | | | N/A | | | | N/A | | | | N/A | |
| 2008 | | | 0.79% | | | | 1.01% | | | | 0.92% | | | | N/A | | | | 0.88% | | | | 0.87% | | | | 1.20% | |
| 2007 | | | 0.79% | | | | 0.97% | | | | 0.94% | | | | N/A | | | | 0.88% | | | | 0.87% | | | | 1.13% | |
| 2006 | | | 0.82% | | | | 0.95% | | | | 1.00% | | | | N/A | | | | 0.90% | | | | 0.89% | | | | 1.11% | |
| 2005 | | | 0.80% | | | | 0.93% | | | | 0.96% | | | | N/A | | | | 0.88% | | | | 0.88% | | | | 1.85%(10) | |
| |
| |
| | | |
(1)
| | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (2) | | Period from October 1, 2009 through September 30, 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) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
| (5) | | Period from August 1, 2008 through July 31, 2009. |
| (6) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
| (7) | | Period from November 28, 2005 (inception date) through July 31, 2006. |
| (8) | | Period from November 1, 2008 through October 31, 2009. |
| (9) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
| (10) | | Period from February 25, 2005 (inception date) through October 31, 2005. |
180 | MARCH 31, 2011
| |
| 7. | Capital Share Transactions |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 (unaudited), the eleven-month fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
period ended September 30, 2010 and the
| | Janus
| | | Janus
| | | Janus
| | | |
fiscal year ended October 31, 2009
| | Balanced Fund | | | Contrarian Fund | | | Enterprise Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(1) | | | 2009(2) | | | |
| |
| Transactions in Fund Shares – Class A Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | 10,919 | | | | N/A | | | | N/A | | | | 6,786 | | | | N/A | | | | N/A | | | | 1,905 | | | |
| Shares sold | | | 4,629 | | | | 10,499 | | | | 4,114 | | | | 668 | | | | 1,219 | | | | 454 | | | | 244 | | | | 382 | | | | 225 | | | |
| Reinvested dividends and distributions | | | 732 | | | | 313 | | | | 48 | | | | 5 | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (3,384) | | | | (3,794) | | | | (1,638) | | | | (1,149) | | | | (1,829) | | | | (1,404) | | | | (397) | | | | (684) | | | | (371) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 1,977 | | | | 7,018 | | | | 13,443 | | | | (476) | | | | (610) | | | | 5,836 | | | | (153) | | | | (302) | | | | 1,759 | | | |
| Shares Outstanding, Beginning of Period | | | 20,461 | | | | 13,443 | | | | – | | | | 5,226 | | | | 5,836 | | | | – | | | | 1,457 | | | | 1,759 | | | | – | | | |
| Shares Outstanding, End of Period | | | 22,438 | | | | 20,461 | | | | 13,443 | | | | 4,750 | | | | 5,226 | | | | 5,836 | | | | 1,304 | | | | 1,457 | | | | 1,759 | | | |
| Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | 7,544 | | | | N/A | | | | N/A | | | | 5,873 | | | | N/A | | | | N/A | | | | 504 | | | |
| Shares sold | | | 3,357 | | | | 8,047 | | | | 3,463 | | | | 254 | | | | 516 | | | | 237 | | | | 53 | | | | 73 | | | | 59 | | | |
| Reinvested dividends and distributions | | | 467 | | | | 142 | | | | 21 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (1,766) | | | | (2,349) | | | | (427) | | | | (888) | | | | (1,444) | | | | (615) | | | | (68) | | | | (131) | | | | (51) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 2,058 | | | | 5,840 | | | | 10,601 | | | | (634) | | | | (928) | | | | 5,495 | | | | (15) | | | | (58) | | | | 512 | | | |
| Shares Outstanding, Beginning of Period | | | 16,441 | | | | 10,601 | | | | – | | | | 4,567 | | | | 5,495 | | | | – | | | | 454 | | | | 512 | | | | – | | | |
| Shares Outstanding, End of Period | | | 18,499 | | | | 16,441 | | | | 10,601 | | | | 3,933 | | | | 4,567 | | | | 5,495 | | | | 439 | | | | 454 | | | | 512 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with restructuring (Note 9) | | | N/A | | | | 38,867(3) | | | | N/A | | | | N/A | | | | 160,547(3) | | | | N/A | | | | N/A | | | | 16,345(3) | | | | N/A | | | |
| Shares sold | | | 2,734 | | | | 2,590(3) | | | | N/A | | | | 3,156 | | | | 4,853(3) | | | | N/A | | | | 847 | | | | 435(3) | | | | N/A | | | |
| Reinvested dividends and distributions | | | 1,615 | | | | 667(3) | | | | N/A | | | | 442 | | | | –(3) | | | | N/A | | | | – | | | | –(3) | | | | N/A | | | |
| Shares repurchased | | | (2,638) | | | | (2,930)(3) | | | | N/A | | | | (13,607) | | | | (13,051)(3) | | | | N/A | | | | (969) | | | | (1,213)(3) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | 1,711 | | | | 39,194(3) | | | | N/A | | | | (10,009) | | | | 152,349(3) | | | | N/A | | | | (122) | | | | 15,567(3) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | 39,194 | | | | – | | | | N/A | | | | 152,349 | | | | – | | | | N/A | | | | 15,567 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 40,905 | | | | 39,194 | | | | N/A | | | | 142,340 | | | | 152,349 | | | | N/A | | | | 15,445 | | | | 15,567 | | | | N/A | | | |
| Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | 2,107 | | | | N/A | | | | N/A | | | | 1,709 | | | | N/A | | | | N/A | | | | 8,990 | | | |
| Shares sold | | | 7,051 | | | | 12,331 | | | | 2,633 | | | | 1,820 | | | | 6,172 | | | | 3,442 | | | | 1,156 | | | | 3,423 | | | | 1,733 | | | |
| Reinvested dividends and distributions | | | 491 | | | | 146 | | | | 11 | | | | 29 | | | | 3 | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (2,269) | | | | (4,797) | | | | (309) | | | | (2,235) | | | | (2,106) | | | | (215) | | | | (1,170) | | | | (5,238) | | | | (931) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 5,273 | | | | 7,680 | | | | 4,442 | | | | (386) | | | | 4,069 | | | | 4,936 | | | | (14) | | | | (1,815) | | | | 9,792 | | | |
| Shares Outstanding, Beginning of Period | | | 12,122 | | | | 4,442 | | | | – | | | | 9,005 | | | | 4,936 | | | | – | | | | 7,977 | | | | 9,792 | | | | – | | | |
| Shares Outstanding, End of Period | | | 17,395 | | | | 12,122 | | | | 4,442 | | | | 8,619 | | | | 9,005 | | | | 4,936 | | | | 7,963 | | | | 7,977 | | | | 9,792 | | | |
| Transactions in Fund Shares – Class R Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | 1,196 | | | | N/A | | | | N/A | | | | 221 | | | | N/A | | | | N/A | | | | 935 | | | |
| Shares sold | | | 2,024 | | | | 3,655 | | | | 1,291 | | | | 36 | | | | 116 | | | | 17 | | | | 180 | | | | 243 | | | | 194 | | | |
| Reinvested dividends and distributions | | | 176 | | | | 53 | | | | 5 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (973) | | | | (1,021) | | | | (370) | | | | (50) | | | | (53) | | | | (20) | | | | (145) | | | | (275) | | | | (96) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 1,227 | | | | 2,687 | | | | 2,122 | | | | (14) | | | | 63 | | | | 218 | | | | 35 | | | | (32) | | | | 1,033 | | | |
| Shares Outstanding, Beginning of Period | | | 4,809 | | | | 2,122 | | | | – | | | | 281 | | | | 218 | | | | – | | | | 1,001 | | | | 1,033 | | | | – | | | |
| Shares Outstanding, End of Period | | | 6,036 | | | | 4,809 | | | | 2,122 | | | | 267 | | | | 281 | | | | 218 | | | | 1,036 | | | | 1,001 | | | | 1,033 | | | |
Janus Growth & Core Funds | 181
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 (unaudited), the eleven-month fiscal
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
period ended September 30, 2010 and the
| | Janus
| | | Janus
| | | Janus
| | | |
fiscal year ended October 31, 2009
| | Balanced Fund | | | Contrarian Fund | | | Enterprise Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(1) | | | 2009(2) | | | 2011 | | | 2010(1) | | | 2009(2) | | | |
| |
| Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | 20,316 | | | | N/A | | | | N/A | | | | 488 | | | | N/A | | | | N/A | | | | 5,116 | | | |
| Shares sold | | | 4,758 | | | | 9,193 | | | | 2,909 | | | | 53 | | | | 376 | | | | 146 | | | | 584 | | | | 741 | | | | 509 | | | |
| Reinvested dividends and distributions | | | 1,014 | | | | 432 | | | | 82 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (4,328) | | | | (6,448) | | | | (1,850) | | | | (150) | | | | (258) | | | | (249) | | | | (969) | | | | (1,785) | | | | (481) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 1,444 | | | | 3,177 | | | | 21,457 | | | | (97) | | | | 118 | | | | 385 | | | | (385) | | | | (1,044) | | | | 5,144 | | | |
| Shares Outstanding, Beginning of Period | | | 24,634 | | | | 21,457 | | | | – | | | | 503 | | | | 385 | | | | – | | | | 4,100 | | | | 5,144 | | | | – | | | |
| Shares Outstanding, End of Period | | | 26,078 | | | | 24,634 | | | | 21,457 | | | | 406 | | | | 503 | | | | 385 | | | | 3,715 | | | | 4,100 | | | | 5,144 | | | |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | (38,867) | | | | N/A | | | | N/A | | | | (160,547) | | | | N/A | | | | N/A | | | | (16,345) | | | | N/A | | | |
| Shares sold | | | 18,431 | | | | 38,123 | | | | 51,122 | | | | 10,689 | | | | 18,105 | | | | 34,357 | | | | 1,866 | | | | 2,290 | | | | 6,671 | | | |
| Reinvested dividends and distributions | | | 4,902 | | | | 2,533 | | | | 7,799 | | | | 255 | | | | 124 | | | | 15,986 | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (14,442) | | | | (30,751) | | | | (26,846) | | | | (24,150) | | | | (48,759) | | | | (98,192) | | | | (1,869) | | | | (6,139) | | | | (9,999) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 8,891 | | | | (28,962) | | | | 32,075 | | | | (13,206) | | | | (191,077) | | | | (47,849) | | | | (3) | | | | (20,194) | | | | (3,328) | | | |
| Shares Outstanding, Beginning of Period | | | 117,854 | | | | 146,816 | | | | 114,741 | | | | 121,541 | | | | 312,618 | | | | 360,467 | | | | 15,612 | | | | 35,806 | | | | 39,134 | | | |
| Shares Outstanding, End of Period | | | 126,745 | | | | 117,854 | | | | 146,816 | | | | 108,335 | | | | 121,541 | | | | 312,618 | | | | 15,609 | | | | 15,612 | | | | 35,806 | | | |
| | | |
| (1) | | Period from November 1, 2009 through September 30, 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 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares and November 1, 2008 through October 31, 2009 for Class T Shares. |
| (3) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
182 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period or fiscal year ended
| | Janus
| | | Janus
| | | Janus
| | | |
September 30, 2010 and the fiscal year ended October 31, 2009
| | Forty Fund | | | Fund | | | Growth and Income Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2011 | | | 2010(2) | | | 2009(3) | | | 2011 | | | 2010(2) | | | 2009(3) | | | |
| |
| Transactions in Fund Shares – Class A Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 199 | | | | 141 | | | | N/A | | | | 781 | | | |
| Shares sold | | | 3,464 | | | | 13,049 | | | | 9,449 | | | | 15,494 | | | | 84 | | | | 43 | | | | 158 | | | | 43 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | 78 | | | | 1 | | | | – | | | | 3 | | | | 6 | | | | 1 | | | |
| Shares repurchased | | | (8,354) | | | | (32,696) | | | | (1,724) | | | | (1,376) | | | | (106) | | | | (94) | | | | (225) | | | | (101) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (4,890) | | | | (19,647) | | | | 7,803 | | | | 14,119 | | | | 177 | | | | 93 | | | | (61) | | | | 724 | | | |
| Shares Outstanding, Beginning of Period | | | 27,572 | | | | 47,219 | | | | 14,296 | | | | 177 | | | | – | | | | 663 | | | | 724 | | | | – | | | |
| Shares Outstanding, End of Period | | | 22,682 | | | | 27,572 | | | | 22,099 | | | | 14,296 | | | | 177 | | | | 756 | | | | 663 | | | | 724 | | | |
| Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 222 | | | | 236 | | | | N/A | | | | 177 | | | |
| Shares sold | | | 1,502 | | | | 7,571 | | | | 26 | | | | 77 | | | | 21 | | | | 36 | | | | 24 | | | | 20 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 1 | | | | – | | | |
| Shares repurchased | | | (4,590) | | | | (5,368) | | | | (32) | | | | (91) | | | | (15) | | | | (41) | | | | (35) | | | | (17) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (3,088) | | | | 2,203 | | | | (6) | | | | (14) | | | | 228 | | | | 231 | | | | (10) | | | | 180 | | | |
| Shares Outstanding, Beginning of Period | | | 20,638 | | | | 18,435 | | | | 214 | | | | 228 | | | | – | | | | 170 | | | | 180 | | | | – | | | |
| Shares Outstanding, End of Period | | | 17,550 | | | | 20,638 | | | | 208 | | | | 214 | | | | 228 | | | | 401 | | | | 170 | | | | 180 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 9,790 | | | | N/A | | | | N/A | | | |
| Shares issued in connection with restructuring (Note 9) | | | N/A | | | | N/A | | | | N/A | | | | 183,936(4) | | | | N/A | | | | N/A | | | | 66,364(4) | | | | N/A | | | |
| Shares sold | | | N/A | | | | N/A | | | | 2,003 | | | | 2,358(4) | | | | N/A | | | | 1,234 | | | | 1,438(4) | | | | N/A | | | |
| Reinvested dividends and distributions | | | N/A | | | | N/A | | | | 631 | | | | –(4) | | | | N/A | | | | 334 | | | | 572(4) | | | | N/A | | | |
| Shares repurchased | | | N/A | | | | N/A | | | | (9,686) | | | | (10,889)(4) | | | | N/A | | | | (4,801) | | | | (5,812)(4) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | (7,052) | | | | 175,405(4) | | | | N/A | | | | 6,557 | | | | 62,562(4) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | 175,405 | | | | – | | | | N/A | | | | 62,562 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | 168,353 | | | | 175,405 | | | | N/A | | | | 69,119 | | | | 62,562 | | | | 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 | | | | 517 | | | | 142 | | | | N/A | | | | 48 | | | |
| Shares sold | | | 14,052 | | | | 51,908 | | | | 1,069 | | | | 4,908 | | | | 618 | | | | 290 | | | | 3,180 | | | | 213 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | 25 | | | | 1 | | | | – | | | | 12 | | | | 19 | | | | – | | | |
| Shares repurchased | | | (21,842) | | | | (16,467) | | | | (558) | | | | (931) | | | | (56) | | | | (1,011) | | | | (1,172) | | | | (6) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (7,790) | | | | 35,441 | | | | 536 | | | | 3,978 | | | | 1,079 | | | | (567) | | | | 2,027 | | | | 255 | | | |
| Shares Outstanding, Beginning of Period | | | 60,654 | | | | 25,213 | | | | 5,057 | | | | 1,079 | | | | – | | | | 2,282 | | | | 255 | | | | – | | | |
| Shares Outstanding, End of Period | | | 52,864 | | | | 60,654 | | | | 5,593 | | | | 5,057 | | | | 1,079 | | | | 1,715 | | | | 2,282 | | | | 255 | | | |
| Transactions in Fund Shares – Class R Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 23 | | | | 22 | | | | N/A | | | | 73 | | | |
| Shares sold | | | 1,218 | | | | 4,250 | | | | 16 | | | | 27 | | | | 14 | | | | 22 | | | | 21 | | | | 8 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (1,480) | | | | (1,571) | | | | (10) | | | | (11) | | | | (4) | | | | (22) | | | | (19) | | | | (13) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (262) | | | | 2,679 | | | | 6 | | | | 16 | | | | 33 | | | | 22 | | | | 2 | | | | 68 | | | |
| Shares Outstanding, Beginning of Period | | | 8,027 | | | | 5,348 | | | | 49 | | | | 33 | | | | – | | | | 70 | | | | 68 | | | | – | | | |
| Shares Outstanding, End of Period | | | 7,765 | | | | 8,027 | | | | 55 | | | | 49 | | | | 33 | | | | 92 | | | | 70 | | | | 68 | | | |
| Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 3,983 | | | | 545 | | | | N/A | | | | 2,661 | | | |
| Shares sold | | | 9,541 | | | | 31,577 | | | | 251 | | | | 685 | | | | 233 | | | | 173 | | | | 342 | | | | 130 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | 1 | | | | – | | | | – | | | | 7 | | | | 15 | | | | 2 | | | |
| Shares repurchased | | | (20,007) | | | | (29,135) | | | | (455) | | | | (1,368) | | | | (693) | | | | (552) | | | | (811) | | | | (290) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (10,466) | | | | 2,442 | | | | (203) | | | | (683) | | | | 3,523 | | | | 173 | | | | (454) | | | | 2,503 | | | |
| Shares Outstanding, Beginning of Period | | | 97,859 | | | | 95,417 | | | | 2,840 | | | | 3,523 | | | | – | | | | 2,049 | | | | 2,503 | | | | – | | | |
| Shares Outstanding, End of Period | | | 87,393 | | | | 97,859 | | | | 2,637 | | | | 2,840 | | | | 3,523 | | | | 2,222 | | | | 2,049 | | | | 2,503 | | | |
Janus Growth & Core Funds | 183
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period or fiscal year ended
| | Janus
| | | Janus
| | | Janus
| | | |
September 30, 2010 and the fiscal year ended October 31, 2009
| | Forty Fund | | | Fund | | | Growth and Income Fund | | | |
| (all numbers in thousands) | | 2011 | | | 2010(1) | | | 2011 | | | 2010(2) | | | 2009(3) | | | 2011 | | | 2010(2) | | | 2009(3) | | | |
| |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 7,038 | | | | N/A | | | | N/A | | | |
| Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | N/A | | | | N/A | | | | (183,936) | | | | N/A | | | | N/A | | | | (66,364) | | | | N/A | | | |
| Shares sold | | | 485 | | | | 1,057 | | | | 4,633 | | | | 23,029 | | | | 52,097 | | | | 1,144 | | | | 6,343 | | | | 10,929 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | 199 | | | | 213 | | | | 4,980 | | | | 262 | | | | 740 | | | | 1,662 | | | |
| Shares repurchased | | | (343) | | | | (123) | | | | (22,014) | | | | (73,144) | | | | (88,759) | | | | (9,705) | | | | (20,911) | | | | (28,493) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 142 | | | | 934 | | | | (17,182) | | | | (233,838) | | | | (31,682) | | | | (1,261) | | | | (80,192) | | | | (15,902) | | | |
| Shares Outstanding, Beginning of Period | | | 946 | | | | 12 | | | | 104,431 | | | | 338,269 | | | | 369,951 | | | | 56,683 | | | | 136,875 | | | | 152,777 | | | |
| Shares Outstanding, End of Period | | | 1,088 | | | | 946 | | | | 87,249 | | | | 104,431 | | | | 338,269 | | | | 55,422 | | | | 56,683 | | | | 136,875 | | | |
| | | |
| (1) | | Period from October 1, 2009 through September 30, 2010. |
| (2) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (3) | | Period from July 6, 2009 (inception date) through October 31, 2009 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares and November 1, 2008 through October 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) through September 30, 2010. |
184 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | |
2011 (unaudited), the eleven-month period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal
| | Janus
| | Janus
| | |
year ended October 31, 2009
| | Research Fund | | Triton Fund | | |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 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 | | | | N/A | | | | N/A | | | | 564 | | | |
| Shares sold | | | 142 | | | | 93 | | | | 4 | | | | 5,686 | | | | 2,189 | | | | 1,007 | | | |
| Reinvested dividends and distributions | | | 1 | | | | – | | | | – | | | | 69 | | | | 2 | | | | – | | | |
| Shares repurchased | | | (14) | | | | (29) | | | | – | | | | (603) | | | | (615) | | | | (398) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 129 | | | | 64 | | | | 4 | | | | 5,152 | | | | 1,576 | | | | 1,173 | | | |
| Shares Outstanding, Beginning of Period | | | 68 | | | | 4 | | | | – | | | | 2,749 | | | | 1,173 | | | | – | | | |
| Shares Outstanding, End of Period | | | 197 | | | | 68 | | | | 4 | | | | 7,901 | | | | 2,749 | | | | 1,173 | | | |
| 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 | | | | 306 | | | |
| Shares sold | | | 22 | | | | 5 | | | | 3 | | | | 2,392 | | | | 736 | | | | 242 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 23 | | | | – | | | | – | | | |
| Shares repurchased | | | (1) | | | | (1) | | | | – | | | | (180) | | | | (174) | | | | (29) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 21 | | | | 4 | | | | 3 | | | | 2,235 | | | | 562 | | | | 519 | | | |
| Shares Outstanding, Beginning of Period | | | 7 | | | | 3 | | | | – | | | | 1,081 | | | | 519 | | | | – | | | |
| Shares Outstanding, End of Period | | | 28 | | | | 7 | | | | 3 | | | | 3,316 | | | | 1,081 | | | | 519 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with restructuring (Note 9) | | | N/A | | | | 70,452(3) | | | | N/A | | | | N/A | | | | 13,078(3) | | | | N/A | | | |
| Shares sold | | | 1,371 | | | | 1,360(3) | | | | N/A | | | | 13,268 | | | | 4,597(3) | | | | N/A | | | |
| Reinvested dividends and distributions | | | 321 | | | | –(3) | | | | N/A | | | | 364 | | | | –(3) | | | | N/A | | | |
| Shares repurchased | | | (3,850) | | | | (5,247)(3) | | | | N/A | | | | (2,253) | | | | (2,230)(3) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | (2,158) | | | | 66,565(3) | | | | N/A | | | | 11,379 | | | | 15,445(3) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | 66,565 | | | | – | | | | N/A | | | | 15,445 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 64,407 | | | | 66,565 | | | | N/A | | | | 26,824 | | | | 15,445 | | | | 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 | | | | 69 | | | |
| Shares sold | | | 638 | | | | 2,693 | | | | 307 | | | | 8,581 | | | | 5,386 | | | | 310 | | | |
| Reinvested dividends and distributions | | | 17 | | | | 1 | | | | – | | | | 111 | | | | 1 | | | | – | | | |
| Shares repurchased | | | (373) | | | | (259) | | | | (4) | | | | (1,403) | | | | (693) | | | | (3) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 282 | | | | 2,435 | | | | 303 | | | | 7,289 | | | | 4,694 | | | | 376 | | | |
| Shares Outstanding, Beginning of Period | | | 2,738 | | | | 303 | | | | – | | | | 5,070 | | | | 376 | | | | – | | | |
| Shares Outstanding, End of Period | | | 3,020 | | | | 2,738 | | | | 303 | | | | 12,359 | | | | 5,070 | | | | 376 | | | |
| 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 | | | | 74 | | | |
| Shares sold | | | N/A | | | | N/A | | | | N/A | | | | 684 | | | | 262 | | | | 35 | | | |
| Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | 5 | | | | – | | | | – | | | |
| Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | (55) | | | | (64) | | | | (9) | | | |
| Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 634 | | | | 198 | | | | 100 | | | |
| Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | 298 | | | | 100 | | | | – | | | |
| Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | 932 | | | | 298 | | | | 100 | | | |
Janus Growth & Core Funds | 185
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | |
2011 (unaudited), the eleven-month period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal
| | Janus
| | Janus
| | |
year ended October 31, 2009
| | Research Fund | | Triton Fund | | |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| 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 | | | | 78 | | | |
| Shares sold | | | 92* | | | | 1702* | | | | 486* | | | | 1,003 | | | | 505 | | | | 263 | | | |
| Reinvested dividends and distributions | | | 1* | | | | 2* | | | | – | | | | 13 | | | | 1 | | | | – | | | |
| Shares repurchased | | | (1)* | | | | (1,701)* | | | | – | | | | (174) | | | | (397) | | | | (10) | | | |
| Net Increase/(Decrease) in Fund Shares | | | 92* | | | | 3* | | | | 486* | | | | 842 | | | | 109 | | | | 331 | | | |
| Shares Outstanding, Beginning of Period | | | 489* | | | | 486* | | | | – | | | | 440 | | | | 331 | | | | – | | | |
| Shares Outstanding, End of Period | | | 581* | | | | 489* | | | | 486* | | | | 1,282 | | | | 440 | | | | 331 | | | |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | (70,452) | | | | N/A | | | | N/A | | | | (13,078) | | | | N/A | | | |
| Shares sold | | | 3,926 | | | | 6,935 | | | | 11,501 | | | | 30,446 | | | | 22,729 | | | | 19,430 | | | |
| Reinvested dividends and distributions | | | 225 | | | | 303 | | | | 1,126 | | | | 746 | | | | 43 | | | | 7 | | | |
| Shares repurchased | | | (5,452) | | | | (13,850) | | | | (26,081) | | | | (5,779) | | | | (7,496) | | | | (6,066) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (1,301) | | | | (77,064) | | | | (13,454) | | | | 25,413 | | | | 2,198 | | | | 13,371 | | | |
| Shares Outstanding, Beginning of Period | | | 51,444 | | | | 128,508 | | | | 141,962 | | | | 29,385 | | | | 27,187 | | | | 13,816 | | | |
| Shares Outstanding, End of Period | | | 50,143 | | | | 51,444 | | | | 128,508 | | | | 54,798 | | | | 29,385 | | | | 27,187 | | | |
| | | |
| * | | Shares outstanding are not in thousands. |
| (1) | | Period from November 1, 2009 through September 30, 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 for Class A Shares, Class C Shares, Class I Shares, Class R Shares and Class S Shares and November 1, 2008 through October 31, 2009 for Class T Shares. |
| (3) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
186 | MARCH 31, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the six-month period ended March 31,
| | | | | | | | | | | | | | |
2011 (unaudited), the eleven-month fiscal
| | | | | | | | | | | | | | |
period ended September 30, 2010 and the
| | Janus
| | Janus
| | |
fiscal year ended October 31, 2009
| | Twenty Fund | | Venture Fund | | |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued in connection with restructuring (Note 9) | | | N/A | | | | 84,611(3) | | | | N/A | | | | N/A | | | | 18,758(3) | | | | N/A | | | |
| Shares sold | | | 928 | | | | 1,267(3) | | | | N/A | | | | 208 | | | | 233(3) | | | | N/A | | | |
| Reinvested dividends and distributions | | | 266 | | | | –(3) | | | | N/A | | | | – | | | | –(3) | | | | N/A | | | |
| Shares repurchased | | | (5,136) | | | | (4,639)(3) | | | | N/A | | | | (915) | | | | (1,111)(3) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | (3,942) | | | | 81,239(3) | | | | N/A | | | | (707) | | | | 17,880(3) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | 81,239 | | | | – | | | | N/A | | | | 17,880 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 77,297 | | | | 81,239 | | | | N/A | | | | 17,173 | | | | 17,880 | | | | N/A | | | |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | (84,611) | | | | N/A | | | | N/A | | | | (18,758) | | | | N/A | | | |
| Shares sold | | | 2,219 | | | | 5,329 | | | | 9,762 | | | | 239 | | | | 420 | | | | 651 | | | |
| Reinvested dividends and distributions | | | 141 | | | | – | | | | 34 | | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (7,807) | | | | (15,071) | | | | (17,328) | | | | (423) | | | | (1,095) | | | | (2,347) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (5,447) | | | | (94,353) | | | | (7,532) | | | | (184) | | | | (19,433) | | | | (1,696) | | | |
| Shares Outstanding, Beginning of Period | | | 63,827 | | | | 158,180 | | | | 165,712 | | | | 4,390 | | | | 23,823 | | | | 25,519 | | | |
| Shares Outstanding, End of Period | | | 58,380 | | | | 63,827 | | | | 158,180 | | | | 4,206 | | | | 4,390 | | | | 23,823 | | | |
| | | |
| (1) | | Period from November 1, 2009 through September 30, 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) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
| |
| 8. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2011, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and short-term 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 | | $ | 2,934,761,151 | | $ | 2,324,525,690 | | $ | 550,185,892 | | $ | 779,007,448 | | |
| Janus Contrarian Fund | | | 2,580,909,015 | | | 3,069,168,362 | | | – | | | – | | |
| Janus Enterprise Fund | | | 295,787,313 | | | 436,108,929 | | | – | | | – | | |
| Janus Forty Fund | | | 1,576,531,029 | | | 2,206,272,452 | | | – | | | – | | |
| Janus Fund | | | 4,038,240,400 | | | 4,530,538,127 | | | – | | | – | | |
| Janus Growth and Income Fund | | | 1,450,372,120 | | | 1,748,009,657 | | | – | | | 26,322,000 | | |
| Janus Research Fund | | | 1,399,873,971 | | | 1,528,807,258 | | | – | | | – | | |
| Janus Triton Fund | | | 1,018,498,470 | | | 256,705,137 | | | – | | | – | | |
| Janus Twenty Fund | | | 2,343,222,993 | | | 3,000,078,616 | | | – | | | – | | |
| Janus Venture Fund | | | 365,588,291 | | | 393,834,152 | | | – | | | – | | |
| |
| |
| |
| 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 and in the Capital Share Transactions table in Note 7.
Janus Growth & Core Funds | 187
Notes to Financial Statements (unaudited) (continued)
On January 28, 2011, Janus Growth and Income Fund acquired all of the net assets of Janus Research Core Fund pursuant to a plan of reorganization approved by the Trustees of Janus Investment Fund. The reorganization was accomplished by a tax-free exchange of shares of Janus Research Core Fund in the amount of 26,045,005 shares (valued at $555,638,955) for the 17,913,879 shares of Janus Growth and Income Fund, including $101,343,674 of unrealized appreciation. The aggregate net assets of Janus Growth and Income Fund and Janus Research Core Fund were $3,605,340,775 and $555,638,955, respectively. The aggregate net assets immediately after the reorganization were $4,160,979,730.
On July 6, 2009, Janus Balanced Fund, Janus Contrarian Fund, Janus Enterprise Fund, Janus Fund, Janus Growth and Income 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, and Janus Adviser Small-Mid Growth Fund, respectively, pursuant to separate plans of reorganization approved by the Trustees of the Trust. The reorganization involved certain funds that were a series of the Janus Adviser Series trust (“JAD Trust”) being merged into 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 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 in several state and federal jurisdictions 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. 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 trial court for further proceedings. In June 2010, the United States Supreme Court agreed to review the Fourth Circuit’s decision. As a result of these developments at the Supreme Court, the trial court has stayed all further proceedings until the Supreme Court rules on the matter. In the Steinberg case (action (ii) above), the trial 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, in February 2010,
188 | MARCH 31, 2011
Plaintiffs appealed the trial court’s decision with the Fourth Circuit.
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, “Improving Disclosures About Fair Value Measurements.” The Accounting Standards Update requires disclosures about purchases, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. This disclosure is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Funds have early adopted the disclosure and are disclosing purchases and sales on a gross basis in the Level 3 roll forward accordingly. The adoption of this Accounting Standards Update did not have any impact on each Fund’s financial position or the results of its operations.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22, 2010. The Act makes changes to a number of tax rules impacting the Funds. Under the Act, future capital losses generated by a fund may be carried over indefinitely, but these losses must be used prior to the utilization of any pre-enactment capital losses. Since pre-enactment capital losses may only be carried forward for eight years, there may be a greater likelihood that all or a portion of a fund’s pre-enactment capital losses will expire unused. In general, the provisions of the Act will be effective for the Funds’ fiscal year ending September 30, 2012.
Effective May 6, 2011, Janus Venture Fund will reopen Class D Shares and Class T Shares and launch Class A Shares, Class C Shares, Class I Shares, and Class S Shares. In addition, Janus Capital has contractually agreed to waive the advisory fee payable by the Fund in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative services 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, exceed an annual rate of 1.05% of the average daily net assets of the Fund.
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2011 and through 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 Growth & Core Funds | 189
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
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee, (“the 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 nine 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 Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and at the request of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 3, 2010, 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, 2011 through February 1, 2012, 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
190 | MARCH 31, 2011
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 several 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 Growth & Core Funds | 191
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 many Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the actual 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, including research and analysis conduct by the Trustees’ independent fee consultant, 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 3, 2010 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.
192 | MARCH 31, 2011
Explanations of Charts, Tables and
Financial Statements (unaudited)
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 prior 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 based on average net assets as of the fiscal period ended September 30, 2010. 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. 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 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
Janus Growth & Core Funds | 193
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
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.
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 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
194 | MARCH 31, 2011
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, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments and the investment style and/or outlook of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Growth & Core Funds | 195
Notes
196 | MARCH 31, 2011
Notes
Janus Growth & Core Funds | 197
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 fixed income 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).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Funds distributed by Janus Distributors LLC (05/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
| C-0411-017 | 125-24-01500 05-11 |
2011 SEMIANNUAL REPORT
Janus Value Fund
Perkins Global Value Fund
HIGHLIGHTS
| |
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Value Fund
| | | |
| | 1 |
| | 4 |
| | |
| | 5 |
| | 14 |
| | 16 |
| | 17 |
| | 19 |
| | 22 |
| | 23 |
| | 39 |
| | 42 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Chief Investment Officer’s Market Perspective (unaudited)
Jeff Kautz
Chief Investment
Officer
It seems the more things change, the more they stay the same when it comes to equities and the economy these days. We have been pleased to participate in the market run-up that began in March 2009 and continued through the first quarter. But we keep questioning how much longer this broad-based upswing can last. While the economy is in a better place than where it was 12 months ago, we believe it still has yet to achieve the escape velocity required for self-sustaining growth. This transition may become even more difficult as the government stimulus programs that have propped it up over the last few years start to wind down.
During the period, equity performance was once again characterized by the extreme volatility that has become a hallmark of the market’s rebound over the past two years. Over the past two years, investors have been quick to embrace even modest positive news as evidence that the U.S. has moved beyond financial crisis, rushing into stocks based on fears of missing any potential subsequent market rallies. On the flipside, we believe they also have been hypersensitive to each perceived potential headwind, fearful that any shock could sidetrack or destroy the fragile expansion. This risk-on/risk-off mentality shows no signs of dissipating and may only escalate as the central bank spigots that have flooded the system with liquidity begin to dry up. There are certainly reasons to be bullish about equities. All in all, the S&P 500 Index’s approximate valuation of 14x forward earnings estimates does not seem excessive. Interest rate levels and net cash on corporate balance sheets are favorable. Earnings growth also remains strong, although the positive effects of cost-cutting initiatives are starting to wane and margins are coming under greater pressure from higher input costs.
In addition, investors have been quick to digest unexpected shocks, such as the situations in the Middle East and Japan. The human tragedy in Japan is enormous, but we expect their economy to bounce back fairly quickly, with only minimal negative impact to long-term global growth. The long-term outcomes in the Middle East are less certain, but the short-term market threat is the sudden spike in oil prices. We don’t believe oil will remain over $100 in the intermediate term, but this forecast becomes much more tenuous if political unrest spreads to Saudi Arabia.
Looking ahead, however, it is the broader economic landscape that continues to concern us. In fact, in the last week of the first quarter we saw a number of firms lower their estimates for GDP. Most notably, Goldman Sachs lowered their first quarter estimates to 1 3/4% from 2 1/2% previously (and 3 1/2% not too long ago). At some point, markets will have to stop shrugging off the unresolved fundamental problems that have continued to drag down the recovery. Unfortunately, not much has changed in these critical areas over the last two years:
Lackluster housing and employment markets. There is little relief in the housing market. Prices continue to fall, and a troubling two million homes are in foreclosure with another three million 60 days or more delinquent. The employment picture seems finally to be showing glimmers of improvement. The unemployment rate fell from 9.8% in November 2010 to 8.8% in March 2011. The pace of layoffs has slowed, and there have been signs of wage growth. Still, 13.5 million people remain unemployed, with a growing percentage out of work six months or more. Underemployment (or U6 employment) also remains stubbornly high at 15.7%. This figure includes workers who have been forced to take part-time positions, whose jobless benefits have expired or who have given up looking for work altogether.
Mounting government debt. There is little debate that the U.S. government debt level is too high and current spending unsustainable. The current ratio of Treasury debt held outside of the government to GDP is around 60%, and some estimates place the crisis point around 90%. Over the course of the next decade, entitlement programs are expected to create huge unfunded liabilities with the wave of aging baby boomers about to start taking money out of the system. Add this long-term funding gap to years of growing government budgets and debt-servicing costs (especially if interest rates rise), and a few debt-to-GDP ratio projections rise closer to 400%. The fiscal situation in Europe is also dire, and the troubling prospect remains that financially sound euro-zone countries may at some point decide to stop bailing out their insolvent neighbors.
Unknown outcomes of a stimulus wind-down. Over the past few years, the Federal Reserve (the Fed) has engaged in a massive experiment trying to ignite
Janus Value Fund | 1
Continued
economic growth by keeping interest rates near zero and introducing unconventional quantitative easing policies. One analogy likened current Fed stimulus programs as adding damp wood to a dying fire (in this case, the economy). It may generate a lot of smoke short term, but hopefully the wood eventually dries out and feeds the flame without exploding. With the inflationary outlook changing, we believe it’s crucial that the Fed gets its exit strategy from easy-money policies correct as it winds down QE2 in June and debates the need for monetary tightening.
Steady Focus on Quality Value
Given these challenges, our portfolios maintain the strong bias to seeking high-quality value investments that has been at the core of our investment process for decades. Throughout the financial crisis and subsequent recovery, we have continued to focus on employing bottom-up, fundamental research to identify high-quality companies trading at attractive valuations. Historically, financially strong companies with solid balance sheets and stable, recurring free cash flows have weathered volatile environments much better than lower-quality stocks. According to The Leuthold Group (an independent institutional investment research firm), from January 1986 through March 2011, the top quintile of high-quality stocks returned 2,025% while the bottom quintile of low-quality stocks showed a 778% cumulative return.*
We have been very pleased by the fact that each of our five strategies outperformed their index and Lipper peer group average in every down month in 2010 (as defined by a negative total return by the strategy’s index). The momentum-driven equity rally that began in March 2009 was primarily led by lower-quality stocks, and our strategies can sometimes lag in these types of markets (as they did in early 2010), despite attractive absolute returns. Typically, our strongest relative outperformance has been achieved during quality-driven markets, which is what we would expect given our risk-sensitive investment process. By outperforming in down periods and participating in market rallies, we seek to benefit from greater compounding rates over full market cycles. This disciplined philosophy has led to solid long term outperformance across all of our strategies long term compared to their respective benchmarks and peer groups, as well as strong, less volatile absolute results.
We believe that higher quality, larger stocks currently are historically cheap relative to the broad market. Related to this, in recent months we’ve seen the relative performance of low quality stocks diminish. In that context it is not surprising that our performance in 2011 has been more in line with each strategy’s respective benchmark. We believe our portfolios are well positioned to take advantage of high quality stock valuations returning to more normal levels.
In addition, the recent market choppiness has offered us compelling buying opportunities. The healthcare and technology sectors have been particularly appealing to us, and we believe we have been able to invest in quality firms with excellent balance sheets and long-term prospects whose valuations have fallen to very favorable levels. Also, as has been the case historically, we have benefited from the increase in merger and acquisition activity. A number of holdings, representing a variety of industries and sectors, have been bought out or received takeout offers, and we expect this trend to continue.
As we navigate these opportunities, we want to thank you for the confidence you have placed in Perkins Investment Management. Our portfolio team remains heavily invested in our strategies right alongside our shareholders, and we look forward to delivering solid long-term performance on all of our behalf for many years to come.
Sincerely,
Jeff Kautz
Chief Investment Officer
2 | MARCH 31, 2011
Chief Investment Officer’s Market Perspective (unaudited)
*The Leuthold Group uses a three factor model to rank the largest 1500 stocks in their coverage universe. The top quintile is defined as the high Quality Rank (QR) basket, and bottom quintile as low QR basket. The three factors used to rank quality are average rank of last 5 year ROE, debt/assets ratio rank as leverage indicator, sales and earnings trends as operational stability indicator.
The opinions are those of the author as of March 2011 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.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 the 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.
Past performance is no guarantee of future results.
There is no assurance that the investment process will consistently lead to successful investing.
Janus Value Fund | 3
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight from the Fund’s manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Fund’s manager 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 is derived.
Please keep in mind that the opinions expressed by the Fund’s manager in the Management Commentary are just that: opinions. They are a reflection of the manager’s best judgment at the time this report was compiled, which was March 31, 2011. As the investing environment changes, so could the manager’s opinions. These views are unique to the 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 the Fund’s Expense Example, which appears in the Fund’s Management Commentary within this Semiannual Report. Please refer to this information when reviewing the Expense Example for the Fund.
Example
As a shareholder of the 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 and Class S Shares only); administrative services fees payable pursuant to the Transfer Agency Agreement (applicable to Class D 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, 2010 to March 31, 2011.
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 the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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.
4 | MARCH 31, 2011
Perkins Global Value Fund (unaudited)
| | | | | | | |
Fund Snapshot
We seek to outperform our benchmark and peers over a full market cycle by building a diversified portfolio of what we believe to be financially strong, undervalued stocks. We are convinced that careful consideration of downside risk, prior to determining upside potential, is essential to compounding returns over time.
| | | | | | 
Gregory Kolb
portfolio manager |
Performance Overview
Perkins Global Value Fund’s Class T Shares returned 10.33% over the six-month period ended March 31, 2011, underperforming its primary benchmark, the Morgan Stanley Capital International World Index, which returned 14.18% during the period.
Market & Economic Commentary
Global equity indices posted strong gains during the semi-annual period. The S&P 500 Index led the way with an approximate 17.31% advance, while stocks outside the U.S. rose as well. Emerging market equities, while turbulent in early 2011, also ended meaningfully higher. The U.S. dollar fell broadly, though fluctuated significantly during the period. In the MSCI World Index, energy stocks were the clear winners, with continued global economic expansion as well as political tensions in the Middle East and North Africa helping push crude oil significantly higher. The materials and industrials sectors also performed strongly. Lagging sectors included utilities, consumer staples and health care. Canada, Germany, the U.S. and Australia were the leading country contributors. The Tohoku earthquake and tsunami, which occurred near the end of the six-month period, triggered a significant selloff in Japan leading that country to lag the index on a relative basis. Switzerland, the U.K. and France were also country laggards. Notably, all 24 of the index country constituents posted positive returns for the period.
Despite the optimism in stock prices, there are a number of worrisome macro dynamics at play which we have mentioned previously and continue to monitor carefully, in addition to our primary focus on individual security analysis. These high level considerations include, among others, weak government finances in many of the world’s developed economies, similar problems in much of Europe but with the added factor of the common currency, and the continued dramatic, credit-fueled expansion of the Chinese economy and its impact on many parts of the global economy. Additionally in the macro context, we increasingly observe the world’s central bankers faced with inflationary threats including rising food and energy costs.
Of special note for our Fund was the earthquake and tsunami in Japan, given our overweight position. It was difficult to watch this human tragedy unfold, and our significant exposure to that market added to our concern. Our Japan position was a positive contributor – both absolute and relative – during the period. Given the ongoing challenges associated with this disaster – most notably in our view the compromised nuclear facilities – we will continue to monitor the situation carefully.
Detractors from Performance
Our holdings in consumer staples hurt performance during the period, as did our overweight in health care and underweight in both energy and materials. Holdings in South Korea and the U.K. weighed on performance, as did our overweight in Japan. As we would expect in a strong up market, our cash holdings weighed meaningfully on performance during the period.
Tesco PLC, the leading retailer in the U.K. and one of the largest in the world, was among the most significant individual detractors. Concerns over relatively weak same-store sales results, as well as its global expansion efforts, hurt the stock. Staying within consumer staples, KT&G Corp. was weak during the period. This tobacco and ginseng company, the leader in South Korea, reported challenged operating results, both in its domestic and export businesses.
Abbott Laboratories, a diversified pharmaceutical and health care company, was also weak during the period. Concerns about flagship drug Humira’s competitive standing and growth prospects weighed on the stock, as did generally lackluster earnings results.
Rounding out the leading detractors for the period was Esprit Holdings, Ltd., an apparel company. Esprit has been struggling recently with growth and other challenges in both its wholesale and retail segments, which have significantly compressed earnings.
Janus Value Fund | 5
Perkins Global Value Fund (unaudited)
Contributors to Performance
Stock selection in the financial, health care and consumer discretionary sectors contributed the most to performance. From a geographic perspective, our holdings in Japan contributed strongly, due entirely to stock selection.
Exxon Mobil Corp. and Total S.A. were among the leading individual contributors to performance. These major integrated energy companies were natural beneficiaries of the significant rise in crude oil prices. We took advantage of this strength and exited our Exxon position during the period.
Willis Group Holdings, Ltd., an insurance broker, was another leading contributor. The company reported solid fourth quarter earnings, and perhaps benefited from the natural disaster in Japan as any significant increase in global insurance rates would likely aid earnings. We scaled back our position significantly during the period.
Health care products company Covidien PLC was also a key performer. This provider of medical devices for surgical procedures has generated strong earnings performance recently, aided by its strategy of investing in higher growth and higher margin products as well as improved worldwide demand.
Portfolio Positioning & Outlook
As of period end we were overweight some of the traditionally less-cyclical sectors of the economy including consumer staples, health care and telecommunications. Notable underweight sectors included materials, consumer discretionary, industrials, financials and energy. We remained overweight Japan, South Korea and the U.K., while underweight countries including the U.S., Canada, Australia and Germany. We have recently invested more capital into new buys/adds than garnered through sales/trims, thus reducing our cash position to modestly above 12% at period end. We were approximately 60% hedged on our yen exposure and 50% on our euro exposure, on a trading (as opposed to operational) basis. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
In general, and especially when considering our cash position, the portfolio continued to be positioned in a less economically sensitive manner than the benchmark. We remain diversified across sectors and countries. Areas of particular interest today include large multinational consumer staples companies, European pharmaceutical firms and Japanese small-cap stocks. Each is well represented in the portfolio in our opinion.
As the stock market reaches new multi-year highs, our focus will remain on managing risk. Focusing first on downside potential, on a stock-by-stock basis, has been a hallmark of Perkins for over 30 years, and will continue to be central in our efforts going forward. We are convinced that when others turn their attention to seeking profits and keeping up with the crowd, our careful attention to protecting capital in the event of difficult conditions will be well rewarded over the course of a full market cycle.
Thank you for your investment in Perkins Global Value Fund.
6 | MARCH 31, 2011
(unaudited)
Perkins Global Value Fund At A Glance
5 Top Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Exxon Mobil Corp. | | | 1.02% | |
| Willis Group Holdings, Ltd. | | | 0.83% | |
| Total S.A. | | | 0.66% | |
| Covidien PLC (U.S. Shares) | | | 0.61% | |
| Vodafone Group PLC | | | 0.57% | |
5 Bottom Performers – Holdings
| | | | | |
| | | Contribution |
| |
| Tesco PLC | | | –0.18% | |
| KT&G Corp. | | | –0.18% | |
| Abbott Laboratories | | | –0.14% | |
| Esprit Holdings, Ltd. | | | –0.10% | |
| Hewlett-Packard Co. | | | –0.10% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
| |
| Financials | | | 3.66% | | | | 14.95% | | | | 20.34% | |
| Health Care | | | 2.47% | | | | 23.00% | | | | 9.32% | |
| Energy | | | 2.12% | | | | 6.89% | | | | 11.00% | |
| Industrials | | | 1.42% | | | | 5.72% | | | | 11.28% | |
| Information Technology | | | 1.40% | | | | 11.39% | | | | 11.76% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | | |
| | | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
| |
| Utilities | | | –0.17% | | | | 1.11% | | | | 4.00% | |
| Materials | | | 0.12% | | | | 1.16% | | | | 8.02% | |
| Consumer Discretionary | | | 0.92% | | | | 3.56% | | | | 10.32% | |
| Telecommunication Services | | | 0.99% | | | | 7.65% | | | | 4.23% | |
| Consumer Staples | | | 1.16% | | | | 24.57% | | | | 9.73% | |
| | | |
| | | Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. |
| * | | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Value Fund | 7
Perkins Global Value Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2011
| | | | | |
Total S.A.
Oil Companies – Integrated | | | 2.8% | |
Vodafone Group PLC
Cellular Telecommunications | | | 2.5% | |
Johnson & Johnson
Medical Products | | | 2.5% | |
SK Telecom Co., Ltd.
Cellular Telecommunications | | | 2.4% | |
Microsoft Corp.
Applications Software | | | 2.3% | |
| | | | | |
| | | | 12.5% | |
Asset Allocation – (% of Net Assets)
As of March 31, 2011
Emerging markets comprised 4.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2011
8 | MARCH 31, 2011
(unaudited)
| | | | | | | | | | | | |
| | | | | | Expense Ratios –
|
| Average Annual Total Return – for the periods ended March 31, 2011 | | | | | per the January 28, 2011 prospectuses |
| | | Fiscal
| | One
| | Five
| | Since
| | | Total Annual Fund
|
| | | Year-to-Date | | Year | | Year | | Inception* | | | Operating Expenses |
| | | | | | | | | | | | |
| Perkins Global Value Fund – Class A Shares | | | | | | | | | | | |
| NAV | | 10.13% | | 10.22% | | 2.38% | | 5.74% | | | 1.40% |
| MOP | | 3.78% | | 3.86% | | 1.18% | | 5.10% | | | |
| | | | | | | | | | | | |
| Perkins Global Value Fund – Class C Shares | | | | | | | | | | | |
| NAV | | 9.94% | | 9.84% | | 1.67% | | 5.01% | | | 2.19% |
| CDSC | | 8.85% | | 8.76% | | 1.67% | | 5.01% | | | |
| | | | | | | | | | | | |
| Perkins Global Value Fund – Class D Shares(1) | | 10.45% | | 10.64% | | 2.64% | | 6.00% | | | 1.30% |
| | | | | | | | | | | | |
| Perkins Global Value Fund – Class I Shares | | 10.49% | | 10.30% | | 2.47% | | 5.91% | | | 1.28% |
| | | | | | | | | | | | |
| Perkins Global Value Fund – Class S Shares | | 10.25% | | 10.35% | | 2.42% | | 5.70% | | | 1.64% |
| | | | | | | | | | | | |
| Perkins Global Value Fund – Class T Shares | | 10.33% | | 10.52% | | 2.60% | | 5.98% | | | 1.38% |
| | | | | | | | | | | | |
| Morgan Stanley Capital International World IndexSM | | 14.18% | | 13.45% | | 2.08% | | 4.04% | | | |
| | | | | | | | | | | | |
| Morgan Stanley Capital International All Country World IndexSM | | 13.54% | | 14.08% | | 2.94% | | 4.88% | | | |
| | | | | | | | | | | | |
| Lipper Quartile – Class T Shares | | – | | 4th | | 2nd | | 1st | | | |
| | | | | | | | | | | | |
| Lipper Ranking – based on total return for Global Funds | | – | | 530/647 | | 157/354 | | 39/189 | | | |
| | | | | | | | | | | | |
| 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.
Janus Value Fund | 9
Perkins Global Value 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.
The expense information shown was determined based on net assets as of the fiscal period ended September 30, 2010. 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 undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 general and 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 invests 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 from 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.
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 respective class, 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 applicable 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, calculated using the fees and expenses in effect during the periods shown, net of any applicable 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. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
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 applicable 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.
10 | MARCH 31, 2011
(unaudited)
See Notes to Schedule 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 29, 2001 |
| (1) | | Closed to new investors. |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,101.30 | | | $ | 8.80 | | | |
| |
| |
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 C Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,099.40 | | | $ | 11.67 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,013.81 | | | $ | 11.20 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class D Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,104.50 | | | $ | 5.72 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.50 | | | $ | 5.49 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class I Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,104.90 | | | $ | 4.99 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.19 | | | $ | 4.78 | | | |
| |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
| Expense Example – Class S Shares | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,102.50 | | | $ | 7.39 | | | |
| |
| |
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 | | (10/1/10) | | (3/31/11) | | (10/1/10 - 3/31/11)† | | |
| |
| |
| Actual | | $ | 1,000.00 | | | $ | 1,103.30 | | | $ | 6.03 | | | |
| |
| |
Hypothetical
(5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.20 | | | $ | 5.79 | | | |
| |
| |
| | | |
| † | | Expenses are equal to the annualized expense ratio of 1.68% for Class A Shares, 2.23% for Class C Shares, 1.09% for Class D Shares, 0.95% for Class I Shares, 1.41% for Class S Shares and 1.15% for Class T Shares multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
Janus Value Fund | 11
Perkins Global Value Fund
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Common Stock – 87.3% | | | | | | |
| Aerospace and Defense – 0.7% | | | | | | |
| | 9,095 | | | General Dynamics Corp. | | $ | 696,313 | | | |
| Agricultural Chemicals – 0.7% | | | | | | |
| | 137,000 | | | Nitto FC Co., Ltd.** | | | 767,701 | | | |
| Applications Software – 2.3% | | | | | | |
| | 96,600 | | | Microsoft Corp. | | | 2,449,776 | | | |
| Beverages – Non-Alcoholic – 1.1% | | | | | | |
| | 17,255 | | | PepsiCo, Inc. | | | 1,111,395 | | | |
| Beverages – Wine and Spirits – 1.6% | | | | | | |
| | 85,331 | | | Diageo PLC | | | 1,621,924 | | | |
| Brewery – 1.1% | | | | | | |
| | 23,785 | | | Molson Coors Brewing Co. – Class B | | | 1,115,279 | | | |
| Cable Television – 0.7% | | | | | | |
| | 32,280 | | | Comcast Corp. | | | 749,542 | | | |
| Cellular Telecommunications – 5.8% | | | | | | |
| | 24,235 | | | Rogers Communications, Inc. | | | 881,182 | | | |
| | 16,895 | | | SK Telecom Co., Ltd. | | | 2,518,768 | | | |
| | 938,986 | | | Vodafone Group PLC | | | 2,658,331 | | | |
| | | | | | | | 6,058,281 | | | |
| Commercial Banks – 3.3% | | | | | | |
| | 61,735 | | | Firstmerit Corp. | | | 1,053,199 | | | |
| | 82,890 | | | Glacier Bancorp, Inc. | | | 1,247,494 | | | |
| | 18,970 | | | Hancock Holding Co. | | | 622,975 | | | |
| | 33,260 | | | TCF Financial Corp. | | | 527,504 | | | |
| | | | | | | | 3,451,172 | | | |
| Commercial Services – Finance – 3.0% | | | | | | |
| | 5,615 | | | Global Payments, Inc. | | | 274,686 | | | |
| | 2,660 | | | MasterCard, Inc. – Class A | | | 669,575 | | | |
| | 12,835 | | | Visa, Inc. – Class A | | | 944,913 | | | |
| | 58,170 | | | Western Union Co. | | | 1,208,191 | | | |
| | | | | | | | 3,097,365 | | | |
| Computers – 0.6% | | | | | | |
| | 14,655 | | | Hewlett-Packard Co. | | | 600,415 | | | |
| Cosmetics and Toiletries – 1.0% | | | | | | |
| | 16,165 | | | Procter & Gamble Co. | | | 995,764 | | | |
| Electric – Integrated – 2.6% | | | | | | |
| | 19,460 | | | Constellation Energy Group, Inc. | | | 605,790 | | | |
| | 19,817 | | | E.ON A.G.** | | | 605,136 | | | |
| | 8,495 | | | Entergy Corp. | | | 570,949 | | | |
| | 16,619 | | | GDF Suez** | | | 677,034 | | | |
| | 12,025 | | | PPL Corp. | | | 304,232 | | | |
| | | | | | | | 2,763,141 | | | |
| Electric Products – Miscellaneous – 0.7% | | | | | | |
| | 26,300 | | | Icom, Inc.** | | | 774,515 | | | |
| Electronic Connectors – 1.8% | | | | | | |
| | 17,400 | | | Hirose Electric Co., Ltd.** | | | 1,874,747 | | | |
| Electronic Measuring Instruments – 1.2% | | | | | | |
| | 78,200 | | | Cosel Co., Ltd.** | | | 1,206,477 | | | |
| Food – Dairy Products – 0.5% | | | | | | |
| | 163,415 | | | Parmalat SpA** | | | 547,403 | | | |
| Food – Miscellaneous/Diversified – 4.5% | | | | | | |
| | 14,187 | | | Groupe Danone** | | | 926,642 | | | |
| | 37,249 | | | Nestle S.A. | | | 2,135,874 | | | |
| | 53,629 | | | Unilever N.V.** | | | 1,681,321 | | | |
| | | | | | | | 4,743,837 | | | |
| Food – Retail – 2.2% | | | | | | |
| | 14,340 | | | Carrefour S.A.** | | | 634,787 | | | |
| | 269,774 | | | Tesco PLC | | | 1,648,657 | | | |
| | | | | | | | 2,283,444 | | | |
| Human Resources – 1.0% | | | | | | |
| | 1,237 | | | Pasona Group, Inc.** | | | 1,054,633 | | | |
| Insurance Brokers – 0.6% | | | | | | |
| | 16,250 | | | Willis Group Holdings, Ltd.** | | | 655,850 | | | |
| Internet Security – 0.5% | | | | | | |
| | 29,580 | | | Symantec Corp.* | | | 548,413 | | | |
| Machinery – Pumps – 0.3% | | | | | | |
| | 40,000 | | | Tsurumi Manufacturing Co., Ltd.** | | | 302,549 | | | |
| Medical – Biomedical and Genetic – 1.2% | | | | | | |
| | 24,135 | | | Amgen, Inc.* | | | 1,290,016 | | | |
| Medical – Drugs – 9.2% | | | | | | |
| | 48,770 | | | Abbott Laboratories | | | 2,392,169 | | | |
| | 101,875 | | | GlaxoSmithKline PLC | | | 1,943,737 | | | |
| | 31,718 | | | Novartis A.G. | | | 1,720,966 | | | |
| | 41,330 | | | Pfizer, Inc. | | | 839,412 | | | |
| | 10,190 | | | Roche Holding A.G. | | | 1,456,031 | | | |
| | 18,694 | | | Sanofi-Aventis S.A.** | | | 1,310,556 | | | |
| | | | | | | | 9,662,871 | | | |
| Medical – HMO – 0.8% | | | | | | |
| | 12,535 | | | WellPoint, Inc. | | | 874,818 | | | |
| Medical Instruments – 3.9% | | | | | | |
| | 62,800 | | | As One Corp.** | | | 1,325,325 | | | |
| | 23,700 | | | Fukuda Denshi Co., Ltd.** | | | 731,006 | | | |
| | 590 | | | Medikit Co., Ltd.** | | | 177,014 | | | |
| | 47,725 | | | Medtronic, Inc. | | | 1,877,979 | | | |
| | | | | | | | 4,111,324 | | | |
| Medical Products – 4.0% | | | | | | |
| | 17,075 | | | Baxter International, Inc. | | | 918,123 | | | |
| | 12,338 | | | Covidien PLC (U.S. Shares)** | | | 640,836 | | | |
| | 44,045 | | | Johnson & Johnson | | | 2,609,666 | | | |
| | | | | | | | 4,168,625 | | | |
| Metal Products – Distributors – 0.7% | | | | | | |
| | 82,400 | | | Furusato Industries, Ltd.** | | | 741,164 | | | |
| Metal Products – Fasteners – 0.8% | | | | | | |
| | 69,800 | | | Kitagawa Industries Co., Ltd.** | | | 856,972 | | | |
| Miscellaneous Manufacturing – 0.3% | | | | | | |
| | 30,200 | | | Mirai Industry Co., Ltd.** | | | 350,082 | | | |
| Multi-Line Insurance – 1.8% | | | | | | |
| | 29,125 | | | Old Republic International Corp. | | | 369,596 | | | |
| | 47,700 | | | Unitrin, Inc. | | | 1,472,976 | | | |
| | | | | | | | 1,842,572 | | | |
| Multimedia – 0.3% | | | | | | |
| | 8,460 | | | Time Warner, Inc. | | | 302,022 | | | |
| Networking Products – 0.7% | | | | | | |
| | 41,835 | | | Cisco Systems, Inc. | | | 717,470 | | | |
| | | | | | | | | | | |
See Notes to Schedule of Investments and Financial Statements.
12 | MARCH 31, 2011
Schedule of Investments (unaudited)
As of March 31, 2011
| | | | | | | | | | | |
| Shares or Principal Amount | | Value | | | |
| |
| Oil Companies – Exploration and Production – 0.5% | | | | | | |
| | 6,190 | | | Devon Energy Corp. | | $ | 568,056 | | | |
| Oil Companies – Integrated – 3.3% | | | | | | |
| | 10,790 | | | BP PLC (ADR) | | | 476,271 | | | |
| | 48,263 | | | Total S.A.** | | | 2,937,620 | | | |
| | | | | | | | 3,413,891 | | | |
| Property and Casualty Insurance – 2.0% | | | | | | |
| | 320,000 | | | NKSJ Holdings, Inc.** | | | 2,089,466 | | | |
| Protection – Safety – 1.2% | | | | | | |
| | 40,900 | | | Secom Joshinetsu Co., Ltd.** | | | 1,229,557 | | | |
| Publishing – Books – 1.2% | | | | | | |
| | 30,240 | | | Daekyo Co., Ltd. | | | 164,890 | | | |
| | 120,756 | | | Reed Elsevier PLC | | | 1,045,943 | | | |
| | | | | | | | 1,210,833 | | | |
| Real Estate Operating/Development – 0.8% | | | | | | |
| | 35,470 | | | St. Joe Co.* | | | 889,233 | | | |
| REIT – Mortgage – 0.6% | | | | | | |
| | 36,365 | | | Annaly Mortgage Management, Inc. | | | 634,569 | | | |
| Retail – Apparel and Shoe – 0.5% | | | | | | |
| | 114,151 | | | Esprit Holdings, Ltd. | | | 523,918 | | | |
| Retail – Discount – 2.3% | | | | | | |
| | 45,455 | | | Wal-Mart Stores, Inc. | | | 2,365,933 | | | |
| Retail – Drug Store – 1.2% | | | | | | |
| | 36,640 | | | CVS Caremark Corp. | | | 1,257,485 | | | |
| Savings/Loan/Thrifts – 2.8% | | | | | | |
| | 7,240 | | | Capitol Federal Financial | | | 81,595 | | | |
| | 13,965 | | | First Niagara Financial Group, Inc. | | | 189,645 | | | |
| | 26,290 | | | Investors Bancorp, Inc.* | | | 391,458 | | | |
| | 15,065 | | | NewAlliance Bancshares, Inc. | | | 223,564 | | | |
| | 118,270 | | | Washington Federal, Inc. | | | 2,050,802 | | | |
| | | | | | | | 2,937,064 | | | |
| Schools – 0.5% | | | | | | |
| | 146,600 | | | Shingakukai Co., Ltd.** | | | 544,726 | | | |
| Seismic Data Collection – 0.3% | | | | | | |
| | 117,615 | | | Pulse Seismic, Inc.* | | | 283,965 | | | |
| Soap and Cleaning Preparations – 0.2% | | | | | | |
| | 112,105 | | | McBride PLC | | | 255,789 | | | |
| Telephone – Integrated – 2.2% | | | | | | |
| | 76,265 | | | AT&T, Inc. | | | 2,333,709 | | | |
| Tobacco – 4.9% | | | | | | |
| | 40,210 | | | British American Tobacco PLC | | | 1,613,714 | | | |
| | 50,923 | | | Imperial Tobacco Group PLC | | | 1,573,987 | | | |
| | 33,668 | | | KT&G Corp. | | | 1,752,934 | | | |
| | 2,775 | | | Philip Morris International, Inc. | | | 182,123 | | | |
| | | | | | | | 5,122,758 | | | |
| Transportation – Services – 1.0% | | | | | | |
| | 40,180 | | | TNT N.V.** | | | 1,030,519 | | | |
| Wire and Cable Products – 0.3% | | | | | | |
| | 99,000 | | | Nichia Steel Works, Ltd.** | | | 280,952 | | | |
| |
| |
| Total Common Stock (cost��$80,878,800) | | | 91,360,295 | | | |
| |
| |
| Repurchase Agreement – 12.5% | | | | | | |
| | $13,112,000 | | | ING Financial Markets LLC
0.1000%, dated 3/31/11
maturing 4/1/11
to be repurchased at $13,112,036
collateralized by $13,382,461
in U.S. Treasuries
0.0000%, 4/7/11 – 2/9/12
with a value of $13,374,527 (cost $13,112,000) | | | 13,112,000 | | | |
| |
| |
| Total Investments (total cost $93,990,800) – 99.8% | | | 104,472,295 | | | |
| |
| |
| Cash, Receivables and Other Assets, net of Liabilities – 0.2% | | | 190,036 | | | |
| |
| |
| Net Assets – 100% | | $ | 104,662,331 | | | |
| |
| |
Summary of Investments by Country – (Long Positions)
| | | | | | | | | |
| | | | | | % of Investment
| |
| Country | | Value | | | Securities | |
| |
| |
| Bermuda | | $ | 523,918 | | | | 0.5% | |
| Canada | | | 1,165,147 | | | | 1.1% | |
| France | | | 6,486,639 | | | | 6.2% | |
| Germany | | | 605,136 | | | | 0.6% | |
| Ireland | | | 1,296,686 | | | | 1.2% | |
| Italy | | | 547,403 | | | | 0.5% | |
| Japan | | | 14,306,886 | | | | 13.7% | |
| Netherlands | | | 2,711,840 | | | | 2.6% | |
| South Korea | | | 4,436,592 | | | | 4.3% | |
| Switzerland | | | 5,312,871 | | | | 5.1% | |
| United Kingdom | | | 12,838,353 | | | | 12.3% | |
United States†† | | | 54,240,824 | | | | 51.9% | |
| |
| |
| Total | | $ | 104,472,295 | | | | 100.0% | |
| | | |
| †† | | Includes Cash Equivalents (39.4% excluding Cash Equivalents). Cash equivalents include investments in overnight repurchase agreements. |
Forward Currency Contracts, Open
| | | | | | | | | | | | | |
| | | | | | | | | Unrealized
| |
| | | Currency
| | | Currency
| | | Appreciation/
| |
| Counterparty/Currency Sold and Settlement Date | | Units Sold | | | Value U.S. $ | | | (Depreciation) | |
| | |
Credit Suisse Securities (USA) LLC:
Japanese Yen 5/6/11 | | | 400,000,000 | | | $ | 4,810,983 | | | $ | 77,021 | |
HSBC Securities (USA), Inc.:
Japanese Yen 5/12/11 | | | 313,000,000 | | | | 3,764,757 | | | | 78,014 | |
JPMorgan Chase & Co.:
Euro 4/28/11 | | | 3,550,000 | | | | 5,027,881 | | | | (189,439) | |
| |
| |
| Total | | | | | | $ | 13,603,621 | | | $ | (34,404) | |
See Notes to Schedule of Investments and Financial Statements.
Janus Value Fund | 13
Statement of Assets and Liabilities
| | | | | |
As of March 31, 2011 (unaudited)
| | Perkins Global
|
| (all numbers in thousands except net asset value per share) | | Value Fund |
|
| |
| Assets: | | | | |
| Investments at cost | | $ | 93,991 | |
| Investments at value | | $ | 91,360 | |
| Repurchase agreements | | | 13,112 | |
| Cash | | | – | |
Cash denominated in foreign currency(1) | | | 3 | |
| Receivables: | | | | |
| Investments sold | | | 838 | |
| Fund shares sold | | | 17 | |
| Dividends | | | 543 | |
| Foreign dividend tax reclaim | | | 81 | |
| Interest | | | – | |
| Non-interested Trustees’ deferred compensation | | | 3 | |
| Other assets | | | 12 | |
| Forward currency contracts | | | 155 | |
| Total Assets | | | 106,124 | |
| Liabilities: | | | | |
| Payables: | | | | |
| Investments purchased | | | 1,055 | |
| Fund shares repurchased | | | 53 | |
| Dividends | | | – | |
| Advisory fees | | | 57 | |
| Administrative services fees | | | 13 | |
| Distribution fees and shareholder servicing fees | | | – | |
| Administrative, networking and omnibus fees | | | – | |
| Non-interested Trustees’ fees and expenses | | | 1 | |
| Non-interested Trustees’ deferred compensation fees | | | 3 | |
| Accrued expenses and other payables | | | 91 | |
| Forward currency contracts | | | 189 | |
| Total Liabilities | | | 1,462 | |
| Net Assets | | $ | 104,662 | |
See footnotes at the end of the Statement.
See Notes to Financial Statements.
14 | MARCH 31, 2011
| | | | | |
As of March 31, 2011 (unaudited)
| | Perkins Global
|
| (all numbers in thousands except net asset value per share) | | Value Fund |
|
| |
| Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus)* | | $ | 93,800 | |
| Undistributed net investment income* | | | 24 | |
| Undistributed net realized gain from investment and foreign currency transactions* | | | 380 | |
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 10,458 | |
| Total Net Assets | | $ | 104,662 | |
| Net Assets - Class A Shares | | $ | 182 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 15 | |
Net Asset Value Per Share(2) | | $ | 12.55 | |
Maximum Offering Price Per Share(3) | | $ | 13.32 | |
| Net Assets - Class C Shares | | $ | 68 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5 | |
Net Asset Value Per Share(2) | | $ | 12.47 | |
| Net Assets - Class D Shares | | $ | 78,117 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,202 | |
| Net Asset Value Per Share | | $ | 12.60 | |
| Net Assets - Class I Shares | | $ | 4,313 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 347 | |
| Net Asset Value Per Share | | $ | 12.42 | |
| Net Assets - Class S Shares | | $ | 489 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 39 | |
| Net Asset Value Per Share | | $ | 12.63 | |
| Net Assets - Class T Shares | | $ | 21,493 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,707 | |
| Net Asset Value Per Share | | $ | 12.59 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Includes cost of $2,993. |
| (2) | | Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
| (3) | | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Value Fund | 15
Statement of Operations
| | | | | |
For the six-month period ended March 31, 2011 (unaudited)
| | Perkins Global
|
| (all numbers in thousands) | | Value Fund |
|
| |
| Investment Income: | | | | |
| Interest | | $ | 14 | |
| Dividends | | | 1,456 | |
| Foreign tax withheld | | | (86) | |
| Total Investment Income | | | 1,384 | |
| Expenses: | | | | |
| Advisory fees | | | 327 | |
| Shareholder reports expense | | | 36 | |
| Transfer agent fees and expenses | | | 26 | |
| Registration fees | | | 50 | |
| Custodian fees | | | 9 | |
| Professional fees | | | 18 | |
| Non-interested Trustees’ fees and expenses | | | 2 | |
| Administrative services fees - Class D Shares | | | 46 | |
| Administrative services fees - Class S Shares | | | 1 | |
| Administrative services fees - Class T Shares | | | 27 | |
| Distribution fees and shareholder servicing fees - Class A Shares | | | – | |
| Distribution fees and shareholder servicing fees - Class C Shares | | | – | |
| Distribution fees and shareholder servicing fees - Class S Shares | | | 1 | |
| Administrative, networking and omnibus fees - Class A Shares | | | 1 | |
| Administrative, networking and omnibus fees - Class C Shares | | | – | |
| Administrative, networking and omnibus fees - Class I Shares | | | 1 | |
| Other expenses | | | 19 | |
| Non-recurring costs (Note 4) | | | – | |
| Costs assumed by Janus Capital Management LLC (Note 4) | | | – | |
| Total Expenses | | | 564 | |
| Expense and Fee Offset | | | – | |
| Net Expenses | | | 564 | |
| Net Investment Income | | | 820 | |
| Net Realized and Unrealized Gain/(Loss) on Investments: | | | | |
| Net realized gain from investment and foreign currency transactions | | | 5,566 | |
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 3,708 | |
| Net Gain on Investments | | | 9,274 | |
| Net Increase in Net Assets Resulting from Operations | | $ | 10,094 | |
See Notes to Financial Statements.
16 | MARCH 31, 2011
Statements of Changes in Net Assets
| | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited),
| | | | | | |
the eleven-month fiscal period ended September 30, 2010
| | Perkins Global
|
and the fiscal year ended October 31, 2009
| | Value Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009 |
|
| |
| Operations: | | | | | | | | | | | | |
| Net investment income | | $ | 820 | | | $ | 2,287 | | | $ | 893 | |
| Net realized gain/(loss) from investment and foreign currency transactions | | | 5,566 | | | | 2,088 | | | | (6,125) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and
non-interested Trustees’ deferred compensation | | | 3,708 | | | | 2,954 | | | | 26,251 | |
| Net Increase in Net Assets Resulting from Operations | | | 10,094 | | | | 7,329 | | | | 21,019 | |
| Dividends and Distributions to Shareholders: | | | | | | | | | | | | |
| Net Investment Income* | | | | | | | | | | | | |
| Class A Shares | | | (3) | | | | (3) | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | |
| Class D Shares | | | (1,622) | | | | – | | | | N/A | |
| Class I Shares | | | (74) | | | | (9) | | | | – | |
| Class S Shares | | | (12) | | | | – | | | | – | |
| Class T Shares | | | (423) | | | | (1,322) | | | | (1,167) | |
| Net Realized Gain/(Loss) from Investment Transactions* | | | | | | | | | | | | |
| Class A Shares | | | – | | | | – | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | |
| Class D Shares | | | – | | | | – | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | – | |
| Class S Shares | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | – | | | | (5,568) | |
| Net Decrease from Dividends and Distributions | | | (2,134) | | | | (1,334) | | | | (6,735) | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Value Fund | 17
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited),
| | | | | | |
the eleven-month fiscal period ended September 30, 2010
| | Perkins Global
|
and the fiscal year ended October 31, 2009
| | Value Fund |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009 |
|
| |
| Capital Share Transactions: | | | | | | | | | | | | |
| Shares Sold | | | | | | | | | | | | |
| Class A Shares | | | 102 | | | | 369 | | | | 16 | |
| Class C Shares | | | 50 | | | | 3 | | | | 13 | |
| Class D Shares | | | 3,108 | | | | 3,103 | | | | N/A | |
| Class I Shares | | | 1,850 | | | | 2,581 | | | | 574 | |
| Class S Shares | | | 81 | | | | 685 | | | | 16 | |
| Class T Shares | | | 1,270 | | | | 5,383 | | | | 8,308 | |
| Shares Issued in Connection with Restructuring (Note 8) | | | | | | | | | | | | |
| Class D Shares | | | N/A | | | | 76,508 | | | | N/A | |
| Redemption Fees | | | | | | | | | | | | |
| Class D Shares | | | 1 | | | | 3 | | | | N/A | |
| Class I Shares | | | – | | | | – | | | | – | |
| Class S Shares | | | – | | | | – | | | | – | |
| Class T Shares | | | – | | | | 1 | | | | 7 | |
| Reinvested Dividends and Distributions | | | | | | | | | | | | |
| Class A Shares | | | 3 | | | | 3 | | | | – | |
| Class C Shares | | | – | | | | – | | | | – | |
| Class D Shares | | | 1,596 | | | | – | | | | N/A | |
| Class I Shares | | | 71 | | | | – | | | | – | |
| Class S Shares | | | 12 | | | | – | | | | – | |
| Class T Shares | | | 415 | | | | 1,300 | | | | 6,620 | |
| Shares Repurchased | | | | | | | | | | | | |
| Class A Shares | | | (96) | | | | (225) | | | | – | |
| Class C Shares | | | – | | | | (2) | | | | – | |
| Class D Shares | | | (7,124) | | | | (8,171) | | | | N/A | |
| Class I Shares | | | (519) | | | | (640) | | | | (4) | |
| Class S Shares | | | (305) | | | | (61) | | | | (6) | |
| Class T Shares | | | (2,751) | | | | (10,406) | | | | (16,436) | |
| Shares Reorganized in Connection with Restructuring (Note 8) | | | | | | | | | | | | |
| Class T Shares | | | N/A | | | | (76,508) | | | | N/A | |
| Net Decrease from Capital Share Transactions | | | (2,236) | | | | (6,074) | | | | (892) | |
| Net Increase/(Decrease) in Net Assets | | | 5,724 | | | | (79) | | | | 13,392 | |
| Net Assets: | | | | | | | | | | | | |
| Beginning of period | | | 98,938 | | | | 99,017 | | | | 85,625 | |
| End of period | | $ | 104,662 | | | $ | 98,938 | | | $ | 99,017 | |
| | | | | | | | | | | | | |
| Undistributed Net Investment Income | | $ | 24 | | | $ | 1,337 | | | $ | 413 | |
| | | |
| * | | See Note 5 in Notes to Financial Statements. |
| (1) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
See Notes to Financial Statements.
18 | MARCH 31, 2011
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the
| | | | | | | | |
six-month period ended March 31, 2011
| | | | | | | | |
(unaudited), the eleven-month fiscal period ended September 30, 2010
| | Perkins Global Value Fund | | |
| and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $11.60 | | | | $10.90 | | | | $9.44 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income | | | .09 | | | | .19 | | | | .06 | | | |
| Net gain on investments (both realized and unrealized) | | | 1.08 | | | | .68 | | | | 1.40 | | | |
| Total from Investment Operations | | | 1.17 | | | | .87 | | | | 1.46 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.22) | | | | (.17) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.22) | | | | (.17) | | | | – | | | |
| Net Asset Value, End of Period | | | $12.55 | | | | $11.60 | | | | $10.90 | | | |
| Total Return** | | | 10.13% | | | | 8.08% | | | | 15.47% | | | |
| Net Assets, End of Period (in thousands) | | | $182 | | | | $160 | | | | $16 | | | |
| Average Net Assets for the Period (in thousands) | | | $165 | | | | $189 | | | | $6 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.68% | | | | 1.40% | | | | 0.93% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.68% | | | | 1.40% | | | | 0.84% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 1.06% | | | | 2.45% | | | | 0.50% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 54% | | | | 62% | | | |
Class C Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the
| | | | | | | | |
six-month period ended March 31, 2011
| | | | | | | | |
(unaudited), the eleven-month fiscal period ended September 30, 2010
| | Perkins Global Value Fund |
| and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $11.52 | | | | $10.92 | | | | $9.44 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income | | | .16 | | | | .16 | | | | .03 | | | |
| Net gain on investments (both realized and unrealized) | | | .98 | | | | .60 | | | | 1.45 | | | |
| Total from Investment Operations | | | 1.14 | | | | .76 | | | | 1.48 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.19) | | | | (.16) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.19) | | | | (.16) | | | | – | | | |
| Net Asset Value, End of Period | | | $12.47 | | | | $11.52 | | | | $10.92 | | | |
| Total Return** | | | 9.94% | | | | 7.03% | | | | 15.68% | | | |
| Net Assets, End of Period (in thousands) | | | $68 | | | | $15 | | | | $13 | | | |
| Average Net Assets for the Period (in thousands) | | | $35 | | | | $13 | | | | $3 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 2.23% | | | | 1.92% | | | | 1.79% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 2.23% | | | | 1.91% | | | | 1.63% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 1.32% | | | | 1.62% | | | | 0.31% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 54% | | | | 62% | | | |
| | | |
| * | | 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 September 30, 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 ‘Explanations of Charts, Tables and Financial Statements.‘ |
See Notes to Financial Statements.
Janus Value Fund | 19
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | | |
For a share outstanding during the
| | Perkins Global
|
six-month period ended March 31, 2011
| | Value Fund |
| (unaudited) and the fiscal period ended September 30, 2010 | | 2011 | | 2010(1) | | |
| |
| Net Asset Value, Beginning of Period | | | $11.65 | | | | $11.16 | | | |
| Income from Investment Operations: | | | | | | | | | | |
| Net investment income | | | .10 | | | | .19 | | | |
| Net gain on investments (both realized and unrealized) | | | 1.11 | | | | .30 | | | |
| Total from Investment Operations | | | 1.21 | | | | .49 | | | |
| Less Distributions and Other: | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.26) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | |
| Redemption fees | | | –(2) | | | | –(2) | | | |
| Total Distributions and Other | | | (.26) | | | | – | | | |
| Net Asset Value, End of Period | | | $12.60 | | | | $11.65 | | | |
| Total Return** | | | 10.45% | | | | 4.39% | | | |
| Net Assets, End of Period (in thousands) | | | $78,117 | | | | $74,552 | | | |
| Average Net Assets for the Period (in thousands) | | | $77,075 | | | | $74,175 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.09% | | | | 1.30% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.09% | | | | 1.30% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 1.61% | | | | 2.61% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 54% | | | |
Class I Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the
| | | | | | | | |
six-month period ended March 31, 2011 (unaudited),
| | | | | | | | |
the eleven-month fiscal period ended September 30, 2010
| | Perkins Global Value Fund | | |
| and the fiscal period ended October 31, 2009 | | 2011 | | 2010(4) | | 2009(5) | | |
| |
| Net Asset Value, Beginning of Period | | | $11.52 | | | | $10.92 | | | | $9.44 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income | | | .18 | | | | .16 | | | | .02 | | | |
| Net gain on investments (both realized and unrealized) | | | 1.02 | | | | .61 | | | | 1.46 | | | |
| Total from Investment Operations | | | 1.20 | | | | .77 | | | | 1.48 | | | |
| Less Distributions: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.30) | | | | (.17) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Total Distributions | | | (.30) | | | | (.17) | | | | – | | | |
| Net Asset Value, End of Period | | | $12.42 | | | | $11.52 | | | | $10.92 | | | |
| Total Return** | | | 10.49% | | | | 7.15% | | | | 15.68% | | | |
| Net Assets, End of Period (in thousands) | | | $4,313 | | | | $2,675 | | | | $562 | | | |
| Average Net Assets for the Period (in thousands) | | | $3,343 | | | | $600 | | | | $58 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.95% | | | | 1.28% | | | | 0.85% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.95% | | | | 1.27% | | | | 0.54% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 2.03% | | | | 1.33% | | | | (0.10)% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 54% | | | | 62% | | | |
| | | |
| * | | 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 September 30, 2010. Please see Note 8 regarding the restructuring of former Class J Shares. |
| (2) | | Redemption fees aggregated less than $.01 on a per share basis. |
| (3) | | See ‘Explanations of Charts, Tables and Financial Statements.‘ |
| (4) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
| (5) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
20 | MARCH 31, 2011
Class S Shares
| | | | | | | | | | | | | | | |
For a share outstanding during the
| | | | | | | | |
six-month period ended March 31, 2011
| | | | | | | | |
(unaudited), the eleven-month fiscal period ended September 30, 2010
| | Perkins Global Value Fund | | |
| and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Net Asset Value, Beginning of Period | | | $11.67 | | | | $11.02 | | | | $9.44 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | |
| Net investment income | | | .08 | | | | .18 | | | | .16 | | | |
| Net gain on investments (both realized and unrealized) | | | 1.11 | | | | .64 | | | | 1.25 | | | |
| Total from Investment Operations | | | 1.19 | | | | .82 | | | | 1.41 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.23) | | | | (.17) | | | | – | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | – | | | | .17 | | | |
| Total Distributions and Other | | | (.23) | | | | (.17) | | | | .17 | | | |
| Net Asset Value, End of Period | | | $12.63 | | | | $11.67 | | | | $11.02 | | | |
| Total Return** | | | 10.25% | | | | 7.51% | | | | 16.74% | | | |
| Net Assets, End of Period (in thousands) | | | $489 | | | | $653 | | | | $11 | | | |
| Average Net Assets for the Period (in thousands) | | | $613 | | | | $439 | | | | $9 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.41% | | | | 1.64% | | | | 1.13% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.41% | | | | 1.64% | | | | 1.09% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 1.07% | | | | 2.34% | | | | 1.10% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 54% | | | | 62% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the
| | | | | | | | | | | | | | | | |
six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | |
(unaudited), the eleven-month fiscal period ended
| | | | | | | | | | | | | | | | |
September 30, 2010 and each fiscal year ended
| | Perkins Global Value Fund |
| October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | | |
| |
| Net Asset Value, Beginning of Period | | | $11.64 | | | | $10.95 | | | | $9.36 | | | | $17.21 | | | | $15.32 | | | | $13.91 | | | | $12.93 | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .10 | | | | .18 | | | | .23 | | | | .15 | | | | .07 | | | | .10 | | | | .10 | | | |
| Net gain/(loss) on investments (both realized and unrealized) | | | 1.09 | | | | .66 | | | | 2.11 | | | | (7.26) | | | | 4.13 | | | | 1.42 | | | | .91 | | | |
| Total from Investment Operations | | | 1.19 | | | | .84 | | | | 2.34 | | | | (7.11) | | | | 4.20 | | | | 1.52 | | | | 1.01 | | | |
| Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income)* | | | (.24) | | | | (.15) | | | | (.13) | | | | (.27) | | | | (.09) | | | | (.11) | | | | (.03) | | | |
| Distributions (from capital gains)* | | | – | | | | – | | | | (.62) | | | | (.48) | | | | (2.22) | | | | – | | | | – | | | |
| Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | .01 | | | | –(3) | | | | –(3) | | | | –(3) | | | |
| Total Distributions and Other | | | (.24) | | | | (.15) | | | | (.75) | | | | (.74) | | | | (2.31) | | | | (.11) | | | | (.03) | | | |
| Net Asset Value, End of Period | | | $12.59 | | | | $11.64 | | | | $10.95 | | | | $9.36 | | | | $17.21 | | | | $15.32 | | | | $13.91 | | | |
| Total Return** | | | 10.33% | | | | 7.70% | | | | 27.37% | | | | (42.89)% | | | | 30.59% | | | | 10.96% | | | | 7.78% | | | |
| Net Assets, End of Period (in thousands) | | | $21,493 | | | | $20,883 | | | | $98,415 | | | | $85,625 | | | | $188,616 | | | | $145,667 | | | | $177,560 | | | |
| Average Net Assets for the Period (in thousands) | | | $21,334 | | | | $48,157 | | | | $84,893 | | | | $136,813 | | | | $162,723 | | | | $161,256 | | | | $218,871 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.15% | | | | 1.09% | | | | 1.31% | | | | 1.25% | | | | 1.07% | | | | 1.17%(5) | | | | 1.03% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.15% | | | | 1.09% | | | | 1.30% | | | | 1.24% | | | | 1.06% | | | | 1.15% | | | | 1.02% | | | |
| Ratio of Net Investment Income to Average Net Assets*** | | | 1.54% | | | | 2.41% | | | | 1.05% | | | | 0.70% | | | | 0.43% | | | | 0.57% | | | | 0.62% | | | |
| Portfolio Turnover Rate*** | | | 66% | | | | 54% | | | | 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) | | Period from November 1, 2009 through September 30, 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 ‘Explanations of Charts, Tables and Financial Statements.‘ |
| (5) | | 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%. |
See Notes to Financial Statements.
Janus Value Fund | 21
Notes to Schedule 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. |
| |
| 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 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. |
| |
| 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 |
| |
| PLC | | Public Limited Company |
| |
| REIT | | Real Estate Investment Trust |
| |
| U.S. Shares | | Securities of foreign companies trading on an American Stock Exchange. |
| | | |
| * | | 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. |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2011)
| | | | | | | | | | | | |
| | | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
| |
Investments in Securities: | | | | | | | | | | | |
| Perkins Global Value Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
| Oil Companies – Integrated | | $ | 2,937,620 | | $ | 476,271 | | $ | – | | |
| All Other | | | 87,946,404 | | | – | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Repurchase Agreement | | | – | | | 13,112,000 | | | – | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Investments in Securities | | $ | 90,884,024 | | $ | 13,588,271 | | $ | – | | |
| |
| |
Other Financial Instruments(b): | | $ | – | | $ | (34,404) | | $ | – | | |
| |
| |
| | | |
| (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. |
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, 2011 is noted below.
| | | | | | |
| Fund | | Aggregate Value | | |
| |
| |
| Perkins Global Value Fund | | $ | 25,954,590 | | |
| |
| |
Repurchase agreements held by a Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
22 | MARCH 31, 2011
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 |
Perkins Global Value Fund is a series fund. The Fund is 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 financial statements include information for the six-month period ended March 31, 2011. The Trust offers thirty-nine funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in equity securities. The Fund is classified as diversified, as defined in the 1940 Act.
The 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. The Shares are available only to investors who hold accounts directly with the Janus funds 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 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, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America 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 (“OTC”) 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 Fund’s 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 Fund 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 Fund’s 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
Janus Value Fund | 23
Notes to Financial Statements (unaudited) (continued)
disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a non-valued security and a restricted or non-public security. The Fund 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 Fund’s 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
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the 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 Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income.
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 equity 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 Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Fund may be automatically reinvested into additional shares of the Fund, based on the discretion of the shareholder.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Fund intends to distribute to shareholders all taxable investment income and realized gains and otherwise complies with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Fund adopted the provisions of “Income Taxes.” These provisions require an evaluation
24 | MARCH 31, 2011
of tax positions taken (or expected to be taken) in the course of preparing the 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 Fund recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statement of Operations.
These provisions require management of the Fund 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 period ended March 31, 2011, the Fund did not have a liability for any unrecognized tax benefits. The Fund has no examinations in progress and is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Valuation Inputs Summary
In accordance with FASB guidance, the Fund utilizes the “Fair Value Measurements” 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 Fund’s 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.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC 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 Fund’s Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that are categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), warrants, swaps, investments in mutual funds, OTC options, and forward contracts. The Fund 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. These are generally categorized as Level 2 in the hierarchy.
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.
For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under the FASB Guidance. These are categorized as Level 3 in the hierarchy.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for 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, 2011 to value the Fund’s 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 Schedule 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
Janus Value Fund | 25
Notes to Financial Statements (unaudited) (continued)
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 Schedule of Investments. Management believes applying this guidance does not have a material impact on the financial statements.
The Fund adopted FASB Accounting Standards Update “Fair Value Measurements and Disclosures” (the “Update”). This Update applies to the Fund’s disclosures about transfers in and out of Level 1 and Level 2 of the fair value hierarchy and the reasons for the transfers. Disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy are summarized under the Level 2 and Level 3 categories listed above.
The following table shows transfers between Level 1 and Level 2 of the fair value hierarchy during the period ended March 31, 2011.
| | | | | | | | | | | |
| | | Transfers In
| | | Transfers Out
| | | |
| | | Level 1 to
| | | Level 2
| | | |
| Fund | | Level 2 | | | to Level 1 | | | |
| |
| |
| Perkins Global Value Fund | | $ | – | | | $ | 38,483,234 | | | |
| |
| |
Financial assets were transferred from Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the beginning of the fiscal year and no factor was applied at the end of the period.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
| |
| 2. | Derivative Instruments |
The Fund may invest in various types of derivatives which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2011 is discussed in further detail below. A summary of derivative activity is reflected in the tables at the end of this section.
The Fund 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 Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the cost of the derivative. The Fund may not use any derivative to gain exposure to an asset or class of assets prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives are generally subject to equity risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk.
Derivatives may generally be traded 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 credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. 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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| | |
| | • | Counterparty Risk – Counterparty risk is the risk that the counterparty or a third party will not fulfill its obligation to the Fund. |
26 | MARCH 31, 2011
| | |
| | • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. |
| |
| | • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. |
| |
| | • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. |
| |
| | • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. |
| |
| | • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease, and vice versa. |
| |
| | • | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested. |
| |
| | • | Liquidity Risk – Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth. |
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 Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Fund is subject to currency risk in the normal course of pursuing its investment objective through its 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 Statement of Operations (if applicable).
Forward currency contracts held by the Fund are fully collateralized by other securities, which are denoted on the accompanying Schedule 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 Fund’s custodian.
In accordance with FASB guidance, the Fund 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.
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2011.
Janus Value Fund | 27
Notes to Financial Statements (unaudited) (continued)
Fair Value of Derivative Instruments as of March 31, 2011
| | | | | | | | | | | | | |
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 | |
| |
| |
Perkins Global Value Fund | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Forward currency contracts | | $ | 155,035 | | | Forward currency contracts | | $ | 189,439 | |
| |
| |
| Total | | | | $ | 155,035 | | | | | $ | 189,439 | |
| |
| |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2011.
The effect of Derivative Instruments on the Statement of Operations for the six-month period ended March 31, 2011
| | | | | | | | | | | | | | | | | | | | | |
| Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | | Forward
| | | | |
| | | | | | | | | | | | Currency
| | | | |
| Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
| |
| |
Perkins Global Value Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | (423,600 | ) | | $ | (423,600 | ) |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | (423,600 | ) | | $ | (423,600 | ) |
| |
| |
| | | | | | | | | | | | | | | | | | | | | |
| Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | | Forward
| | | | |
| | | | | | | | | | | | Currency
| | | | |
| Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
| |
| |
Perkins Global Value Fund | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | 191,911 | | | $ | 191,911 | |
| |
| |
| Total | | $ | – | | | $ | – | | | $ | – | | | $ | 191,911 | | | $ | 191,911 | |
| |
| |
Please see the Fund’s Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statement of Operations are indicative of the Fund’s volumes throughout the period.
| |
| 3. | Other investments and strategies |
Additional Investment Risk
Unforeseen events in both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. These events and the resulting market upheavals may have an adverse effect on the Fund, such as a decline in the value and liquidity of many securities held by the Fund, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in NAV, 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 the 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.
Further, the instability experienced in the financial markets has resulted in the U.S. Government and various other governmental and regulatory entities taking actions to address the financial crisis. These actions include, but are not limited to, the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd- Frank Act”) in July 2010 which is expected to dramatically change the way in which the U.S. financial system is supervised and regulated. More specifically, the Dodd- Frank Act provides for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, over-the-counter derivatives, investment advisers, credit rating agencies, and mortgage lending, which expands federal oversight in the financial sector and may affect the investment management industry as a whole. Given the broad scope, sweeping nature, and the fact that many provisions of the Dodd-Frank Act must be implemented through future rulemaking, the ultimate
28 | MARCH 31, 2011
impact of the Dodd-Frank Act, and any resulting regulation, is not yet certain. As a result, there can be no assurance that these measures will not have an adverse effect on the value or marketability of securities held by a Fund, including potentially limiting or completely restricting the ability of the Fund to use a particular investment instrument as part of its investment strategy, increasing the costs of using these instruments, or possibly making them less effective in general. Furthermore, no assurance can be made that the U.S. Government or any U.S. regulatory entity (or other authority or regulatory entity) will not continue to take further legislative or regulatory action in response to the economic crisis or otherwise, and the effect of such actions, if taken, cannot be known.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornados, mudslides or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk in respect to financial assets approximates its carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
The Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Exchange-Traded Funds
The Fund 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, the 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 Fund 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 Fund’s total return. The Fund will invest in these securities when desiring exposure to debt securities or commodities. When evaluating ETNs for investment, Janus Capital or the subadviser, as applicable, will consider the potential risks involved, expected tax efficiency, rate of return, and credit risk. When the Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the ETN. There may be restrictions on the Fund’s right to redeem its investment in an ETN, which is meant to be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary market.
Initial Public Offerings
The Fund 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.
Janus Value Fund | 29
Notes to Financial Statements (unaudited) (continued)
Interfund Lending
As permitted by the Securities and Exchange Commission (“SEC”), or the 1940 Act and rules promulgated thereunder, the Fund may be party to interfund lending agreements between the Fund 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 Fund 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 Fund 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 Fund may seek to earn additional income through lending its securities to certain qualified broker-dealers and institutions on a short-term or long-term basis. The Fund may lend portfolio securities on a short-term or long-term basis, in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. When the Fund lends its securities, it receives collateral (including cash collateral), at least equal to the value of securities loaned. The Fund may earn income by investing this collateral in one or more affiliated or nonaffiliated cash management vehicles. It is also possible that, due to a decline in the value of a cash management vehicle, the Fund may lose money. There is also the risk that when portfolio securities are lent, the securities may not be returned on a timely basis, and the Fund may experience delays and costs in recovering the security or gaining access to the collateral provided to the Fund to collateralize the loan. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. Janus Capital intends to manage the cash collateral in an affiliated cash management vehicle and will receive an investment advisory fee for managing such assets.
The borrower pays fees at the Fund’s direction to Deutsche Bank AG (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 Schedule of Investments (if applicable). The lending fees and the Fund’s portion of the interest income earned on cash collateral are included on the Statement of Operations (if applicable).
The Fund did not have any securities on loan during the period.
Short Sales
The Fund may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Fund owns or selling short a security that the Fund has the right to obtain, for delivery at a specified date in the future. The Fund may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Fund does not deliver from its portfolios the securities sold short and does not immediately receive the proceeds of the short sale. The Fund borrows the securities sold short and receives proceeds from the short sale only when it delivers the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Fund loses the opportunity to participate in the gain.
The Fund may also engage in other short sales. The Fund may engage in short sales when the portfolio manager anticipates that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Fund 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 the Fund’s net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, and uncovered written calls). The Fund 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 Fund 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 Fund are fully collateralized by restricted cash or other securities, which are denoted on the accompanying Schedule of Investments (if applicable). The Fund is also required to pay the lender of the security any dividends or interest that accrues on a borrowed security
30 | MARCH 31, 2011
during the period of the loan. Depending on the arrangements made with the broker or custodian, the Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Fund pays stock loan fees on assets borrowed from the security broker.
The Fund may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the Fund to similar risks. To the extent that the Fund enters into short derivative positions, the Fund may be exposed to risks similar to those associated with short sales, including the risk that the Fund’s losses are theoretically unlimited.
| |
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s “base” fee rate prior to any performance adjustment (expressed as an annual rate).
| | | | | | |
| | | Base
| | |
| | | Fee (%)
| | |
| Fund | | (annual rate) | | |
| |
| |
| Perkins Global Value Fund | | | 0.64 | | |
| |
| |
For the 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 the Fund has performed relative to its benchmark index, as shown below:
| | | | | | |
| Fund | | Benchmark Index | | |
| |
| |
| Perkins Global Value Fund | | | MSCI World IndexSM | | |
| |
| |
Only the base fee rate will apply until July 2011 for Perkins Global Value Fund. 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 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 will be equal to the time that has elapsed since the performance-based fee structure took effect. As noted above, any applicable Performance Adjustment will begin July 2011 for the 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 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 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 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
Janus Value Fund | 31
Notes to Financial Statements (unaudited) (continued)
investment record of the Fund’s benchmark index, Janus Capital will apply 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 statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment, if applicable.
Perkins Investment Management LLC (“Perkins”) serves as subadviser to the Fund. Janus Capital pays Perkins a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on the Fund’s performance relative to its benchmark index over the performance measurement period.
Perkins or its predecessors have been in the investment management business since 1984 and serves as investment adviser or subadviser to other Janus registered investment companies and other accounts. The same level of services is expected to be provided under the subadvisory arrangement as is currently provided. Janus Capital owns approximately 78% of Perkins.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund.
Class D Shares of the Fund pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by the Shares of the Fund for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of 0.25% of the average daily net assets of Class S Shares and Class T Shares of the Fund for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A, Class C, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Fund. The Fund has adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Fund 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, 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 Fund. If any of the Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in the “Distribution fees and shareholder servicing fees” in the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts
32 | MARCH 31, 2011
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 Fund as unrealized appreciation/(depreciation) and is shown as of March 31, 2011 on the Statement 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 Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2011 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. No deferred fees were distributed to any Trustee under the Deferred Plan during the period ended March 31, 2011.
For the period ended March 31, 2011, Janus Capital assumed $18,217 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 9. 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 Statement of Operations.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. Such officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer. The Fund reimburses Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff of the Trust. Total compensation of $285,682 was paid by the Trust during the period ended March 31, 2011. The Fund’s portion is reported as part of “Other Expenses” on the Statement of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2011, Janus Distributors retained the following upfront sales charge:
| | | | | | |
| | | Upfront
| | |
| Fund (Class A Shares) | | Sales Charge | | |
| |
| |
| Perkins Global Value Fund | | $ | 247 | | |
| |
| |
A contingent deferred sales charge of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no contingent deferred sales charges paid by redeeming shareholders of Class A Shares during the period ended March 31, 2011.
Class C Shares include a 1.00% contingent deferred sales charge paid by redeeming shareholders 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. There were no contingent deferred sales charges paid by redeeming shareholders of Class C Shares during the period ended March 31, 2011.
A 2.00% redemption fee may be imposed on Class D Shares, Class I Shares, Class S Shares, and Class T Shares of the Fund held for 90 days or less. This fee is paid to the Fund 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 Fund’s asset levels and cash flow due to short-term money movements in and out of the Fund. The redemption fee is accounted for as an addition to Paid-in Capital.
Total redemption fees received by the Fund for the period ended March 31, 2011 are indicated in the table below:
| | | | | | |
| Fund | | Redemption Fee | | |
| |
| |
| Perkins Global Value Fund | | $ | 807 | | |
| |
| |
The Fund’s 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 Statement of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statement of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statement of Operations (if applicable). The Fund could have employed the assets used by the custodian and/or transfer agent to
Janus Value Fund | 33
Notes to Financial Statements (unaudited) (continued)
produce income if it 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 Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing Fund”). 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 currently 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 Fund’s ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund 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 Fund.
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended March 31, 2011, as indicated in the following table.
| | | | | | | | | | | | | | | | | | | | | |
| | | Seed
| | | | | | | | | | Seed
| | |
| | | Capital at
| | | | Date of
| | | | Date of
| | Capital at
| | |
| Fund | | 9/30/10 | | Purchases | | Purchases | | Redemptions | | Redemptions | | 3/31/11 | | |
| |
| |
| Perkins Global Value Fund - Class A Shares | | $ | 1,000 | | $ | – | | | – | | $ | – | | | – | | $ | 1,000 | | |
| Perkins Global Value Fund - Class C Shares | | | 11,000 | | | – | | | – | | | – | | | – | | | 11,000 | | |
| Perkins Global Value Fund - Class I Shares | | | 11,000 | | | – | | | – | | | – | | | – | | | 11,000 | | |
| Perkins Global Value Fund - Class S Shares | | | 1,000 | | | – | | | – | | | – | | | – | | | 1,000 | | |
| |
| |
34 | MARCH 31, 2011
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2011 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 | | |
| |
| |
| Perkins Global Value Fund | | $ | 94,269,333 | | $ | 11,449,407 | | $ | (1,246,445) | | $ | 10,202,962 | | |
| |
| |
Net capital loss carryovers as of September 30, 2010 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 eleven-month fiscal period ended September 30, 2010
| | | | | | | | | |
| | | September 30,
| | Accumulated
| | |
| Fund | | 2017 | | Capital Losses | | |
| |
| |
| Perkins Global Value Fund | | $ | (5,003,319) | | $ | (5,003,319) | | |
| |
| |
Capital losses may be used to offset future taxable capital gains until expiration. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Janus Value Fund | 35
Notes to Financial Statements (unaudited) (continued)
| |
| 6. | Capital Share Transactions |
| | | | | | | | | | | | | | | |
For the six-month period ended March 31, 2011 (unaudited),
| | | | | | | | |
the eleven-month fiscal period ended September 30, 2010
| | | | | | | | |
and the fiscal year ended October 31, 2009
| | Perkins Global Value Fund | | |
| (all numbers in thousands) | | 2011 | | 2010(1) | | 2009(2) | | |
| |
| Transactions in Fund Shares – Class A Shares: | | | | | | | | | | | | | | |
| Shares sold | | | 8 | | | | 33 | | | | 1 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | (7) | | | | (20) | | | | – | | | |
| Net Increase/(Decrease) in Fund Shares | | | 1 | | | | 13 | | | | 1 | | | |
| Shares Outstanding, Beginning of Period | | | 14 | | | | 1 | | | | – | | | |
| Shares Outstanding, End of Period | | | 15 | | | | 14 | | | | 1 | | | |
| Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | |
| Shares sold | | | 4 | | | | – | | | | 1 | | | |
| Reinvested dividends and distributions | | | – | | | | – | | | | – | | | |
| Shares repurchased | | | – | | | | – | | | | – | | | |
| Net Increase/(Decrease) in Fund Shares | | | 4 | | | | – | | | | 1 | | | |
| Shares Outstanding, Beginning of Period | | | 1 | | | | 1 | | | | – | | | |
| Shares Outstanding, End of Period | | | 5 | | | | 1 | | | | 1 | | | |
| Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | |
| Shares issued in connection with restructuring (Note 8) | | | N/A | | | | 6,853(3) | | | | N/A | | | |
| Shares sold | | | 254 | | | | 274(3) | | | | N/A | | | |
| Reinvested dividends and distributions | | | 131 | | | | –(3) | | | | N/A | | | |
| Shares repurchased | | | (582) | | | | (728)(3) | | | | N/A | | | |
| Net Increase/(Decrease) in Fund Shares | | | (197) | | | | 6,399(3) | | | | N/A | | | |
| Shares Outstanding, Beginning of Period | | | 6,399 | | | | – | | | | N/A | | | |
| Shares Outstanding, End of Period | | | 6,202 | | | | 6,399 | | | | N/A | | | |
| Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | |
| Shares sold | | | 152 | | | | 238 | | | | 51 | | | |
| Reinvested dividends and distributions | | | 6 | | | | – | | | | – | | | |
| Shares repurchased | | | (43) | | | | (57) | | | | – | | | |
| Net Increase/(Decrease) in Fund Shares | | | 115 | | | | 181 | | | | 51 | | | |
| Shares Outstanding, Beginning of Period | | | 232 | | | | 51 | | | | – | | | |
| Shares Outstanding, End of Period | | | 347 | | | | 232 | | | | 51 | | | |
| Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | |
| Shares sold | | | 6 | | | | 60 | | | | 2 | | | |
| Reinvested dividends and distributions | | | 1 | | | | – | | | | – | | | |
| Shares repurchased | | | (24) | | | | (5) | | | | (1) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (17) | | | | 55 | | | | 1 | | | |
| Shares Outstanding, Beginning of Period | | | 56 | | | | 1 | | | | – | | | |
| Shares Outstanding, End of Period | | | 39 | | | | 56 | | | | 1 | | | |
| Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | |
| Shares reorganized in connection with restructuring (Note 8) | | | N/A | | | | (6,853) | | | | N/A | | | |
| Shares sold | | | 103 | | | | 477 | | | | 898 | | | |
| Reinvested dividends and distributions | | | 34 | | | | 116 | | | | 780 | | | |
| Shares repurchased | | | (225) | | | | (930) | | | | (1,843) | | | |
| Net Increase/(Decrease) in Fund Shares | | | (88) | | | | (7,190) | | | | (165) | | | |
| Shares Outstanding, Beginning of Period | | | 1,795 | | | | 8,985 | | | | 9,150 | | | |
| Shares Outstanding, End of Period | | | 1,707 | | | | 1,795 | | | | 8,985 | | | |
| | | |
| (1) | | Period from November 1, 2009 through September 30, 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 for Class A Shares, Class C Shares, Class I Shares and Class S Shares and November 1, 2008 through October 31, 2009 for Class T Shares. |
| (3) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
36 | MARCH 31, 2011
| |
| 7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2011, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities) 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 | | |
| |
| Perkins Global Value Fund | | $ | 30,266,362 | | $ | 28,056,300 | | $ | – | | $ | – | | |
| |
| |
| |
| 8. | 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 and in the Capital Share Transactions table in Note 6.
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 in several state and federal jurisdictions 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. 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 trial court for further proceedings. In June 2010, the United States Supreme Court agreed to review the Fourth Circuit’s decision. As a result of these developments at the Supreme Court, the trial court has stayed all further proceedings until the Supreme Court rules on the matter. In the Steinberg case (action (ii) above), the trial 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, in February 2010, Plaintiffs appealed the trial court’s decision with the Fourth Circuit.
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, “Improving Disclosures About Fair Value Measurements.” The Accounting Standards Update requires disclosures about purchases, sales, issuances,
Janus Value Fund | 37
Notes to Financial Statements (unaudited) (continued)
and settlements on a gross basis relating to Level 3 measurements. This disclosure is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Fund has early adopted the disclosure and is disclosing purchases and sales on a gross basis in the Level 3 roll forward accordingly. The adoption of this Accounting Standards Update did not have any impact on the Fund’s financial position or the results of its operations.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22, 2010. The Act makes changes to a number of tax rules impacting the Fund. Under the Act, future capital losses generated by a fund may be carried over indefinitely, but these losses must be used prior to the utilization of any pre-enactment capital losses. Since pre-enactment capital losses may only be carried forward for eight years, there may be a greater likelihood that all or a portion of a fund’s pre-enactment capital losses will expire unused. In general, the provisions of the Act will be effective for the Fund’s fiscal year ending September 30, 2012.
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2011 and through the date of issuance of the Fund’s financial statements and determined that there were no other material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
38 | MARCH 31, 2011
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Fund’s website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its 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 Fund’s 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 Agreement During The Period
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee, (“the 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 nine 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 Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and at the request of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 3, 2010, 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, 2011 through February 1, 2012, 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
Janus Value Fund | 39
Additional Information (unaudited) (continued)
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 several 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
40 | MARCH 31, 2011
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 many Funds pay advisory fees at a fixed rate as a percentage of net assets, without any breakpoints, the actual 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, including research and analysis conduct by the Trustees’ independent fee consultant, 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 3, 2010 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.
Janus Value Fund | 41
Explanations of Charts, Tables and
Financial Statements (unaudited)
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the 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 the 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 the Fund invested in the index.
Average annual total returns are also quoted for the 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 prior fiscal year. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The total annual fund operating expenses ratio is based on average net assets as of the fiscal period ended September 30, 2010. The ratio also includes expenses indirectly incurred by the 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, this ratio 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. | Schedule of Investments |
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund’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. The 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 the 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 Fund’s 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.
| |
| 3. | Statement of Assets and Liabilities |
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets (assets minus liabilities) by the number of shares outstanding.
42 | MARCH 31, 2011
| |
| 4. | Statement of Operations |
This statement details the Fund’s 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 Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Fund. The Fund will realize a gain (or loss) when it sells its position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| |
| 5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment performance. The Fund’s 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 Fund to pay the distribution. If investors reinvest their dividends, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on the 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 Fund through purchases or withdrawals via redemptions. “Redemption Fees” (if applicable) refers to the fee paid to the Fund for shares held for 90 days of less by a shareholder. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
This schedule provides a per-share breakdown of the components that affect the 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 Fund. 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 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 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 Fund’s expenses may be reduced through expense-reduction arrangements. These arrangements may include the use of balance credits or transfer agent fee offsets. The Statement 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 the Fund during the reporting period. Don’t confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it 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 the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the
Janus Value Fund | 43
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
nature of the Fund’s investments and the investment style and/or outlook of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
44 | MARCH 31, 2011
Notes
Janus Value Fund | 45
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 fixed income 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).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary 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.
Funds distributed by Janus Distributors LLC (05/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
| C-0411-017 | 125-24-02800 05-11 |
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 or Iran in accordance with Section 13(c) of the Investment Company Act of 1940. |
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 (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred 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 27, 2011 | | |
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 27, 2011 | | |
| | | | | |
|
| 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 27, 2011 | | |
